How to verify a real estate license in Minnesota

Which trades does Minnesota license?

How do you check a real estate agent or broker?

The Department of Commerce licenses brokers and salespersons. A person who is not licensed may not act as one or advertise as one (§ 82.81, subds. 1-2). Brokers are responsible for the acts of the salespeople and closing agents working under them (§ 82.63, subd. 3).

Ask the agent for a license number and confirm it with the Department of Commerce. Check three things: the license is active, the agent is licensed under the brokerage named on the contract, and there is no discipline. The commissioner may deny, suspend or revoke a license, or censure a licensee, for reasons that include fraud and dishonest practices (§ 82.82).

Also confirm that anyone offering closing services is either licensed as a closing agent or exempt, such as an attorney (§ 82.641, subd. 6). For who may close a home sale, see real estate attorneys in Minnesota.

How do you check a mortgage loan originator?

An individual may not work as a mortgage loan originator for a Minnesota dwelling without a license, must be employed and supervised by a licensed or exempt company, and must hold a unique identifier from the Nationwide Multistate Licensing System and Registry (§ 58A.03, subd. 1). The company itself needs a residential mortgage originator license from the commissioner and a surety bond (§ 58.04). Some people are exempt, such as someone negotiating a loan for an immediate family member or on a home that was their own residence (§ 58A.03, subd. 2).

Ask the originator and the lender for their NMLS identifiers, then check both in the national registry. Before you apply, see homeowners insurance and private mortgage insurance for other costs that sit beside the loan.

Do home inspectors need a license?

The Minnesota Statutes chapters I searched on real estate, appraisers, mortgage lenders, licensed trades (326 and 326B) and consumer protection (325F) contain no home inspector license. I did not find a state license number you can verify. Ask the Department of Commerce whether any requirement applies.

Without a license, check the person yourself: ask for a sample report, proof of insurance and references. Sellers may rely on a qualified third party’s written report to limit what they must repeat in their own disclosure (§ 513.56, subd. 3). See home inspection cost.

How do you check an appraiser?

Minnesota makes it unlawful to act as a real estate appraiser, or to use the title, without a license. Employees of a lender, owner or insurer with an interest in the property may appraise it without a license, but the appraisal must say it was done by an interested party and not by a licensed appraiser (§ 82B.03, subds. 1-2). There are five classes of license, from trainee to certified general appraiser, and each class has its own scope of practice (§ 82B.11).

For a federal check, use the Appraisal Subcommittee (ASC) national registry. It lists licensed and certified appraisers authorized by a state to perform appraisals for federally related transactions. The state agencies update it at least monthly, and the ASC says it has not independently verified the information. Contact the state agency for the full history. See home appraisal cost.

How do you check a land surveyor?

Minnesota law makes it unlawful to practice or offer to practice land surveying, or to use the title of land surveyor, without a license (§ 326.02, subd. 1). Land surveying includes measuring and setting boundaries and corners, platting, and preparing maps and property descriptions (§ 326.02, subd. 4). The licensing board is the Board of Architecture, Engineering, Land Surveying, Landscape Architecture, Geoscience, and Interior Design. Ask the surveyor for the license number and confirm it with the board. See land survey cost.

What if a license is expired or suspended?

• Do not sign with an unlicensed agent. A person who must be licensed cannot sue to collect compensation without proving a license at the time (§ 82.85, subd. 1).
• Report it. The commissioner can deny, suspend or revoke licenses (§ 82.82). Raise a concern with the Department of Commerce.
• Recovery fund. If you win a final court judgment against a licensed agent for fraud, dishonest practices or conversion of trust funds, you can apply for payment from the real estate education, research and recovery fund, up to $150,000 per claimant, per transaction (§ 82.86, subd. 7).