Minnesota State Real Estate Practice Test

What type of property is a license associated with?

1. Real property

2. Personal property

3. Intangible property

4. Commercial property

The correct answer is: Real property

A license in the context of real estate refers to permission granted to a person to perform a specific act on someone else's property. This permission does not convey any ownership rights and is considered a personal right held by the licensee. However, since the license is directly associated with the use of real property, it is connected to real estate transactions and activities. In Minnesota, like in many other jurisdictions, licenses are often issued for activities that involve real property, such as real estate brokerage or the ability to show properties. Because of this direct association with real estate, the correct answer is real property. The other types of property mentioned, such as personal or intangible property, do not encompass the relationship to real estate transactions in the same way. Commercial property, while a subset of real property, is too specific and doesn't encapsulate the broader concept of licenses associated with all types of real property.