MN REAL ESTATE NATIONAL EXAM Complete And Verified Answers Graded A+

For a homestead exemption which of the following properties would qualify for an exemption through MN Homestead law? - correct answer 1.A 200-acre ranch 2.A primary residence on an acre lot 3.A second home 4.A second home in the city on a three-quarter-acre lo A seller tells his agent that he has to sell his house quickly because of a divorce proceeding and that he's willing to accept less than his list price. His agent tells a buyer that the seller will accept as much as $10,000 less than the list price. Which of these is true? - correct answer 1.The agent has breached his duty of confidentiality to his client. 2.The agent hasn't violated any fiduciary responsibilities to his client. 3.The buyer is prohibited from making an offer because of the agent's breach of confidentiality. 4.Unless the agent has the seller's permission to share this information, the agent should have disclosed only that the seller is willing to reduce his price, not the amount. Answ:1 Drew and Hank were camping at Hank's riverfront cabin. Hank told Drew that he rarely used the cabin and was thinking of selling it. Drew said that he'd buy it from Hank for $80,000, which Hank agreed was a fair price. It's two months later, and Hank is upset that Drew now says he won't buy it. Why isn't this contract enforceable? - correct answer Drew didn't have the financial resources to make the offer. Real estate contracts must be in writing. There was no offer and acceptance. This wasn't a legal purpose. Why is it important for buyers to know if a property is in a special flood hazard area (SFHA)? - correct answer Borrowers with homes in a floodplain must purchase a standard homeowners' policy Borrowers with homes in a floodplain must purchase flood insurance. Homes in a floodplain area aren't insurable. Lenders won't fund loans on homes located in a floodplain. In Minnesota, when should you present the agency disclosure form to a potential client? - correct answer At every open house you hold At the first point of contact At the first substantive contact When you hear the words "I want to be your client." At first substantive contact Which of these situations does the Americans with Disabilities Act address? Unset starred question - correct answer Marcus, a property manager, routinely dismisses rental applications from families with children under the age of 18. Meridian Apartments provides a gym and pool area for residents, but it's not accessible to residents who use wheelchairs. Metro Agents hired an interpreter to assist Spanish-speaking clients with the real estate process. The Golden Gate senior housing center has no exercise or activity center for its residents. Which of the following is an example of price fixing? - correct answer A brokerage requires all licensees to offer a fair cooperative brokerage fee. Three brokerages agree to purchase office supplies together to obtain a bulk discount. Twelve brokerages discuss compensation of associated independent contractor licensees. Two brokerages determine a standard commission rate. Two brokerages determine a standard commission rate. A real estate transaction has a closing date of May 20. The seller, who's responsible for closing costs up to but not including the day of closing, has already paid annual property taxes of $1,949. How will the closing statement reflect the proration for the seller? Use a calendar year proration, and round to the nearest dollar. - correct answer Credited $1,207 Credited $742 Debited $1,207 Debited $742 Which one of these examples creates vicarious liability for the brokerage? - correct answer One of the brokerage's clients is found guilty of mortgage fraud. One of the brokerage's listings is destroyed in an earthquake. The brokerage is accused of discrimination under the Fair Housing Act. The brokerage's licensee neglects to provide required disclosures to a client. A landlord has an available unit but refuses to show it to several applicants. These applicants are all single women with children. The applicants who are shown the apartment are all individuals or couples without children. In what way is the landlord violating fair housing law? - correct answer He is advertising the unit in a restrictive way that discriminates against those with children. He is discriminating against people based on familial status by refusing to show available housing. He is discriminating by offering special terms for rental based on a protected class status. He is sexually harassing potential tenants. Upon examination of his mortgage document, Jared finds a clause stating he will owe additional interest if he pays off his loan within one year of the loan origination date. What type of penalty does this describe? - correct answer Acceleration Alienation Defeasance Prepayment Prepayment Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages. Last month, he was paid $12,239.50 in commissions from his home sales, which totaled $538,000. Assuming every transaction for the month was shared with a cooperating brokerage, what is Jared's brokerage's commission rate? - correct answer 2.3% 3.8% 6.5% 7.6% Zelda has fifteen acres of wetlands with a channel on the back edge of her property that leads to a waterway. She would like to clear the channel of gravel and sediment so she can get her fishing boat in and out more easily. Which of the following is a true statement? - correct answer No permit is required since the Zelda is only removing gravel and sediment. She can't remove the gravel and sediment. This activity may require a permit since a wetland area is involved and special federal and state protections may be in place. Zelda doesn't need a permit since the channel is on her property. Marvin, a broker for PDQ Realty, died unexpectedly. The Department of Commerce will allow a licensee to serve as temporary broker as long as ______. - correct answer The licensee has a broker's license and serves in the temporary capacity for no more than 120 days The licensee has at least three years of experience, even if the licensee doesn't hold a broker's license The licensee is already a member of the brokerage The license is related to the former broker The licensee has at least three years of experience, even if the licensee doesn't hold a broker's license Which of the following associations is automatically required to participate in the Minnesota Common Interest Ownership Act? - correct answer A common interest ownership association created in January 1994 A condo association formed in January 1993