Minnesota Real Estate Salesperson Exam — All Questions

The principle of contribution states that the value of a component or improvement is measured by:

• a.The raw number of square feet of floor area or land area that the improvement happens to occupy
• b.The owner's personal emotional attachment to and sentimental feelings about that improvement
• c.Its original construction or installation cost in every case, dollar for dollar, with no exception
• d.How much it adds to the overall value of the property, not its cost✓

Under contribution, an improvement is worth the amount it adds to the whole property's market value, which may be more or less than its cost. This principle explains why some renovations do not fully return their expense, a key point in over-improvement analysis.

Under Internal Revenue Code Section 121, a qualifying homeowner may generally EXCLUDE from taxable capital gain:

• a.Up to $250,000 of gain if single, or $500,000 if married filing jointly✓
• b.Up to a full one million dollars of gain on any property at all, at any time and any frequency
• c.All gain on any and every investment or rental property the taxpayer happens to own and sell
• d.Absolutely nothing, because gain on the sale of a home is always fully and entirely taxable

Section 121 lets homeowners who owned and used the home as their principal residence for at least two of the prior five years exclude up to $250,000 of gain (single) or $500,000 (married filing jointly). It applies to a primary residence, not to investment property.

Depreciation recapture on the sale of investment real estate means that:

• a.All of the depreciation deductions previously claimed are simply refunded to the investor in cash
• b.The investor is legally required to physically restore and rebuild the depreciated building itself
• c.Gain from prior depreciation may be taxed, often at a special rate✓
• d.No income tax is ever owed at all on the sale of a property that has previously been depreciated

When depreciated property is sold at a gain, the portion of gain due to depreciation deductions is 'recaptured' and taxed under special rules, reflecting the earlier tax benefit. It is a tax concept, not a requirement to rebuild, and it increases, not eliminates, tax on sale.

Which appraisal approach is generally MOST reliable for a special-purpose property, such as a church or public school, that rarely sells and earns no market income?

• a.The sales comparison approach, which depends on recent sales of similar comparable properties
• b.The income approach, which converts a property's market rental income into an indicated value
• c.The gross rent multiplier method, which relies on typical market rents that these lack entirely
• d.The cost approach✓

Special-purpose properties have few or no comparable sales and generate no market rent, so the cost approach (replacement cost new, less depreciation, plus land) is typically most reliable. Sales comparison lacks comparables and the income/GRM methods need market income these properties do not produce.

The four characteristics an item must have to possess value in the market, often remembered as DUST, are:

• a.Debt, Utility, Supply, and Taxes, a mix of unrelated financing and cost terms rather than value
• b.Demand, Utility, Scarcity, and Transferability✓
• c.Depreciation, Use, Sale, and Title, which describe stages of ownership rather than value itself
• d.Demand, Ownership, Scarcity, and Time, which swaps in two terms that are not part of the concept

For something to have market value it must have Demand (buyers who want it), Utility (usefulness), Scarcity (limited supply), and Transferability (the ability to convey it). The DUST acronym captures these four essentials of value.

Which state agency licenses and regulates real estate salespersons and brokers in Minnesota?

• a.The Minnesota Department of Commerce✓
• b.The Minnesota Department of Labor and Industry
• c.The Minnesota Association of Realtors
• d.The Minnesota Real Estate Board within the Attorney General's office

Real estate licensing in Minnesota is administered by the Minnesota Department of Commerce under Minnesota Statutes Chapter 82. The Commissioner of Commerce issues, renews, and disciplines licenses. A trade association such as the Minnesota Association of Realtors is a private membership group and has no licensing authority.

In Minnesota, a real estate salesperson's license authorizes the licensee to act only when:

• a.Approved individually for each transaction by the Department of Commerce
• b.Registered with the local county recorder
• c.Employed by and acting on behalf of a licensed real estate broker✓
• d.Working independently as long as the license is active

Under Minnesota's license law, a salesperson may perform licensed real estate activity only for and in the name of the licensed broker who employs and supervises the salesperson. A salesperson cannot operate independently or accept compensation directly from a client; commissions flow through the employing broker.

The Minnesota Real Estate Education, Research, and Recovery Fund primarily exists to:

• a.Pay the operating budget of the Department of Commerce
• b.Reimburse members of the public who suffer an actual monetary loss from certain licensee misconduct✓
• c.Fund the marketing efforts of licensed brokerages
• d.Provide low-interest loans to first-time homebuyers

The Recovery Fund compensates consumers who obtain a final court judgment against a licensee based on fraud, misrepresentation, or deceit in a licensed transaction and cannot otherwise collect. When the fund pays a claim, the licensee's license is suspended until the fund is repaid with interest. It is not a general operating or lending fund.

Minnesota law recognizes a non-agency working relationship in which a licensee assists parties with a transaction but does not represent either party as an agent. This relationship is called a:

• a.Designated agent
• b.Universal agent
• c.Facilitator✓
• d.Subagent

Minnesota is distinctive in recognizing the 'facilitator' relationship. A facilitator performs services such as showing property and preparing paperwork but owes no fiduciary duties of loyalty or advocacy to either buyer or seller; the licensee still owes duties of honesty and disclosure of material facts. This differs from full agency representation.

A Minnesota licensee wishes to represent both the seller and the buyer in the same transaction as a dual agent. This is permitted only if:

• a.The broker files a separate application for each dual-agency transaction
• b.The transaction price is below a statutory dollar threshold
• c.Both the seller and the buyer give informed written consent to the dual agency✓
• d.The two parties are represented by different brokerage firms

Dual agency is legal in Minnesota only with the informed written consent of both parties. Because a dual agent cannot fully advocate for either side, the licensee must disclose the limited representation and obtain consent, typically documented on the agency disclosure form and the listing and buyer representation agreements.

Under Minnesota's agency disclosure requirements, a licensee must provide the required written agency-relationships disclosure to a consumer:

• a.Only after a purchase agreement is signed
• b.Only if the consumer specifically requests it
• c.At the first substantive contact with the consumer✓
• d.Within 10 days after closing

Minnesota requires the licensee to furnish the agency-relationships disclosure at the earliest practical opportunity, no later than the time the licensee begins to provide substantive services or discusses confidential information with the consumer. Disclosing agency early lets consumers understand who, if anyone, represents them before they reveal negotiating information.

When a Minnesota salesperson receives an earnest-money check from a buyer, the funds must be:

• a.Held by the salesperson in cash until the seller accepts
• b.Delivered promptly to the broker to be held in the broker's trust account✓
• c.Sent directly to the county recorder
• d.Deposited into the salesperson's personal checking account until closing

Client and customer money such as earnest money must be handled through the employing broker's trust (escrow) account. A salesperson must deliver received funds to the broker promptly, and the broker may not commingle trust funds with business or personal accounts. Mishandling trust money is a serious license-law violation.

Minnesota's salesperson pre-license education requirement is satisfied by completing:

• a.Only a college degree in business
• b.A 24-hour ethics seminar
• c.Three 30-hour courses (Course I, II, and III), with Course I completed before taking the licensing exam✓
• d.A single 40-hour course before the exam

Minnesota requires 90 hours of approved pre-license education delivered as three 30-hour courses. Course I must be completed before a candidate sits for the state licensing examination; Courses II and III must be completed before the candidate applies for the salesperson license. This staged three-course structure is specific to Minnesota.

Minnesota splits salesperson prelicense education into Course I, Course II and Course III. When must Course I be completed?

• a.Before the broker submits the license application
• b.Within 30 days after the license is issued
• c.Before sitting for the salesperson's examination✓
• d.Before the first continuing education period

Minnesota requires three 30-hour prelicense courses, 90 hours in all. Course I must be finished before the applicant sits the salesperson's examination; Courses II and III must be finished before the license application is filed. Cite: Minn. Stat. 82.59, subd. 8(a); Minnesota Department of Commerce, Guide to Real Estate Licensing.

A Minnesota candidate passes the salesperson's examination, then waits 14 months before a broker submits her application. What follows?

• a.The score stays valid and the license issues on request
• b.The candidate must retake and pass the examination✓
• c.The license is issued but starts out inactive
• d.Only Course III must be repeated before applying

An applicant who passes the salesperson's examination has one year from the date of that examination to file the application and obtain the license; after that a second examination is required. Cite: Minn. Stat. 82.58, subd. 5.

What is the minimum age to apply for a Minnesota real estate salesperson or broker license?

• a.21 at the time the application is made
• b.18 at the time the examination is taken
• c.21, unless the applicant holds a degree
• d.18 at the time the application is made✓

The applicant must be at least 18 years of age at the time of making application. Minnesota fixes the age at application, not at examination. Cite: Minn. Stat. 82.58, subd. 1.

What score does Minnesota require to pass the real estate salesperson's examination?

• a.75 percent on both the uniform and the state portion✓
• b.70 percent overall across both portions combined
• c.75 percent overall, with no minimum per portion
• d.70 on the state portion and 75 on the uniform portion

A passing grade is 75 percent or higher on the uniform portion and 75 percent or higher on the state portion; a strong score on one cannot carry a weak score on the other. Cite: Minn. Stat. 82.59, subd. 6.

Absent a waiver, what experience must an applicant for a Minnesota broker's license show?

• a.Two years as a licensed salesperson at any time in the past
• b.Three years as a licensed salesperson within the previous five years✓
• c.Five years as a licensed salesperson within the previous seven years
• d.Three years of real estate employment, licensed or not

Every broker's examination application must be accompanied by proof of at least three years of actual experience within the previous five-year period as a licensed salesperson in Minnesota or a comparable state. The commissioner may waive the experience requirement for a real estate degree holder, a practicing real estate attorney, or a public officer whose duties involve real estate. Cite: Minn. Stat. 82.59, subds. 4(b) and 5.

How much continuing education must a Minnesota licensee complete in each 24-month license period, and how is it paced?

• a.30 hours, which may all be completed in the final 12 months
• b.24 hours, with at least 12 completed in the first 12 months
• c.15 hours in each license year, plus a separate module exam
• d.30 hours, with at least 15 completed in the first 12 months✓

Salespersons and brokers must complete 30 hours of approved continuing education during the initial license period and during each succeeding 24-month period, and at least 15 of the 30 must fall in the first 12 months of that period. Cite: Minn. Stat. 82.61(a).

Which two specific hours must appear inside every Minnesota licensee's 30 hours of continuing education?

• a.One hour of contract law and one hour of trust account law
• b.Two hours of agency law, with fair housing optional
• c.One hour of agency law and one hour of fair housing✓
• d.One hour of ethics and one hour of appraisal standards

Each license period must include at least one hour on laws or regulations governing agency representation and disclosure, and at least one hour on state and federal fair housing laws, other antidiscrimination laws, or meeting the housing needs of immigrant and underserved populations. Licensees engaged solely in commercial real estate who file a verification of that status are excepted. Cite: Minn. Stat. 82.61(c).

Which course may NOT be approved for Minnesota real estate continuing education credit?

• a.Time management for a busy agent✓
• b.Marketing for residential listings
• c.Negotiation skills for buyer's agents
• d.Technology tools in real estate

Courses in motivation, salesmanship, psychology or time management are expressly barred from continuing education credit. The commissioner may approve courses in communication, marketing, negotiation and technology, among other subjects. Cite: Minn. Stat. 82.61(b).

A Minnesota salesperson has not received notice that her renewal is approved. From what date must she stop transacting business?

• a.June 15 of the renewal year
• b.June 30 of the renewal year✓
• c.July 31 of the renewal year
• d.December 31 of the renewal year

A person who has not received notice of approval of renewal may not continue to transact business after June 30 of the renewal year until that approval is received, and is unlicensed as of July 1 until the license is issued and received. Cite: Minn. Stat. 82.62, subds. 3 and 4.

After how long a gap without renewal will the commissioner require a Minnesota licensee to take the examination again?

• a.Two years of failing to renew the license✓
• b.Six months, unless a late fee is paid
• c.Four years, and only for broker licenses
• d.Immediately upon the first missed renewal

No examination is required to renew, but a person licensed as a broker or salesperson in Minnesota who fails to renew for a period of two years will be required to take the examination again. Cite: Minn. Stat. 82.62, subd. 5.

Which statement describes how a Minnesota salesperson's license attaches to a broker?

• a.A salesperson may be licensed to two affiliated brokerages
• b.A salesperson may accept assignments from any licensed broker
• c.A salesperson may act on behalf of only one broker at a time✓
• d.A salesperson may hold an independent, unattached license

A salesperson must be licensed to act on behalf of a licensed broker and may not be licensed to act for more than one broker in this state during the same period of time. Cite: Minn. Stat. 82.63, subd. 4.

A Minnesota salesperson terminates her activity on behalf of her brokerage. What happens to her license?

• a.It stays active for 30 days while she finds another broker to join
• b.It transfers automatically to the next broker who accepts her
• c.It is canceled outright, and she must reapply and retake the exam
• d.It becomes ineffective, and the broker notifies the commissioner✓

On termination the salesperson's license is ineffective, and within ten days the broker must notify the commissioner in the prescribed form. The salesperson may apply to transfer the license to active status with another broker at any time during the remainder of the license period. Cite: Minn. Stat. 82.63, subd. 6.

A Minnesota primary broker dies. What may the commissioner issue so the brokerage's business can be concluded?

• a.A 45-day temporary broker's permit, renewable once✓
• b.A 90-day temporary broker's permit, renewable twice
• c.A six-month provisional brokerage license
• d.A one-year estate brokerage authorization

On the death, incapacity or loss of license of a broker the commissioner may issue a 45-day temporary permit to someone with at least three years of actual experience as a licensed salesperson, renewable once on a good-faith showing. Only salespersons licensed to that broker at the time of death or incapacity may conduct business under it. Cite: Minn. Stat. 82.63, subd. 12.

A Minnesota licensee changes her business location. How long does she have to notify the commissioner?

• a.Not later than 30 days after the change
• b.Not later than ten days after the change✓
• c.At the next license renewal
• d.Within three business days

Written notice of any change of information contained in the license application on file, including personal name, trade name, address or business location, must reach the commissioner not later than ten days after the change. Cite: Minn. Stat. 82.65, subd. 1.

Which event must a Minnesota real estate licensee report to the commissioner in writing?

• a.Receiving a written complaint from a client
• b.Changing the brokerage's payroll bank
• c.Being charged with any felony offense✓
• d.Being sued by a seller

A licensee must notify the commissioner within ten days if charged with, adjudged guilty of, or entering a plea of guilty or nolo contendere to any felony, or to a gross misdemeanor alleging fraud, misrepresentation or conversion of funds. Suspension or revocation of any occupational license and certain adverse civil judgments carry the same duty. Cite: Minn. Stat. 82.65, subds. 2 to 5.

How long must a Minnesota broker keep listings, purchase contracts, canceled checks and trust account records?

• a.Six years, running from the transaction's closing✓
• b.Three years from the date of the document
• c.Six years from the end of the two-year license period
• d.Ten years from the date of the listing

The retention period is six years, running from the closing of the transaction, or from the date of the document if the transaction was never consummated. Storage may be electronic. Agency disclosure forms given to prospects where no contractual relationship followed need not be kept. Cite: Minn. Stat. 82.72, subds. 3 and 4.

A purchase agreement says nothing about when earnest money is deposited. Minnesota then requires the listing broker to deposit it within three business days of which event?

• a.Receipt of the funds
• b.Final acceptance of the purchase agreement
• c.Receipt or final acceptance, whichever is earlier
• d.Receipt or final acceptance, whichever is later✓

Earnest money goes into the listing broker's trust account on the terms the parties wrote. Where the written agreement is silent on timing, the deposit is due within three business days of either receipt of the earnest money or final acceptance of the purchase agreement, whichever is later. Cite: Minn. Stat. 82.75, subd. 5(c).

A Minnesota seller rejects an offer. When must the earnest money go back to the would-be buyer?

• a.No later than the next business day✓
• b.Within three business days of the rejection
• c.Within ten business days of the rejection
• d.After the parties sign a written release

If the offer is rejected the earnest money must be returned to the potential buyer not later than the next business day after rejection. The ten-business-day rule is the separate deadline for disbursing trust funds after a transaction is consummated or terminated where the agreements are silent. Cite: Minn. Stat. 82.75, subd. 5(c) and (d).

Interest earned on a Minnesota broker's pooled trust account, less reasonable transaction costs, is paid to whom?

• a.The broker, as a fee for administering the account
• b.The Minnesota Housing Finance Agency's trust fund✓
• c.The buyer whose earnest money generated the interest
• d.The Department of Commerce consumer education fund

Each broker maintains a pooled interest-bearing trust account, and the financial institution pays the interest at least quarterly, less reasonable transaction costs, to the Minnesota Housing Finance Agency for the housing trust fund account, unless the parties to a transaction expressly agree otherwise in writing. Cite: Minn. Stat. 82.75, subd. 8 (as amended 2024).

Minnesota lets a broker keep a specifically identified sum of personal money in the trust account. For what purpose?

• a.To advance earnest money for a buyer at closing
• b.To fund a reserve against commission disputes
• c.To pay service charges or meet the minimum balance✓
• d.To cover the brokerage's payroll between closings

Only trust funds belong in a trust account. The single exception is a specifically identified sum of the broker's own money used to pay account service charges or satisfy minimum balance requirements. Commingling otherwise is a fraudulent, deceptive or dishonest practice. Cite: Minn. Stat. 82.75, subd. 4; 82.81, subd. 12(a)(12).

Absent written authorization from her own broker, from whom may a Minnesota salesperson accept a commission?

• a.From the seller, if the listing agreement provides
• b.Only from the broker to whom she is licensed✓
• c.From any cooperating broker in the transaction
• d.From the closing agent at settlement

Unless authorized in writing by the broker to whom the licensee is licensed, a licensee may neither pay nor accept a commission, referral fee or other valuable consideration for acts requiring a license from anyone except that broker. Cite: Minn. Stat. 82.70, subd. 1.

When must a Minnesota licensee give a consumer the agency disclosure form in a residential sale?

• a.Before the consumer signs a purchase agreement
• b.At first substantive contact with the consumer✓
• c.At the first showing of any listed property
• d.When a representation contract is presented

The agency disclosure form must be provided at the first substantive contact with the consumer, and the duty runs only to residential real property transactions, meaning property occupied or intended to be occupied by one to four families as their residence. Cite: Minn. Stat. 82.67, subds. 1 and 3; 82.81, subd. 6(a).

A Minnesota buyer signs the agency disclosure form at the first meeting. Until he signs something more, how is he treated?

• a.As a customer who receives no representation✓
• b.As a client of the licensee's brokerage
• c.As a buyer-client under implied agency
• d.As a principal in a statutory dual agency relationship

The form states on its face that it is a disclosure only and not a contract for representation. Until the consumer signs a written listing contract, buyer representation contract or facilitator services agreement he is a customer, and the licensee acts as a facilitator unless representing another party. Cite: Minn. Stat. 82.67, subds. 1 and 3.

Minnesota requires written consent to a dual agency in a residential transaction. Where must that consent appear?

• a.In a separate addendum filed with the commissioner
• b.In the agency disclosure form signed at first contact
• c.In the listing agreement only, signed by the seller
• d.In the purchase agreement, in a boxed, set-off format✓

Once circumstances create a dual agency the broker must make full disclosure to all parties and obtain consent in residential transactions in the purchase agreement, using the statutory language set off in a boxed format to draw attention to it. Cite: Minn. Stat. 82.67, subd. 4.

A Minnesota facilitator has no written facilitator services agreement. Which single duty does he still owe the party?

• a.Loyalty to that party
• b.Obedience to lawful instructions
• c.Confidentiality✓
• d.A full accounting of funds

A facilitator performs services for a buyer, a seller or both without representing either in a fiduciary capacity, and owes no fiduciary duty except confidentiality unless duties are written into a facilitator services agreement. Cite: Minn. Stat. 82.67, subd. 3, paragraph IV.

A Minnesota facilitator working with a buyer shows that buyer a property the facilitator has listed. What role must he then take?

• a.He must act as the seller's broker✓
• b.He must act as the buyer's broker
• c.He becomes a dual agent by operation of law
• d.He remains a facilitator if he gives notice

A facilitator working with a buyer who shows a property listed by that facilitator must act as a seller's broker. The mirror rule also applies: a facilitator working with a seller who accepts a showing by a buyer the facilitator represents must act as a buyer's broker. Cite: Minn. Stat. 82.67, subd. 3, paragraph IV.

In a Minnesota dual agency, the seller's motivation and lowest acceptable price stay confidential unless what happens?

• a.The buyer makes a written request for the information
• b.The broker judges disclosure necessary to close
• c.The purchase agreement is signed by both parties
• d.The seller instructs the broker in writing to disclose✓

In a dual agency, confidential information about price, terms and motivation stays confidential unless that party instructs the broker in writing to disclose specific information; other information is shared. Dual agents may not advocate for one party to the detriment of the other. Cite: Minn. Stat. 82.67, subds. 3 and 4.

Every Minnesota residential listing agreement must ask the seller to make one election in writing. What is it?

• a.Whether to compensate a cooperating broker
• b.Whether to agree to a possible dual agency✓
• c.Whether to permit a lockbox on the property
• d.Whether to accept an override clause

Residential listing agreements must carry the statutory dual agency disclosure statement and the seller's instruction to the broker, electing either to agree to a dual agency representation and consider offers from buyers the broker represents, or to refuse one. Cite: Minn. Stat. 82.66, subd. 1(b)(9).

When must a Minnesota licensee have a signed buyer's broker agreement in hand?

• a.Before writing the buyer's first written offer
• b.When the purchase agreement is presented for signature
• c.Before acting as the buyer's representative at all✓
• d.Within ten days after showing the buyer a property

Licensees must obtain a signed buyer's broker agreement from a buyer before performing any acts as a buyer's representative, and the written agreement must state a definite expiration date and the compensation or the basis for computing it. Cite: Minn. Stat. 82.66, subd. 2.

Under what name must a Minnesota salesperson conduct real estate business?

• a.The licensed name of her broker's brokerage✓
• b.Her own legal name as shown on her license
• c.Any assumed name she registers with the state
• d.The team name her local association approves

A salesperson may conduct business only under the licensed name of, and on behalf of, the broker to whom she is licensed, and must affirmatively disclose that licensed brokerage name before negotiating or consummating any transaction. Cite: Minn. Stat. 82.68, subd. 1.

Before a Minnesota licensee may advertise a property for sale, including by placing a yard sign, what must she have?

• a.The owner's recorded oral consent
• b.An open listing filed with the MLS
• c.A written estimate of the seller's net proceeds
• d.A signed listing or other written authorization✓

Licensees must obtain a signed listing agreement or other signed written authorization from the owner, or from a person authorized to offer the property, before advertising to the general public. Minnesota defines advertising to include placing a sign on the owner's property. Cite: Minn. Stat. 82.66, subd. 1(a).

What is the longest an override clause may run after a Minnesota residential listing agreement expires?

• a.Two years
• b.Ninety days
• c.Six months✓
• d.Twelve months

Listing agreements may not contain an override clause longer than six months after the listing expires. The two-year figure is the separate allowance for an override used in connection with the purchase or sale of a business, whose length must be negotiable. Cite: Minn. Stat. 82.66, subd. 1(c) and (d)(2).

A Minnesota listing expired on Friday. By when must the broker furnish the seller a protective list to keep the override clause enforceable?

• a.Within ten days after the listing expired
• b.Within 72 hours after the listing expired✓
• c.Before the listing agreement was signed
• d.Within 30 days after the listing expired

A licensee may not seek to enforce an override clause unless a protective list was furnished to the seller within 72 hours after the listing agreement expired. The broker also bears the burden of showing each person named actually responded to advertising, contacted the licensee, or was physically shown the property during the listing. Cite: Minn. Stat. 82.66, subd. 1(d)(1) and (e).

Which provision does Minnesota law flatly prohibit in a listing agreement?

• a.A holdover clause or automatic extension✓
• b.A definite expiration date for the listing
• c.A statement of the basis for the commission
• d.A notice that compensation is negotiable

Holdover clauses, automatic extensions and similar provisions are prohibited outright. The other three are affirmative requirements: every listing must carry a definite expiration date, the commission or the basis for computing it, and the boldface notice that compensation is determined between each broker and the broker's client. Cite: Minn. Stat. 82.66, subd. 1(b) and (c).

Until an offer has been presented to the Minnesota seller, whom may the licensee tell about its terms?

• a.Only other buyers represented by the same broker
• b.Any licensee who asks, as a professional courtesy
• c.Any party, once earnest money has been deposited
• d.No other prospective buyer or their licensee✓

A licensee may not disclose the terms of an offer to another prospective buyer, or to the licensee representing or assisting that buyer, before the offer is presented to the seller. All written offers must in any event be promptly submitted in writing to the seller. Cite: Minn. Stat. 82.71, subds. 1 and 2.

Which fact does Minnesota declare NOT to be a material fact a licensee must disclose to a prospective purchaser?

• a.That the basement floods after heavy rain
• b.That the roof has an unrepaired hail claim
• c.That the home was the site of a suicide✓
• d.That the septic system failed its inspection

Minnesota removes from the material-fact duty the fact or suspicion that a property was the site of a suicide, accidental death, natural death or perceived paranormal activity, that an owner or occupant was suspected of HIV infection or diagnosed with AIDS, or that it sits near an adult family home, community-based residential facility or nursing home. Known physical defects remain disclosable. Cite: Minn. Stat. 82.68, subd. 3.

When must a Minnesota seller of residential real property deliver the written disclosure of material facts?

• a.Before signing an agreement to sell the property✓
• b.Within three days after the agreement is signed
• c.At the closing, with the deed and settlement statement
• d.Only when the buyer asks for it in writing

Before signing an agreement to sell or transfer residential real property the seller must make a written disclosure of all material facts known to the seller that could adversely and significantly affect an ordinary buyer's use and enjoyment of the property, made in good faith on the best of the seller's knowledge. Delivery to the licensee representing the buyer counts as delivery to the buyer. Cite: Minn. Stat. 513.55.