Financial Instruments: Obligations, Rights and Remedies
The smallest state area covers what happens when the money goes wrong: mortgage foreclosure by advertisement and by action (chs. 580, 581 and 582), contract for deed cancellation and the residential contract for deed disclosures (chs. 559 and 559A), homestead exemptions (ch. 510), and mechanic's liens (ch. 514).
Foreclosure and redemption
Minnesota has two mortgage foreclosure routes: foreclosure by advertisement under chapter 580, the nonjudicial route in which the mortgagee publishes notice and the sheriff sells, and foreclosure by action under chapter 581, the judicial route. Chapter 582 carries provisions general to both. After a sale by advertisement the mortgagor ordinarily has six months to redeem by paying the sale price with interest at the rate stated in the certificate of sale, or six percent if none is stated, plus the further sums allowed by sections 582.03 and 582.031 (580.23, subd. 1). The period is 12 months in the listed cases in subdivision 2, including a mortgage executed before July 1, 1967, an amount due at the notice of sale that is under 66-2/3 percent of the original principal, premises that exceeded 40 acres when the mortgage was executed, several dated agricultural-use rules for parcels of ten to 40 acres, and a reverse mortgage as defined in section 47.58.
Contracts for deed
A contract for deed is cancelled by statutory notice, not by foreclosure. For a contract executed on or after August 1, 1985, the notice states that the contract terminates 60 days after service unless the purchaser cures: complying with the conditions in default, making all payments due, paying the costs of service, paying two percent of the amount in default (excluding the final balloon payment and assumed taxes, assessments, mortgages or prior contracts), and paying the statutory attorney fee amount (Minn. Stat. 559.21, subd. 2a). Subdivision 4 shortens the period to 30 days for earnest money contracts, purchase agreements and exercised options, and lengthens it to 90 days for a contract for deed executed by an investor seller. Chapter 559A, which PSI's reference list omits, applies where a purchaser enters a contract for deed for residential real property with an investor seller: the disclosures must be affixed to the front of the purchase agreement, and the investor seller may not enter into the contract for deed earlier than ten calendar days after the purchase agreement is executed and the disclosures provided (559A.03).
Homestead exemption and mechanic's liens
The Minnesota homestead exemption may include any quantity of land not exceeding 160 acres, with a separate cap on value that is higher for a homestead used primarily for agricultural purposes and that is adjusted periodically and republished by the commissioner of commerce (Minn. Stat. 510.02). A mechanic's lien for labor, skill, material or machinery ceases at the end of 120 days after the last contribution to the improvement unless within that period the claimant both files a verified lien statement for record with the county recorder or the registrar of titles and serves a copy on the owner, the owner's authorized agent, or the person who contracted with the contractor (514.08, subd. 1). Foreclosure of the lien is a separate action commenced under section 514.11, in which all other lienholders are made defendants.
Keep going: the full Minnesota Real Estate Broker guide covers every section of the exam. Minnesota Real Estate Broker Exam Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
State-specific details
State exam facts
- State regulator
- Minnesota Department of Commerce
- Exam vendor
- PSI
- Prelicensing education
- 30-hour broker course, including 3 hours of fair housing, completed within 12 months before application (beyond the salesperson courses)
- Passing score
- 75% on the uniform portion and 75% on the state portion
- Scored questions
- 135
- Time limit
- 240 minutes
Who regulates real estate brokers in Minnesota?
The Minnesota Department of Commerce licenses real estate brokers and salespersons under Minnesota Statutes chapter 82. The Department contracts with PSI to deliver the licensing exams; PSI's Minnesota candidate information bulletin is number 10954.
What experience do I need before the Minnesota broker exam?
Minn. Stat. § 82.59, subd. 4(b) requires proof of at least three years of actual experience as a licensed real estate salesperson within the previous five-year period, in Minnesota or in another state with comparable requirements, or that you are otherwise similarly qualified in the commissioner's opinion by reason of education or practical experience. Subdivision 5 lets the commissioner waive the experience requirement for someone with a real estate degree from an accredited college or university, a licensed practicing attorney whose practice involves real estate law, or a public officer whose official duties involve real estate law or real estate transactions; a granted waiver lapses if you do not pass the broker examination within one year. You must also complete a 30-hour broker course, three hours of it fair housing, within the 12 months before you apply.
How is the Minnesota broker exam structured?
PSI's examination summary table gives the broker exam as a general portion of 75 items scored to 80 points in 2.5 hours plus a Minnesota state portion of 60 items worth 60 points in 1.5 hours — 135 scored items over 4 hours. The general broker exam includes some items scored up to two points, which is why 75 items are worth 80. You must score 75% on each portion to pass, and a candidate who passes one portion retakes only the other. Five to ten unscored experimental questions may also appear and will count against your time.
What does the Minnesota state portion cover?
PSI's Minnesota state content outline lists four areas: real estate brokerage license law (Minn. Stat. §§ 82.55–82.86 plus the commissioner's authority in chapter 45), interests in real property (conveyance by spouses, subdivided lands, common interest ownership under chapter 515B, property taxes, and landlord-tenant law), conveyance procedures and protection of parties (Torrens registration, mortgage registry and deed tax, statutory home warranties, the Minnesota Human Rights Act, the statute of frauds, and well, septic and storage-tank disclosures), and financial instruments (mortgage foreclosure and redemption, contracts for deed, homestead exemptions, and mechanic's liens). Note that PSI prints per-area numbers of 25, 10, 9 and 6 that add up to 50 rather than the 60 items it declares for the state portion, so treat those figures as relative emphasis rather than as item counts.
Sources: https://test-takers.psiexams.com/api/content/bulletin/10954, https://www.revisor.mn.gov/statutes/cite/82.59, https://mn.gov/commerce/licensing/list/real-estate/
In the Minnesota Real Estate Broker guide: A 60-question national practice exam, with a key that explains all four options and not just the right one. Practice here stays free.