Minnesota State Real Estate Practice Test

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Prepare for the Minnesota Real Estate Exam. Enhance your knowledge with flashcards and multiple-choice questions, each complemented by detailed hints and explanations. Ace your licensing exam!

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When must a receipt be issued for a nondepositable item?

Upon request from the seller
Only after the item is sold
Immediately upon depositing with an escrow agent
When the transaction is finalized

The correct answer is: Immediately upon depositing with an escrow agent

A receipt must be issued for a nondepositable item immediately upon depositing it with an escrow agent because this practice helps establish a clear record and accountability for all parties involved in the transaction. Nondepositable items, such as personal property or items that cannot be held in trust, require proper documentation to ensure that they are handled correctly. By issuing a receipt at the moment of deposit, the escrow agent provides a tangible confirmation of the item’s receipt, which protects the interests of both the buyer and seller, maintaining transparency in the transaction. This timing aligns with the standard practices in real estate transactions where clarity and verification are paramount.