Free Minnesota Real Estate Practice Exam

Q1.What is required for a valid deed to transfer title?

• A.Recording in public records
• B.Notarization only
• C.Payment of transfer taxes
• D.Delivery and acceptance

Q2.RESPA requires lenders to provide borrowers with a Loan Estimate within how many business days of receiving a loan application?

• A.1 business day
• B.2 business days
• C.3 business days
• D.5 business days

Q3.A Minnesota licensed salesperson, while showing a listed property, discovers a crack in the foundation that the seller did not disclose. Under Minnesota Statutes Chapter 82, what is the salesperson's obligation?

• A.Disclose the defect to prospective buyers because Minnesota law requires licensees to disclose material facts affecting the property.
• B.Keep the information confidential because the duty of loyalty to the seller requires the salesperson to withhold adverse information.
• C.Disclose the defect only if the buyer directly asks about the structural condition of the property.
• D.Report the defect only to the supervising broker and take no further action until the broker instructs otherwise.

Q4.A lender denies a mortgage application and cites the applicant's receipt of public assistance income as the primary reason. Which federal law has the lender most likely violated?

• A.Real Estate Settlement Procedures Act (RESPA)
• B.Truth in Lending Act (TILA)
• C.Equal Credit Opportunity Act (ECOA)
• D.Home Mortgage Disclosure Act (HMDA)

Q5.Under the Fair Housing Act, what is the statute of limitations for filing a discrimination complaint with HUD?

• A.1 year from the date of the discriminatory act
• B.30 days from the date of the discriminatory act
• C.6 months from the date of the discriminatory act
• D.2 years from the date of the discriminatory act

Q6.Under the Equal Credit Opportunity Act (ECOA), which of the following bases is NOT a protected class when a lender is evaluating a mortgage loan application?

• A.Race
• B.Marital status
• C.Credit score
• D.National origin

Q7.Under Minnesota Statute Chapter 82, which of the following actions by a licensed salesperson would be considered a prohibited practice?

• A.Presenting all offers to the seller, even after the seller has accepted an offer
• B.Accepting an earnest money deposit and delivering it to the broker by the next business day
• C.Advertising a listed property without including the licensed broker's name in the advertisement
• D.Disclosing to a buyer that the seller is motivated to sell quickly

Q8.Under RESPA's Closing Disclosure requirements, how many business days before closing must the borrower receive the final Closing Disclosure?

• A.3 business days
• B.1 business day
• C.2 business days
• D.5 business days

Q9.A property manager discovers environmental contamination on a rental property that may require CERCLA (Superfund) involvement. What is the manager's primary federal obligation regarding current tenants?

• A.Immediately terminate all leases without notice to protect tenants
• B.Continue normal operations until EPA formally designates the site
• C.Report the contamination to EPA and potentially face liability as a current operator of the facility
• D.Transfer ownership to avoid CERCLA liability before EPA investigation

Q10.Which of the following best describes a 'credit' to the buyer on a closing statement?

• A.An amount the buyer owes and must pay at closing
• B.An amount that reduces what the buyer owes at closing
• C.A fee charged by the lender for processing the loan
• D.A deduction taken from the seller's proceeds

Q11.A landlord refuses to rent an apartment to a family with young children, claiming the unit is 'too small for children.' Under the federal Fair Housing Act, this action most likely constitutes discrimination based on which protected class?

• A.Disability
• B.Familial status
• C.National origin
• D.Religion

Q12.After an agent terminates employment at a brokerage following a harassment complaint, the brokerage's fair housing liability:

• A.Ends automatically when the agent is terminated
• B.Transfers entirely to the former agent
• C.Is resolved as long as the broker cooperates with HUD's investigation
• D.Continues — the brokerage remains the respondent in any pending complaint

Q13.A Minnesota homeowner owns abstract property and wants to convert it to Torrens (registered) land. Which process must the owner initiate to accomplish this conversion?

• A.File a deed correction with the county recorder and pay the applicable deed tax
• B.Submit a petition to district court for an initial registration proceeding under Minnesota Statutes Chapter 508
• C.Request that the county assessor reclassify the property on the tax rolls
• D.Record a Notice of Torrens Conversion with the registrar of titles without court involvement

Q14.In Minnesota, when must a licensee provide the agency disclosure document to a prospective buyer who is being shown a property?

• A.Before the purchase agreement is signed
• B.At the time of or before entering into the first substantive contact with the prospective buyer
• C.Within 24 hours after the first showing of a property
• D.Only when the buyer formally makes an offer

Q15.Under Minnesota law, which of the following conduct by a real estate licensee would violate the standards of conduct established in Minnesota Statute Chapter 82?

• A.Recommending that a buyer obtain a home inspection before closing
• B.Knowingly making a false statement about a property's condition to induce a buyer to purchase
• C.Disclosing to both parties that the licensee is acting as a dual agent with written consent
• D.Presenting a low offer to the seller along with the buyer's reasoning