MN Exam Prep Questions

Question 1

T/F The delivery of notice of lien rights can be done by certified mail.

Answer 1

True

Question 2

T/F To be eligible for homestead, a property must be owned and occupied as a primary residence by December 15 of the year to be eligible for homestead the next year.

Answer 2

False - December 1

Question 3

T/F The maximum number of acres that can be enrolled into homestead protection is 120 acres.

Answer 3

False - 160 acres

Question 4

T/F A seller on a contract for deed is known as a vendor.

Answer 4

True

Question 5

T/F In the event of a default on a contract for deed the seller would foreclose on the buyer to regain the buyer’s equitable title.

Answer 5

False - termination

Question 6

T/F The borrower on a mortgage is known as a mortgagee.

Answer 6

False - mortgagor

Question 7

T/F A mortgage has a power of sale clause. This would mean the lender needs a judge’s approval to conduct a foreclosure.

Answer 7

False - avoids need for court action.

Question 8

T/F The longest period of time for statutory redemption in Minnesota is 6 months.

Answer 8

False - 12 months

Question 9

T/F The shortest period of time for statutory redemption in Minnesota is 6 months.

Answer 9

False - 5 weeks, abandonment

Question 10

T/F A contractor who has not been paid for services performed on real property must perfect their lien within 120 days of final completion of work.

Answer 10

True

Question 11

A registered property survey and a certificate of title are MOST likely to be associated with which of the following?

a) subdivided lands
b) recorded plat
c) torrens property
d) abstract property

Answer 11

c) torrens property

Question 12

New home warranties require coverage of all of the following EXCEPT:

a) 1 year for materials and worksmanship
b) 2 years for defective plumbing, electrical, and heating and cooling fixtures
c) 10 years for major structural or construction defects
d) 10 years for all structural damage

Answer 12

d) 10 years for all structural damage

Question 13

A licensee discriminating against a buyer based on marital status and sexual orientation is violating what fair housing laws?

a) federal and state
b) state only
c) neither federal nor state
d) federal only

Answer 13

b) state only

Question 14

The seller must disclose the existence, location, and status of all capped and current wells on a property

a) at the time of settlement
b) prior to accepting or signing an offer
c) prior to showing the property to a buyer
d) at the time of inspection

Answer 14

b) prior to accepting or signing an offer

Question 15

A seller’s property disclosure form would not be required for all of the following EXCEPT

a) selling to a tenant who is currently renting the property
b) a lender selling a bank-owned property.
c) giving the property to a family member
d) selling a commercial property

Answer 15

b) a lender selling a bank-owned property

Question 16

Which of the following is required to be in writing under the Statute of Frauds?

a) 11 month warehouse lease
b) 9 month residential lease
c) 1 year retail lease
d) 18 month lease to won contract

Answer 16

d) 18 month lease to won contract

Question 17

T/F The Commissioner of Commerce makes laws regulating real estate activity.

Answer 17

False - enforces the laws

Question 18

T/F The Commissioner of Commerce may take disciplinary action against those who violate real estate licensing law.

Answer 18

True

Question 19

T/F The Commissioner of Commerce will hold a hearing to settle ethics charges brought against a licensee.

Answer 19

False - ethics - professional association

Question 20

T/F Anyone who for another and for a fee attempts to manage real estate must have a real estate license.

Answer 20

True

Question 21

T/F A court appointed executor must have a real estate license to sell real estate on behalf of an estate.

Answer 21

False - exempt, court appointed

Question 22

T/F Employees of a residential building owner performing caretaker duties are exempt from having a real estate license.

Answer 22

True

Question 23

T/F When selling a manufactured home that is attached to land for another and for a fee a real estate license would be required.

Answer 23

True

Question 24

T/F A loan broker who collects fees from a client must deposit those fees in a trust account by the 3rd business day after receipt.

Answer 24

False - escrow account within 48 hours

Question 25

T/F One must be at least 18 years of age to hold a Minnesota real estate license.

Answer 25

True

Question 26

T/F One must complete real estate licensing requirements and apply for licensure within 18 months of passing the real estate exam.

Answer 26

False - 12 months

Question 27

T/F Real estate licenses expire on June 15 of a renewal year.

Answer 27

False - June 30 of renewal year

Question 28

T/F A licensee must complete 30 hours of approved continuing education to renew their real estate license.

Answer 28

True

Question 29

T/F A salesperson who gets married must notify the Commissioner of the change in marital status.

Answer 29

False - marital status change, no notice

Question 30

T/F A broker who has been charged with a felony must notify the Commissioner within 10 days of being charged.

Answer 30

True

Question 31

T/F The Commissioner may revoke a real estate license for violation of real estate law.

Answer 31

True

Question 32

T/F Brokers must provide those they employ adequate supervision in all aspects of their real estate related duties.

Answer 32

True

Question 33

T/F Real estate licensees must deliver documents to parties in a transaction as soon as the documents are available.

Answer 33

True

Question 34

T/F When funds are received in a real estate transaction and there are no directions on what to do with those funds, the broker must deposit them in broker’s business account.

Answer 34

False - trust account by 3rd business day