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Minnesota Real Estate Test Latest
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Balloon Mortgage: ✔✔A mortgage with monthly payments often based on a 30-year amortization schedule, with the unpaid balance due in a lump sum payment at the end of a specific period of time.
Assessed Value: ✔✔Typically the value placed on property for the purpose of taxation.
Assessor: ✔✔A public official who estab-lishes the value of a property for taxa-tion purposes.
Comparables: ✔✔An abbreviation for "com-parable properties," which are used as a comparison in determining the current value of a property.
Concession: ✔✔Something given up or agreed to in negotiating the sale of a house. For example, the sellers may agree to help pay for closing costs.
Cooperative (Co-op) ✔✔project in which a corporation holds title to a residential property and sells shares to individual buyers, who then receive a proprietary lease as their title.
The Statute of Frauds applies to ✔✔deeds, mortgages and other real estate contracts—with the exception of leases for periods shorter than 12 months in residential properties containing fewer than 12 units.
Leases shorter than 12 months in Minnesota ✔✔do not have to be in writing if the property is a residential building with fewer than 12 units. This is the only exception, in test world, that allows contracts to be verbal vs. in writing.
Brokers are required to maintain an ✔✔interest-bearing trust account.
Minnesota Homestead Exemption Amounts ✔✔-The Homestead exemption amount in Minnesota is $390,000.....
- If the homestead is used primarily for agricultural purposes, then the exemption limit is $975,000.....
- The property can't exceed a half acre within a city or town, or 160 acres everywhere else.
A well is "not in use" ✔✔if the well is not functioning or is not capable of functioning, such as when the well pump on the well is disconnected, or when the well is no longer connected to a power supply.
A well is "sealed" ✔✔if the well has been filled with an approved sealing material (a type of grout like material) by a licensed well contractor or a licensed well sealing contractor and the Minnesota Department of Health (MDH) has received a Well and Boring Sealing Record.
Well Disclosure Certificate must be provided at the ✔✔time of closing. And include a well disclosure statement, the name and mailing address of the buyer, and the quarter, section, township, and range OR lot, block, and addition.
This is an item needed above and beyond the disclosure.
Well Disclosure Statement ✔✔is signed by seller at the time of listing
Is a well disclosure certificate is not needed if ✔✔one was filed for a previous transfer of the property and if the number and status of the well or wells has not changed since the last certificate was filed.
If there are no wells on the property ✔✔The deed must contain the statement: "The seller certifies that the seller does not know of any wells on the described real property."
How to find out if there is a well on the property ✔✔A well usually appears as a pipe or casing from 1-1/4 to 6 inches in diameter, but may be a ring of concrete or tile up to 3 feet in diameter.
The well maintenance permit ✔✔A maintenance permit allows an unused well to remain unsealed if it is properly maintained.
State law requires that a well that is not in use must be sealed unless the property owner has a maintenance permit for the well
Well sealing ✔✔is the process of permanently and completely filling a well with an approved sealing material, called "grout."
State law requires that a well must be sealed by a licensed well contractor or a licensed well sealing contractor
If you are "making" a Commercial Mortgage Loan ✔✔you should contact the Commerce Banking Division to discuss whether your specific activities require a license.
If you are "brokering" a Commercial Mortgage Loan ✔✔you must obtain a Limited Broker license.
One-Year period from warranty date ✔✔The dwelling shall be free from defects caused by faulty workmanship and defective materials due to noncompliance with building standards.
Two-Year period from warranty date ✔✔The dwelling shall be free from defects caused by faulty installation of plumbing, electrical, heating and cooling systems due to noncompliance with building standards
Ten-Year period from warranty date ✔✔During the ten-year period from and after the warranty date, the dwelling shall be free from major construction defects due to noncompliance with building standards.
Warranty coverage under the statute runs from the "warranty date" which is the earlier of: ✔✔the date of the buyer's first occupancy of the dwelling, or......
the date on which the buyer takes legal title to the dwelling.
Home warranty claims ✔✔must be brought within two years of the date of discovery of the breach of warranty
If a builder breaches a statutory warranty ✔✔a buyer has a cause of action against the builder for damages (the cost for correcting the problem) or for specific performance.
An order of specific performance from a court requires ✔✔a party to perform a specific act, usually what is stated in a contract. We will cover specific performance more fully later in this course.
The third party, whom the agent deals with on behalf of the principal, is the ✔✔customer
Universal Agents ✔✔Universal agents hold broad authority to act on behalf of the principal. The agent, in effect, replaces the principal. It affords the greatest degree of authority given by a principal to an agent.
- Facilitator:
The six fiduciary duties are: ✔✔Dr. Cola,.....
- Disclosure
- Reasonable Care
- Confidentiality
- Obedience
- Loyalty
- Accounting
Client confidentiality means ✔✔that you will not share knowledge of your client's price, terms or motivation with others without the client's permission, unless required by law to disclose specific information.
Obedience ✔✔The broker or salesperson will carry out all the client's lawful instructions.
Reasonable Care ✔✔A broker or salesperson will use reasonable care in performing duties as an agent.
Disclosure ✔✔While acting as an agent, a broker or salesperson must disclose all material facts, of which he or she has knowledge, that might reasonably affect the clients use and enjoyment of the property.
Loyalty ✔✔The broker or salesperson will act only in the client's best interest.
Accounting ✔✔The broker or salesperson will account to clients for all client money and property received as an agent.
An example of an accounting duty would be ✔✔the proper handling of earnest money.
Do you have responsibilities to parties who you do not represent? ✔✔Even though you are not representing a third party person, such as a buyer of your seller's property, you should treat that person with respect, truthfulness, and with the highest professional standards of ethics and etiquette. You should act with urgency, and most states require you to disclose material facts that you know about regarding the property.
The agency disclosure form is intended to provide ✔✔a description of available options for agency and facilitator relationships, and a description of the role of a licensee under each option. The agency disclosure provides a signature line for acknowledgment of receipt by the consumer.
When a principal in the transaction is a licensee, or when the principal is a relative or business associate of the licensee, that fact must be disclosed in writing in a, ✔✔Principal relationship disclosures
Joint tenancy ✔✔owned by two or more people at the same time with equal shares.
Tenants in common ✔✔owned by two or more persons at the same time. All owners have rights to possess and enjoy the property, but their interests do not have to be equal.
Adverse possession is not allowed if, ✔✔the property is registered in the Torrens system.
A contract for deed needs to be recorded by the________ within__________ of the agreement. The civil penalty if not recorded equals____ of the principal. ✔✔vendee, four months, 2%
If a vendee defaults on a contract for deed, the remedy is__________ by serving notice of cancellation to the purchaser (vendee). ✔✔cancellation.
Equitable redemption on a contract for deed is? ✔✔60 days from the receipt of notice of cancellation for contracts dated after July 31, 1985.
Minnesota requires lenders to pay________ on funds collected with loan payments, and escrowed for taxes and insurance. ✔✔interest
Three factors that affect your tax bill? ✔✔The amount the local governments spend to provide services to the community,.......
The estimated market value of the property,......
The classification of the property (how it is used).
