Key Points

Question 0

Represents the seller

Answer 0

Seller’s broker

Question 1

5 forms of agency relationship in MN:

Answer 1

1. Seller’s broker
2. Subagent
3. Buyer’s broker
4. Dual agent
5. Facilitator

Question 2

Works with a buyer but represents seller. Furthermore, in MN license law does not allow a salesperson to act independently of the broker. Therefore, the sales person acts as an agent of the broker, who represents the buyer or the seller. this agent of an agent is sometimes referred to as a __________.

Answer 2

Subagent

Question 3

Represents the buyer

Answer 3

Buyer’s broker

Question 4

represents both buyer and seller. In MN, dual agency arises when a broker represents both the buyer and the seller of the same transaction, whether both parties have the same salesperson ro not. To legally allow dual agency, it must be disclosed to both parties, and both parties must agree to it in writing.

Answer 4

Dual agency

Question 5

licensee who performs services for a buyer, a seller, or both but does not represent either in a fiduciary capacity as a buyer’s broker, seller’s broker, or dual agent.

Answer 5

Facilitator

Question 6

Listing agreements must be in writing, signed by the broker/salesperson and seller(s), and include the following information:

Answer 6

(1) A definite expiration date. Without this date the contract is unenforceable.
(2) The legal description of the real property involved.
(3) The list price and any terms required by the seller.
(4) The amount of any compensation or commission or the basis for computing the commission.

Question 7

A _______ provides that the listing will renew itself indefinitely unless it is specifically canceled by the seller. It is illegal to include a ___________ in a listing agreement, even if the seller is willing to have one. If the listing is to be renewed, the renewal must be negotiated and expressly agreed upon between the seller and the broker.

Answer 7

Holdover clause

Question 8

Licensees shall not seek to enforce an __________ unless a protective list has been furnished to the buyer within 72 hours after the expiration of the buyer’s broker agreement.

Answer 8

override clause

Question 9

A licensee has the burden of demonstrating that each property on the _____________ has been shown to the buyer, or specifically brought to the attention of the buyer, during the time the buyer’s broken agreement was in effect.

Answer 9

Protective lists

Question 10

If a facilitator/salesperson, working with a buyer, shows a property listed by the facilitator must act as a _________ not the buyer’s broker.

Answer 10

Seller’s broker

Question 11

When a facilitator broker/salesperson is working with a seller, and a buyer they have under contract views the property, the facilitator represents the buyer as the __________.

Answer 11

Buyer’s broker

Question 12

With _______, the broker represents the buyer and the seller to the same transactions.

Answer 12

Dual agency - both parties must agree to dual agency

Question 13

____________ and consent provisions must be included in listing, buyer’s representation, and purchase agreements.

Answer 13

Dual agency disclosure

Question 14

When a buyer or seller signs a written agency agreement contract, the broker/salesperson owes that person fiduciary duties of:

Answer 14

Disclosure
Reasonable Care
Confidentiality
Obedience
Loyalty
Accounting

Question 15

Listing agreements and buyer’s representation agreements are employment contracts between a broker and a seller or a buyer. Both contracts must be in ________, _________, ___________, ___________.

Answer 15

1. be in writing
2. have a definite expiration date
3. state the listing price and terms of sale
4. state the amount of and method of computing the commission (include a negotiable commissions clause, include a dual agency disclosure provision, and include a notice concerning closing services and how/if the contract may be canceled.

Question 16

Chapter ______ of the Minnesota State Statutes regulates real estate licensees.

Answer 16

82

Question 17

The Minnesota Commissioner of ________ administers the real estate license law, formulates rules implementing the law, issues licenses, and takes disciplinary action against those who violate the law.

Answer 17

Commerce

Question 18

Anyone who, for another and for a fee, lists, sells, exchanges, manages, buys, rents, auctions, or negotiates options on real estate, a business opportunity or a business (or a business’s goodwill, inventory, or fixtures) must have a ___________.

Answer 18

real estate license

Question 19

Commercial loan brokers, certain non-institutional lenders, and rental services are also required to have a ___________.

Answer 19

broker’s license

Question 20

A property owner with _________ without being represented by a broker is required to have a real estate license.

Answer 20

5 or more transactions per year

Question 21

Every applicant for a Minnesota real estate salesperson’s license must be at least _________ years old, complete _________ real estate courses, pass the __________, and pay the ___________ fee.

Answer 21

18, 30-hour, salesperson’s examination, license

Question 22

Each new licensee must complete ______ of continuing education within the first licensing period, and ______ of continuing education during each 24-month renewal period thereafter.

Answer 22

30,30

Question 23

At least ____ of the ______ credit hours must be completed during the first _________ of the 24-month licensing period.

Answer 23

15 of the 30 credit hours; 12 months

Question 24

A Minnesota salesperson must be licensed under only one _________.

Answer 24

Primary Minnesota broker

Question 25

When a salesperson stopes working for a broker, the salesperson’s license if _____ until it has been transferred to another broker.

Answer 25

ineffective

Question 26

A broker’s responsibilities include:

Answer 26

1. supervising salespeople
2. maintaining a trust account
3. keeping records for each real estate transaction

Question 27

A real estate licensee’s failure to comply with the ___________ is grounds for liicense denial, suspension, or revocation.

Answer 27

Commissioner’s Standards of Conduct

Question 28

A disciplinary hearing will be held before the license is suspended or revoked. A licensee may be fined up to _______ per occurrence for violating state licensing law.

Answer 28

$10,0000

Question 29

The license law includes detailed standards of conduct and prohibitions that all real estate licensees are required to follow. Among many other provisions, there are prohibitions against:

Answer 29

1. guaranteeing future profits
2. interfering with an exclusive agency
3. misrepresentation
4. acting without a signed agency agreement

Question 30

Licensees are required to make several disclosures including an __________ (in residential transactions) and a _________ of known material facts that might adversely affect the use or enjoyment of the property.

Answer 30

agency disclosure; disclosure to the buyer

Question 31

The ___________ promotes education and research in the real estate field. The recovery portion of the fund is used to compensate claimants who have obtained a judgement against a licensee based on fraud in a real estate transaction, but have been unable to collect the judgment from the licensee.

Answer 31

REERRF (Real estate education, research and recovery fund)

Question 32

The Commissioner of Commerce has the authority to:

Answer 32

1. screen and qualify applicants for a real estate license
2. issue and renew licenses
3. investigate complaints against licensees
4. investigate anyone who is alleged to be acting as a real estate agent without a license
5. regulate certain aspects of the sale of subdivision lots, nonexempt franchises, and real property securities

Question 33

Licensing exceptions:

Answer 33

1. licensed practicing attorney
2. court-appointed trustee, executor, administrator, guardian, receiver, or anyone else acting under court order
3. cemetery owner/operator selling lots for burial plots
4. custodian, janitor or employee of the owner or manager of a residential building who lease units in the building
5. A bank, trust company, savings and loan assoc., industrial loan and thrift company, public utility, land mortgage, or farm loan assoc. engaged in a business transaction within the scope of its powers as provided by law
6. public officers, while performing their official duties
7. auctioneer
8. someone who acquires real estate for constructing residential or commercial buildings for resale……not done

Question 34

Real estate licensees who originate mortgages incidentally to their primary activities as a licensee may do so only after applying for an ____________ from the commissioner.

Answer 34

exemption

Question 35

________ negotiate loans secured by mortgages or contracts for deed on non-residential real estate. They are paid to arrange loans for others, but typically do not lend money themselves.

Answer 35

Loan brokers

Question 36

Loan brokers are required to be _________. However, the licensing requirement does not apply to federally regulated banks, savings and loans, and other lending institutions, or to their employees who negotiate loans.

Answer 36

licensed real estate brokers

Question 37

The customer has an unconditional right to rescind the contract for loan brokerage services for ________ after the contract is signed.

Answer 37

3 days

Question 38

A person who makes __________ residential real estate loans during any 12-month period is required to have a license.

Answer 38

4 or more

Question 39

True or False:

Lending institutions and their employees are not required to hold mortgage originator or real estate licenses.

Answer 39

True

Question 40

Generally, a property owner does not need a real estate license in order to sell her own property. However, an owner who is involved in ________ either must be represented by a real estate licensee or obtain a real estate license.

Answer 40

5 or more transactions in 1 year

Question 41

_________are only licensed to buy or sell property for themselves, not to act as real estate agents for other property owners or buyers.

Answer 41

Limited brokers - cannot be a real estate salesperson’s primary broker; the salesperson must be licensed under a regular broker (not required to have experience as a salesperson).