Free Minnesota Real Estate Salesperson Practice Exam 2025

The maximum civil penalty for a license law violation in Minnesota is $5,000 per violation, which can be imposed in addition to license suspension or revocation (Minn. Stat. §82.82, Subd. 2).

Any commercial lease lasting longer than one year in Minnesota must be in writing to be legally enforceable, under the Statute of Frauds (Minn. Stat. §513.05).

If a license has been revoked in Minnesota or another state, applicants must wait 2 years from the date of revocation before applying to retake the examination (Minn. Stat. §82.82, Subd. 1(f)).

Minnesota’s Human Rights Act differs from federal law by also prohibiting housing discrimination based on gender identity, giving broader protections to transgender individuals (Minn. Stat. §363A.08).

A broker must notify the Commissioner within 10 days when a salesperson terminates affiliation with the brokerage. The salesperson’s license is placed inactive until transferred or renewed (Minn. Stat. §82.82, Subd. 1).

Dual agency in Minnesota is legal only if all parties give prior written informed consent. Disclosure must clearly explain the duties that will be limited (Minn. Stat. §82.67).

Buyers in contract for deed transactions must receive written disclosure and have 3 business days to review and cancel the agreement without penalty, ensuring time for due diligence (Minn. Stat. §559.202).

The Minnesota Human Rights Act provides broader protections than federal law by including sexual orientation and gender identity as protected classes (Minn. Stat. §363A.08), unlike the federal Fair Housing Act.

Minnesota real estate licenses must be renewed every 2 years by June 30th of the expiration year. Failure to renew results in license expiration and potential penalties (Minn. Stat. §82.82, Subd. 1).

When a broker receives earnest money (e.g., $5,000), they must deposit the funds into a trust account by the third business day following receipt, unless stated otherwise in the purchase agreement (Minn. Stat. §82.75, Subd. 1).

Minnesota licensees must complete continuing education (30 hours) every 2 years to maintain active license status (Minn. Stat. §82.61). Failing to do so can lead to license expiration.

A licensee must notify the Commissioner in writing within 10 days of being charged with any felony offense, whether related to real estate or not (Minn. Stat. §82.82, Subd. 3).

Under Minnesota contract law, holdover clauses, automatic extensions, or similar provisions may not exceed 1 year in listing agreements. Anything longer is void and unenforceable (Minn. Stat. §82.66, Subd. 1(j)).

Candidates for a Minnesota broker license must complete 150 hours of pre-licensing education, consisting of three 30-hour salesperson courses plus a 60-hour broker course (Minn. Stat. §82.59).

Minnesota has reciprocity agreements with select states. Licensees from reciprocal states may not need to retake the Minnesota exam, but must comply with background and education verification.

Net listings, where the agent keeps any amount over the seller's target price, are prohibited in Minnesota as they create a conflict of interest and violate fiduciary duties (Minn. Stat. §82.66, Subd. 1(g)).

If the Recovery Fund pays a claim on behalf of a licensee, the license is suspended until full repayment with interest is made. The licensee cannot practice until they restore the fund (Minn. Stat. §82.86, Subd. 6).

Minnesota law requires that a licensee intending to acquire an interest in a property must disclose their license status to the owner in writing before beginning any negotiations or prior to closing (Minn. Stat. §82.67).

Under the Statute of Frauds, all contracts for the sale of real estate must be in writing and signed by all parties to be enforceable in court. Oral agreements for real estate transactions are not valid.

Advertising that references religion, such as "Christian neighborhood" or "near synagogue", may imply a preference and violates the federal Fair Housing Act, which prohibits discrimination based on religion (42 U.S.C. §3604).

FHA loans are insured by the Federal Housing Administration, making lenders more willing to loan to borrowers with lower credit or down payment.

90 hours of pre-licensing education are required, split into three 30-hour courses, with the first course required before the license exam (Minn. Stat. §82.59).

This is the Statute of Frauds, which requires real estate contracts to be in writing and signed to be enforceable in court.

A written listing agreement is required before placing a for-sale sign on any property (Minn. Stat. §82.66, Subd. 1(a)).

All parties involved in housing—including licensees, landlords, property managers, and sellers—must comply. The law prohibits discrimination based on race, color, religion, national origin, etc.

Commingling is mixing client funds with personal or business funds, such as depositing earnest money into a business account instead of a trust account (Minn. Stat. §82.75).

To qualify for a broker license, a salesperson must have at least 2 years of licensed real estate experience within the past 5 years (Minn. Stat. §82.60).

The Commissioner must set and notify the hearing date within 15 days after receiving a written request (Minn. Stat. §82.82, Subd. 3).

Though the CE is tracked on a 2-year cycle (30 hours), salespersons should complete at least 15 hours per year to avoid a last-minute rush.

Upon initial licensing, a $50 fee is paid to the Recovery Fund; at each renewal, an additional $25 fee is collected (Minn. Stat. §82.86, Subd. 4).

Salespersons must also complete 30 hours of CE every 2 years, same as brokers (Minn. Stat. §82.61), including mandatory modules like agency and fair housing.

For business-related listings, the override clause cannot exceed 1 year (Minn. Stat. §82.66, Subd. 1(j)). For residential listings, it’s typically capped at 6 months.

Licensees must notify the Commissioner within 10 days of being named in any civil or criminal action involving fraud or misrepresentation (Minn. Stat. §82.82, Subd. 3(g)).

Substitution means a buyer won’t pay more for a property than for a comparable substitute. For example, if Property A and Property B are similar, but B is cheaper, B will likely be chosen.

Transaction records must be retained for 6 years after closing or termination of the transaction (Minn. Stat. §82.72, Subd. 13), including agency agreements, disclosures, and trust account records.

The broker must notify the salesperson in writing at least 30 days before June 15 of the renewal year (Minn. Stat. §82.82, Subd. 2). This allows the salesperson time to transition or reactivate.

A licensee must wait at least one year before reapplying after revocation (Minn. Stat. §82.82, Subd. 1(f)). Reapplication does not guarantee reissuance; the Commissioner evaluates case history.

The maximum cumulative liability is $250,000 per licensee, and no more than $150,000 per individual claimant (Minn. Stat. §82.86). The fund covers proven fraud or conversion of trust funds.

Brokers must retain written complaints for at least 2 years from the date received (Minn. Stat. §82.72, Subd. 13). Failure to do so may result in disciplinary action from the Commissioner.

Minnesota brokers must complete 30 hours of continuing education (CE) within each 2-year license period, as mandated by Minnesota Statutes §82.61. At least one course must be in agency law and another in fair housing law.