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    Continuing Education Module 2016-2017

    Key

    CL = Classroom
    INT = Internet

    Course Description

    This class will explore contracts and forms related to the Minnesota real estate transactions. Special emphasis will be placed on the contract issues that come up in day-to-day business so agents will be better equipped to serve buyers and sellers after instruction on what is contractually required.

    Learning Objectives

    After attending this class, real estate licenses will:

    • Have a better understanding of what is required by law in real estate contracts;
    • Examine various contracts, addendums and agreements and review forms issues that create problems in real estate transactions;
    • Learn to avoid contractual perils and pitfalls;
    • Be better equipped serve buyers and sellers in today’s complex real estate transactions.

    Mandatory Curriculum for this Module

    All topics must be covered as shown in the outline below

    I. Welcome and Course Objectives 

    II. Elements of a Binding Contract (5 min CL, 7 min INT)

    A. Bilateral versus unilateral

    B. Enforceability

    • Contingencies

    C. Essential elements

    • Capacity
    • Mutual agreement
    • MN Plain Language statute
    • Performance
    • Discharge
    • Breach
    • Remedies

    D. Assignability

    E. When clients should seek legal advice

     

    III. Representation Contracts and Facilitator Services Agreements (25 min CL, 28 min INT)

    A. Agency Relationships

    • Disclosure only, not a contract for representation
    • Seller’s Broker
    • Buyer’s Broker
    • Dual Agent
    • Facilitator
    • Fiduciary Duties

    B. Listing Contract:

    • Required Elements & Other Provisions
      • Expiration Date
      • Description of property involved
      • List Price and Terms required by seller
      • Amount of Compensation and Required Compensation Notice
      • Statement explaining the event that will entitle broker to a commission
      • Seller's instructions
      • Cancelation Terms
      • Override Clause and Protective Lists
      • Name
      • Effective Date
      • Price
      • Leasing Option
      • Authorization
      • Hold over clause prohibition
      • Compensation & Required Notice
      • Closing services
      • Additional costs
      • Agency representation
      • Dual Agency and the required disclosure statement
      • Required notice in Residential transactions that seller is not obligated to pay compensation to broker if seller enters is obligated to pay a commission to another licensee
      • Electronic signatures
      • Acceptance and dates

    C. Buyer Representation Contracts:

    • Exclusive vs. Non-exclusive
    • Required Elements & Other provisions
      • Expiration Date
      • Statement explaining services to be provided
      • Buyer’s instructions
      • Cancelation Terms
      • Override Clause and Protective Lists
      • Property address
      • Name
      • Effective Date
      • Price
      • Leasing Option
      • Terms
      • Authorization
      • Hold over clause prohibition
      • Compensation & Required Notice
      • Compensation Disclosure to Buyer
      • Closing services
      • Additional costs
      • Agency representation
      • Dual Agency and the required disclosure statement
      • Required notice in Residential transactions that buyer is not obligated to pay compensation to broker if buyer enters into another valid buyer’s broker agreement obligating the buyer to pay another licensee.
    • Electronic signatures
    • Acceptance and dates

    D. Facilitator Services Agreements: Buyer & Seller

     

    IV. Disclosure Issues (15 min CL, 17 Min INT)

    A. Seller Disclosure in Residential Property

    • Seller’s Property Disclosure

    B. Seller Disclosure Alternatives

    • Private inspection
    • Waiver

    C. Other Seller Disclosure Requirements

    • Subsurface Sewage Treatment
    • Private Well
    • Evaluation Exclusions
    • Methamphetamine
    • Radon
    • Airport Zoning
    • Predatory Offenders


    V. Purchase Agreement (35 min CL, 40 min INT)

    A. Parties’ names

    B. Property address

    C. Ernest money obligations

    D. Fixtures

    E. Personal Property

    F. Price

    • Financing
    • Closing date

    G. Deeds

    H. Property taxes and assessments

    I. Linked Devices

    J. Possession

    K. Title and examination

    • Dual agency

    L. Mechanics Liens

    • Lien waiver required

    M. Definition of dimensions

    N. Risk of Loss

    O. Time is of the essence

    P. Entire Agreement

    • Electronic Signature
    • Electronic communication

    Q. Default

    R. FIRPTA

    S. Final acceptance

    • Signatures/dates of all parties
    • Delivery


    VI. Counter Offers and Addenda (5 min CL, 7 min INT)

    A. Standard terms

    B. Signatures required on purchase agreement


    VII. Financing Addenda (19 min CL, 22 min INT)

    A. Conventional

    • Contingency Options

    B. FHA

    • Contingency Options
    • Escape Clause
    • Work Orders
    • Re-inspection Fees
    • Processing Fees

    C. DVA

    • Contingency Options
    • Escape Clause
    • Work Orders
    • Re-inspection Fees
    • Processing Fees

    D. Contract for Deed

    • Uniform Conveyancing Blank (UCB) Contract for Deed
      • Financing Addendum distinguished from the Contract for Deed
      • UCB Contract for Deed
      • Title
      • Deed
      • Purchase Price
      • RE Taxes and assessments
      • Insurance
      • Recording of Contract by Purchaser
      • Defaults and Remedies
      • Additional Terms
    • Required Transactions
      • Multiple Seller
      • Unrepresented Buyer
      • Residential Property
    • Disclosure Form
      • Front of Purchase Agreement
      • 5-Day Waiting Period
      • No Waiver
      • Cancellation
      • Voluntary
      • Declaratory Cancellation

    E. Remedies

    F. Accounting Required


    VIII. Seller Contributions (5 min CL, 7 min INT)

    A. Closing Costs


    IX. Condominium Townhouse CIC Addendum (15 min CL, 17 min INT)

    A. Calculation of days

    B. Exempt properties

    C. Right to cancel provision


    X. Contingency Addendum Sale of Buyer’s Property (10 min CL, 11 min INT)

    A. Mechanics of the contingency


    XI. Inspection Contingency (10 min CL, 11 min INT)

    A. Types of inspections

    B. Mechanics of the contingency

    C. Cancellation

    D. Material fact disclosure


    XII. As Is Addendum (10 min CL, 11 min INT)

    A. Seller disclosure alternatives with waiver

    B. Limitation of Seller Liability/legal advice

    C. Warranties

    D. Risk of loss


    XIII. Cancellation of a Purchase Agreement (15 min CL, 17 min INT)

    A. Cancellation agreement signed by both parties

    B. Refusal to sign a cancellation

    C. Statutory cancellation

    D. Earnest money issues


    XIV. One Time Showing Contract (5 min CL, 7 min INT)

    A. Secures compensation

    B. Specific buyer


    XV. Wrap Up, Summary, Questions, and Examination (21 min CT, 23 min INT)

     
    Examination
     
    Course will include its own 20-question examination, chosen from an associated bank of at least 50 questions. The 70% passing score for the examination will be 14 correct answers. 
     
    The official examination is sent to the provider by the Commerce Department after the course is approved.
     

    3.75 Total Hours Required

    195 Min Required Classroom Time, 225 Min Required Internet Time

     
    An exam must not be allocated credit of more than one-sixth of the time allocated to the module. However, a licensee must be allowed to remain as long as reasonably necessary to complete the exam.
     

    This Module Satisfies the 1-Hour Broker Module Requirement

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