Real Estate Exam Review (MN and National)
Title Insurance
Why is a title attorney's opinion of title important? Options: a. To determine the market value of a
property; b. To verify the ownership of a property; c. To remove clouds on title; d. To provide insurance
for the property
Answer: c. To remove clouds on title;
What is a title insurance policy? Options: a. A type of mortgage; b. A type of deed; c. A type of insurance
policy; d. A type of appraisal
Answer: c. A type of insurance policy;
Appraisal Licensing
Who needs an appraisal license in Minnesota? Options: a. Anyone who wants to do appraisals; b. Only
licensed real estate agents; c. Only people who do appraisals for personal use; d. No one needs an
appraisal license
Answer: a. Anyone who wants to do appraisals;
How old can appraisal license exam results be at the time of application? Options: a. Less than 1 year; b.
1-2 years; c. 2-5 years; d. More than 5 years
Answer: b. 2 years (24 months);
4 exempt from appraisal licensure in Minnesota:
Market analysis. The appraisal license statute does not apply to a licensed real estate salesperson or
broker who, in the ordinary course of the licensee's business, gives a market analysis of the price of real
estate, if the market analysis is not referred to or construed as an appraisal. You will learn the difference
between the two in this section.
Assessors. The appraisal license statute does not apply to persons employed and acting in their capacity
as assessors for political subdivisions (i.e., cities and counties) of the state. Assessed value is different
than appraised value. Assessed value is what property taxes are paid from and have little or nothing to
do with market value or appraised value.
,Geologists or engineers. The appraisal license statute does not apply to an appraisal, analysis, opinion,
or conclusion as to the value of oil, gas, coal, and other mineral resources performed by an engineer.
Department of revenue. The appraisal license statute does not require persons employed by, or under
contract to, the department of revenue to be licensed in order to perform, conduct, or assist in, an
appraisal done within the scope of their employment duties.
What statute regulates the real estate industry in this MN
Chapter 82 of Minnesota Statutes
If a broker wishes to do business as a business entity; i.e., on her own or with a new group who is
forming a company, what must she do first?
she must first submit a company application.
Requirements for becoming a broker (years of experience as a REA and within how many years.
Application deadline?
Applicants must have three years of licensed Minnesota salesperson experience within the five years
prior to the date of application for a broker license in Minnesota or another state with comparable
requirements. The broker applicant must also take a 30 hour course and pass the PSI Uniform and State
Exams.
Application deadline: According to Minnesota Statute "An applicant who obtains an acceptable score on
a broker's examination must file an application and obtain the license within one year of the date of
successful completion of the examination or a second examination must be taken to qualify for the
license.
MN Reciprocal states
Colorado, Iowa, Nebraska, North Dakota, Oklahoma, South Dakota and Wisconsin
The individual broker applications must be submitted within how many days of company application?
And how long is the term of the license and when does it expire?
30 days of the approval date of the company application. A company application will be cancelled if it
doesn't have a primary broker associated with it.
The term of a company license is two years, expiring on June 30th.
Exempt from broker...
a licensed practicing attorney
• a receiver, trustee, administrator, guardian, executor,
• any person owning and operating a cemetery
• any custodian, janitor, or employee of the owner
• any bank, trust company, savings association, industrial loan and thrift company, regulated lender,
, public utility, or land mortgage or farm loan association organized under the laws of this state or the
United States
• public officers while performing their official duties
• any person who acts as an auctioneer
• any person who is licensed as a securities broker-dealer
• any person who offers to sell or sells franchise
• any person who contracts to provide continuing care in a facility, when acting solely as incident to the
contract
If a valid automatic transfer is not filed...
the salesperson's license will automatically terminate
requirements for transfer broker
The transfer license application completed
The salesperson's educational requirements cannot be past due
The former primary broker is required to indicate the date and time, and then sign before the by the
new primary broker.
The new broker must sign the transfer application form no more than five days after the former primary
broker s (The salesperson is unlicensed for the period of time between the times and dates of both
signatures).
An automatic transfer is effective as of the date and time that the new broker signs and dates the
transfer application form, provided that the transfer application and fee are received in the commerce
department within 72 hours after the date and time of the new broker's signature, either by certified
mail or personal delivery. ESIGN is okay and postmark is the only important part for the 72 hours
Temporary Broker's Permit
In the event of death or incapacity commissioner may issue a 45-day temporary permit to an individual
who has had a minimum of three years actual experience as a licensed real estate salesperson
can be renewed once by the commissioner if the applicant demonstrates that he or she has made a
good faith effort to obtain a broker's license
Termination of License
The broker will go on to the Minnesota Department of Commerce Pulse Portal website and fill out a
form. Once that is completed, the cancellation is effective immediately.
actual license must physically be returned, by the broker, to the Minnesota Commissioner of Commerce
within ten days of termination.
Nolo contendere
to accept conviction through a guilty plea, but not to admit guilt.
