Free Minnesota Math Practice Test — LicenseIQ

Question 1

A licensee changes her business address. By when must she notify the commissioner in writing?

Accepted Answer

Section 82.65, subd. 1 requires written notice of a change of application information, including address, not later than ten days after the change.

Question 2

Annual taxes of $5,400 are paid in arrears at year-end. Closing is June 15, and the seller owns the day of closing. Using a 360-day year, what is the proration?

Accepted Answer

Daily = $5,400 / 360 = $15. Seller owned Jan 1-Jun 15 = 5 months + 15 days = 165 days. 165 x $15 = $2,475. Because the buyer will pay the whole bill later, the seller is debited and the buyer credited.

Question 3

When competing brokerages agree to charge the same commission rate, they commit:

Accepted Answer

Agreeing on commissions among competitors is illegal price fixing under the Sherman Antitrust Act; commissions must be set independently and are always negotiable.

Question 4

One discount point equals what percentage of the loan amount?

Accepted Answer

One point = 1% of the loan amount (not the purchase price), paid to lower the interest rate.

Question 5

A borrower pays $4,500 for 1.5 discount points. What is the loan amount?

Accepted Answer

Loan = cost of points / points as a percentage = $4,500 / 0.015 = $300,000.

Question 6

A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

Accepted Answer

At 95% LTV the down payment is 5% of price. Price = $18,000 / 0.05 = $360,000; loan = $342,000.

Question 7

The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?

Accepted Answer

Daily = $4,320 / 360 = $12. Seller owned Jan 1-Apr 20 = 3 months + 20 days = 110 days, so the buyer owes for 360 - 110 = 250 days. 250 x $12 = $3,000, credited to the seller (who prepaid) and debited to the buyer.

Question 8

A 275-gallon heating oil tank costs $168 to fill at $4.20 per gallon. The buyer will credit the seller for the oil remaining in the tank. What is the credit?

Accepted Answer

Gallons needed = $168 / $4.20 = 40; remaining = 275 - 40 = 235 gallons; credit = 235 x $4.20 = $987.

Question 9

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 10

A buyer's broker in Minnesota is paid entirely by the seller through a commission split. Whom does the buyer's broker represent?

Accepted Answer

The statutory form states a buyer may have a broker represent only the buyer even if the seller pays the broker in whole or in part. Payment source does not determine agency.

Question 11

A rectangular lot is 100 ft by 150 ft. How many square feet is it?

Accepted Answer

Area = length x width = 100 x 150 = 15,000 square feet. (250 is the sum of two sides.)

Question 12

A broker received a 4.2% commission totaling $12,600. What was the sale price?

Accepted Answer

Sale price = commission / rate = $12,600 / 0.042 = $300,000.

Question 13

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 14

A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?

Accepted Answer

Loan = $275,000 x 0.80 = $220,000; points = $220,000 x 0.025 = $5,500. ($6,875 wrongly applies points to the price.)

Question 15

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 16

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 17

A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

Accepted Answer

LTV is applied to the LESSER of price or appraised value: $290,000 x 0.75 = $217,500. Using the $300,000 price ($225,000) is the common mistake.

Question 18

A person who violates chapter 82 or a rule or order of the commissioner is guilty of what level of crime?

Accepted Answer

Section 82.83 provides that any person who violates chapter 82 or any rule or order of the commissioner is guilty of a gross misdemeanor.

Question 19

A tenant's $1,500 deposit earned interest for exactly 18 months. The landlord properly deducts $250 for damage beyond normal wear and tear. How much must the landlord return?

Accepted Answer

Interest: 1,500 x 0.01 x 18/12 = $22.50. Refund: 1,500 + 22.50 - 250 = $1,272.50. Omitting the interest gives $1,250.

Question 20

Within what time must a charge of housing discrimination be filed with the Minnesota commissioner of human rights?

Accepted Answer

Section 363A.28, subd. 3 requires a charge with the commissioner within one year after the occurrence of the practice; the period is suspended during voluntary dispute resolution.

Question 21

A seller refuses to close through no fault of the buyer. May the listing broker keep part of the buyer's earnest money as a commission?

Accepted Answer

Section 82.81, subd. 3 bars the listing broker from claiming any portion of the buyer's trust funds when the owner fails to close through no fault of the buyer, unless the buyer separately agreed.

Question 22

A home sells for $375,000. The total commission is 5.4 percent, split equally between listing and selling brokers. The listing salesperson receives 65 percent of the listing broker's share. How much does the listing salesperson receive?

Accepted Answer

Total commission: 375,000 x 0.054 = $20,250. Listing broker's half: $10,125. Salesperson's 65 percent: 10,125 x 0.65 = $6,581.25. The $10,125 distractor stops at the broker's share.

Question 23

A salesperson is charged with a felony unrelated to real estate. What must the salesperson do?

Accepted Answer

Section 82.65, subd. 5 requires notice of being charged with, convicted of, or pleading guilty or nolo contendere to any felony, and subd. 2 sets a ten-day deadline. The duty arises at the charge, not only on conviction.

Question 24

A property sells for $300,000. The buyer assumes the seller's existing $120,000 mortgage, which remains on the property. What is the state deed tax?

Accepted Answer

Net consideration excludes liens remaining at the time of sale: 300,000 - 120,000 = 180,000. Deed tax: 180,000 x 0.0033 = $594. Taxing the full price gives $990, the tempting error.

Question 25

Under §510.02, the homestead exempt from most creditors may include up to how many acres?

Accepted Answer

Section 510.02 states the homestead may include any quantity of land not exceeding 160 acres; the dollar cap is separately set and periodically indexed.

Minnesota real estate math practice test

1. A licensee changes her business address. By when must she notify the commissioner in writing?

2. Annual taxes of $5,400 are paid in arrears at year-end. Closing is June 15, and the seller owns the day of closing. Using a 360-day year, what is the proration?

3. When competing brokerages agree to charge the same commission rate, they commit:

4. One discount point equals what percentage of the loan amount?

5. A borrower pays $4,500 for 1.5 discount points. What is the loan amount?

6. A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

7. The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?

8. A 275-gallon heating oil tank costs $168 to fill at $4.20 per gallon. The buyer will credit the seller for the oil remaining in the tank. What is the credit?

9. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

10. A buyer's broker in Minnesota is paid entirely by the seller through a commission split. Whom does the buyer's broker represent?

11. A rectangular lot is 100 ft by 150 ft. How many square feet is it?

12. A broker received a 4.2% commission totaling $12,600. What was the sale price?

13. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

14. A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?

15. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

16. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

17. A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

18. A person who violates chapter 82 or a rule or order of the commissioner is guilty of what level of crime?

19. A tenant's $1,500 deposit earned interest for exactly 18 months. The landlord properly deducts $250 for damage beyond normal wear and tear. How much must the landlord return?

20. Within what time must a charge of housing discrimination be filed with the Minnesota commissioner of human rights?

21. A seller refuses to close through no fault of the buyer. May the listing broker keep part of the buyer's earnest money as a commission?

22. A home sells for $375,000. The total commission is 5.4 percent, split equally between listing and selling brokers. The listing salesperson receives 65 percent of the listing broker's share. How much does the listing salesperson receive?

23. A salesperson is charged with a felony unrelated to real estate. What must the salesperson do?

24. A property sells for $300,000. The buyer assumes the seller's existing $120,000 mortgage, which remains on the property. What is the state deed tax?

25. Under §510.02, the homestead exempt from most creditors may include up to how many acres?

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