Key Takeaways
- Attorneys, property owners managing their own property, and certain employees are exempt
- Unlicensed assistants can perform administrative tasks but cannot negotiate or show property
- Common violations include misrepresentation, commingling, and acting without a license
- The Commerce Department can impose fines up to \$10,000 per violation
- Criminal penalties apply for severe violations including unlicensed practice
Last updated: January 2026
License Exemptions & Violations
Understanding exemptions and violations protects licensees from discipline.
Who is Exempt from Licensing
Exempt Parties
| Exempt Party | Conditions |
|---|---|
| Property owners | Selling own property |
| Attorneys | Acting as attorney |
| Trustees/executors | Managing estates |
| Property managers | Managing own property |
| Government employees | Official duties |
| Lenders | Acquiring for debt |
| Auctioneers | Licensed auctioneers |
Licensed in Other States
| Situation | Requirement |
|---|---|
| Showing property to client | Must be licensed in MN |
| Referral only | Can refer to MN licensee |
| Co-brokerage | MN license required |
Unlicensed Assistants
What Assistants CAN Do
| Permitted Activity | Example |
|---|---|
| Answer phones | Take messages |
| Type documents | Prepare paperwork |
| Deliver documents | Drop off contracts |
| Schedule appointments | Book showings |
| Administrative tasks | Filing, data entry |
| Marketing materials | Create flyers |
What Assistants CANNOT Do
| Prohibited Activity | Reason |
|---|---|
| Show property | Requires license |
| Discuss price/terms | Requires license |
| Negotiate | Requires license |
| Give opinions on value | Requires license |
| Hold open houses | Requires license |
| Write contracts | Requires license |
Common Violations
Grounds for Discipline
| Violation | Description |
|---|---|
| Misrepresentation | False statements |
| Commingling | Mixing trust with personal funds |
| Conversion | Using client funds |
| Undisclosed dual agency | Representing both without consent |
| Failure to remit funds | Not delivering deposits |
| Practicing without license | Acting while suspended |
| Breach of fiduciary duty | Violating trust |
| Incompetency | Lack of skill |
| Discrimination | Fair housing violations |
Trust Account Violations
| Violation | Description |
|---|---|
| Commingling | Personal + trust funds mixed |
| Conversion | Using trust for self |
| Failure to deposit | Not depositing timely |
| Improper disbursement | Releasing without authorization |
Penalties
Administrative Penalties
| Penalty | Maximum |
|---|---|
| Fine | $10,000 per violation |
| Suspension | Temporary removal |
| Revocation | Permanent removal |
| Probation | Conditional license |
| Censure | Formal reprimand |
Criminal Penalties
| Offense | Penalty |
|---|---|
| Unlicensed practice | Gross misdemeanor |
| Fraud | Felony charges possible |
| Conversion | Criminal prosecution |
Complaints Process
| Step | Description |
|---|---|
| 1. Complaint filed | To Department of Commerce |
| 2. Investigation | Commerce review |
| 3. Informal conference | Optional resolution |
| 4. Formal charges | If warranted |
| 5. Hearing | Administrative hearing |
| 6. Decision | Discipline imposed |
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Test Your Knowledge
Can an unlicensed assistant show property to prospective buyers in Minnesota?
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Test Your Knowledge
What is the maximum fine the Department of Commerce can impose per violation?
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D