Minnesota License Law
A Minnesota broker who discovers a salesperson under their supervision has misappropriated client funds should:
AWait to see if the salesperson rectifies the problem
BImmediately cease the misappropriation, restore the funds, and report to the Department of Commerce✓ Correct
CQuietly terminate the salesperson without reporting
DConsult an attorney but take no immediate action
Explanation
When a broker discovers misappropriation of client funds, they have an immediate duty to stop the conduct, restore the funds (which may come from the broker's own funds), and report the violation to the Minnesota Department of Commerce. Ignoring or concealing the misappropriation makes the broker complicit in the violation.
Related Minnesota Minnesota License Law Questions
- A Minnesota real estate licensee who is also a licensed mortgage loan originator must disclose this dual role to clients because:
- A Minnesota real estate company wants to use a team name like 'Smith Team.' What is required under Minnesota advertising rules?
- Under Minnesota Chapter 82, which circumstance would allow a transaction to proceed WITHOUT an agency relationship being established?
- Under Minnesota law, how often must a real estate salesperson complete continuing education to renew their license?
- Under MN Chapter 82, a licensee who engages in 'bait and switch' advertising is violating:
- Under Minnesota license law, what is the purpose of the 'responsible broker' designation?
- The Minnesota Real Estate Recovery Account can pay up to what maximum amount per transaction to compensate aggrieved consumers?
- Under Minnesota real estate law, which statement about the 'procuring cause' doctrine is accurate?
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →