2001 Minnesota Statutes

     82.20 Licensing requirements. 

    Subdivision 1.    Generally.  (a) The commissioner shall 
 issue a license as a real estate broker, real estate 
 salesperson, or closing agent to any person who qualifies for 
 such license under the terms of this chapter; 

    (b) The commissioner is authorized to establish by rule a 
 special license for real estate brokers and real estate 
 salespeople engaged solely in the rental or management of an 
 interest or estate in real estate, to prescribe qualifications 
 for the license, and to issue the license consistent with the 
 terms of this chapter.  This clause shall not be construed to 
 require those owners or managers or their agents or employees 
 who are excluded by section 82.18, clause (d) from the 
 definition of real estate broker, to obtain the special license. 

    Subd. 2.    Qualification of applicants.  Every 
 applicant for a real estate broker, real estate salesperson, or 
 real estate closing agent license shall be at least 18 years of 
 age at the time of making application for said license. 

    Subd. 3.    Application for license; contents.  (a) 
 Every applicant for a license as a real estate broker, real 
 estate salesperson, or closing agent shall make an application 
 in writing upon forms prepared and furnished by the commissioner.
 Each application shall be signed and sworn to by the applicant 
 and shall be accompanied by the license fee required by this 
 chapter; 

    (b) Each application for a real estate broker license, real 
 estate salesperson license, or real estate closing agent license 
 shall contain such information as required by the commissioner 
 consistent with the administration of the provisions and 
 purposes of this chapter; 

    (c) Each application for a real estate salesperson license 
 shall give the applicant's name, age, residence address, and the 
 name and place of business of the real estate broker on whose 
 behalf the salesperson is to be acting; 

    (d) Each application for a real estate closing agent 
 license shall give the applicant's name, age, residence address, 
 and the name and place of business of the closing agent; 

    (e) The commissioner may require such further information 
 as the commissioner deems appropriate to administer the 
 provisions and further the purposes of this chapter. 

    Subd. 4.    Corporate and partnership licenses.  (a) A 
 corporation applying for a license shall have at least one 
 officer individually licensed to act as broker for the 
 corporation.  The corporation broker's license shall extend no 
 authority to act as broker to any person other than the 
 corporate entity.  Each officer who intends to act as a broker 
 shall obtain a license; 

    (b) A partnership applying for a license shall have at 
 least one partner individually licensed to act as broker for the 
 partnership.  Each partner who intends to act as a broker shall 
 obtain a license; 

    (c) Applications for a license made by a corporation shall 
 be verified by the president and one other officer.  
 Applications made by a partnership shall be verified by at least 
 two partners; 

    (d) Any partner or officer who ceases to act as broker for 
 a partnership or corporation shall notify the commissioner upon 
 said termination.  The individual licenses of all salespersons 
 acting on behalf of a corporation or partnership, are 
 automatically ineffective upon the revocation or suspension of 
 the license of the partnership or corporation.  The commissioner 
 may suspend or revoke the license of an officer or partner 
 without suspending or revoking the license of the corporation or 
 partnership; 

    (e) The application of all officers of a corporation or 
 partners in a partnership who intend to act as a broker on 
 behalf of a corporation or partnership shall accompany the 
 initial license application of the corporation or partnership.  
 Officers or partners intending to act as brokers subsequent to 
 the licensing of the corporation or partnership shall procure an 
 individual real estate broker's license prior to acting in the 
 capacity of a broker.  No corporate officer who maintains a 
 salesperson's license may exercise any authority over any trust 
 account administered by the broker nor may they be vested with 
 any supervisory authority over the broker; 

    (f) The corporation or partnership applicant shall make 
 available upon request, such records and data required by the 
 commissioner for enforcement of this chapter. 

    Subd. 5.    Responsibility.  Each broker shall be 
 responsible for the acts of any and all of the broker's sales 
 people and closing agents while acting as agents on the broker's 
 behalf.  Each officer of a corporation or partner in a 
 partnership licensed as a broker shall have the same 
 responsibility under this chapter as a corporate or partnership 
 broker with regard to the acts of the salespeople and closing 
 agents acting on behalf of the corporation or partnership. 

    Subd. 6.    Issuance of license; salesperson.  A 
 salesperson must be licensed to act on behalf of a licensed 
 broker and may not be licensed to act on behalf of more than one 
 broker in this state during the same period of time. The license 
 of each real estate salesperson shall be mailed to and remain in 
 the possession of the licensed broker with whom the salesperson 
 is or is to be associated until canceled or until such licensee 
 leaves such broker. 

    Subd. 7.    Effective date of license.  Licenses renewed 
 pursuant to this chapter are valid for a period of 24 months.  
 New licenses issued during a 24-month licensing period will 
 expire on June 30 of the expiration year assigned to the 
 license.  Implementation of the 24-month licensing program must 
 be staggered so that approximately one-half of the licenses will 
 expire on June 30 of each even-numbered year and the other 
 one-half on June 30 of each odd-numbered year.  Those licensees 
 who will receive a 12-month license on July 1, 1995, because of 
 the staggered implementation schedule will pay for the license a 
 fee reduced by an amount equal to one-half the fee for renewal 
 of the license. 

    Subd. 8.    Renewals.  (a) Persons whose applications 
 have been properly and timely filed who have not received notice 
 of denial of renewal are deemed to have been approved for 
 renewal and may continue to transact business either as a real 
 estate broker, salesperson, or closing agent whether or not the 
 renewed license has been received on or before July 1 of the 
 renewal year.  Application for renewal of a license shall be 
 deemed to have been timely filed if received by the commissioner 
 by, or mailed with proper postage and postmarked by, June 15 of 
 the renewal year.  Applications for renewal shall be deemed 
 properly filed if made upon forms duly executed and sworn to, 
 accompanied by fees prescribed by this chapter and contain any 
 information which the commissioner may require.  

    (b) Persons who have failed to make a timely application 
 for renewal of a license and who have not received the renewal 
 license as of July 1 of the renewal year, shall be unlicensed 
 until such time as the license has been issued by the 
 commissioner and is received. 

    Subd. 9.    Terminations; transfers.  (a) Except as 
 provided in paragraph (b), when a salesperson terminates 
 activity on behalf of a broker, the salesperson's license shall 
 be ineffective.  Within ten days of the termination the broker 
 shall notify the commissioner in writing, and shall return to 
 the commissioner the license of the salesperson.  The 
 salesperson may apply for transfer of the license to another 
 broker at any time during the remainder of the license period, 
 on forms provided by the commissioner.  If the application for 
 transfer qualifies, the commissioner shall grant the 
 application.  Upon receipt of a transfer application and payment 
 of the transfer fee, the commissioner may issue a 45-day 
 temporary license.  If an application for transfer is not made 
 within the license period, the commissioner shall require that 
 an application for a new license be filed. 

    (b) When a salesperson terminates activity on behalf of a 
 broker in order to begin association immediately with another 
 broker, the commissioner shall permit the automatic transfer of 
 the salesperson's license.  The transfer shall be effective 
 either upon the mailing of the required fee and the executed 
 documents by certified mail or upon personal delivery of the fee 
 and documents to the commissioner's office.  The commissioner 
 may adopt rules and prescribe forms as necessary to implement 
 this paragraph. 

    (c) When a broker terminates activity in order to begin 
 association with another broker, the commissioner shall permit 
 the automatic transfer of the broker's license to a 
 salesperson's license.  If there are licensed salespeople 
 working for the broker , the broker shall certify that a broker 
 will remain in the company that the broker is leaving prior to 
 issuance of the transfer.  The transfer shall be effective 
 either upon the mailing of the required fee and the executed 
 documents by certified mail or upon personal delivery of the fee 
 and documents to the commissioner's office.  

    Subd. 10.    Effect of suspension or revocation.  The 
 license of a salesperson is not effective during any period for 
 which the license of the broker on whose behalf the salesperson 
 is acting is suspended or revoked.  The salesperson may apply 
 for transfer to some other licensed broker by complying with 
 subdivision 9. 

    Subd. 11.    Notice.  Notice in writing shall be given 
 to the commissioner by each licensee of any change in personal 
 name, trade name, address or business location not later than 
 ten days after such change.  The commissioner shall issue a new 
 license if required for the unexpired period. 

    Subd. 12.    Nonresidents.  A nonresident of Minnesota 
 may be licensed as a real estate broker, real estate 
 salesperson, or a real estate closing agent upon compliance with 
 all provisions of this chapter. 

    Subd. 13.    Limited broker's license.  The commissioner 
 shall have the authority to issue a limited real estate broker's 
 license authorizing the licensee to engage in transactions as 
 principal only.  Such license shall be issued only after receipt 
 of the application described in subdivision 3 and payment of the 
 fee prescribed by section 82.21, subdivision 1.  No salesperson 
 may be licensed to act on behalf of an individual holding a 
 limited broker's license.  An officer of a corporation or 
 partner of a partnership licensed as a limited broker may act on 
 behalf of that corporation or partnership without being subject 
 to the licensing requirements.  A limited broker's license shall 
 also authorize the licensee to engage in negotiation of mortgage 
 loans as described in section 82.17, subdivision 4, clause (b). 

    Subd. 14.    Licenses; extending duration.  
 Notwithstanding the provisions of subdivisions 7 and 8, the 
 commissioner may institute a system by rule pursuant to chapter 
 14 to provide three year licenses from the date of issuance for 
 any license prescribed by this section. 

    Subd. 15.    Exemption.  The following persons, when 
 acting as closing agents, are exempt from the requirements of 
 sections 82.19 and 82.24 unless otherwise required in this 
 section or chapter: 

    (1) a direct employee of a title insurance company 
 authorized to do business in this state, or a direct employee of 
 a title company, or a person who has an agency agreement with a 
 title insurance company or a title company in which the agent 
 agrees to perform closing services on the title insurance 
 company's or title company's behalf and the title insurance 
 company or title company assumes responsibility for the actions 
 of the agent as if the agent were a direct employee of the title 
 insurance company or title company; 

    (2) a licensed attorney or a direct employee of a licensed 
 attorney; 

    (3) a licensed real estate broker or salesperson; 

    (4) a direct employee of a licensed real estate broker if 
 the broker maintains all funds received in connection with the 
 closing services in the broker's trust account; 

    (5) any bank, trust company, savings association, credit 
 union, industrial loan and thrift company, regulated lender 
 under chapter 56, public utility, or land mortgage or farm loan 
 association organized under the laws of this state or the United 
 States, when engaged in the transaction of businesses within the 
 scope of its corporate powers as provided by law; 

    (6) a title insurance company authorized to do business in 
 this state; and 

    (7) a title company that has a contractual agency 
 relationship with a title insurance company authorized to do 
 business in this state, where the title insurance company 
 assumes responsibility for the actions of the title company and 
 its employees or agents as if they were the employees or agents 
 of the title insurance company. 

    HIST: 1973 c 410 s 4; 1976 c 197 s 2,3; 1977 c 215 s 1; 1982 c 
 424 s 130; 1982 c 478 s 1; 1984 c 552 s 8,9; 1985 c 251 s 8; 
 1986 c 444; 1989 c 347 s 10-16; 1990 c 364 s 1; 1991 c 20 s 1; 
 1993 c 309 s 10; 1994 c 632 art 4 s 32,33; 1995 c 68 s 4; 1995 c 
 202 art 1 s 25; 1996 c 439 art 1 s 10; 1997 c 222 s 34