Minnesota Exam Prep: Real Estate Brokerage License Law

Minnesota Exam Prep: Real Estate Brokerage License Law

Flashcards

Automated valuation model:A computerized model used by mortgage originators and

secondary market issuers that calculates the collateral worth of a dwelling that'll be secured by a mortgage or other instrument.Seller's brokerA licensee who represents and owes fiduciary duties to a seller under a signed broker agreement Trust accounts must beinterest bearing Licensing: Application-All real estate license applicants must be at least 18 years old.-All applicants must submit a licensure application along with the appropriate license fees. The application must include all commission-required information,

including: the applicant's legal name, age, and home

address, and the name and business address of the broker with whom the licensee will be associated. The commission may request additional information.-The primary broker is responsible for sending in the application to the commission.-Salesperson license applicants must also supply course completion certificates for courses I, II, and III, as well as passing licensing exam results. Applicants have one year from the date they pass the licensing exam to apply for licensure. If they don't apply within one year, they'll need to retake the exam.-Broker license applicants have one year from the date they pass the broker licensing exam to apply for that license, unless they remain continuously active in real estate as a licensee. If they don't, they'll need to take the exam again.-Business entities applying for a brokerage license must have at least one responsible person who holds an individual broker's license. Every responsible person who will act as a broker must be licensed.-Applications for all responsible persons associated with the brokerage must be provided with the brokerage application. Any responsible person who will no longer act as a broker for the brokerage must notify the commission.-If a brokerage's license is revoked or suspended, the individual licenses associated with that brokerage become inactive. The commissioner can suspend or revoke a responsible person's license without suspending the brokerage license.-Brokerages must make records available upon commission request and supply any additional information requested by the commission related

to the administration of real estate law.

Licensing: Renewal-Renewal periods are two years. Failure to comply with

renewal requirements by the deadline can result in license cancellation.-Brokers are responsible for renewing the licenses of their eligible associated salespersons who intend to continue being associated with the broker. Eligible salespersons are those who have complied with renewal requirements before June 15 of the renewal year. If the broker won't be renewing an associated salesperson's license, the broker must notify the salesperson in writing at least 30 days before June 15 of the renewal year. If the broker is late in renewing associated licenses, then the broker is responsible for paying additional fees.-Renewal applications are considered to have been submitted in a timely manner if all the renewal requirements were completed by June 15 of the renewal year and the renewal application and fee was submitted prior to the renewal deadline. If the application was not submitted in time, then the licensee can't perform real estate activities after June 30 of the renewal year until approval is received. As of July 1, the individual is considered unlicensed until the renewal license is issued.-If a license is not renewed within two years of the renewal deadline, the licensee will need to take the licensing examination again.Real estate brokerA person who, for another, and for compensation or other valuable consideration (or the expectation to receive consideration directly or indirectly), performs any of the

following:Lists, sells, exchanges, buys or rents, manages,

or offers or attempts to negotiate a sale, option, exchange,

purchase, or rental of:-Real estate interests or estates, or

advertises or behaves as though they're engaged in these activities-Any business opportunity or business, or its good will, inventory, or fixtures, or interests in these items-Offers,

sells or attempts to negotiate the sale of property that is considered subdivided land (and subject to the registration requirements of chapter 83) Residential real property/real estateProperty to be used as a residence and occupied or intended to be occupied by one to four families Loan brokerA real estate licensee who negotiates or offers, or attempts to negotiate a loan secured by a mortgage or other real estate encumbrance, for others and for an advanced fee.-Real estate licensees who assist with financing during the course of representing a party to a real estate transaction but don't receive a separate fee or

consideration for this assistance aren't considered loan brokers.-An advance fee is commission, compensation, or any other consideration paid before the real estate loan closes, not including pass-through, commitment, or extended lock fees.-This fee must be deposited within 48 hours of receipt.Real estateManufactured homes (factory-built structures that are readily movable, built with service connections, and intended to be used as dwellings) are considered real estate in Minnesota if they're affixed to the land.