Minnesota Real Estate Salesperson Exam — All Questions

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 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.