MN Real Estate study guide
MN Real Estate · Work through your exam, one topic at a time.
The Minnesota Real Estate Salesperson Examination is the licensing test a candidate must pass to be issued a Minnesota real estate salesperson license and work under a sponsoring broker. It is intended for people entering the industry - career changers, new graduates, and assistants moving into a licensed role - who have completed the state's pre-licensing education requirement. The MN Real Estate study guide has 10 sections and about 3,539 words.
01Minnesota License Law, Statutes, and Administrative Rules
Minnesota regulates brokerage under Minn. 2100, with the Department of Commerce as the licensing agency.
390 words, about 2 min02Agency Relationships, Representation, and Required Disclosures
Minnesota uses written agency disclosure. Before signing a purchase agreement - and in practice at first substantive contact - the licensee must deliver a written explanation of agency options and obtain acknowledgment.
383 words, about 2 min03Contracts, Purchase Agreements, and Transactional Documents
A valid purchase agreement requires offer, acceptance, consideration (earnest money is evidence of it), competent parties, legal purpose, and a writing signed by the party to be charged that identifies the property - Minnesota's statute of frauds. The Minnesota Realtors purchase agreement is a widely used private form, not a state-mandated document; parties may use any lawful form.
363 words, about 2 min04Seller and Buyer Disclosures and Property Condition Reporting
Minnesota's Seller's Property Disclosure Statement (SPDS), Minn. 513, applies to residential property of one to four units.
348 words, about 2 min05Real Property Ownership, Rights, Interests, and Transfer
Fee simple absolute is the fullest estate; lesser estates include life estates and leaseholds. Minnesota recognizes tenancy in common (no survivorship, unequal shares allowed) and joint tenancy (equal shares with survivorship).
327 words, about 2 min06Real Estate Financing, Mortgages, and Settlement
Minnesota is a lien-theory state: the borrower keeps title and the lender holds a mortgage lien. Minnesota lenders typically use mortgages with a power of sale rather than deeds of trust.
328 words, about 2 min07Valuation, Pricing, and Market Analysis
Licensees prepare comparative market analyses and price opinions; they do not perform appraisals, which are governed by USPAP and Minnesota appraiser licensing law. The three approaches: sales comparison (the workhorse for residential), cost (replacement cost minus depreciation plus land - useful for new or unusual property), and income (value = net operating income ÷ capitalization rate, or value = annual rent × gross rent multiplier).
332 words, about 2 min08Fair Housing and Civil Rights Requirements
The federal Fair Housing Act covers race, color, religion, sex (including sexual orientation and gender identity under current HUD interpretation), national origin, familial status, and disability. Minnesota's Human Rights Act (Minn.
369 words, about 2 min09Trust Accounts, Records, and Brokerage Operations
Earnest money and any other funds held for others belong in the broker's trust account - an account separate from operating funds, with no commingling of personal or business money. The broker is accountable for every deposit and disbursement.
369 words, about 2 min10Closing, Escrow, and Post-Closing Responsibilities
Minnesota closings are commonly handled by a title company acting as closing agent; Minnesota does not require attorneys at closing, though parties may hire one. The title company issues a title commitment, clears exceptions, and issues an owner's policy and a lender's policy.
330 words, about 2 min