1. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?
Answer & explanation
Answer: B. Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.
2. A Minnesota licensee must disclose to a prospective buyer material facts that could:
Answer & explanation
Answer: C. Section 82.68, subd. 3 requires disclosure of known material facts that could adversely and significantly affect an ordinary purchaser's use or enjoyment, or any intended use the licensee knows of.
3. A buyer works with a licensee but never signs a buyer's broker agreement. How does the agency form describe the buyer and the licensee?
Answer & explanation
Answer: A. The form explains that a consumer who wants representation must sign a written contract; otherwise, the consumer is a customer and the licensee acts as a facilitator.
4. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:
Answer & explanation
Answer: A. The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.
5. What must appear clearly and conspicuously in all advertising by a Minnesota licensee?
Answer & explanation
Answer: B. Section 82.69(a) requires all advertising by a licensee to clearly and conspicuously display the real estate brokerage name.
6. Which course would NOT be approved for Minnesota real estate continuing education credit?
Answer & explanation
Answer: D. Section 82.61 excludes courses in motivation, salesmanship, psychology, and time management. Agency and fair housing (or underserved populations) are actually required topics.
7. A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:
Answer & explanation
Answer: D. Money belonging to others goes into a trust account; depositing it in an operating account is commingling.
8. A broker received a 4.2% commission totaling $12,600. What was the sale price?
Answer & explanation
Answer: C. Sale price = commission / rate = $12,600 / 0.042 = $300,000.
9. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:
Answer & explanation
Answer: B. 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.)
10. A licensee working as a facilitator owes the parties which fiduciary duty?
Answer & explanation
Answer: D. The statutory form states a facilitator does not owe any party any of the fiduciary duties except confidentiality, plus duties required by law or in a written facilitator agreement.
11. A seller delivers the disclosure statement to the buyer's agent instead of the buyer. What is the legal effect?
Answer & explanation
Answer: A. 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.
12. Which statement about dual agency is correct?
Answer & explanation
Answer: D. Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.
13. Which is NOT a permitted basis for disbursing trust funds under §82.75?
Answer & explanation
Answer: A. Section 82.75, subd. 5(d) allows disbursement only on closing, written agreement of the parties, a §559.217 cancellation affidavit, or court order. The broker's own judgment of fault is not a basis.
14. A licensee's advertising must generally:
Answer & explanation
Answer: C. Ads must identify the licensed broker/brokerage; salespersons cannot advertise under only their own name.
15. For each well disclosed to a buyer, the Minnesota seller must state whether the well is:
Answer & explanation
Answer: C. Section 103I.235, subd. 1(a) requires the disclosure statement to indicate for each well whether it is in use, not in use, or sealed.
16. A candidate scores 88 percent on the national portion and 71 percent on the state portion. What is the result?
Answer & explanation
Answer: A. Each portion must be passed at 75 percent (§82.59, subd. 6). The candidate passed the national portion but not the state portion, so only the state portion is retaken. Averaging (88 + 71) / 2 = 79.5 is not permitted.
17. A person's real estate license was revoked in Wisconsin 18 months ago. May the person take the Minnesota licensing exam now?
Answer & explanation
Answer: B. Section 82.59, subd. 2 makes an applicant ineligible to test if a real estate license was revoked in Minnesota or another state within two years of the application date. Eighteen months is inside that window, but the bar is not permanent.
18. A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:
Answer & explanation
Answer: D. Specific performance compels the breaching party to perform; it is available because land is unique. The buyer could alternatively seek monetary damages.
19. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?
Answer & explanation
Answer: A. Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.
20. The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:
Answer & explanation
Answer: D. The habendum clause defines the estate conveyed; the granting clause contains the words of conveyance.
21. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:
Answer & explanation
Answer: A. The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.
22. Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?
Answer & explanation
Answer: A. Specific terms like the down payment amount, number or amount of payments, finance charge or repayment period trigger full disclosure (including APR). General statements do not.
23. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?
Answer & explanation
Answer: B. Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.
24. In a lease, the tenant holds a ____ estate and the landlord holds a ____.
Answer & explanation
Answer: D. The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.
25. A licensee representing the seller who learns the buyer will pay more than the offer must:
Answer & explanation
Answer: C. Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.
Sources
Source verification pending. Confirm current requirements with your state regulator.