Podcast
Questions and Answers
What must a seller disclose under MN Statue regarding property conditions?
What must a seller disclose under MN Statue regarding property conditions?
In what situation is a seller NOT required to disclose information?
In what situation is a seller NOT required to disclose information?
Which of the following elements is NOT part of a fraud claim?
Which of the following elements is NOT part of a fraud claim?
What is the significance of the court ruling in Smith v. Beatty?
What is the significance of the court ruling in Smith v. Beatty?
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What constitutes a seller's duty when it comes to nondisclosure?
What constitutes a seller's duty when it comes to nondisclosure?
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What is required for the delivery of a deed to be valid?
What is required for the delivery of a deed to be valid?
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Which case established that a deed must be delivered by the person conveying title?
Which case established that a deed must be delivered by the person conveying title?
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What effect does a deed signed but not conveyed prior to death have?
What effect does a deed signed but not conveyed prior to death have?
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What is a requirement for a legal property description to be valid?
What is a requirement for a legal property description to be valid?
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Which factor is NOT associated with a fee interest?
Which factor is NOT associated with a fee interest?
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What does the case Butler v. Benefield illustrate about property descriptions?
What does the case Butler v. Benefield illustrate about property descriptions?
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What is a significant feature of the USPLS system used in property description?
What is a significant feature of the USPLS system used in property description?
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Under Missouri law, what is the stance on extrinsic evidence regarding unambiguous deeds?
Under Missouri law, what is the stance on extrinsic evidence regarding unambiguous deeds?
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What does an abstract provide in the context of property titles?
What does an abstract provide in the context of property titles?
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What advantage does title insurance provide?
What advantage does title insurance provide?
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In the context of property descriptions, what role do boundary monuments play according to McGhee v. Young?
In the context of property descriptions, what role do boundary monuments play according to McGhee v. Young?
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What must a seller demonstrate for a court to order specific enforcement of a contract for the sale of land?
What must a seller demonstrate for a court to order specific enforcement of a contract for the sale of land?
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In the context of waiving equitable-lien rights, what is required for the waiver to be valid?
In the context of waiving equitable-lien rights, what is required for the waiver to be valid?
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What must a buyer prove to be eligible for specific performance in a real estate transaction?
What must a buyer prove to be eligible for specific performance in a real estate transaction?
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What does the term 'recission' imply in a contract dispute?
What does the term 'recission' imply in a contract dispute?
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Which condition must be met for tort damage to be permissible despite the Economic Loss Doctrine?
Which condition must be met for tort damage to be permissible despite the Economic Loss Doctrine?
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What is 'Lis Pendens' primarily used for?
What is 'Lis Pendens' primarily used for?
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For a claimant to file a lis pendens, what relationship must there be?
For a claimant to file a lis pendens, what relationship must there be?
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In the case of 5303 Realty v. OY Equity, what was significant about the lawsuit?
In the case of 5303 Realty v. OY Equity, what was significant about the lawsuit?
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What happens to a buyer's interest in a property if they default on a purchase-money mortgage?
What happens to a buyer's interest in a property if they default on a purchase-money mortgage?
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What distinguishes a Triple Net lease from other lease types?
What distinguishes a Triple Net lease from other lease types?
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In New Mexico, what must a buyer show to avoid forfeiting their interest in a land installment contract upon default?
In New Mexico, what must a buyer show to avoid forfeiting their interest in a land installment contract upon default?
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What is the formula for determining the purchase price based on the expected cap rate and income generated?
What is the formula for determining the purchase price based on the expected cap rate and income generated?
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Which of the following issues is NOT typically a concern for landlords in commercial leasing?
Which of the following issues is NOT typically a concern for landlords in commercial leasing?
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What happens to rights acquired by a grantor after they have transferred title to a property?
What happens to rights acquired by a grantor after they have transferred title to a property?
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In a situation where a mortgagor reacquires a foreclosed property, what happens to junior mortgages?
In a situation where a mortgagor reacquires a foreclosed property, what happens to junior mortgages?
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What is the effect of a typical survival clause in an agreement?
What is the effect of a typical survival clause in an agreement?
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How does the doctrine of after acquired title impact real estate transactions?
How does the doctrine of after acquired title impact real estate transactions?
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What is the primary function of a collateral agreement?
What is the primary function of a collateral agreement?
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What is a common characteristic of a condition subsequent in a real estate agreement?
What is a common characteristic of a condition subsequent in a real estate agreement?
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What does the acceptance of delivery of a deed imply about the grantee?
What does the acceptance of delivery of a deed imply about the grantee?
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What is an escrow agent required to do according to an escrow agreement?
What is an escrow agent required to do according to an escrow agreement?
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What is the consequence of not recording an interest in real property within 40 years according to the Minnesota Marketable Title Act?
What is the consequence of not recording an interest in real property within 40 years according to the Minnesota Marketable Title Act?
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What must claimants do to preserve property interests over 40 years old according to Sampier v. Village of Birchwood?
What must claimants do to preserve property interests over 40 years old according to Sampier v. Village of Birchwood?
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What happens to private covenants or conditions after 30 years according to the MN 30 Year Rule?
What happens to private covenants or conditions after 30 years according to the MN 30 Year Rule?
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In the case of In Re Collier, why was Collier considered a bad-faith purchaser?
In the case of In Re Collier, why was Collier considered a bad-faith purchaser?
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What does the term 'fee simple determinable' refer to in the context of State v. Hess?
What does the term 'fee simple determinable' refer to in the context of State v. Hess?
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Which type of easement was involved in Michigan DNR v. Carmody Lahti?
Which type of easement was involved in Michigan DNR v. Carmody Lahti?
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What must be proven to invoke the possession exception related to property interests over 40 years old?
What must be proven to invoke the possession exception related to property interests over 40 years old?
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Which of the following situations would not eliminate the need for a bulky abstract when registering property?
Which of the following situations would not eliminate the need for a bulky abstract when registering property?
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Study Notes
Real Estate Brokers Exam
- Broker Definition: A person who, for another, for commission... directly or indirectly lists, sells, exchanges, buys, or rents, manages, or offers or attempts to negotiate a sale of an interest in real estate, or advertises or holds out as engaged in these activities.
- Listing Agreements: Open, exclusive agency, exclusive right to sell
- Broker Duties: Loyalty, obedience, disclosure of all material facts, confidentiality, reasonable care, accounting
- Breach of Duty: Rangel v. Denny (LA): Can sue for breach of reasonable care, skill, and diligence (e.g., realtor hired but didn't properly complete the sale, or sale failed). Relocation Realty (MN): Prerequisite to sue for broker fees: Broker must be licensed, have a written agreement, and have made necessary agency disclosures. No hold harmless provisions.
- Earning Commission: Dworak v. Michaels (NE): A seller is obligated to pay a commission when a sale is completed or when a sale fails due to the fault of the seller. Ellsworth Dobbs Rule: commission due if the broker produces a ready, willing, and able buyer who enters into a contract.
- MN Rule: Olson v. Penkert: Broker is entitled to commission upon negotiating a contract. Can also waive this in a listing agreement. Century 21 v. Vasquez (CA). If property is sold during the term of a listing agreement, the commission is owed.
- Best Practices (Seller Representation): No commission unless transaction closes. Seller can delist or reject a buyer. Exclusions for specified parties.
- Listing Requirements: Definite expiration date, property description, sale parameters (price, etc.), broker compensation, disclosure if fee is negotiable, grounds for earning commission.
- Protected Parties: Individuals specifically identified in a listing agreement, Affirmative prior interest, delivered to seller 72 hours, double commission disclaimer
- Procuring Cause: if the agreement is silent on post-termination conditions, there must be evidence the broker initiated the series of events leading to a sale (if no break in chain). Rosenberg (MN): Listing agreement without expiration. Court ruled substantial compliance, so brokers earned commission.
- Colorado v. Vizzi and Schleuter v. Latek: Real Estate Agent cannot contract away state laws; Unlicensed broker cannot sue for commission if paid.
- Broker Obligations (Easton v. Strassburger): Brokers must check for and disclose any material issues affecting property value or desirability (thorough inspection for buyers).
- Broker Obligations (Salahutdin): Brokers have a duty to investigate material facts in a real estate transaction; seller has a duty to verify representations to the buyer.
- Constructive Fraud: Broker's negligence in not verifying statements doesn't require intent to defraud. Holmes v. Summer (CA): If a seller's agent knows of closing problems, they must disclose to the buyer.
Purchase and Sales Transactions
- Letters of Intent: Document intent, establish parameters, break down complexities
- Enforcement Factors: Intent of parties, express disclaimer, partial performance, essential terms, statute of frauds.
- Enforceable Terms: Confidentiality, exclusive negotiation, due diligence documents, early inspections, co-operation.
- Merger Provision: Final documents supersede prior agreements.
- LOI Disclaimers: Nonbinding and Partially Binding Disclaimers.
- GMH Assoc. v. Prudential: Enforceability of LOI depends on intent.
- Acceptance: Needs unambiguous manifestation of acceptance. (e.g., language must state in clear terms that it is accepting the offer and not merely expressing feedback).
- Counteroffer: Need objectively manifested acceptance including unequivocal (unequivocal, clear, unmistakable, etc.) acceptance of the counter-offer.
Purchase & Sale Agreement Requirements
- Elements: Statement of consideration, adequate descriptions of parties and land.
- Parole Evidence: Used to explain, not contradict terms.
- Partial Performance: Payment, possession, or substantial improvements can excuse lack of full performance (can vary by state, and is a combination of two or three).
Purchase and Sale Agreement Requirements
- Elements: Statement of consideration, adequate descriptions of parties and land.
- Parole Evidence: Used to explain, not contradict terms.
- Partial Performance: Payment, possession, or substantial improvements can excuse lack of full performance (can vary by state, and is a combination of two or three).
- Options to Purchase: Steiner v. Thexton (CA): partial performance of an initially tentative promise (e.g., land division) constitutes adequate compensation
- Financing Contingencies: Proctor v. Holden (MD): A financing condition must be diligently pursued.
Purchase and Sales Transactions
- Letters of Intent: Document intent, establish parameters, break down complexities
Purchase & Sale Agreement Requirements
- Elements: Statement of consideration, adequate descriptions of parties and land.
- Parole Evidence: Used to explain, not contradict terms.
- Partial Performance: Payment, possession, or substantial improvements can excuse lack of full performance (can vary by state, and is a combination of two or three).
- Conveyance and Title Issues: Fraud, forgery, delivery, and recordation
Purchase & Sale Agreement Requirements
- Elements: Statement of consideration, adequate descriptions of parties and land.
- Parole Evidence: Used to explain, not contradict terms.
- Partial Performance: Payment, possession, or substantial improvements can excuse lack of full performance (can vary by state, and is a combination of two or three).
- Options to Purchase: Steiner v. Thexton (CA): partial performance of an initially tentative promise (e.g., land division) constitutes adequate compensation
- Financing Contingencies: Proctor v. Holden (MD): A financing condition must be diligently pursued.
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Description
Test your knowledge on important aspects of real estate law and seller disclosure requirements under MN Statute. This quiz covers key case law, seller duties, and conditions for valid deed delivery. Perfect for students and professionals in the field of real estate.
