Minnesota Real Estate Practice Exam
(Free Questions & Answers)
The Minnesota real estate exam is administered by the Department of Commerce and requires 90 hours of pre-license education. Minnesota's buyer representation agreement must be in writing and must clearly describe the buyer agent's compensation — questions on this requirement appear frequently. The state portion also tests Minnesota's well and septic system disclosure requirements (critically important in Greater Minnesota where municipal utilities are unavailable) and the Minnesota purchase agreement forms used by MNAR.
Administered by: Minnesota Department of Commerce · 120 questions · Passing score: 75%
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Updated May 2026 · Minnesota Department of Commerce exam outline
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Free Minnesota Real Estate Practice Exam Questions
Test your knowledge with these Minnesota real estate practice questions. Each question is based on topics from the Minnesota Department of Commerce exam and includes detailed explanations.
Q1. Which Minnesota agency is responsible for licensing real estate professionals?
Explanation
The Minnesota Department of Commerce regulates real estate licensees in Minnesota and oversees licensing, education requirements, and disciplinary actions.
Q2. Minnesota law requires dual agency disclosure to be made:
Explanation
Minnesota mandates that the dual agency disclosure be made as soon as the licensee realizes dual agency exists, and before providing any services in that dual agency capacity, ensuring informed consent.
Q3. A Minnesota purchase agreement is considered an executory contract until:
Explanation
An executory contract is one in which obligations remain to be performed. A purchase agreement remains executory until closing, when all obligations — deed delivery, payment, etc. — are fulfilled.
Q4. A Minnesota borrower takes out a $320,000 mortgage at 6% annual interest. What is the first month's interest?
Explanation
Monthly interest = $320,000 × (6% ÷ 12) = $320,000 × 0.005 = $1,600. To solve this, multiply the relevant values: $320,000 at 6%.. The correct answer is $1,600.. This is a common calculation on the Minnesota real estate exam.
Q5. In Minnesota, the Marketable Title Act limits title searches by:
Explanation
Minnesota's Marketable Title Act extinguishes interests and claims in real property that are more than 40 years old unless they are re-recorded or re-asserted within the statutory period.
Q6. In the cost approach to value, the appraiser estimates:
Explanation
The cost approach estimates value as land value plus the depreciated cost to replace (or reproduce) the improvements. It is most useful for new construction and special-use properties.
Q7. The Minnesota Human Rights Act (MHRA) prohibits housing discrimination based on all of the following EXCEPT:
Explanation
While the MHRA provides extensive protections including sexual orientation, gender identity, familial status, and disability, political opinion is not a protected class in Minnesota housing law.
Q8. In Minnesota, a warranty deed provides the grantee with covenants including:
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.
Q9. A Minnesota property has a NOI of $54,000 and a cap rate of 6%. What is the estimated property value?
Explanation
Value = NOI ÷ Cap rate = $54,000 ÷ 0.06 = $900,000. To solve this, multiply the relevant values: $54,000 at 6%.. The correct answer is $900,000.. This is a common calculation on the Minnesota real estate exam.
Q10. Lead-based paint disclosure in Minnesota is required for:
Explanation
Federal law (and Minnesota practice) requires sellers and landlords of residential properties built before 1978 to disclose known lead-based paint hazards and provide a lead hazard information pamphlet.
Q11. A nonconforming use in a Minnesota municipality is a land use that:
Explanation
A nonconforming use (grandfathered use) is one that lawfully existed prior to a zoning ordinance change. Such uses may continue but typically cannot be expanded and may lose their status if discontinued.
Q12. A Minnesota property manager's primary duty is to:
Explanation
A property manager has a fiduciary duty to the property owner, managing the property to maximize the owner's return on investment while ensuring legal compliance including fair housing and landlord-tenant laws.
Q13. How many hours of pre-license education are required for a Minnesota real estate salesperson license?
Explanation
Minnesota requires 90 hours of pre-license education before a salesperson candidate may sit for the licensing exam — one of the higher requirements in the country.
Q14. In Minnesota, a 'facilitator' in a real estate transaction is an agent who:
Explanation
A Minnesota facilitator provides limited brokerage services, assisting both parties without acting as a fiduciary for either. No loyalty or confidentiality duties are owed.
Q15. Which clause in a Minnesota purchase agreement allows the buyer to back out if they cannot obtain financing?
Explanation
A financing contingency (mortgage contingency) allows the buyer to terminate the contract and recover their earnest money if they are unable to obtain satisfactory financing within the specified period.
Q16. Under the Truth in Lending Act (TILA), lenders must disclose all of the following EXCEPT:
Explanation
TILA requires disclosure of the APR, total finance charges, total of all payments, and payment schedule. The borrower's credit score is not a TILA-mandated disclosure (though it may be required under other laws).
Q17. A homestead designation in Minnesota provides:
Explanation
In Minnesota, a homestead designation classifies the owner-occupied primary residence at a lower property tax rate, resulting in reduced property taxes compared to non-homestead properties.
Q18. The gross rent multiplier (GRM) is calculated as:
Explanation
GRM = Sale price ÷ Gross monthly rent. If a property sells for $240,000 and rents for $2,000/month, GRM = $240,000 ÷ $2,000 = 120. GRM is a quick valuation tool for small income properties.
Q19. Redlining is the illegal practice of:
Explanation
Redlining is the discriminatory practice of denying mortgage loans, insurance, or other services to neighborhoods based on the racial or ethnic composition of the area, regardless of individual creditworthiness.
Q20. A title search in Minnesota would reveal all of the following EXCEPT:
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.
Q21. A salesperson earned $14,400 representing 60% of the company's side of a 6% commission. What was the sales price of the property?
Explanation
Agent's commission = $14,400. If this is 60% of the company's side, company's share = $14,400 ÷ 0.60 = $24,000. If company's side is 50% of total commission, total commission = $24,000 ÷ 0.50 = $48,000. But typically listing and selling sides split equally. Total commission at 6%: Sale price = $24,000 ÷ 0.06 = $400,000. (Here the company's side equals the total commission earned by that brokerage, which is $24,000. At 6% on sale price: $24,000 ÷ 0.06 = $400,000.)
Q22. Radon is a naturally occurring gas in Minnesota that enters homes primarily through:
Explanation
Radon is a radioactive gas produced by the decay of uranium in soil and rock. It enters homes through cracks and openings in foundations. Minnesota has elevated radon levels in many areas.
Q23. A variance in Minnesota zoning allows a property owner to:
Explanation
A variance grants relief from specific zoning requirements (such as setbacks or height limits) when strict application would cause undue hardship due to the unique characteristics of the property.
Q24. Under Minnesota landlord-tenant law, the maximum security deposit for a residential unit is:
Explanation
Minnesota Statute 504B.177 limits the security deposit to no more than the equivalent of one month's rent for most residential units unless the tenant has pets, in which case an additional pet deposit may be charged.
Q25. The Minnesota real estate salesperson exam contains how many questions?
Explanation
The Minnesota real estate salesperson exam contains 130 questions. Candidates must achieve a score of at least 75% to pass.
1,500+ questions · Timed mock exams · Detailed explanations
Minnesota Real Estate Exam — What to Expect
What Is On The Minnesota Real Estate Exam?
The Minnesota real estate salesperson exam is administered by the Minnesota Department of Commerce and tests both national real estate principles and Minnesota-specific laws and regulations. The exam contains 120 multiple-choice questions, and you must score at least 75% to pass.
The national portion covers topics that apply in every state: property ownership, land use controls, valuation and market analysis, financing, agency law, contracts, leasing and property management, transfer of title, fair housing laws, and real estate calculations. The state portion tests knowledge specific to Minnesota — including regulations set by the Minnesota Department of Commerce, Minnesota agency disclosure requirements, and state-specific contract and closing practices.
Topics covered on the Minnesota exam include: Property Ownership, Agency Law, Contracts, Finance, Minnesota License Law. Candidates who struggle on the MN exam typically underestimate the state-specific portion — the national content is well-covered by most study materials, but Minnesota law questions require targeted preparation.
Official Minnesota Exam Content Areas
Source: Minnesota Department of Commerce · Updated June 2026
| Content Area | Questions |
|---|---|
| National Section (11 PSI topic areas) | 80 |
| Minnesota State Section (brokerage licensing, interests in real property, conveyance procedures, financial instruments/remedies) | 40 |
- ▸Must score 75% on each section — 60/80 national, 30/40 state (Minnesota requires a higher passing score than most PSI states)
- ▸Minnesota state section covers real estate brokerage licensing (MN Dept of Commerce), interests in real property, conveyance procedures and party protections, and financial instruments and remedies
- ▸Source: Minnesota Department of Commerce (mn.gov/commerce) and PSI (2024–2025)
Practice Minnesota questions by topic — start with Minnesota License Law, Agency, and Contracts to build your foundation, then work through remaining topics.
How Many Questions Are On The Minnesota Exam?
The Minnesota real estate salesperson exam has 120 multiple-choice questions. The exam is divided into a national section covering general real estate principles and a state section covering Minnesota-specific laws administered by the Minnesota Department of Commerce. You have 4 hours to complete the exam.
Minnesota Real Estate Exam Passing Score
You need a 75% to pass the Minnesota real estate exam. The first-time pass rate in Minnesota is approximately 61%, which means preparation is essential — most candidates who fail do so because they focused on national content and underestimated the MN-specific portion. Our Minnesota practice exam is built specifically around the Minnesota Department of Commerce exam outline.
Read our complete Minnesota exam study guide — state-specific topics, 5-week study plan, and what to focus on before exam day.
Most Difficult Topics On The Minnesota Exam
These are the areas where Minnesota candidates most commonly lose points — and a key reason why some states produce harder real estate exams than others.
The Minnesota Department of Commerce's specific requirements — including the 90-hour pre-license course, continuing education mandates, and license renewal procedures — are tested on the state portion.
Minnesota requires written buyer representation agreements that clearly disclose compensation. The specific content requirements and when this agreement must be signed are Minnesota-specific rules frequently tested on the exam.
Minnesota's well disclosure certificate and septic system disclosure requirements are critical in Greater Minnesota where municipal utilities are unavailable. These state-specific disclosure forms and their requirements are heavily tested.
Minnesota uses standard Minnesota Association of Realtors (MNAR) purchase agreement forms. Questions on the specific provisions, contingencies, and timelines in these Minnesota-specific forms appear on the state exam.
Minnesota Real Estate Math
The Minnesota real estate exam includes math questions covering commission calculations, loan-to-value (LTV) ratios, property tax prorations, area and volume, and appreciation/depreciation. A common example: if a property sells for $350,000 and the total commission is 6%, split equally between listing and buyer's broker, each side earns $10,500. Proration questions — such as calculating how many days of property taxes a seller owes at closing — are also common. On the MN exam, you will not need a calculator for most math questions, but you do need to understand the formulas. Practice the "T-bar" method for commission splits and the 360-day banker's year for prorations.
🧮 See all exam math formulas →How To Get Your Minnesota Real Estate License
- 1Complete 90 hours of state-approved pre-license education covering topics required by the Minnesota Department of Commerce.
- 2Submit your application to the Minnesota Department of Commerce and pay the required fees (exam fee: $65).
- 3Pass the Minnesota real estate salesperson exam (120 questions, 75% to pass).
- 4Complete a background check and fingerprinting as required by Minnesota law.
- 5Find a licensed sponsoring/employing broker to activate your license.
- 6Complete any required post-licensing education within the timeframe set by the Minnesota Department of Commerce.
Best Study Strategy For The Minnesota Exam
Start with Minnesota license law first. State-specific regulations administered by the Minnesota Department of Commerce make up a significant portion of the MN exam and are not covered in most national study materials.
Master the math early. The Minnesota real estate exam includes questions on commission calculations, prorations, loan-to-value ratios, and area calculations. Set aside dedicated math practice sessions — don't leave it until the last week.
Take timed practice exams. The Minnesota exam has 120 questions within a 4 hours time limit. Simulate exam conditions to build stamina and identify weak topics before exam day.
Focus heavily on agency law. Agency relationships, disclosure requirements, and fiduciary duties are consistently among the most-tested topics on the MN exam. Understand the difference between seller's agent, buyer's agent, dual agent, and transaction broker in the context of Minnesota law.
Review Fair Housing thoroughly. Federal Fair Housing Act protections apply in all states, but Minnesota may have additional protected classes. Know both federal and Minnesota-specific protections cold — this topic appears on virtually every exam.
Use active recall, not passive reading. Instead of re-reading notes, quiz yourself. Use flashcards or practice questions to test retention. Research shows active recall improves long-term retention significantly compared to passive review.
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