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A comprehensive overview of the missouri real estate commission (mrec) and the requirements for obtaining a real estate salesperson license in the state of missouri. It covers key topics such as the composition and responsibilities of the mrec, the licensing process, qualifications, prohibited practices, and risk management strategies for brokers. Designed to help aspiring real estate professionals prepare for the missouri 48-hour salesperson course exam, which is a mandatory step in the licensing process. The detailed information and practice questions make this document a valuable resource for those seeking to become licensed real estate salespersons in missouri.
Typology: Exams
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How many members make up the Missouri Real Estate Commission board? - - Seven; six brokers and one unlicensed consumer. Members are nominated by the MREC president and appointed by the governor. How many years' experience do brokers need to have to qualify for MREC board membership? - - 10; commission members serve five-year terms. What does the MREC do? - - Carries out Section 339 of the Missouri Revised Statutes, including the examination, licensing, and regulation of real estate professionals. What is the maximum penalty per license law violation? - - $2, What is the maximum cumulative penalty for license law violation? - - $25, Who is authorized to carry out MREC actions? - - Board members, officers, employees, agent, and representatives What is one form of dispute that MREC will not settle? - - Commission disputes Which organization offers its members mediation and arbitration of commission disputes? - - Missouri Association of REALTORS®
What are the three categories of real estate licensure in Missouri? - - Broker, broker-salesperson, and salesperson Broker - - Any person, firm, company, or corporation that performs real estate activities for another person for a fee or compensation of any kind Broker-salesperson - - A licensed broker who chooses to surrender the broker license in favor of working under the supervision of a broker Salesperson - - A person associated with a licensed broker that performs real estate activities under the broker's supervision What are the general (character) qualifications for licensure? - - Good moral character, reputation for honest and fair dealings, competency to conduct real estate transactions in a way that safeguards the public interest What's the minimum age one must be to qualify for licensure? - - 18 What other requirements must one fulfill in order to qualify for a real estate salesperson license in Missouri? - - Fingerprinting, background check, complete pre-examination and practice courses, pass national and state portions of the licensing exam, associate with licensed broker, complete license application and pay fee within six months of course completion What other requirements must one fulfill in order to qualify for a real estate broker license in Missouri?
What happens to the license and pocket card issued to new licensees? - - Broker keeps the paper copy of the license, licensee keeps the pocket card What's the process for initiating a name or address change? - - Alert the MREC in writing within 10 days, submit name or address change form. What's the process for terminating a broker relationship? - - Give broker termination letter, broker alerts MREC within 72 hours, surrenders license to MREC. Licensee has six months to either affiliate with a new broker or place license in inactive status. How often do licenses renew in Missouri? - - Every two years; salesperson licenses renew on September 30 of even-numbered years, broker licenses renew on June 30 of even-numbered years. Brokers must renew before affiliated licensees may renew. What activities require a real estate license in Missouri? - - Performing real estate brokerage activities for others, for compensation of any kind Who is exempt from the real estate licensure requirement? - - Owners selling property themselves, licensed attorneys, developers selling land they own, court-ordered administrators/executors, banks/lenders What's a policy and procedures manual? - - A PPM is a powerful risk management tool that outlines a brokerage's policies and specific procedural guidelines. What are other ways for brokers to reduce liability risk? - - Checklists, E&O insurance, and proper documentation What's E&O insurance? - - Errors and omissions insurance; protects licensees from certain liabilities
What are the qualifications for a brokerage office sign? - - It must be large enough to identify and contain the name under which the firm is licensed or the regular business name. What must a broker do with all of the licenses of all of the broker's sponsored licensees? - - Keep copies and present them to any member of the public upon request What information must any advertising contain? - - The brokerage's name, address, and phone number, and any personal interest the licensee may have in the property What is blockbusting? - - An illegal practice in which licensees or others encourage homeowners to sell because of an influx or expected influx of minorities into the area What is steering? - - The illegal practice of nudging buyers away or toward a specific area based on the presence or absence of protected class members in the area What is a settlement service provider? - - Any person or entity that provides a service related to a real estate transaction, including title companies, lenders, insurance companies, appraisers, and inspectors. What is a controlled business arrangement? - - An arrangement between a licensee and an affiliate entity in which the licensee owns at least a 1% ownership interest. This type of relationship must be disclosed because the licensee stands to financially gain from referrals. What is commingling? - - Mixing the funds of others with business or personal funds What is conversion? - - The use of escrow funds for personal or business purposes What is an escrow agent? - - A neutral third party that retains monies and documents for a buyer and seller during the real estate transaction
Where may consumers file complaints against real estate licensees? - - Complaints may be filed with the Missouri Real Estate Commission; if the complaint is found to have merit, the commission refers it to the Administrative Hearing Commission for a formal hearing. What's the function of the Administrative Hearing Commission? - - To conduct formal hearings and make decisions regarding complaints filed with the MREC; the MREC may penalize the licensee based upon the AHC's findings. What's the maximum civil penalty the MREC may impose on a licensee? - - $2,500 per violation, per day, with a maximum cumulative penalty of $25, In addition to civil penalties, in what other ways may the MREC punish a licensee? - - Formal reprimand, denial, suspension, or revocation of license, or mandating the licensee take additional education classes