Conveyance Procedures and Protection of Parties - MN Flashcards
The owner of a Torrens property would receive an abstract to prove ownership.
False - The owner would receive a certificate of title
A divorce proceeding will result in a Decree of Dissolution of Marriage
True
A Decree of Dissolution of Marriage severs ownership EXCEPT joint tenancies.
False - A Decree of Dissolution severs joint tenancies
A Decree of Dissolution of Marriage severs all joint tenancies EXCEPT those the decree preserves
True
A divorce would sever a joint tenancy in a home
True
Divorcing couples owning several properties typically use a general warranty deed to release spousal interests in relinquished properties
False - They typically use a quitclaim deed
A Registered Land Survey is a type of survey unique to VA loans.
False - A Registered Land Survey is a type of survey unique to Torrens property.
A septic system certificate of compliance is issued by a licensed general contractor.
False - A septic system certification is issued by a licensed septic inspector
For an existing septic system, the certificate of compliance is valid for 5 years.
False - It is valid for 3 years
Title to Torrens property transfers upon delivery and acceptance of the deed.
False - Title to Torrens property transfers upon registration of the Certificate of Title.
The act of land title registration occurs when the registrar of titles accepts the decree of registration.
False - It occurs when the certificate of title is placed in the register of titles.
A new septic system certificate of compliance is valid for 3 years.
False - It is valid fir 5 years
The Minnesota Commissioner of Commerce is responsible for maintaining and updating the register of titles.
False - The county recorder/registrar of titles is responsible for maintaining and updating the register of titles.
Ownership of registered property is transferred by a certificate of title.
False - It is transferred by deed, evidenced by certificate of title
A Registered Land Survey (RLS) may be required to create to split Torrens/registered property.
True
Mr. and Mrs. Largent purchase a house. If the method of taking title is NOT specified, they are legally considered to be joint tenants.
False - They are legally considered to be tenants in common
The seller must disclose the status and location of all known wells on the property before signing a listing agreement.
False - The seller must disclose before signing the purchase agreement.
The seller must indicate in a well disclosure statement whether or not municipal water services are available.
True
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.
True
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
False - It may be presumed they are tenants in common
A spouse’s signature on a deed may be made by the spouse’s duly appointed attorney-in-fact.
True
If an owner is married, a deed to the homestead is valid without the signature of the other spouse.
False - Both spouses or their duly appointed attorney-in-fact must sign.
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.
True
Statutory new home warranties take effect at the signing of the purchase agreement.
False - They take effect at closing or first legal occupancy
An owner discovering a defect covered by the statutory new home warranty must notify the builder within 30 days.
False - An owner has up to and must notify the builder within 6 months.
Legal action for a breach of the statutory new home warranty must commence within 1 year after notifying the builder
False - It must commence within 180 days (6 months)
Statutory new home warranties cover structural damage
False - The Statutory New home warranties cover structural DEFECTS
Defects caused by faulty workmanship and materials are covered for only 1 year under the statutory new home warranty.
True
The statutory new home warranty covers defects from faulty plumbing, electrical, heating, and cooling for a period of 3 years.
False- The coverage is for a period of 2 years
The statutory new home warranty states that for 10 years, the dwelling will be free from major construction defects.
True
Storm damage is covered under the statutory new home warranty.
False - Construction defects are covered, not damage
The remainder of a statutory home warranty transfers to a future purchaser.
True
Statutory home warranties go into effect when the improvements are completed.
False - They go into effect on the first day of legal occupancy
The owner shall bring legal action against the builder within 1 year of giving notice of discovery of the breach.
False - The owner should bring legal action within 180 days of giving notice
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.
False - The warranty is 2 years
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.
True
Statutory new home warranties take affect at the signing of the purchase agreement.
False - Closing or first legal occupancy
The Minnesota Statute of Frauds provides that all leases for less than 1 year must be in writing.
False - Leases longer than 12 months must be in writing
In Minnesota, all leases for more than 1 year must be in writing
True
All leases must be in writing to be enforceable
False - Verbal leases may be 12 months or less
A contract for the sale of real property must be in writing and signed by both parties.
True
Oral agreements for the sale of real property are NOT enforceable.
True
Offers to purchase real estate must be in writing and signed by the offeror and offeree.
True
To be enforceable, a commercial lease for 6 months must in writing.
False - Any Leases 12 months or less are not required to be in writing to be enforceable.
Options to purchase do NOT have to be in writing.
Contracts for transferring interest in real estate must be in writing.
In residential buildings of 12 or more units, all leases must be in writing
True
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.
True
A licensed salesperson must act on a landlord’s instruction to refuse to rent to a minority
False - Licensees may never discriminate
A broker may NOT advertise a reduced commission fee on any property listed in a certain ethnic neighborhood.
True
financial institution has the right to require a larger down payment from a loan applicant who admits she is on welfare.
False - The financial institution may not discriminate on basis of receipt of public assistance.
Under the Minnesota Human Rights Act, the owner-occupant of a duplex may NOT refuse to rent the other to a family with children.
False - Owner occupant of a 1- to 4-unit building may discriminate based upon familial status
The owner of a duplex may refuse to rent a unit to anyone over a certain age.
True - Age discrimination is not restricted
Discrimination based on sexual orientation, marital status, or public assistance status constitutes a violation of the Minnesota Human Rights Act.
True
Discrimination based on race, religion, sex, or national origin constitutes a violation of the Minnesota Human Rights Act.
True
Refusal to rent to smokers is a violation of the Human Rights Act.
False - Smokers are not a protected class
The renter of a single-family home has recently become disabled. The landlord must build a ramp at the landlord’s expense.
False - The landlord must allow the tenant to build a ramp at the tenant’s expense.
Sexual orientation is a protected category under the Federal Fair Housing Act.
False - It is protected by state law
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.
True
Sellers are required to seal all private wells prior to title transfer.
False - Sellers are only required to disclose
A seller making inaccurate disclosures regarding a private sewer system is liable for 30 days.
False - The seller is liable for 2 years
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.
False - The owner must obtain a certificate of compliance
When a licensed inspector grants approval of a new private sewer system, the certificate is valid for 5 years.
True
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.
True
A certificate of compliance for an existing private sewer system is valid for 5 years
False - It is valid for 3 years
Petroleum tank disclosures are regulated through rules promulgated by the Commissioner of commerce.
False - Petroleum tank disclosures are regulated through rules promulgated by the Commissioner of the pollution control agency, state fire marshal or EPA.
The seller of property containing an aboveground or underground storage tank must complete and deliver a disclosure affidavit before closing.
True
Before installation or removal of an underground storage tank, notice must be delivered to the Commissioner of commerce.
False - Notice must be delivered to the Commissioner of PCA
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
True
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.
True
The seller must indicate in a well disclosure statement whether or not municipal water services are available.
True
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.
True
The seller of residential real property shall make a written disclosure of all material facts pertaining to adverse physical conditions in the property.
True
The seller of a residence must make written disclosures about the condition of the property before signing a listing agreement.
False -The seller must make written disclosures before signing a purchase agreement.
A written disclosure provided to the buyer’s agent must be passed along by the agent to the prospective buyer.
True
The seller of a residence has a duty to disclose the property was the site of a suicide.
False - Suicide is not a material fact according to Minnesota law
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.
False - This situation is not deemed a material fact by Minnesota law
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.
True
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.
True
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.
False - The owner must disclose no later than the date of executing a purchase agreement.
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.
False - A seller who fails to disclose is liable for 2 years
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.
True
The seller of a property containing an aboveground or underground storage tank must disclose the existence of the tank in the listing agreement
False - The seller must record an affidavit with the county recorder
The minimum amount changed for Minnesota State Deed Tax is $1.65.
True
A seller is NOT required to disclose the existence of a methamphetamine if the site has been cleaned by an environmental firm.
False - This is a material fact and must be disclosed
A landlord selling to a current tenant must provide a property disclosure statement.
False - Sale to an existing tenant does not require disclosure
The state deed tax is paid by the buyer.
False -The state deed tax is paid by the seller
The state deed tax is computed as 3.3 percent of the net sale price.
False the state deed tax is computed at .33 percent
The mortgage registry tax is paid by the lender
False - It is paid by the borrower/ mortgagor
The mortgage registry tax is computed as 2.3 percent of the mortgage amount.
False - the mortgage registry tax is computed at .23 percent
The state deed tax is computed as $3.30 per thousand of net selling price.
True
The mortgage registry tax is computed as $2.30 per thousand of net selling price.
True
A seller’s disclosure statement would NOT require the disclosure of the use of medical marijuana.
True
A seller would NOT be required to disclose that methamphetamine production had taken place at the property.
False - Meth lab disclosure is required
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.
False - Seller’s disclosure is not required when selling to a current renter.
A seller’s disclosure statement is NOT required when donating the property to a charity
True
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.
False - Seller’s disclosure is not required in a foreclosure proceeding.
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.
Seller’s disclosure is not required when selling to a renter (current occupant)
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.
False - Methamphetamine production disclosure is required
A couple selling their home to their child is required to comply with statutory seller’s disclosure requirements
False - Seller’s disclosure is not required when selling to a family member.
When selling to a sibling, the seller is required to complete the seller’s disclosure form.
False - Seller’s disclosure is not required when selling to a family member.
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.
False - Seller’s disclosure is not required in deed in lieu of foreclosure.
