MN Course 1 Exam Prep: Licensing, Agency, and Contracts Questions And Answers

How many hours of education must an applicant for a salesperson's license take in Minnesota before sitting for the exam? - ANS 30 (Course 1) How many hours of education must an applicant for a salesperson's license take in Minnesota before applying for a license? - ANS 90 (Courses 1, 2, and 3) What's a passing percentage for the Minnesota salesperson license exam? - ANS 75% How is the Minnesota Salesperson Course 1 course final administered? - ANS It must be proctored. How many pieces of ID must an applicant bring to the testing center? - ANS Two; one must be government issued, and both must be in the legal name that will appear on the applicant's license. What is a REALTOR®? - ANS A member of the National Association of REALTORS® Salespersons must receive all compensation for brokerage activities only through their _______. - ANS Broker If a salesperson wanted to specialize in farm properties, what additional licensure is needed? - ANS None; as long as the salesperson can provide competent service, no additional education or certification is required for specialization. If Amy wants to perform brokerage services, what must she have? - ANS A real estate license; if Amy is a salesperson, she must also have a sponsoring broker whose license she works under What is a code of ethics? - ANS A set of ethical standards that professionals agree to abide by (an example is the National Association of REALTORS® Code of Ethics) What's the purpose of real estate license law? - ANS To protect consumers How is license law governed? - ANS By laws and regulations Which entity is in charge of licensing real estate professionals in Minnesota? - ANS The Department of Commerce's Licensing Unit What authority does the commissioner of commerce have? - ANS To hold hearings, examine records and documentation, subpoena witnesses, require sales reports, require the payment of investigative costs, and issue injunctions and cease and desist orders By when must Minnesota licensees respond to a request by the commissioner of commerce? - ANS 30 days Are penalties for license law civil or criminal? - ANS License law violations are considered gross misdemeanors, so penalties may be civil or criminal. What's the maximum civil penalty for a license law violation? - ANS $10,000 Who may limited brokers represent? - ANS Only themselves How long is the initial license period for a salesperson or a broker? - ANS Two years By when must renewal requirements be met? - ANS By June 15 of the renewal year What is the continuing education requirement for renewal in Minnesota? - ANS Thirty hours per renewal cycle (every two years), with a minimum of 15 hours taken in the first year. Brokers must take one of those hours per year as broker-specific coursework What's a trust fund (as commonly used in real estate)? - ANS Money or other item of value accepted by a real estate licensee on behalf of a party to the transaction. How is the Real Estate Recovery Fund funded? - ANS License and renewal fees What are the categories of appraiser licensure, in order from least to most qualified? - ANS Trainee, licensed residential appraiser, certified residential appraiser, certified general appraiser How is the Real Estate Recovery Fund overseen? - ANS The fund's custodian is the commissioner of management and budget, and the fund is administered by the commissioner of commerce. Which standards must appraisers follow? - ANS Uniform Standards of Professional Appraisal Practice (USPAP) What's the purpose of the Subdivided Land Act - ANS Addresses registration and licensing requirements, offering statements, sales contracts, and exemptions Are timeshare agents exempt from licensure? - ANS Yes, if their work is limited to timeshare sales, and they work for a limited broker How are subdivisions registered? - ANS By notification, or by qualification (registration by notification is available only when the land will be subdivided into a maximum of 100 separate lots or units) Fiduciary - ANS A person in whom another's trust and confidence is placed. Client/principal - ANS Person who has agent representation. Customer - ANS Person related to the transaction who is not represented by the agent. Non-agent - ANS A licensee acting as a facilitator but not in a representative capacity in a transaction. General agent - ANS A person who is authorized to act for another (the principal or client) in a range of matters. Special agent - ANS An agent whose scope of authority is limited to a specific area. Limited agent - ANS One who acts within a very limited scope. Universal agent - ANS A person with unlimited power to act for another, such as a conservator, or one who holds a broad scope power of attorney. Dual agency - ANS Representing both sides in a real estate transaction. A broker acting as dual agent may designate one agent to represent the seller, and another agent to represent the buyer as designated agents. Fiduciary duties - ANS The duties of obedience, loyalty, disclosure, confidentiality, accountability, and reasonable skill and care, that a trusted agent owes to their client. Agency - ANS A relationship in which an agent is authorized by a principal to act on the principal's behalf in certain areas. Express agency - ANS Agency created by the express written or oral communication between the parties. Implied agency - ANS Agency created from the actions of the parties. Stigmatized property - ANS A property that buyers may shy aware from for reasons other than physical defects, such as a property being the site of a murder. Shared duties (owed to client and customer) - ANS The duties of disclosure of material facts, reasonable skill and care, honesty and fair dealing, and prompt presentation of offers and counter-offers