Conveyance Procedures and Protection of Parties - MN

Question 1

The owner of a Torrens property would receive an abstract to prove ownership.

Answer 1

False - The owner would receive a certificate of title

Question 2

A divorce proceeding will result in a Decree of Dissolution of Marriage

Answer 2

True

Question 3

A Decree of Dissolution of Marriage severs ownership EXCEPT joint tenancies.

Answer 3

False - A Decree of Dissolution severs joint tenancies

Question 4

A Decree of Dissolution of Marriage severs all joint tenancies EXCEPT those the decree preserves

Answer 4

True

Question 5

A divorce would sever a joint tenancy in a home

Answer 5

True

Question 6

Divorcing couples owning several properties typically use a general warranty deed to release spousal interests in relinquished properties

Answer 6

False - They typically use a quitclaim deed

Question 7

A Registered Land Survey is a type of survey unique to VA loans.

Answer 7

False - A Registered Land Survey is a type of survey unique to Torrens property.

Question 8

A septic system certificate of compliance is issued by a licensed general contractor.

Answer 8

False - A septic system certification is issued by a licensed septic inspector

Question 9

For an existing septic system, the certificate of compliance is valid for 5 years.

Answer 9

False - It is valid for 3 years

Question 10

Title to Torrens property transfers upon delivery and acceptance of the deed.

Answer 10

False - Title to Torrens property transfers upon registration of the Certificate of Title.

Question 11

The act of land title registration occurs when the registrar of titles accepts the decree of registration.

Answer 11

False - It occurs when the certificate of title is placed in the register of titles.

Question 12

A new septic system certificate of compliance is valid for 3 years.

Answer 12

False - It is valid fir 5 years

Question 13

The Minnesota Commissioner of Commerce is responsible for maintaining and updating the register of titles.

Answer 13

False - The county recorder/registrar of titles is responsible for maintaining and updating the register of titles.

Question 14

Ownership of registered property is transferred by a certificate of title.

Answer 14

False - It is transferred by deed, evidenced by certificate of title

Question 15

A Registered Land Survey (RLS) may be required to create to split Torrens/registered property.

Answer 15

True

Question 16

Mr. and Mrs. Largent purchase a house. If the method of taking title is NOT specified, they are legally considered to be joint tenants.

Answer 16

False - They are legally considered to be tenants in common

Question 17

The seller must disclose the status and location of all known wells on the property before signing a listing agreement.

Answer 17

False - The seller must disclose before signing the purchase agreement.

Question 18

The seller must indicate in a well disclosure statement whether or not municipal water services are available.

Answer 18

True

Question 19

The seller must disclose the status and location of individual sewage treatment systems on the property or serving the property before signing a purchase agreement.

Answer 19

True

Question 20

A deed simply conveys to John Smith and Mary Smith, but it does NOT say how they hold title or in what proportions. It may be presumed that John and Mary are joint tenants

Answer 20

False - It may be presumed they are tenants in common

Question 21

A spouse’s signature on a deed may be made by the spouse’s duly appointed attorney-in-fact.

Answer 21

True

Question 22

If an owner is married, a deed to the homestead is valid without the signature of the other spouse.

Answer 22

False - Both spouses or their duly appointed attorney-in-fact must sign.

Question 23

A husband and wife have chosen to take title to their homestead as tenants in common. When these owners sell, both the husband’s and the wife’s signatures will be needed to transfer title.

Answer 23

True

Question 24

Statutory new home warranties take effect at the signing of the purchase agreement.

Answer 24

False - They take effect at closing or first legal occupancy

Question 25

An owner discovering a defect covered by the statutory new home warranty must notify the builder within 30 days.

Answer 25

False - An owner has up to and must notify the builder within 6 months.

Question 26

Legal action for a breach of the statutory new home warranty must commence within 1 year after notifying the builder

Answer 26

False - It must commence within 180 days (6 months)

Question 27

Statutory new home warranties cover structural damage

Answer 27

False - The Statutory New home warranties cover structural DEFECTS

Question 28

Defects caused by faulty workmanship and materials are covered for only 1 year under the statutory new home warranty.

Answer 28

True

Question 29

The statutory new home warranty covers defects from faulty plumbing, electrical, heating, and cooling for a period of 3 years.

Answer 29

False- The coverage is for a period of 2 years

Question 30

The statutory new home warranty states that for 10 years, the dwelling will be free from major construction defects.

Answer 30

True

Question 31

Storm damage is covered under the statutory new home warranty.

Answer 31

False - Construction defects are covered, not damage

Question 32

The remainder of a statutory home warranty transfers to a future purchaser.

Answer 32

True

Question 33

Statutory home warranties go into effect when the improvements are completed.

Answer 33

False - They go into effect on the first day of legal occupancy

Question 34

The owner shall bring legal action against the builder within 1 year of giving notice of discovery of the breach.

Answer 34

False - The owner should bring legal action within 180 days of giving notice

Question 35

If a plumber has recently completed installation of a new plumbing system in a home, the warranty for defects related to installation of these items is 1 year.

Answer 35

False - The warranty is 2 years

Question 36

In every sale of a new dwelling, Statutory New Home Warranty Law requires the contractor to warrant that the property is free of major construction defects for 10 years.

Answer 36

True

Question 37

Statutory new home warranties take affect at the signing of the purchase agreement.

Answer 37

False - Closing or first legal occupancy

Question 38

The Minnesota Statute of Frauds provides that all leases for less than 1 year must be in writing.

Answer 38

False - Leases longer than 12 months must be in writing

Question 39

In Minnesota, all leases for more than 1 year must be in writing

Answer 39

True

Question 40

All leases must be in writing to be enforceable

Answer 40

False - Verbal leases may be 12 months or less

Question 41

A contract for the sale of real property must be in writing and signed by both parties.

Answer 41

True

Question 42

Oral agreements for the sale of real property are NOT enforceable.

Answer 42

True

Question 43

Offers to purchase real estate must be in writing and signed by the offeror and offeree.

Answer 43

True

Question 44

To be enforceable, a commercial lease for 6 months must in writing.

Answer 44

False - Any Leases 12 months or less are not required to be in writing to be enforceable.

Question 45

Options to purchase do NOT have to be in writing.

Answer 45

Contracts for transferring interest in real estate must be in writing.

Question 46

In residential buildings of 12 or more units, all leases must be in writing

Answer 46

True

Question 47

To avoid confusion that could occur from an oral agreement, all transfers of an interest in real estate must be in writing and signed by the parties to perform EXCEPT a lease of 12 months or less in residential properties containing fewer than 12 units.

Answer 47

True

Question 48

A licensed salesperson must act on a landlord's instruction to refuse to rent to a minority

Answer 48

False - Licensees may never discriminate

Question 49

A broker may NOT advertise a reduced commission fee on any property listed in a certain ethnic neighborhood.

Answer 49

True

Question 50

financial institution has the right to require a larger down payment from a loan applicant who admits she is on welfare.

Answer 50

False - The financial institution may not discriminate on basis of receipt of public assistance.

Question 51

Under the Minnesota Human Rights Act, the owner-occupant of a duplex may NOT refuse to rent the other to a family with children.

Answer 51

False - Owner occupant of a 1- to 4-unit building may discriminate based upon familial status

Question 52

The owner of a duplex may refuse to rent a unit to anyone over a certain age.

Answer 52

True - Age discrimination is not restricted

Question 53

Discrimination based on sexual orientation, marital status, or public assistance status constitutes a violation of the Minnesota Human Rights Act.

Answer 53

True

Question 54

Discrimination based on race, religion, sex, or national origin constitutes a violation of the Minnesota Human Rights Act.

Answer 54

True

Question 55

Refusal to rent to smokers is a violation of the Human Rights Act.

Answer 55

False - Smokers are not a protected class

Question 56

The renter of a single-family home has recently become disabled. The landlord must build a ramp at the landlord's expense.

Answer 56

False - The landlord must allow the tenant to build a ramp at the tenant's expense.

Question 57

Sexual orientation is a protected category under the Federal Fair Housing Act.

Answer 57

False - It is protected by state law

Question 58

Before signing a purchase agreement, sellers must disclose the location of all known wells, whether each well is in use, and whether municipal services are available.

Answer 58

True

Question 59

Sellers are required to seal all private wells prior to title transfer.

Answer 59

False - Sellers are only required to disclose

Question 60

A seller making inaccurate disclosures regarding a private sewer system is liable for 30 days.

Answer 60

False - The seller is liable for 2 years

Question 61

In order to obtain a building permit for new construction that will include a private sewer system, the owner must obtain a certificate of occupancy.

Answer 61

False - The owner must obtain a certificate of compliance

Question 62

When a licensed inspector grants approval of a new private sewer system, the certificate is valid for 5 years.

Answer 62

True

Question 63

In order to obtain a building permit for the addition of a bedroom, the owner must obtain a certificate of compliance from a licensed septic inspector.

Answer 63

True

Question 64

A certificate of compliance for an existing private sewer system is valid for 5 years

Answer 64

False - It is valid for 3 years

Question 65

Petroleum tank disclosures are regulated through rules promulgated by the Commissioner of commerce.

Answer 65

False - Petroleum tank disclosures are regulated through rules promulgated by the Commissioner of the pollution control agency, state fire marshal or EPA.

Question 66

The seller of property containing an aboveground or underground storage tank must complete and deliver a disclosure affidavit before closing.

Answer 66

True

Question 67

Before installation or removal of an underground storage tank, notice must be delivered to the Commissioner of commerce.

Answer 67

False - Notice must be delivered to the Commissioner of PCA

Question 68

When installing or removing an aboveground or underground storage tank, the Commissioner of PCA must receive notice at LEAST 30 days before installation or removal

Answer 68

True

Question 69

Before transferring ownership of a property that contains an under- ground or aboveground storage tank, the owner must file a mandatory statement with the county recorder of the county in which the property is located.

Answer 69

True

Question 70

The seller must indicate in a well disclosure statement whether or not municipal water services are available.

Answer 70

True

Question 71

The seller must disclose the status and location of individual sewage treatment systems on the property or serving the property before signing a purchase agreement.

Answer 71

True

Question 72

The seller of residential real property shall make a written disclosure of all material facts pertaining to adverse physical conditions in the property.

Answer 72

True

Question 73

The seller of a residence must make written disclosures about the condition of the property before signing a listing agreement.

Answer 73

False -The seller must make written disclosures before signing a purchase agreement.

Question 74

A written disclosure provided to the buyer's agent must be passed along by the agent to the prospective buyer.

Answer 74

True

Question 75

The seller of a residence has a duty to disclose the property was the site of a suicide.

Answer 75

False - Suicide is not a material fact according to Minnesota law

Question 76

A non-profit organization recently purchased a home in the neighborhood with the intention of housing adults in a drug rehabilitation program. This information must be shared by the seller and the listing broker to all prospective buyers.

Answer 76

False - This situation is not deemed a material fact by Minnesota law

Question 77

An agent working with a buyer has no duty to disclose information regarding a registered offender as long as the agent provides a written notice that such information may be obtained by contacting the local law enforcement agency or the department of corrections.

Answer 77

True

Question 78

A seller who fails to disclose the existence or known status of a well is liable to the buyer for related costs if the action is commenced within 6 years.

Answer 78

True

Question 79

The owner of a property must disclose to the buyer information on how sewage is managed no later than the date of executing a listing agreement.

Answer 79

False - The owner must disclose no later than the date of executing a purchase agreement.

Question 80

A seller who fails to disclose the existence or known status of an individual sewage treatment system is liable for related costs if the action is commenced within 6 years.

Answer 80

False - A seller who fails to disclose is liable for 2 years

Question 81

The owner of a property who intends to sell a property on which an underground or aboveground storage tank is located must deliver to the purchaser a copy of a recorded affidavit before closing.

Answer 81

True

Question 82

The seller of a property containing an aboveground or underground storage tank must disclose the existence of the tank in the listing agreement

Answer 82

False - The seller must record an affidavit with the county recorder

Question 83

The minimum amount changed for Minnesota State Deed Tax is $1.65.

Answer 83

True

Question 84

A seller is NOT required to disclose the existence of a methamphetamine if the site has been cleaned by an environmental firm.

Answer 84

False - This is a material fact and must be disclosed

Question 85

A landlord selling to a current tenant must provide a property disclosure statement.

Answer 85

False - Sale to an existing tenant does not require disclosure

Question 86

The state deed tax is paid by the buyer.

Answer 86

False -The state deed tax is paid by the seller

Question 87

The state deed tax is computed as 3.3 percent of the net sale price.

Answer 87

False the state deed tax is computed at .33 percent

Question 88

The mortgage registry tax is paid by the lender

Answer 88

False - It is paid by the borrower/ mortgagor

Question 89

The mortgage registry tax is computed as 2.3 percent of the mortgage amount.

Answer 89

False - the mortgage registry tax is computed at .23 percent

Question 90

The state deed tax is computed as $3.30 per thousand of net selling price.

Answer 90

True

Question 91

The mortgage registry tax is computed as $2.30 per thousand of net selling price.

Answer 91

True

Question 92

A seller's disclosure statement would NOT require the disclosure of the use of medical marijuana.

Answer 92

True

Question 93

A seller would NOT be required to disclose that methamphetamine production had taken place at the property.

Answer 93

False - Meth lab disclosure is required

Question 94

A renter wants to buy the home she is renting. Prior to accepting the offer, the seller must make a full disclosure of material facts regarding the property.

Answer 94

False - Seller's disclosure is not required when selling to a current renter.

Question 95

A seller's disclosure statement is NOT required when donating the property to a charity

Answer 95

True

Question 96

Prior to relinquishing the property at the end of statutory redemption, the owner must complete and deliver a seller's disclosure to the foreclosing lender.

Answer 96

False - Seller's disclosure is not required in a foreclosure proceeding.

Question 97

After purchasing the home she was renting, the renter realized she did not receive a seller's disclosure from the landlord. The landlord's action was illegal.

Answer 97

Seller's disclosure is not required when selling to a renter (current occupant)

Question 98

The seller is aware that the former owner operated a meth lab in the basement of the home. This would NOT need to be disclosed because the seller has scrubbed and repainted the basement.

Answer 98

False - Methamphetamine production disclosure is required

Question 99

A couple selling their home to their child is required to comply with statutory seller's disclosure requirements

Answer 99

False - Seller's disclosure is not required when selling to a family member.

Question 100

When selling to a sibling, the seller is required to complete the seller's disclosure form.

Answer 100

False - Seller's disclosure is not required when selling to a family member.

Question 101

Prior to signing a quitclaim deed in lieu of foreclosure, the mortgagor relinquishing the home is required to complete a full seller's disclosure statement.

Answer 101

False - Seller's disclosure is not required in deed in lieu of foreclosure.