Free Minnesota Agency Practice Test — LicenseIQ

Question 1

Which agency licenses and disciplines real estate salespersons in Minnesota?

Accepted Answer

Chapter 82 gives licensing and enforcement authority to the commissioner of commerce (§82.55, subd. 5). Minnesota has no separate real estate commission; the Department of Human Rights enforces the MHRA, not licensing, and a trade association has no licensing power.

Question 2

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 3

The buyer tells the buyer's agent, "I am not going to close on this house." What must the agent do?

Accepted Answer

Section 82.68, subd. 4 requires a licensee to immediately disclose a party's stated intent not to perform, after first informing the nonperforming party of this obligation if reasonably possible.

Question 4

An agent authorized to perform a single specific act for a principal is a:

Accepted Answer

A special (limited) agent has authority for a specific task, typical of a listing agent. A property manager is usually a general agent.

Question 5

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 6

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 7

A listing agent receives a second written offer after the seller has accepted the first. Under §82.71, the agent must:

Accepted Answer

Section 82.71, subd. 1 requires all written offers to be promptly submitted in writing to the seller. The agent may not reveal the terms of an offer to other buyers before it is submitted to the seller.

Question 8

A listing agent tells the buyer that the seller will accept the offer only if the buyer uses the agent's preferred lender. This is:

Accepted Answer

Section 82.81, subd. 8 prohibits a licensee from requiring a person to use a particular lender, attorney, closing agent, or title agent in a residential closing.

Question 9

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 10

A seller gives the listing agent a qualified home inspector's report stating the attic is dry. The agent personally saw water damage in the attic last week. What must the agent do?

Accepted Answer

Section 82.68, subd. 3(e) lets licensees rely on qualified third-party reports, but subd. 3(f) requires disclosure of known facts that contradict information in a report provided to the licensee.

Question 11

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 12

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 13

When must a Minnesota licensee provide the agency relationships disclosure form to a consumer in a residential transaction?

Accepted Answer

Section 82.67, subd. 1 requires the agency disclosure at the first substantive contact with the consumer; §82.81, subd. 6 restates the duty.

Question 14

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 15

A buyer signs the acknowledgment on the agency relationships disclosure form. What has the buyer done?

Accepted Answer

The statutory form states it is an agency disclosure form only, not a contract. Representation requires a separate signed written agreement; without one, the consumer is a customer.

Question 16

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 17

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 18

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 19

What may a dual agent NOT do?

Accepted Answer

The disclosure form states dual agents owe the same duties to both parties and may not advocate for one party to the other's detriment. They still must disclose material facts.

Question 20

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 21

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 22

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 23

The client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 24

The Minnesota agency disclosure requirement of §82.67 applies to which transactions?

Accepted Answer

Section 82.67 states that the disclosures apply only to residential real property transactions, defined as property occupied or intended to be occupied by one to four families as their residence.

Question 25

A seller delivers the disclosure statement to the buyer's agent instead of the buyer. What is the legal effect?

Accepted Answer

Section 513.55, subd. 2 treats delivery to the licensee representing or assisting the buyer as delivery to the buyer, and requires the licensee to provide a copy to the buyer.

Minnesota real estate agency practice test

1. Which agency licenses and disciplines real estate salespersons in Minnesota?

2. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

3. The buyer tells the buyer's agent, "I am not going to close on this house." What must the agent do?

4. An agent authorized to perform a single specific act for a principal is a:

5. Which statement about dual agency is correct?

6. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

7. A listing agent receives a second written offer after the seller has accepted the first. Under §82.71, the agent must:

8. A listing agent tells the buyer that the seller will accept the offer only if the buyer uses the agent's preferred lender. This is:

9. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

10. A seller gives the listing agent a qualified home inspector's report stating the attic is dry. The agent personally saw water damage in the attic last week. What must the agent do?

11. Which fiduciary duty continues even after the agency relationship has ended?

12. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

13. When must a Minnesota licensee provide the agency relationships disclosure form to a consumer in a residential transaction?

14. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

15. A buyer signs the acknowledgment on the agency relationships disclosure form. What has the buyer done?

16. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

17. A material defect that a seller/agent must disclose is one that:

18. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

19. What may a dual agent NOT do?

20. An agency relationship can be terminated by all of the following EXCEPT:

21. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

22. A property manager owes fiduciary duties primarily to the:

23. The client a broker represents is the:

24. The Minnesota agency disclosure requirement of §82.67 applies to which transactions?

25. A seller delivers the disclosure statement to the buyer's agent instead of the buyer. What is the legal effect?

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