MN State Portion - Financial Instruments....

Question 1

The Minnesota Mortgage Registry Tax is computed as __________ of the mortgage amount.

Answer 1

.23% NOT 23%

Question 2

The Minnesota state deed tax is computed as __________ of the net sales price.

Answer 2

$3.30,

memory tip, deed has 2 e’s and $3.30 has 2 3’s

Question 3

What is the minimum registry tax amount for a property?

Answer 3

$1.65 per $500,

this might occur when property is given as a gift

Question 4

A registered land survey may be required to create or subdivide a __________.

Answer 4

Torrens property, which is also referred to as registered property

Question 5

Surveyors, engineers, material suppliers, contractors, and subcontractors have lien rights only if they provide a __________ in their contract.

Answer 5

written lien notice

Question 6

In a verbal agreement, a contractor may not file a lien unless they provided the property owner with the written lien notice within __________ of the verbal agreement.

Answer 6

10 days,

notice must be delivered personally or by certified mail

Question 7

A landlord must provide the tenant with a written notice explaining any amounts withheld for a security deposit within __________ of lease termination.

Answer 7

21 Days

Question 8

An owner of a Torrens-registered property who wants to subdivide the parcel would order a __________.

Answer 8

registered land survey

Question 9

Title to Torrens property transfers upon registration of the __________ to the district court.

Answer 9

certificate of title

Question 10

With an abstract, title passes once the deed has been delivered and accepted.

Answer 10

True

Question 11

What is the search called that includes property taxes, judgment and special assessments?

Answer 11

registered property abstract, RPA

Question 12

A rural property under Homestead protection may include up to __________.

Answer 12

160 Acres

Question 13

In Minnesota, a non-judicial foreclosure is known as __________.

Answer 13

Advertised Foreclosure

Question 14

The classifications protected under the Minnesota Human Rights Act, but not under Federal Fair Housing Act are __________.

Answer 14

MSP
Marital status,
Sexual orientation, and,
Public assistance

Question 15

Statutory new home warranties begin at first legal occupancy or __________, whichever occurs first

Answer 15

closing

Question 16

The Statutory New Home Warranty covers __________ caused by substandard workmanship and faulty installation of electrical, plumbing, and HVAC systems.

Answer 16

defects

Question 17

After closing, a buyer discovers a defect not previously known. How soon do they have to act on the home warranty?

Answer 17

6 months,

via written notice to the contractor responsible

Question 18

A new home warranty will transfer to subsequent owners

Answer 18

True

Question 19

A new home warranty that covers defects in materials and workmanship, lasts for how long?

Answer 19

1 Year

Question 20

The new home warranty that covers defects in plumbing, heating, electrical, cooling and ventilation systems, last for how long?

Answer 20

2 Years

Question 21

In a new home warranty, how long is the coverage for major structural defects?

Answer 21

10 Years

Question 22

A new home warranty includes coverage for major structural damage.

Answer 22

False - Defects not Damages are covered

Question 23

How soon must a contractor inspect a home, after receiving written notice of a defect, covered in the home warranty?

Answer 23

30 Days

Question 24

The contractor has inspected the defect covered in a home warranty. When will he need to do the repair?

Answer 24

within 15 days of completing the inspection.

Question 25

The borrower is the __________.

Answer 25

mortgagor

Question 26

The lender is the __________.

Answer 26

mortgagee

Question 27

A land contract or installment land contract is also know as a __________.

Answer 27

Contract for Deed

Question 28

What is the remedy a lender uses to cancel a mortgage in default?

Answer 28

Foreclose

Question 29

The statute of limitations for filing a complaint of discrimination is how long?

Answer 29

1 Year

Question 30

In Contract for Deed the buyer has legal title

Answer 30

True

Question 31

What is the remedy a seller uses for default in a Contract for Deed?

Answer 31

Terminate

Question 32

What is it called when a seller finances the buyer's purchase and the buyer makes installment payments to the seller, and receives deed upon final payment?

Answer 32

Contract for Deed

Question 33

In a Contract for Deed the seller is called the __________.

Answer 33

vendor

Question 34

In a Contract for Deed the buyer is called __________.

Answer 34

Vendee

Question 35

In a Contract for Deed financing arrangement, the buyer gets the deed at closing.

Answer 35

False - The Buyer has equitable title but does not receive the deed until the final payment is made

Question 36

Who holds equitable title in a Contract for Deed financing arrangement?

Answer 36

Buyer

Question 37

In a Contract for Deed a seller terminates to regain equitable title.

Answer 37

True

Question 38

What are the 3 methods of foreclosure in Minnesota?

Answer 38

1) Judicial/legal action, 2) Foreclosure by advertisement, 3) Strict foreclosure

Question 39

What is the Latin term for written notice that a lawsuit has been filed?

Answer 39

Lis Pendens

Question 40

What gives the lender the right to foreclose without going to court?

Answer 40

Power of Sale Clause in mortgage

Question 41

Foreclosure by advertisement requires published notice for __________ consecutive weeks; and __________ weeks prior personal delivery notice to borrower

Answer 41

6, | 4

Question 42

What is it called when the court orders a direct transfer of property from mortgagor to mortgagee, without public auction?

Answer 42

Strict Foreclosure

Question 43

Minnesota allows strict foreclosure in residential transactions

Answer 43

False

Question 44

What are the steps to foreclosure?

Answer 44

Step 1 - Equitable redemption - cure default and stop foreclosure, Step 2 - Sheriff's foreclosure sale, Step 3 - Statutory redemption period

Question 45

How long is the typical statutory redemption period in Minnesota?

Answer 45

6 Months

Question 46

If more than 1/3 of the loan has been paid off, how long is the redemption period?

Answer 46

12 Months

Question 47

If a property has _________ acres used for agriculture, the redemption period is 12 month.

Answer 47

10 or More Months

Question 48

If a property has more than 40 acres, what is the redemption period?

Answer 48

12 Months

Question 49

What is the redemption period for property that qualifies as abandoned?

Answer 49

5 Weeks

Question 50

How can you tell if a property qualifies as abandoned?

Answer 50

•broken windows, •doors broken off hinges, •gas, electric or water service terminated, •garbage and sanitary problems, •2 or more police reports of trespassing, •the premises are below minimum community standards for public safety and sanitation

Question 51

In a foreclosure, who gets the excess sale proceeds?

Answer 51

Mortgagor

Question 52

Insufficient sale proceeds are a result of a foreclosure sale where the lender does not recover all of the money that was borrowed. This may result in a __________ against the mortgagor

Answer 52

deficiency judgment

Question 53

The holder of the sheriff's certificate can inspect the property, secure it if necessary, hire a management company and immediately remove tenant's abandoned property.

Answer 53

False, | *they cannot remove the tenant's personal property - they are required to store it

Question 54

How long must abandoned personal property by a tenant be stored?

Answer 54

28 Days

Question 55

How long must abandoned personal property by a tenant be stored?

Answer 55

14 Days

Question 56

Written lease is required for any lease exceeding __________.

Answer 56

12 Months

Question 57

Written lease is required for apartment buildings with __________.

Answer 57

12 or more units

Question 58

After a tenant has moved out, a security deposit must be returned within __________.

Answer 58

3 weeks/21 days

Question 59

All or part of the security deposit may be retained by the landlord if no new address is given, if money is owed, or if there is damage to the property.

Answer 59

True, | *A landlord must provide a statement explaining why all/some of the deposit is retained.

Question 60

A renter moved out and the carpet is worn in the traffic pattern so part of the security deposit can be retained for damages.

Answer 60

False, | *this is normal wear and tear and does not qualify

Question 61

A renter qualifies for a full refund for their security deposit of $500 which was paid. How much do they get back if they lived there for over a year?

Answer 61

$500 plus $5.00 | because interest accrues at 1% starting the 1st of the month after the landlord receives the money.

Question 62

Landlord entry notice is required except when:

Answer 62

* there is an emergency, * determining tenant safety, * complying with law enforcement