MN 30-Hour Salesperson Course 1
**How many hours of education must an applicant for a salesperson's license take in
Minnesota before applying for a license? - ANS -90
Course 1 - ANS -What must you complete before you sit for your license exam?
Courses 1,2,3 - ANS -What courses must be completed before you can apply for your
license?
Purpose of License Laws - ANS -License laws exist to protect consumers
Law/Statute - ANS -begins as legislation proposed by and voted into effect by a state
legislature
Regulation - ANS -a standard or rule adopted by a government agency, such as a state
department of commerce or a state real estate commission
License laws protect consumers by ensuring a standard of professionalism by (4) - ANS
--Establishing basic education and experience requirements for licensure
-Defining activities that require a license
-Describing standards of conduct
-Enforcing standards of conduct through penalties, sanctions, and license denial
Minnesota Department of Commerce Licensing Unit - ANS -Which entity is in charge of
licensing real estate professionals in Minnesota?
How soon must you notify the Minnesota Department of Commerce Licensing Unit if
anything changes (like address, phone #, legal name, etc.)? - ANS -within 10 days
What are the 3 functions of the licensing unit? - ANS -- Administer initial licensing
-Oversee license renewal
-Provide education and exam information
30 days - ANS -How soon must licensees respond to any commissioner request
Who can the commissioner investigate? - ANS -Those licensed under laws administered
by the Department of Commerce
2 Years - ANS -How long you must wait to apply for restatement if your license is
revoked
,Violations of license law are considered... - ANS -gross misdemeanors
Associate Broker - ANS -A broker who chooses to work for another broker
Brokerage - ANS -Any business structure, such as a corporation or LLC, that holds a
real estate broker license
Buyer's Broker - ANS -A licensee who represents a buyer under a signed buyer's broker
agreement, and owes the buyer fiduciary duties
Closing Agent - ANS -A person who provides closing services
Commissioner - ANS -The commissioner of commerce or a designee
Licensee - ANS -A person duly licensed under Chapter 82
Limited Broker - ANS -A broker authorized to conduct real estate transactions as
principal only.
Loan Broker - ANS -A person who, for a fee, directly or indirectly, negotiates or offers or
attempts to negotiate a loan secured or to be secured by a mortgage or other
encumbrance on real estate
Primary Broker - ANS -The broker on whose behalf salespersons are licensed.
Real Estate Broker - ANS -A person who, for another and for a fee, or with the intention
or expectation of receiving compensation, lists, sells, exchanges, buys or rents,
manages, or offers or attempts to negotiate a sale, option, exchange, purchase or rental
of an interest or estate in real estate, or claims to be engaged in these activities
Anyone who acts as a principal in BLANK transactions within a 12 month period is said
to be officially engaged in real estate. - ANS -5 or more
Real Estate Salesperson - ANS -One who acts on behalf of a real estate broker in
performing any act authorized by Chapter 82
Seller's broker - ANS -A licensee who represents a seller under a signed seller's broker
agreement, and owes to the seller fiduciary duties
Sponsor - ANS -A person offering or providing real estate education
,Trust account - ANS -A savings account, negotiable order of withdrawal account,
demand deposit or checking account maintained for the purpose of segregating trust
funds from other funds.
**What's a trust fund (as commonly used in real estate)? - ANS -Money or other item of
value accepted by a real estate licensee on behalf of a party to the transaction.
3 - ANS -Years experience as a salesperson to be a broker
30 - ANS -additional hours of education needed to be a broker
Licensees must complete BLANK of the required 30 hours of continuing education in the
first 12 months of each renewal period? - ANS -15
By what date must the broker notify the salesperson if they will not be renewing the
person's license? - ANS -30 days before June 15
The date after which a licensee cannot perform real estate activities if they're renewal
requirements are not done by June 15 - ANS -June 30
In Minnesota what is true about the continuing education for brokers compared to
salespeople? - ANS -The requirements are the same as for a salesperson with one
additional requirement
License status will change when a licensee... (3) - ANS --Terminates a relationship with a
broker
-Transfers to a new broker
-Goes inactive or reactivates a license
How soon must a broker notify the commissioner after termination? - ANS -10 days
automatic transfer - ANS -If a salesperson is terminating association with one broker to
immediately associate with another broker,
If a broker dies or is incapacitated or loses his license what can happen? - ANS -The
commissioner may issue a 45-day temporary permit to a licensee with at least three years
of experience as a real estate salesperson and who's reasonably qualified to act as a
broker, even if the licensee is not a broker.
Escrow Account - ANS -a temporary pass-through bank account held by an escrow
agent or officer (usually a broker, title company representative, or attorney) who's
responsible for maintaining funds that belong to others.
, earnest money - ANS -Buyers offer earnest money to show their commitment to the
purchase.
What happens to Escrow Funds? - ANS -escrow agent holds these funds in a special
escrow (or trust) account until the buyer, seller, and their mortgage companies have all
documents in order.
When all terms of the agreement are satisfied, the escrow agent disburses the money
held in escrow (typically toward the buyer's down payment).
commingling - ANS -mixing the client's money with your own.
Conversion - ANS -Conversion is using escrow funds for your own use
what are the 2 allowable reasons for commingling - ANS --if the bank requires you to
maintain a minimum balance
-if you need to pay account service charges
what does the mortgage lender use the money in an escrow account to pay? - ANS
-Taxes and insurance
If a broker collects rent from several properties, what account must the rents be
deposited into? - ANS -The broker's trust account
Misrepresentation - ANS --Representing more than one party in a transaction without full
disclosure or permission of the parties
-Providing real estate services while your license is inactive.
-Guaranteeing future profits
-Lying or making a material misstatement on your license application or any other
documents provided to the commission.
Related Services - ANS --Requiring a specific bank or closing agent
-Discouraging the use of an attorney
Acting Outside the Scope of One's License - ANS --Selling debt
-You may not provide services for a fee for which you aren't licensed
Fraudulent Practices - ANS --Providing untruthful advertising statements
-Violating state or federal fair housing laws
-Failing to maintain a trust account. Note that this is not a violation if trust funds are
placed in an escrow account.
-Giving money or goods with a monetary value to an unlicensed person who isn't a party
to the transaction for helping you get a listing or a buyer client
**How many hours of education must an applicant for a salesperson's license take in
Minnesota before applying for a license? - ANS -90
Course 1 - ANS -What must you complete before you sit for your license exam?
Courses 1,2,3 - ANS -What courses must be completed before you can apply for your
license?
Purpose of License Laws - ANS -License laws exist to protect consumers
Law/Statute - ANS -begins as legislation proposed by and voted into effect by a state
legislature
Regulation - ANS -a standard or rule adopted by a government agency, such as a state
department of commerce or a state real estate commission
License laws protect consumers by ensuring a standard of professionalism by (4) - ANS
--Establishing basic education and experience requirements for licensure
-Defining activities that require a license
-Describing standards of conduct
-Enforcing standards of conduct through penalties, sanctions, and license denial
Minnesota Department of Commerce Licensing Unit - ANS -Which entity is in charge of
licensing real estate professionals in Minnesota?
How soon must you notify the Minnesota Department of Commerce Licensing Unit if
anything changes (like address, phone #, legal name, etc.)? - ANS -within 10 days
What are the 3 functions of the licensing unit? - ANS -- Administer initial licensing
-Oversee license renewal
-Provide education and exam information
30 days - ANS -How soon must licensees respond to any commissioner request
Who can the commissioner investigate? - ANS -Those licensed under laws administered
by the Department of Commerce
2 Years - ANS -How long you must wait to apply for restatement if your license is
revoked
,Violations of license law are considered... - ANS -gross misdemeanors
Associate Broker - ANS -A broker who chooses to work for another broker
Brokerage - ANS -Any business structure, such as a corporation or LLC, that holds a
real estate broker license
Buyer's Broker - ANS -A licensee who represents a buyer under a signed buyer's broker
agreement, and owes the buyer fiduciary duties
Closing Agent - ANS -A person who provides closing services
Commissioner - ANS -The commissioner of commerce or a designee
Licensee - ANS -A person duly licensed under Chapter 82
Limited Broker - ANS -A broker authorized to conduct real estate transactions as
principal only.
Loan Broker - ANS -A person who, for a fee, directly or indirectly, negotiates or offers or
attempts to negotiate a loan secured or to be secured by a mortgage or other
encumbrance on real estate
Primary Broker - ANS -The broker on whose behalf salespersons are licensed.
Real Estate Broker - ANS -A person who, for another and for a fee, or with the intention
or expectation of receiving compensation, lists, sells, exchanges, buys or rents,
manages, or offers or attempts to negotiate a sale, option, exchange, purchase or rental
of an interest or estate in real estate, or claims to be engaged in these activities
Anyone who acts as a principal in BLANK transactions within a 12 month period is said
to be officially engaged in real estate. - ANS -5 or more
Real Estate Salesperson - ANS -One who acts on behalf of a real estate broker in
performing any act authorized by Chapter 82
Seller's broker - ANS -A licensee who represents a seller under a signed seller's broker
agreement, and owes to the seller fiduciary duties
Sponsor - ANS -A person offering or providing real estate education
,Trust account - ANS -A savings account, negotiable order of withdrawal account,
demand deposit or checking account maintained for the purpose of segregating trust
funds from other funds.
**What's a trust fund (as commonly used in real estate)? - ANS -Money or other item of
value accepted by a real estate licensee on behalf of a party to the transaction.
3 - ANS -Years experience as a salesperson to be a broker
30 - ANS -additional hours of education needed to be a broker
Licensees must complete BLANK of the required 30 hours of continuing education in the
first 12 months of each renewal period? - ANS -15
By what date must the broker notify the salesperson if they will not be renewing the
person's license? - ANS -30 days before June 15
The date after which a licensee cannot perform real estate activities if they're renewal
requirements are not done by June 15 - ANS -June 30
In Minnesota what is true about the continuing education for brokers compared to
salespeople? - ANS -The requirements are the same as for a salesperson with one
additional requirement
License status will change when a licensee... (3) - ANS --Terminates a relationship with a
broker
-Transfers to a new broker
-Goes inactive or reactivates a license
How soon must a broker notify the commissioner after termination? - ANS -10 days
automatic transfer - ANS -If a salesperson is terminating association with one broker to
immediately associate with another broker,
If a broker dies or is incapacitated or loses his license what can happen? - ANS -The
commissioner may issue a 45-day temporary permit to a licensee with at least three years
of experience as a real estate salesperson and who's reasonably qualified to act as a
broker, even if the licensee is not a broker.
Escrow Account - ANS -a temporary pass-through bank account held by an escrow
agent or officer (usually a broker, title company representative, or attorney) who's
responsible for maintaining funds that belong to others.
, earnest money - ANS -Buyers offer earnest money to show their commitment to the
purchase.
What happens to Escrow Funds? - ANS -escrow agent holds these funds in a special
escrow (or trust) account until the buyer, seller, and their mortgage companies have all
documents in order.
When all terms of the agreement are satisfied, the escrow agent disburses the money
held in escrow (typically toward the buyer's down payment).
commingling - ANS -mixing the client's money with your own.
Conversion - ANS -Conversion is using escrow funds for your own use
what are the 2 allowable reasons for commingling - ANS --if the bank requires you to
maintain a minimum balance
-if you need to pay account service charges
what does the mortgage lender use the money in an escrow account to pay? - ANS
-Taxes and insurance
If a broker collects rent from several properties, what account must the rents be
deposited into? - ANS -The broker's trust account
Misrepresentation - ANS --Representing more than one party in a transaction without full
disclosure or permission of the parties
-Providing real estate services while your license is inactive.
-Guaranteeing future profits
-Lying or making a material misstatement on your license application or any other
documents provided to the commission.
Related Services - ANS --Requiring a specific bank or closing agent
-Discouraging the use of an attorney
Acting Outside the Scope of One's License - ANS --Selling debt
-You may not provide services for a fee for which you aren't licensed
Fraudulent Practices - ANS --Providing untruthful advertising statements
-Violating state or federal fair housing laws
-Failing to maintain a trust account. Note that this is not a violation if trust funds are
placed in an escrow account.
-Giving money or goods with a monetary value to an unlicensed person who isn't a party
to the transaction for helping you get a listing or a buyer client
