Course 2 Final Exam Practice Set Questions And Answers Guaranteed Pass A+ Score.

Someone who, for another and for compensation, negotiates the sale of real property in Minnesota is a ______. - correct answer Real Estate Broker Interest earned on a security deposit - correct answer accrues on the first day of the month following deposit. How to ensure override clause is effective - correct answer Provide a protective list within 72 hours of the listing agreement's expiration registering land with the county court and submitting an application earns a landowner what? - correct answer Certificate of title Subdivided land offer, what must be true - correct answer The land has been registered or is exempt from registration with the Minnesota Department of Commerce. When are property taxes due in Minnesota? - correct answer May 15th yearly, and October 15th if paid semiannually How many days do contractors have to file the lien if they don't receive payment for a job? - correct answer 120 days from the date labor is completed or final delivery of materials When can a landlord deposit screening fees - correct answer after all applicants have been screened and either rejected or offered a rental unit what happens to a buyers' earnest money upon their offer being refused? - correct answer It must be returned no later than the next business day after rejection. notified the homeowner warranty vendor of a defect with a window 10 months after moving into the property. What does the vendor need to do next? - correct answer Inspect the defect within 30 days of the notification. Are unwritten contracts enforcable if the goods are created specifically for the buyer and can't be sold to others? - correct answer Yes Contractor's Right to Lien - correct answer Notice must inform the contractor's right to lien and right to pay off subcontractors How must homeowners in MN pay their property tax - correct answer They must pay half of the statement amount by May 15 and the remaining half by October 15. MN seller in contract for deed obtains what rights? - correct answer Legal title rights Minnesota commerce commissioner NOT empowered to - correct answer Investigate a complaint that a licensee acted unethically. What agency oversees the Underground Storage Tank Program in Minnesota? - correct answer Minnesota Pollution Control Agency The Lake Superior Condominium Association was formed in June 1990. Which statement best describes their participation in the Minnesota Common Interest Ownership Act? - correct answer Common interest ownership associations created after June 1, 1994 are automatically required to participate in this act. The same goes for condos, regardless of when they were formed. Single-family or townhome associations created before June 1, 1994 must opt in. In Minnesota, what's the rescission period after a purchaser receives a copy of the subdivision sales contract? - correct answer Five Days How many transactions can builders sell before they are required to be licensed? - correct answer they don't need a license unless they're involved in at least 25 transactions in a 12-month period. What's the maximum paid out from the Real Estate Education, Research, and Recovery Fund? - correct answer $150,000 Is gender identity a protected class under the Minnesota Human Rights Act? - correct answer Yes, as part of the protected class of sexual orientation. How is an automatic transfer executed? - correct answer transfer application must be signed by original broker prior to the new broker signing. The original broker destroys the salesperson's license. The new broker submits the application and transfer fee to the commission. Two parties in contract for deed - correct answer vendor and vendee. considered a "responsible person" per Minnesota license law - correct answer natural person who may be an officer of a corporation, partner of a partnership, general partner of an LLP, or the manager of an LLC. How to end an associate relationship with another - correct answer Notify other party, then the broker must notify the commission of the termination within 10 days. A homestead property owner has failed to pay their taxes by May 15th. What penalty will be assessed on June 1? - correct answer Upon the due date, a penalty of 2% for homestead property (4% for nonhomestead property) is assessed. The first day of the month following the due date, an additional penalty of 2% for homestead property (4% for nonhomestead) is assessed. Which of the following statements best describes "module training" related to Minnesota continuing education requirements? - correct answer The commission requires 3.75 or 7.5 hours of module training every license year within the two-year renewal period. Every year the commission will determine the modules and the number of hours that are required. The seller may be held responsible to the buyer for damages up to what amount for violating the contract for deed agreement? - correct answer $2,500 How long do buyers in contract for deed transactions have to terminate the contract upon receiving disclosures? - correct answer five business days Katherine is a buyer in Minnesota. She made an offer on a property and provided earnest money payment on Tuesday. The seller accepted the offer on Wednesday. What happens to Katherine's earnest money? - correct answer Unless stated otherwise in a written agreement, earnest funds are deposited by the listing broker within three business days from the date of receipt or acceptance of the purchase agreement, whichever is later A real estate broker in Minnesota collected rent from several properties. Into which of the following accounts must those rents be deposited? - correct answer Broker's trust account --> Rent collections are considered trust funds, so must be deposited into a trust account. If rent were deposited into any of these other accounts, the broker may be committing a commingling violation. Joy is a new salesperson licensee in Minnesota. She received her license in the first year of the current renewal period. How many continuing education hours does she need to complete to renew her license? - correct answer All licensees must complete 30 hours of continuing education (CE) (either as a student or instructor) in approved courses during their initial license period, and every 24-month period after that. refusal to show a property to a person based on their sexual orientation violates: - correct answer The Minnesota Human Rights Act when can a landlord charge a late fee for rent? - correct answer A 5% fee that's disclosed and agreed to in the lease agreement between landlord and the tenants buyer default 3 months of contract for deed, how can seller proceed? - correct answer Seller must provide 60 days' notice that the contract will terminate if the buyer doesn't correct the default. After which, they can begin eviction proceedings. In Minnesota, license withdrawals without extenuating circumstances become effective how long after the receipt of a withdrawal request? - correct answer 30 days purchase price of a Minnesota property for $350,000. Buyer put down $70,000 and financed the remaining $280,000. How much deed tax did she owe for the purchase? - correct answer Deed tax is the value of the property multiplied by .0033. So, $350,000 x .0033 = $1,155 Test takers in Minnesota must score a minimum of ______ to pass each portion of the licensing exam. - correct answer 75% In the event a potential buyer cancels the contract for deed transaction in accordance with the law, the seller must ______. - correct answer Refund all monies put down or payments made Arlene is the vendor in a contract for deed arrangement. The vendee is not making his monthly payments. What is the process Arlene can use to reclaim equitable title of the property? - correct answer Termination Porter owns a house that sits on 30 acres of land. He uses the property for vacationing, hunting, and other recreational purposes. He's paid off about a quarter of the mortgage, but is now in foreclosure. If the property is sold at a foreclosure sale, how long can Porter expect the statutory redemption period to last? - correct answer Occupied properties generally have a six-month statutory redemption period. This period is extended to 12 months if the property is 40+ acres, 10+ acres and used for agricultural purposes, or the borrower owes less than two-thirds on the mortgage. The Wilsons hired Gary to build an addition onto their house in Minnesota. Gary subcontracted out the electrical work to Oliver. Within how many days must Gary and Oliver deliver lien notices to the Wilsons? - correct answer Contractors have 10 days from the original contract date, and subcontractors have 45 days from the date he first provides labor or materials. Minnesota broker responsibilities for salesperson supervision are outlined in the standards of conduct. Which of the following is one of these responsibilities? - correct answer Document and investigate all complaints against licensees. What is the maximum civil penalty that can be imposed for a license law violation in Minnesota? - correct answer $10,000 Protected Lists - correct answer 2 days after terminated contract Minnesota license renewal fee - correct answer $20 Abstract Vs. Torrens recording systems in MN - correct answer Abstract: County Torrens: Court How many additional education hours are required for a Minnesota real estate salesperson to become a licensed broker? - correct answer 30 Robbie's lender notifies him of an impending foreclosure, and is told that his property will be sold at public auction. Six months after the auction occurs, Robbie receives a notice of eviction for which the lender had to petition a court. What does this describe? - correct answer In foreclosure by advertisement, the borrower is notified of the default and pending public auction of the property. After the auction takes place, the winning bidder has to petition the court for a notice of eviction In Minnesota, in which of the following situations can you sell subdivided lands without a real estate license? - correct answer When the lots are registered and are being sold as securities In which situation is the contract for deed disclosure required to be presented to a buyer in Minnesota? - correct answer When the buyer is not represented by either an attorney or a real estate licensee Which of the following classes were added to the Minnesota Human Rights Act? - correct answer Marital Status, sexual orientation, and age Which of the following scenarios constitutes illegal licensee compensation in Minnesota? - correct answer Miranda's seller client reimbursed Miranda for the special signage she paid for when marketing his property. Which of the following would be prohibited in Minnesota, but would not be prohibited by federal law? - correct answer Refusing to rent to a gay person LuAnn is a Minnesota real estate licensee. Several of her former clients were awarded final judgments related to LuAnn's illegal trust fund conversion activities. Which statement best describes any recovery that could be paid out by the Real Estate Education, Research, and Recovery Fund to LuAnn's victims? - correct answer A maximum of $150,000 may be paid per claimant, per transaction, and $250,000 per licensee.