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Real Estate Minnesota- Prelicence Kaplan Exam

Question 21

Real Estate Minnesota Pre-license Exam. A seller claiming to be the fee simple owner of an estate in land conveys the property to a buyer with a general warranty deed. The buyer later discovers that the seller was a co-owner of the property in question. Has the seller violated any covenants in the deed?

• No, because the principle of caveat emptor supersedes any of the covenants in a general warranty deed.
• No, because a general warranty deed contains only the covenant that the subject property was not encumbered during the owner’s possession.
• Yes, because one of the covenants of a general warranty deed guarantees that a marketable title is being delivered.
• Yes, because one of the covenants of a general warranty deed guarantees that an equitable title is being delivered.

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Question 22

A seller sent a buyer a letter in which she offered to sell her property for $85,000 cash by a special warranty deed. The buyer sent a letter back to the seller stating, “I accept your offer at $85,000 cash, but you must convey with a general warranty deed.” Which of the following is true about the buyer’s letter?

• It is an acceptance, because the buyer is entitled to a general warranty deed.
• It is merely an inquiry of the seller, and has no legal effect on the seller’s original offer.
• It is a rejection of the seller’s offer, but it is also a counteroffer.
• It is an implied contract, because the buyer was willing to pay cash, and because the buyer accepted in writing.

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Question 23

A buyer is purchasing a $400,000 home and the lender has approved a $320,000 mortgage with a 6% interest rate, amortized over 30 years. What will the buyer’s yearly principal and interest payments total (rounded up)? (BE SURE TO USE THE AMORTIZATION TABLE.)

• $23,248    Real Estate Minnesota- Prelicence Kaplan Exam 
• $29,060
• $29,867
• $34,874

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Question 24

A broker has an opportunity to take a listing that has been in the family for years and the broker still owns a part of the property with the family. The broker

• has an agency by estoppel. The broker should refuse to list the property and proceed as a seller principal.
• needs to negotiate a single agency which means that only the broker can list or sell the property. No cooperating brokers are allowed.
• has an agency coupled with an interest. The broker should take the listing while disclosing any ownership interest to the other sellers and to any prospective buyer.
• can represent the sellers of the property through agency by ratification. The other owners should be informed that the broker is the only broker who can represent them due to the ownership interest.

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Question 41

A property is being sold “as is.” The listing agent has not seen the property but knows it has significant defects. The agent’s best course of action is to

• question the seller as to any known defects.
• tell the buyer the property is being sold “as is.”
• state that the listing agent has not seen the property.
• say nothing unless asked by the buyer’s agent.

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