Real Estate Practice in Minnesota
Day-to-day practice in Minnesota is shaped by rules on handling client money, seller disclosures, and mandatory transfer disclosures unique to the state. This chapter covers trust accounts and the disclosures Minnesota law requires in a residential sale.
Trust Accounts and Earnest Money
Earnest money and other client funds must be handled through the broker's trust account. A salesperson who receives funds must deliver them promptly to the broker, and the broker must keep trust money separate from business and personal accounts. Commingling or converting trust funds is one of the most serious violations of Minnesota license law and a frequent basis for discipline.
Seller's Disclosure of Material Facts
Minnesota law generally requires a seller of residential property to disclose in writing all material facts known to the seller that could adversely and significantly affect an ordinary buyer's use or enjoyment of the property, or provide a qualifying inspection report instead. Licensees must not help a seller conceal known defects. Honest, complete disclosure protects both the consumer and the licensee from later misrepresentation claims.
Well and Related Transfer Disclosures
When a property being sold has a water well, Minnesota requires the seller to provide a Well Disclosure Statement identifying the location and status of each well, and sealed wells must be documented. Minnesota also has disclosure obligations tied to individual sewage treatment systems and other conditions. Licensees should confirm these state-specific disclosures are completed so the transfer can be recorded without delay.
State-specific details
State exam facts
- State regulator
- Minnesota Department of Commerce
- Exam vendor
- Pearson VUE
- Prelicensing education
- 90 hours (three 30-hour courses)
How many prelicensing hours does Minnesota require to become a real estate agent?
Minnesota requires 90 hours of pre-license education delivered as three 30-hour courses (Course I must be completed before the exam; Courses II and III before license application).
Who licenses real estate agents in Minnesota?
The Minnesota Department of Commerce licenses real estate salespersons and brokers. The Department uses Pearson VUE to deliver the licensing exams.
How is the Minnesota salesperson exam structured?
The Minnesota salesperson exam is delivered by Pearson VUE with a national portion and a Minnesota state portion, scored separately; you must pass both. Confirm the current scored-question counts in the Pearson VUE Candidate Handbook.
Sources: https://mn.gov/commerce/industries/real-estate/, https://home.pearsonvue.com/mn/realestate
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