Minnesota Practice TestEscrow & Title

Minnesota Escrow & Title
Practice Questions & Answers (2026)

Escrow, title, and closing questions on the Minnesota exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Minnesota uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Minnesota law. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under Minnesota practice.

Practice Questions

Minnesota Escrow & Title — Practice Questions & Answers

105 questions on Escrow & Title from the Minnesota real estate question bank. First 10 are free — sign up to unlock all 105.

Q1. In Minnesota, a warranty deed provides the grantee with covenants including:

A.A promise that no liens will arise in the future
B.Covenants of seisin, quiet enjoyment, and warranty against all encumbrances not listed
C.A guarantee of physical condition
D.Protection only against defects arising during the grantor's ownership

Explanation

A general warranty deed in Minnesota includes covenants of seisin (owner has title and right to convey), quiet enjoyment, and warranty that the grantor will defend title against all claims — not just those arising during the grantor's ownership.

Q2. A title search in Minnesota would reveal all of the following EXCEPT:

A.Mortgages and liens
B.Easements of record
C.Unrecorded liens of contractors
D.Recorded judgments against the owner

Explanation

A standard title search reveals items of record at the county recorder's office. Unrecorded liens, such as those of contractors who have not yet filed, would not appear in a standard title search — which is why title insurance is important.

Q3. A closing disclosure in a Minnesota purchase transaction must be provided to the buyer:

A.At least 1 business day before closing
B.At least 3 business days before closing
C.At the closing table
D.Within 3 business days after closing

Explanation

Under TRID (TILA-RESPA Integrated Disclosure), the Closing Disclosure must be provided to the buyer at least 3 business days before the scheduled closing date.

Q4. A subordination agreement in a mortgage transaction means:

A.The lender agrees to accept a lower interest rate
B.A senior lienholder agrees to allow a junior lien to take priority
C.The borrower agrees to pay off the mortgage early
D.The title company waives the title search requirement

Explanation

A subordination agreement is a document where a senior lienholder voluntarily agrees to lower their lien's priority, allowing another lien (typically a new first mortgage) to take priority.

Q5. A quitclaim deed in Minnesota:

A.Provides the greatest protection to the grantee
B.Conveys only whatever interest the grantor has, with no warranties
C.Guarantees the property is free of all liens
D.Is used exclusively for commercial transactions

Explanation

A quitclaim deed conveys whatever interest the grantor holds, if any, without any covenants or warranties. It is often used to clear title defects or transfer interests between family members.

Q6. In Minnesota, a mechanic's lien is filed by:

A.Mortgage lenders after default
B.Contractors, subcontractors, or suppliers who have not been paid for work or materials on a property
C.Property tax authorities for unpaid taxes
D.Courts after a civil judgment

Explanation

A mechanic's lien (also called a construction lien) is filed by contractors, subcontractors, or material suppliers who have not been paid for work performed or materials furnished on the property.

Q7. Title insurance in Minnesota protects the insured against losses from:

A.Future physical damage to the property
B.Defects in title that existed before the policy's effective date
C.Increases in property taxes
D.Depreciation in market value

Explanation

Title insurance protects against losses from title defects (liens, encumbrances, ownership disputes) that existed before the policy's effective date and were not discovered during the title search.

Q8. A Minnesota deed must be recorded to be valid against:

A.The original grantor
B.Third-party subsequent purchasers and creditors without notice
C.The grantee and their heirs
D.The county tax assessor

Explanation

Under Minnesota's recording act, an unrecorded deed is valid between the parties but not against subsequent purchasers or creditors who take the property without notice of the prior transfer.

Q9. The ALTA owner's title insurance policy provides broader protection than a standard policy by covering:

A.Physical damage to the structure
B.Unrecorded encumbrances such as easements established by use, boundary disputes, and off-record matters
C.Future zoning changes
D.Market value fluctuations

Explanation

The ALTA (American Land Title Association) owner's policy provides expanded coverage over a standard policy, including protection against certain unrecorded interests, survey issues, and off-record matters revealed by an inspection.

Q10. At a Minnesota real estate closing, proration of property taxes means:

A.All taxes are paid by the buyer
B.Taxes are divided between buyer and seller based on their respective periods of ownership during the tax year
C.Taxes are waived for the year of sale
D.The lender pays all taxes at closing

Explanation

Tax proration allocates property taxes between buyer and seller based on the number of days each owned the property during the tax year. In Minnesota, taxes are typically paid in arrears, requiring careful proration.

Q11. In Minnesota, which party typically pays for the owner's title insurance policy?

A.The buyer
B.The seller
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