Download Missouri Real Estate Exam Questions and Answers and more Exams Insurance law in PDF only on Docsity!
MO Law Section - RE Exam and
Missouri Real Estate - State Portion
Only Exam Merger 2025 Exams A+
In the event of the death or incapacity of a licensed broker: - Answer:✅✅May issue a temporary broker license to individual approved by the commission
What is the maximum fine for violations the commission my charge? - Answer:✅✅$25,
The commission will not here what kind of complaints? - Answer:✅✅Commission disputes between licensees
A real estate cannot work without what? - Answer:✅✅A workers permit issued by the Real Estate Commission
When do licensee's need to renew? - Answer:✅✅Broker's license, June 30th; Salesperson license September 30th
What can an applicant do if refused? - Answer:✅✅Appeal to Administrative Hearing Commission
How soon must a business notify the commission of a name or address change? - Answer:✅✅Within 10 business Days
How many Continuing Education Credits do licensee's need to obtain before renewal? - Answer:✅✅12, 3 required and 9 Elective
What happens if a licensee does not finish CE credits before renewal? - Answer:✅✅$50 fee per month not completed up to $200 then they must retake the Missouri practice class (24 hours)
If a salesperson is terminated how long does a broker have to notify the commission? - Answer:✅✅72 hours
What does a licensee need to do to keep an inactive license? - Answer:✅✅Must re-apply and pay fees every 2 years, no CE credits are needed
How does an inactive licensee change to an active license? - Answer:✅✅Take the 24 hour practice class and re-apply within 6 months
What does the Missouri law say about disclosures? - Answer:✅✅All must be in writing
Where does commission appear in contracts? - Answer:✅✅In listing agreement and HUD. NEVER in sales contract
What do brokers not need to keep a record of? - Answer:✅✅Title insurance policy
How long must a broker obtain records? - Answer:✅✅3 years
What is Missouri's law on net listings? - Answer:✅✅They are ILLEGAL
When must escrow money be deposited? - Answer:✅✅Within 10 Banking days after a contract is made
How much of their own money may a broker keep in an account? - Answer:✅✅$
What is the hearing procedure for violations? - Answer:✅✅MREC investigates and then sends to the administrative hearing commission who then recommends punishment and the final decision is made by MREC.
MREC may issue what for records? - Answer:✅✅May subopena for records relevant to complaint
Selling real estate without a license is what level of violation? - Answer:✅✅
Class B misdemenor MREC may issue a restraining order
Ministerial Acts: - Answer:✅✅acts that a licensee may perform for a person are entity that are informative in nature and does not rise to the level of representation
What does a listing agreement or any other agreement for brokerage services need to contain? - Answer:✅✅price, commission to be paid, beginning and expiration date, licensee's duties and responsibilities, statement prohibiting or permitting designated broker from offering subagency, Statement permitting or prohibiting dual agency, specification on compensating other brokers, statement confirming disclosure form, signatures, type of listing, legal description, any other terms and conditions
When should money received by the licensee from a client be given to the broker? - Answer:✅✅Immediately
Who is responsible for maintaining the escrow account? - Answer:✅✅Designated broker and branch office manager
Exclusive Right to Sell Agency - Answer:✅✅broker has exclusive right to market and receive commission regardless of who procures they buyer, exclusive agency they would not
Does Missouri have homestead laws? - Answer:✅✅Yes
After obtaining a license how often must you take continuing education classes? - Answer:✅✅Every 2 years
Does Missouri allow holographic wills? - Answer:✅✅No
Who is responsible for maintaining a habitable property and complying with local housing and building codes? - Answer:✅✅Lessor
Which is not necessary for a valid contract? - Answer:✅✅Due Date
Does Missouri have dower laws? - Answer:✅✅No
buyer bought a property without telling sender intended use for property. No contingency clauses, after closing buyer cannot obtain zoning for project. What is the contract at this stage? - Answer:✅✅Enforceable
After agreement is signed how long does buyer have to rescind the loan? - Answer:✅✅3 business days
Seller under land contract is? - Answer:✅✅vendor
Finance charges on Truth and lending statement do not include? - Answer:✅✅recording fees and title insurance premiums
When the lender under a deed of trust requires title insurance, who pays for it? - Answer:✅✅Trustor
What is true about restrictive covenants? - Answer:✅✅Placed by private parties in a deed
New construction must comply to specific type of architecture is what type of zoning? - Answer:✅✅aesthetic
A feature found in a comparable property that is not found in subject property will result in a... - Answer:✅✅reduction adjustment to comparable selling price
Can an unlicensed assistant prepare and deliver closing documents? - Answer:✅✅Yes but cannot, market cold calls, create advertisement without review, host an open house
Are oral property management agreements enforceable? - Answer:✅✅Yes
In order to avoid being held liable for violations committed by licensees, brokers must review all contracts. How long after signing must review take place? - Answer:✅✅Within 30 days
What action does the commission not have authority to take? - Answer:✅✅imposing jail time
A listing agent who shows property to a ready, willing, and able buyer still has certain obligations to the buyer. Which of the following is not a true statement?
A) An agent shall disclose to the buyer all material facts about the property and explain the term "AS IS" in any counter offers to purchase.
B) An agent must disclose to the buyer all personal and financial facts regarding the seller's reasons for selling the property.
C) An agent must not discourage the use of an attorney or require the buyer to use a specific lender, insurance company, title company, appraiser, survey company, or building inspection company.
D) An agent must promptly tender to the buyer any contract offer that has been accepted, rejected, or countered by the seller. - Answer:✅✅B) An agent must disclose to the buyer all personal and financial facts regarding the seller's reasons for selling the property.
A listing agent who shows property to a ready, willing, and able buyer still has certain obligations to the buyer. Which of the following is not a true statement?
An agent shall disclose to the buyer all material facts about the property and explain the term "AS IS" in any counter offers to purchase.
An agent must disclose to the buyer all personal and financial facts regarding the seller's reasons for selling the property.
An agent must not discourage the use of an attorney or require the buyer to use a specific lender, insurance company, title company, appraiser, survey company, or building inspection company.
An agent must promptly tender to the buyer any contract offer that has been accepted, rejected, or countered by the seller. - Answer:✅✅An agent must disclose to the buyer all personal and financial facts regarding the seller's reasons for selling the property.
Salesperson Bird, has been licensed as a salesperson for at least two years. He has just passed the state broker examination and would like to apply for a broker-salesperson's license. In order to meet the requirements, he must include which of the following with his application?
His personal affidavit stating that he has been actively engaged in the real estate business for at least one year.
A certificate from an accredited school stating that within 6 months prior to the date of application that he had successfully completed a broker's license course offered by that school.
A letter of proficiency from his broker stating that Bird has procured at least ten listings and at least ten closed sales.
A statement from his broker indicating that Bird has finished management training and has been assigned as a branch manager for one of his broker's branch offices. - Answer:✅✅A certificate from an accredited school stating that within 6 months prior to the date of application that he had successfully completed a broker's license course offered by that school.
A salesperson is transferring to a new broker. What must be done before he/she can list or sell real estate?
A salesperson must give his/her license to his/her broker to send to the MREC.
Have the old broker call the new broker and set a date when the salesperson can start work.
The new broker must obtain the salesperson's work permit from the MREC.
No action is necessary to continue to list and/or sell real estate. - Answer:✅✅The new broker must obtain the salesperson's work permit from the MREC.
As a condition of license renewal, all active salespeople must complete the following:
Three hours of required core curriculum by June 30th and nine hours of elective courses by September 30th.
Attend at least 1 hour of a continuing education lecture every other month throughout the licensing period.
Attend 6 hours of core curriculum courses and 6 hours of elective courses during the renewal period.
Attend 12 hours of certified continuing education courses, 3 hours of core credit and 9 hours of elective credit, by September 30th of even years. - Answer:✅✅Attend 12 hours of certified continuing education courses, 3 hours of core credit and 9 hours of elective credit, by September 30th of even years.
A new agent got permission from friends to put "for sale" signs in their yards. When buyers called in, she told them the house had sold, but she would be happy to help them find another. Is this permissible?
Yes, it's simply a sales technique.
Yes, as long as friends were justly compensated.
No, since the properties were not really sold.
No, since the properties were not really "for sale" and this is a misrepresentation. - Answer:✅✅No, since the properties were not really "for sale" and this is a misrepresentation.
If you are turned down for a license, what would be your most reasonable course of action?
Request a hearing before the MREC (Missouri Real Estate Commission).
Request an investigation by the attorney general.
Request a hearing before the local Board of Realtors.
Request a hearing before the AHC (Administrative Hearing Commission). - Answer:✅✅Request a hearing before the AHC (Administrative Hearing Commission).
Salesperson French presents a written offer for $189,000 to seller Dutch. The listed price is $200,000. Dutch reviews the offer and seeks further advice from her accountant. Salesperson French receives a second written offer, this one for $175,000. Which of the following is true about this situation?
French must wait until Dutch accepts or rejects the first offer before he presents the second offer to Dutch.
French must present the second offer promptly.
French cannot present the second offer at any time because it is 90% lower than the list price.
French must present the second offer as a backup contract. - Answer:✅✅French must present the second offer promptly.
When a salesperson terminates his/her association with a broker, which of the following statements is true?
The agent has six months to place his license with another broker or put his/her license on inactive status with the MREC.
The agent may have friends' listings transferred to his/her new broker.
The broker must return the salesperson's license to the MREC within 48 hours.
The broker must give the agent his license when the agent submits a written notification of resignation. - Answer:✅✅The agent has six months to place his license with another broker or put his/her license on inactive status with the MREC.
The MREC received a formal, written complaint about Broker Grant's business conduct and intends to investigate the matter. In order to hold a hearing to decide the validity of the complaint, the MREC, may do which of the following?
Subpoena Broker Grant to appear and give testimony.
Subpoena any person in or outside the state of Missouri to produce records or other documentation which might have a bearing on the validity of the complaint in question.
Close the broker's business until the issue is resolved.
The MREC does not investigate -- only the AHC investigates. - Answer:✅✅Subpoena Broker Grant to appear and give testimony.
Which of the following is legal advertising?
A broker who owns a building with a sign that reads, "For Sale, 555-1224."
A broker who owns a building with a sign that reads, "For rent by Owner, 555-1234."
A broker listing his own property with a sign that reads, "For Sale by Owner, 555-1234."
A broker has a listing on his own property with a sign that reads, "For Sale, call ABC Realty." - Answer:✅✅A broker has a listing on his own property with a sign that reads, "For Sale, call ABC Realty."
An inactive licensee refers his brother as a buyer to an out-of-state broker. How much money can he receive for a referral fee?
He will receive a referral fee directly from the out-of-state broker since he does not have a broker in Missouri.
He will get 50% of the commission from the out-of-state broker.
He will get whatever is called for in the referral agreement.
He will get nothing. - Answer:✅✅He will get nothing.
A broker's branch office
would have all licensees licensed under the branch manager
would operate under the same name and license as the parent office
would operate under the same name, but under a different license than the parent office
must have its own escrow account - Answer:✅✅would operate under the same name and license as the parent office
To renew an active license, how many elective hours of continuing education do you need?
3 hours
6 hours
9 hours
12 hours - Answer:✅✅9 hours
send all notifications by certified mail. - Answer:✅✅notify the applicant of this denial within ten (10) days of receipt of license application.
What can a broker-salesperson who is a branch office manager for a large real estate company do?
The office manager cannot continue to sell and list property because he/she would be in direct competition with the salespeople.
As a principal broker, the office manager must manage.
The office manager may not list or sell.
Missouri law does not prohibit branch managers from listing or selling. - Answer:✅✅Missouri law does not prohibit branch managers from listing or selling.
A salesperson is asked to take a promissory note from the buyer. What should he do?
The salesperson should go to his broker for help.
The salesperson should do nothing: the salesperson cannot accept non-money items as earnest money.
The salesperson should make the buyer get real cash or a check instead of a promissory note.
The salesperson should write the offer and explain to the seller in the offer that the earnest money is a promissory note. - Answer:✅✅The salesperson should write the offer and explain to the seller in the offer that the earnest money is a promissory note.
All of the following are violations of Missouri License Law except:
Telling a potential buyer that the property will definitely appreciate in value and that a substantial profit will be made on the resale of this real estate investment.
Advising a young married couple to take title as tenancy by the entirety; explaining their rights in the event the seller breaches the contract, and helping them to rewrite a better offer to purchase.
Placing the buyer's $2,000 earnest money deposit in an escrow account after acceptance of a contract by the seller.
Preparing a special sales contract to suit the needs of a new home buyer who disagrees with the terms of a standard form and who intends to fill in the blanks after the contract is accepted. - Answer:✅✅Placing the buyer's $2,000 earnest money deposit in an escrow account after acceptance of a contract by the seller.
A salesperson associated with Rainbow Realty decides to purchase one of the company's listed properties and submits an offer to purchase. The agent did not disclose to the seller that she/he is an agent with Rainbow Realty. This agent may be charged with which of the following license law violations?
Undisclosed Dual Contracts
Undisclosed Dual Listings
Undisclosed Dual Agency
Undisclosed Commingling - Answer:✅✅Undisclosed Dual Agency
A salesperson decides to transfer to another broker. He wants to take his listings with him. If he gets the consent of each seller to do this, is he within his rights to take these listings to another broker?
Yes, because they were personally acquired by him all of the listings may be transferred to the salesperson's new broker.
No, a listing agreement may not be transferred to another broker without the express written consent of the seller and the original broker.
Yes, the seller's consent to have that specific agent market the seller's home allows the salesperson to assign, transfer, or sell the listing contract.
No, a listing contract is canceled when the salesperson is transferred or terminates employment. - Answer:✅✅No, a listing agreement may not be transferred to another broker without the express written consent of the seller and the original broker.
A branch office under a principal broker:
would have to have its own set of licenses
would operate under the principal broker's license
would operate under a duly appointed salesperson
would operate under its own broker's license - Answer:✅✅would operate under the principal broker's license
Salesperson Link brings an offer to the seller of a listed property. After considering the offer for an hour, the seller accepts and signs the offer without changing any of the terms presented. Link then presents the buyer with a copy of the accepted contract. Which of the following must be included in this contract for sale?
The date the property was shown to the buyer.
The date the buyer signed the offer and instructed Link to present it to the seller.
The date the offer was presented to the seller.
The date of final agreement between the parties. - Answer:✅✅The date of final agreement between the parties.
The agent must inform the potential buyer that the agent always represents the seller of any listed property and that agent will not represent the buyer at all.
The agent must inform the buyer that any information received from either the buyer or seller will be fairly communicated to the both sides.
The agent must inform the buyer that an agency disclosure form must be signed by the buyer prior to any property being shown.
The agent must inform the buyer that if the buyer wishes representation, he must sign a Buyer's Agency Agreement before seeing any property. - Answer:✅✅The agent must inform the buyer that if the buyer wishes representation, he must sign a Buyer's Agency Agreement before seeing any property.
A broker who had several offices went about once a week to each office to check them out. Since he had no other broker on staff, is this legal?
Yes, as long as he saw each office at least once per week.
Yes, as long as he was readily accessible by telephone.
No, a broker can only manage two offices at one time.
No, because he was not in direct control of the salespersons' actions. - Answer:✅✅No, because he was not in direct control of the salespersons' actions.
A salesperson did not renew his/her license, or take twelve (12) hours of continuing education. Three (3) months later, he/she decides to renew. What must a salesperson do to renew a license under these circumstances?
Pay the fee and take the continuing education courses.
Pay the fee and take the 48-hour prelicensing course.
Pay the fee and take the 24-hour Missouri practices course.
Take the 48-hour prelicensing course, take and pass the state examination and apply as an original applicant. - Answer:✅✅Pay the fee and take the 24-hour Missouri practices course.
During the noon hour, all of the licensees at Dream Home Realty were out to lunch. A secretary was left to answer the telephone and to take messages. At 12:30, Salesperson Sampson of New Homes Inc., called to ask for information concerning one of Dream Homes' residential listings. In this situation, the secretary should
give Sampson the information he needs but encourage him to get in touch with one of Dream Homes' agents as soon as possible.
take Sampson's name and telephone number and tell him that a licensee from Dream Homes Realty will call him back when the licensee returns from lunch.
reveal only the sale price and street address of the listing and get the contact information for Sampson so you can have the Dream Home agent call him back.
tell Sampson that this information can only be given to a licensed broker and not a salesperson. - Answer:✅✅take Sampson's name and telephone number and tell him that a licensee from Dream Homes Realty will call him back when the licensee returns from lunch.
Salesperson Karr negotiated a purchase contract with a prospect who met the conditions of a special first time buyer bond proposal, except for the fact that the negotiated sale price was $2,000 higher than the authorized limit set in order to qualify for the bond monies fully. Karr arranged another agreement with the seller, whereby the sale contract indicated a price within the limit, and another contract covered the $2,000 excess. Which of the following statements about this situation is true?
This arrangement is considered creative financing and is perfectly legal.
Although such arrangements are discouraged, Karr acted legally because he was carrying out the direct orders of the seller in order to sell the property for the list price.
If the AHC (Administrative Hearing Commission) finds out about this arrangement, it will automatically suspend Karr's license.
Karr is subject to disciplinary action by the MREC for - Answer:✅✅Karr is subject to disciplinary action by the MREC for violating the law against dual contracts.
A young couple is selling their first residence and would like a lawyer to check over the sale contract. The listing agent, who knows the contract is well written and that the contract used is approved by the attorney of their local association of REALTORS ®, advises them that a lawyer's services would be an unnecessary expense and would only serve to reduce their net proceeds from the sale. Which of the following statements is true?
The salesperson should never advise against or discourage the use of an attorney in any transaction in which he/she is involved.
The salesperson may advise against using an attorney, but only if it will save the sellers money.
The salesperson's actions were correct because a lawyer must check sales contracts on commercial transactions only.
The salesperson is to be commended for looking out for the best interest of his principals. - Answer:✅✅The salesperson should never advise against or discourage the use of an attorney in any transaction in which he/she is involved.
A woman passed the salesperson examination and is eager to begin listing and selling homes. What can she do?
She will automatically receive a license.
She can list homes, but cannot sell them.
The agent may not be subject to criminal prosecution under the general laws of the state.
The agent may not incur civil liability under the general laws of the state.
The agent could have his license revoked for violation of the law. Violation of MREC rules is a Class B Misdemeanor. - Answer:✅✅The agent could have his license revoked for violation of the law. Violation of MREC rules is a Class B Misdemeanor.
If you receive a "Certificate of Completion" on Feb. 1, what is the last date that you may apply for the license?
July 1
July 20
August 1
August 20 - Answer:✅✅August 1
A person finished pre-license school on July 31, 2012. After taking the examination on December 15, the applicant received a passing score on December 31, 2012. The person applied for a license on January 15, 2013. Could this person receive a license?
No, because the applicant had taken the school in a different calendar year from applying for a license.
Yes, because the applicant applied for a license within six (6) months after completing the school.
No, because it had been over six (6) months from the time of completing the school and applying for a license.
Yes, because the applicant applied for a license within sixty (60) days after passing the examination. - Answer:✅✅Yes, because the applicant applied for a license within six (6) months after completing the school.
Dawn, a licensed salesperson, was at a party and a young couple expressed interest in buying a new home. Dawn mentioned that her own home was for sale and that she would be happy to show it to them. In this case, which of the following is true?
The salesperson must disclose that she is licensed and the owner of the property.
The salesperson must have the permission of her broker before showing her home to a prospective purchaser.
Because this is the salesperson's own property, she need only disclose that she is the owner of the property.
The salesperson is prohibited from selling her own property. - Answer:✅✅The salesperson must disclose that she is licensed and the owner of the property.
Can the MREC suspend a license while the salesperson is under investigation?
Yes, the MREC can suspend a license anytime they want.
Yes, a salesperson's license can be suspended, but a broker's cannot.
No, a salesperson must have a hearing and be found guilty by the AHC before the MREC can suspend his license.
No, once a license has been issued, it cannot be suspended for any reason other than a felony. - Answer:✅✅No, a salesperson must have a hearing and be found guilty by the AHC before the MREC can suspend his license.
A licensed salesperson wants to include her home phone number on a sign that she placed on one of her listed properties. The sign must also include her broker's
business telephone number
beeper number
home phone number
business address - Answer:✅✅business telephone number
A broker had so many lawsuits that he decided to change the name of his branch offices to avoid further problems. Could he do this?
Yes, he may do so with the approval of the MREC.
Yes, but all advertising must be done with both names.
No, all branch offices must have the same name as the parent office.
No, the MREC assigns the names for each branch office. - Answer:✅✅No, all branch offices must have the same name as the parent office.
A licensed broker acting as a property manager deposits current rental money into a(n):
property management escrow account
business account
management account
escrow account - Answer:✅✅property management escrow account
