Minnesota Real Estate License Overview
Minnesota offers excellent opportunities for real estate professionals with a diverse market ranging from the bustling Twin Cities metropolitan area (Minneapolis-St. Paul) to beautiful lakefront properties throughout the state. The Minnesota Department of Commerce oversees all real estate licensing, ensuring agents meet high standards of competence and ethics.
With numerous Fortune 500 companies headquartered in Minnesota, a strong economy, and one of the nation's highest quality of life ratings, the state continues to attract residents and investors, creating strong demand for licensed real estate professionals.
Minnesota Real Estate Exam Quick Facts
| Feature | Details |
|---|---|
| Exam Administrator | PSI Services |
| Total Questions | 120 multiple-choice (combined exam) |
| National Portion | 80 scored questions + 5 pretest |
| State Portion | 40 scored questions + 5-10 pretest |
| Time Limit | 4 hours total (2.5 national, 1.5 state) |
| Passing Score | 75% on each portion (60/80 national, 30/40 state) |
| Exam Fee | $68 (combined) or $45 per section |
| Results | Immediate (pass/fail on screen) |
| Retake Wait | 24 hours |
Requirements Before Taking the Exam
Education Requirements
| Requirement | Details |
|---|---|
| Age | 18 years or older |
| Pre-License Education | 90 hours total (3 courses of 30 hours each) |
| Course I | Must be completed before taking exam |
| Courses II & III | Can be completed after exam, before license |
| Education Provider | Must be approved by Department of Commerce |
Pre-License Course Content (90 Hours)
The required 90-hour education is divided into three courses:
Course I (30 Hours) - Required Before Exam:
- Real estate principles and practices
- Property ownership and interests
- Contracts fundamentals
- Agency relationships
- License law basics
Course II (30 Hours) - Before License Application:
- Real estate finance
- Property valuation
- Fair housing laws
- Environmental issues
- Real estate math
Course III (30 Hours) - Before License Application:
- Minnesota license law
- State-specific regulations
- Closing procedures
- Property management
- Professional ethics
Important: Only Course I is required before taking the exam. Courses II and III can be completed after passing the exam but must be finished before applying for your license.
Application Process
- Complete Course I (30 hours)
- Schedule exam through PSI Services
- Pass both exam portions (75% each)
- Complete Courses II and III
- Find a sponsoring broker
- Broker submits license application to Department of Commerce
- Pay license fee ($110 total)
- Receive license within one year of passing exam
Minnesota Exam Format
The Minnesota real estate exam consists of 120 questions when taking the combined exam. You can take both portions together or separately.
Exam Structure Options
| Option | Questions | Time | Fee |
|---|---|---|---|
| Combined Exam | 120 questions | 4 hours | $68 |
| National Only | 80 + 5 pretest | 2.5 hours | $45 |
| State Only | 40 + 5-10 pretest | 1.5 hours | $45 |
Content Breakdown - National Portion (80 Questions)
| Topic | Key Areas |
|---|---|
| Property Ownership | Types of ownership, estates, bundle of rights |
| Land Use Controls | Zoning, building codes, environmental regulations |
| Valuation & Market Analysis | Appraisal approaches, CMA, market conditions |
| Financing | Mortgages, loan types, TILA, RESPA |
| Agency Principles | Duties, relationships, disclosure |
| Mandated Disclosures | Property condition, lead paint, fair housing |
| Contracts | Formation, types, performance, breach |
| Transfer of Title | Deeds, title insurance, recording |
| Practice of Real Estate | Brokerage operations, ethics |
| Real Estate Calculations | Commission, prorations, mortgage math |
| Specialty Areas | Commercial, property management |
Content Breakdown - State Portion (40 Questions)
| Topic | Key Areas |
|---|---|
| Real Estate Brokerage License Law | Minnesota licensing requirements and regulations |
| Interests in Real Property | Minnesota property rights and ownership |
| Conveyance Procedures | State-specific closing and transfer requirements |
| Protection of Parties | Consumer protection laws |
| Financial Instruments | Obligations, rights, and remedies |
Detailed Topic Coverage
Agency Relationships
| Topic | Key Points |
|---|---|
| Seller's Broker | Represents seller with full fiduciary duties |
| Buyer's Broker | Represents buyer with full fiduciary duties |
| Dual Agency | Represents both parties with written consent |
| Facilitator | No representation, limited duties |
| Designated Agent | Appointed to represent one party within brokerage |
Disclosure Requirements
| Topic | Key Points |
|---|---|
| Agency Disclosure | Required at first substantive contact |
| Seller Disclosure | Material facts that adversely affect property |
| Licensee Disclosure | Known material facts to purchasers |
| Exempt Information | HIV/AIDS status, deaths, paranormal activity |
Real Estate Calculations
| Topic | Key Points |
|---|---|
| Commission Calculations | Sales price, rate, splits between agents |
| Property Tax Prorations | Annual taxes, closing date calculations |
| Mortgage Calculations | Principal, interest, points, LTV ratios |
| Area Calculations | Square footage, acreage conversions |
| Investment Analysis | Cap rate, GRM, cash flow |
Note: Expect 10-15% of exam questions to involve calculations.
Minnesota-Specific Topics
Minnesota Department of Commerce
| Feature | Details |
|---|---|
| Oversight | Real Estate Division of Department of Commerce |
| Application Portal | PULSE Portal for education providers and licensing |
| License Fee | $110 total (includes $30 recovery fund + $30 tech surcharge) |
| Contact | (651) 539-1500 |
Agency Disclosure Requirements (Minnesota Statute 82.67)
Minnesota law requires real estate brokers and salespersons to discuss agency options with consumers and provide an agency disclosure form at the first substantive contact.
Types of Agency Relationships:
-
Seller's Broker
- Full fiduciary duties to seller
- Must disclose material facts to buyer
- Seller is the client
-
Buyer's Broker
- Full fiduciary duties to buyer
- Must disclose material facts affecting buyer
- Buyer is the client
-
Dual Agency
- Represents both parties with written consent
- Limited duties - cannot advocate for either party
- Confidential information protected
- Must be disclosed before offer execution
-
Facilitator
- No representation to either party
- Must present property honestly
- Must disclose known material defects
- No fiduciary duties
Seller Disclosure Requirements (Minnesota Statute 513.55)
Before signing an agreement to sell residential property, sellers must provide written disclosure of:
- Material facts that could adversely affect buyer's use
- Known defects and conditions
- Environmental hazards
- Structural issues
Exceptions to Disclosure:
- Foreclosure sales
- Transfers to existing tenants
- Transfers to heirs
- Transfers to spouse or family members
- See Minnesota Statutes 513.54 for complete list
Buyer Remedies:
- Buyers have 2 years from closing to bring civil action
- Can recover damages for misrepresentation or omission
- Fraud and negligent misrepresentation claims also available
License Law Penalties
Under Minnesota Statute 82.40:
- Violations of Chapter 82 are gross misdemeanors
- Undisclosed agency relationships prevent commission recovery
- Acting for multiple parties without consent prohibited
- Trust fund violations are serious offenses
Minnesota Exam Pass Rate
The Minnesota real estate exam requires a 75% passing score on both portions. Key factors affecting success:
| Factor | Impact |
|---|---|
| Higher passing score | 75% vs 70% in some states |
| Scaled scoring | Difficulty-adjusted scoring used |
| Dual requirements | Must pass both portions independently |
| Math content | 10-15% calculation questions |
Study Strategy
Recommended Study Time
| Approach | Hours | Timeline |
|---|---|---|
| Intensive | 50-70 | 3-4 weeks |
| Standard | 70-90 | 5-6 weeks |
| Part-time | 90-120 | 7-10 weeks |
After completing Course I (30 hours minimum).
Study Priority by Topic
-
Agency & Disclosure - Critical for both portions
- Minnesota Statute 82.67 requirements
- Fiduciary duties
- Agency disclosure forms
-
Contracts & Property Law
- Contract formation and elements
- Property rights in Minnesota
- Transfer procedures
-
Real Estate Calculations (10-15%)
- Commission calculations
- Prorations
- Mortgage math
-
Minnesota License Law
- Department of Commerce requirements
- Violations and penalties
- CE requirements
Key Math Formulas
Commission:
Prorations:
Property Tax:
Loan-to-Value:
Capitalization Rate:
Common Mistakes to Avoid
1. Underestimating Minnesota-Specific Content
Many candidates focus only on national content but miss Minnesota-specific:
- Agency disclosure requirements under Statute 82.67
- Seller disclosure under Statute 513.55
- Minnesota license law penalties
- State-specific closing procedures
2. Weak Math Skills
Math questions account for 10-15% of the exam. Practice daily:
- Commission calculations
- Prorations
- Area calculations
- Investment analysis
3. Confusing Agency Types
Know the differences between:
- Seller's Broker: Full fiduciary duties to seller
- Buyer's Broker: Full fiduciary duties to buyer
- Dual Agent: Limited duties, written consent required
- Facilitator: No representation, honesty required
4. Poor Time Management
- 120 questions in 4 hours = 2 minutes per question
- Don't spend too long on difficult questions
- Flag and return later
- Review answers before submitting
Exam Day Tips
Before the Exam
- Get good rest the night before
- Eat a balanced meal
- Arrive 30 minutes early
- Bring two forms of ID (one with photo)
During the Exam
- Read every question completely
- Watch for "EXCEPT" and "NOT" questions
- Show your math work (on scratch paper)
- Trust your first instinct
- Use all available time to review
What to Bring
- Two forms of ID (one government-issued with photo)
- Authorization to test (confirmation email)
- Nothing else - personal items stored in locker
Testing Options
PSI offers the Minnesota real estate exam:
- In-person at PSI testing centers
- Online proctored from home
Contact PSI Services at (866) 395-1006 for scheduling.
After Passing
Immediate Steps
- Receive results on screen at testing center
- Complete Courses II and III if not already done
- Find a sponsoring broker (required for application)
- Broker submits application to Department of Commerce
- Pay license fee ($110 total)
- Apply within one year of passing exam
License Application Requirements
| Requirement | Details |
|---|---|
| Sponsoring Broker | Required - broker submits application |
| All 90 Hours Complete | Courses I, II, and III |
| Application Deadline | Within 1 year of passing exam |
| License Fee | $110 (includes recovery fund and tech surcharge) |
Continuing Education
| Renewal Period | CE Required |
|---|---|
| Every 2 years | 30 hours total |
| Required Topics | Fair housing, agency, ethics |
Note: Minnesota requires 30 hours of CE every 2 years - one of the higher requirements in the nation.
Minnesota Real Estate Career Outlook
Salary Expectations
| Experience | Annual Income |
|---|---|
| First year | $35,000-$50,000 |
| 2-5 years | $50,000-$80,000 |
| 5+ years | $80,000-$130,000+ |
| Top producers | $175,000+ |
Hot Minnesota Markets (2026)
- Minneapolis - Urban core, diverse neighborhoods, corporate headquarters
- St. Paul - Historic homes, state capital, growing downtown
- Edina - Luxury homes, top schools, affluent suburb
- Plymouth - Corporate campuses, family-friendly
- Duluth - Lake Superior properties, tourism
- Lake Minnetonka - Waterfront luxury homes
- Rochester - Mayo Clinic, medical professionals
- Bloomington - Mall of America, corporate offices
Total Cost Breakdown
| Item | Cost |
|---|---|
| Course I (30 hours) | $200-$350 |
| Course II (30 hours) | $200-$350 |
| Course III (30 hours) | $200-$350 |
| Exam Fee (combined) | $68 |
| License Fee | $110 |
| Total Estimated | $780-$1,230 |
Resources
- Minnesota Department of Commerce - Official licensing information
- PULSE Portal - Education providers and applications
- PSI Services - Exam scheduling
- Real Estate License Guide (PDF) - Official guide
- OpenExamPrep - Free study materials and practice questions