Determine your answer, then click the arrow to see the correct response.
A Lease Agreement Where the Tenant Pays a Fixed Rent and the Landlord Pays All Property Charges Is Known As:
A) Net lease
B) Gross lease
C) Percentage lease
D) Graduated lease
Correct Answer: B) Gross lease
Explanation: In a gross lease, the tenant pays a fixed rent while the landlord covers property expenses such as taxes, insurance, and maintenance.
A Lien That Is Placed on a Property by a Contractor Who Has Not Been Paid Is Known As:
A) A mortgage lien
B) A judgment lien
C) A mechanic's lien
D) A tax lien
Correct Answer: C) A mechanic’s lien
Explanation: A mechanic’s lien is placed by a contractor or supplier who has not been paid for work performed or materials provided.
Which of the Following Best Describes "Redlining"?
A) Encouraging owners to sell by suggesting the neighborhood is changing
B) Refusing to make loans secured by properties in certain neighborhoods
C) Directing buyers towards or away from certain neighborhoods based on race
D) Charging different prices to buyers based on race
Correct Answer: B) Refusing to make loans secured by properties in certain neighborhoods
Explanation: Redlining is the illegal practice of refusing to make loans or provide insurance in certain neighborhoods based on racial or ethnic composition.
Which Entity Is Responsible For Licensing and Regulating Real Estate Professionals in Minnesota?
A) Minnesota Department of Revenue
B) Minnesota Department of Employment and Economic Development
C) Minnesota Department of Commerce
D) Minnesota Real Estate Commission
Correct Answer: C) Minnesota Department of Commerce
Explanation: The Minnesota Department of Commerce licenses and regulates real estate professionals in the state.
In Minnesota, a Dual Agent Must:
A) Avoid disclosing confidential information from either party
B) Obtain written consent from both parties
C) Treat both parties fairly and honestly
D) All of the above
Correct Answer: D) All of the above
Explanation: A dual agent must avoid disclosing confidential information, obtain written consent, and treat both parties fairly and honestly.
A Real Estate Broker in Minnesota Must Maintain Transaction Records For:
A) 3 years
B) 5 years
C) 7 years
D) 10 years
Correct Answer: B) 6 years
Explanation: Brokers in Minnesota are required to maintain transaction records for at least 6 years.
What Is the Term for the Interest in Real Property Held by a Tenant Under a Lease?
A) Fee simple
B) Leasehold
C) Life estate
D) Easement
Correct Answer: B) Leasehold
Explanation: A leasehold interest is the tenant’s right to occupy and use the property for a specified period under a lease agreement.
A Contract in Which the Terms Have Been Explicitly Stated, Either Verbally or in Writing, Is Known As:
A) Implied contract
B) Executed contract
C) Express contract
D) Unilateral contract
Correct Answer: C) Express contract
Explanation: An express contract is one where the terms are clearly stated and agreed upon by the parties, either verbally or in writing.
Which of the Following Is NOT a Characteristic of an Exclusive Right-To-Sell Listing?
A) The broker earns a commission regardless of who sells the property
B) The seller can sell the property themselves without paying a commission
C) The listing broker is the only one authorized to sell the property
D) The broker must be paid even if another broker sells the property
Correct Answer: B) The seller can sell the property themselves without paying a commission
Explanation: In an exclusive right-to-sell listing, the broker earns a commission no matter who sells the property, including the seller.
A Real Estate Licensee in Minnesota Is Required To Disclose Their Licensed Status When:
A) Buying or selling property for themselves
B) Acting as an agent in any transaction
C) Advertising their services
D) All of the above
Correct Answer: D) All of the above
Explanation: Licensees must disclose their licensed status in all professional activities and transactions, including when buying or selling property for themselves.