Real Estate Exam Part 1

If an individual broker dies (there is no other broker in the company) who can be appointed as a "Temporary broker" and for what purpose? Anyone licensed or not can be appointed as a "Temporary broker" to "Terminate the existing transactions," close the company, and return all the salespersons' licensees to the MREC only a licensed broker from another company can become a "Temporary broker" only a salesperson who is licensed to the company can become the "Temporary broker" there is no such thing as a "Temporary broker" the company has to close immediately

Anyone licensed or not can be appointed as a "Temporary broker" to "Terminate the existing transactions," close the company, and return all the salespersons' licensees to the MREC

The license law is known as

Chapter 339

Margaret King is a licensed salesperson. She is selling her property as a FOR SALE BY OWNER (FSBO). What must she disclose in her advertisement in the newspaper? For Sale-Call Margaret King 728-3434 For Sale-Call Big Realty, Margaret King 728-3434 For Sale-Owner For Sale-Owner-Salesperson

For Sale-Owner-Salesperson

How long does a salesperson have to deliver earnest money to the broker? Immediately 2 banking days 5 banking days 7 banking days

Immediately

James wants to make sure he is working with a licensed real estate broker when he is renting property. He asks to see the license of the agent and the broker with whom he is working. Which is true? James is nosey and does not need to see anything James is a member of the public and is entitled to see a license, or he may call the real estate commission and verify whether or not the individuals are licensed A real estate salesperson and/or broker should carry their licenses and display it upon request when involved in a real estate transaction Licensees are not required to tell the public that they are licensed

James is a member of the public and is entitled to see a license, or he may call the real estate commission and verify whether or not the individuals are licensed

A corporation was entering the real estate business. It must be registered with: MREC HUD local county recorder the Board of Realtors

MREC

If an unlicensed person sells real estate for a fee, or accepts a referral fee for a real estate transaction, the MREC: May file a restraining order but has no other remedies against unlicensed individuals. May file a restraining order and assess a civil penalty of up to $2,500 per occurrence (based on the finding of the Missouri Administrative Hearing Commissioner (MAHC). May file a restraining order and assess a fine of $5,000 payable to the MREC. May require the individual to take a course on real estate law.

May file a restraining order and assess a civil penalty of up to $2,500 per occurrence (based on the finding of the Missouri Administrative Hearing Commissioner (MAHC).

When Susan listed a home for the Smiths, she was told by the sellers that the lot measured 75' x 150'. Susan told the buyers this information and the house sold. After taking possession, the buyers had the lot surveyed and discovered that the lot was only 75' x 130'. Which best describes this situation? Susan was in no way responsible as she was acting as an agent for the principal the buyers may sue Susan and her broker for damages if the MREC learns of this they will automatically revoke Susan's license the AHC can suspend or revoke Susan's license if they feel she should have been more careful

the buyers may sue Susan and her broker for damages

Any change to a listing agreement or other written authorization must contain a notary seal the signatures of two impartial witnesses the initials or signatures of all parties a full documentation of the reason(s) for the change(s)

the initials or signatures of all parties

A written complaint had been filed against a salesperson. However, the salesperson was in the process of transferring to another broker. Which of the following is TRUE regarding the situation? the new broker would usually be notified by the Real Estate Commission (MREC) of the fact that a complaint is pending the salesperson must wait 60 days to transfer to another company the salesperson must wait 45 days to transfer to another company the complainant would get a written record of the salesperson's answer to the complaint

the new broker would usually be notified by the Real Estate Commission (MREC) of the fact that a complaint is pending

Persons with which of the following qualifications may apply for a broker's license? the sponsoring broker states that the salesperson has been active for 12 months the person has completed an approved course and has passed the state's examination and has been an active salesperson for at least two years. the person had 10 listings and 4 sales anyone who has been licensed 6 months and pays the fee

the person has completed an approved course and has passed the state's examination and has been an active salesperson for at least two years.

Which must be licensed by the Missouri Real Estate Commission? the publisher of a magazine to aid "for sale by owners " in selling their homes a lake property developer registered with HUD an employee of a corporation selling corporate property an apartment manager representing the owner who shows rental units

the publisher of a magazine to aid "for sale by owners " in selling their homes

A motel desk clerk gives the names of persons looking to purchase a home who are moving into town to a salesperson friend in exchange for a referral fee. Which BEST describes the situation? they would NOT need a license since their primary income comes from their salary they had a license, they could accept referral fees from the salesperson they would need a license and would only be able to accept compensation from their broker they could accept compensation without a license as long as it was not in money form

they would need a license and would only be able to accept compensation from their broker

A management agreement between a property manager and an owner must include all of the following EXCEPT identification of the property specify the terms and conditions on which the broker will remit income from the property specify whether security deposits will be held by the broker or the owner today's date

today's date

When Brokers' Licenses are renewed, they are issued for a period ending one-year period on June 30 one-year period on Jan 1 two-year period on Jan 1 two-year period on June 30

two-year period on June 30

The MREC can appoint a temporary legal license in which case? upon the death of the broker to terminate all listing agreements and coordinate the closing of pending contracts between sellers and buyers a temporary salesperson's license may be issued in cases of extreme urgency if a broker could NOT obtain a partner to allow a licensee who has had a license revoked to reprove himself

upon the death of the broker to terminate all listing agreements and coordinate the closing of pending contracts between sellers and buyers

A licensee attended three continuing education courses for the elective hours. Each course was 6 hours long. How can she apply these to her renewal requirement? use 9 for this period; carry 9 into the next licensure period use 12 hours for credit even though she only needs 9 elective hours use 9 hours for electives use all 18 hours for total accreditation this renewal period

use 9 hours for electives

A branch office under a principal broker: would have to have its own set of licenses would operate under its own broker's license would operate under a duly appointed salesperson would operate under the principal broker's license

would operate under the principal broker's license

A broker desires to keep an escrow account in an interest bearing checking account. Would this be legal? yes, if both buyer and seller agree in writing that it goes into an interest-bearing escrow account yes, if the buyer agrees in writing that the buyer's funds may go into an interest-bearing escrow account yes, if the seller agrees in writing that the seller's future funds go into an interest-bearing escrow account yes, if all parties to the transaction agree, in writing, that the money is to go into an interest-bearing account and who is to receive the interest

yes, if all parties to the transaction agree, in writing, that the money is to go into an interest-bearing account and who is to receive the interest

The MREC has heard rumors that a broker is violating the law. Can the MREC investigate? yes, but they are limited in the investigation of the incident that sparked the rumors yes, no complaint is necessary for the MREC to investigate no, because there has not been any allegation of criminal conduct no, because there has not been a complaint filed by either a licensee or the public

yes, no complaint is necessary for the MREC to investigate

A person owned her own company specializing in negotiating sales for buyers and sellers. She had incorporated her business but does not get listings or sell properties. Does she need a real estate license to do this? no, she does NOT need a license because she was not listing property no, she does not need a license because she was not selling property yes, she would need a broker-officer's license and her corporation would need a broker's license yes, she needs a broker's license, but her corporation is exempt since it will not list or sell property

yes, she would need a broker-officer's license and her corporation would need a broker's license

Salesperson Baird was born in Finland. He moved to Missouri, went to a prelicense school, took the test, passed and was licensed under a broker. He then sold a property. Would Baird be eligible for a commission? yes, since he passed the test yes, since he fulfilled the legal requirements of the law no, because he was not a citizen no, since he was born in Finland

yes, since he fulfilled the legal requirements of the law

A salesperson pre-qualified a buyer and took personal information at that time. The salesperson then showed a buyer several homes. Prior to showing the homes, the salesperson had the buyer sign an agency disclosure form. Did the salesperson do anything wrong? yes, the salesperson should never show a house without qualifying the buyer yes, the salesperson should have disclosed his/her agency relationship prior to taking personal information no, the salesperson disclosed his agency prior to showing any properties no, the salesperson should disclose agency only if asked

yes, the salesperson should have disclosed his/her agency relationship prior to taking personal information

In applying for a real estate license you must make 70% on the state examination you must complete a sales training course you must enclose the license fee as a cashier's check, money order, or personal check you may apply for the broker's license before passing the salesperson's exam

you must enclose the license fee as a cashier's check, money order, or personal check

Which is true of license forms? you will be sent a renewal notice by certified mail if you do NOT receive a renewal notice, you will receive a 30 day grace period you must send in the appropriate application and renewal fee renewal is automatic unless you are notified

you must send in the appropriate application and renewal fee

Bill, a licensed real estate salesperson places an ad in the newspaper for a buyer of a property he has listed for sale. His ad reads: "Come and see this wonderful lake lot located on beautiful Lake Scenic. If you purchase one lot, we will give you a second lot free and also enter your name in our lottery sweepstakes." Which is true of this advertisement? The ad is well written and should attract many buyers The ad should give the property address The ad should list Bill's address The ad is a violation of the license law because it offers free inducements

The ad is a violation of the license law because it offers free inducements

Which of the following would NOT count for continuing education credit in Missouri? A course concerning updates of Chapter 339 A course all about the Fair Housing Laws Training in business skills such as typing, personal motivation, salesmanship, sales psychology, or time management A review of contract and agency law (Law of Agency)

Training in business skills such as typing, personal motivation, salesmanship, sales psychology, or time management

Dole is considering creating a real estate company as a corporation. If he does so, which license would be required of the corporation itself? a broker's license a broker-officer's license a salesperson's license a broker-associate license

a broker's license

Which of the following statements about real estate licenses is true? each license is issued for a one-year period and expires on June 30. the real estate commission must send a renewal application to the licensee's last known address by certified mail at least 30 days in advance of the license expiration date. if a licensee does not receive a renewal notice, the real estate commission rules provide an automatic 30 day grace period. a new license will be issued only upon receipt of the fee and properly completed application.

a new license will be issued only upon receipt of the fee and properly completed application.

Which of the following would require a real estate license? an attorney transferring property for a client an auctioneer employed by the owner a property manager employed by a broker to only show apartments a person who negotiates or helps consumers consummate option to buy or sell real estate

a person who negotiates or helps consumers consummate option to buy or sell real estate

Which would require a license? an attorney transferring real estate for a client an auctioneer employed by an owner a property manager actively leasing and selling for a real estate company an owner transferring his own property

a property manager actively leasing and selling for a real estate company

Which of the following is not needed on a current Listing Agreement? the price a provision requiring an owner to notify the broker of intent to cancel the listing after the expiration date a definite beginning date an expiration date

a provision requiring an owner to notify the broker of intent to cancel the listing after the expiration date

A disclosure to the buyer from a subagent working as a seller's agent must include all the following EXCEPT a statement that the agent is acting on behalf of the seller the source of the commission that is to be made a statement that any information given to the subagent may be disclosed to the seller a statement that the seller is facing bankruptcy

a statement that the seller is facing bankruptcy

Broker Carr has a 90 day listing on a property. One month after the listing had begun, Broker Dole contacted the seller and told him that he had a buyer moving in one month after the listing terminates and ask the seller to sign an agreement to take effect after the listing expires. This is: misrepresentation a violation of state real estate law allowable since the listing would have expired considered commingling of listings

a violation of state real estate law

A contract between the buyer and seller failed. The buyer claimed the earnest money was his; the seller claimed the earnest money was his. After 60 days the broker sent a registered letter saying he would give theafter 15 days earnest money to the seller. Lacking response from either party when could the broker release the money? after 10 days after 15 days after the judgment of the court never, the broker must have a mutual release

after 15 days

Which is true when a corporation receives a broker's license? all brokers licensed under the corporation must be officers of the corporation all corporate officers involved in the brokerage business must have active broker-officer licenses or a salesperson's license, but the salesperson cannot participate in the supervision of the office all corporate officers must have active salesperson licenses when the license is issued to the corporation, the individual officers will no longer require individual licenses

all corporate officers involved in the brokerage business must have active broker-officer licenses or a salesperson's license, but the salesperson cannot participate in the supervision of the office

The MREC, believing an unlicensed person has violated the law, may file a complaint in: only the U.S. District Court only the appeals court only the court in the county where the act was committed any court of competent jurisdiction

any court of competent jurisdiction

Fees and commissions must be removed from a property management escrow account unless otherwise stated in a written agreement how often? at least once a week at least once a month at least once a year whenever the broker wishes

at least once a month

The disbursements from an escrow account of a property manager must show all EXCEPT check number indicate the related transaction indicate to whom the check was written and why balance of the account to the owner

balance of the account to the owner

Which of the following is not grounds for the MREC to refuse to issue a license? conviction of obtaining money under false pretenses fraud on application bankruptcy revocation of an earlier license

bankruptcy

At what point must a listing broker FIRST disclose to a buyer the broker's agency relationship with the seller in a residential real estate transaction? before the buyer gives the broker personal or financial information when the broker writes the contract at the first written contact at the first oral contact

before the buyer gives the broker personal or financial information

All are true regarding listings EXCEPT listing agreements may NOT have automatic extensions listing agreements must have an expiration date a copy of the listing agreement must be given to the seller both buyer and seller must sign the listing agreement

both buyer and seller must sign the listing agreement

A broker opened a branch office. Who could have authority to manage the office? broker-salesperson salesperson any licensee so designated the broker

broker-salesperson

Mr. Baird was the sole proprietor of a commercial real estate company. He died. His son, Jim Baird did not have a real estate license, but he was named executor of the estate. Jim Baird can continue the real estate company in his name as he is the executor of the estate can transfer listings to another broker can be appointed to finish only the business in process must purchase all the listings

can be appointed to finish only the business in process

The license fees are payable by: cash by certified mail personal check only cashier's check, personal check, or money order made payable to Missouri Real Estate Commission cashier's check only

cashier's check, personal check, or money order made payable to Missouri Real Estate Commission

All of the following are requirements for licensure of a salesperson EXCEPT honesty and integrity citizenship complete an approved salesperson's course send in money by certified check or money order

citizenship

A broker took earnest money from a friend and deposited it in the broker's personal account. This is: misrepresentation commingling waste a felony

commingling

When a broker closes his office, the salesperson must find a new broker. The broker who is closing the office and the salesperson must do all of the following EXCEPT the broker must notify the commission immediately that the salesperson will no longer be associated with him the broker is obligated to return the salesperson's license with the (office) closing statement to the MREC if the broker does not notify the MREC, then the salesperson can never transfer to a new broker the salesperson must return all property to the broker, including listings, forms, signs, etc.

if the broker does not notify the MREC, then the salesperson can never transfer to a new broker

If an individual broker's license is revoked or suspended, all of the following are true EXCEPT the broker must remove all advertising signs from all properties the broker must arrange for all pending contracts to close. The broker must notify the MREC who will handle the closing of these transactions the broker must notify the MREC where all the records will be stored for the term of the suspension if the broker's license is suspended, a salesperson can continue to operate the company until the suspension is over

if the broker's license is suspended, a salesperson can continue to operate the company until the suspension is over

Two brokers are applying for a broker's license as a partnership. One of the two had been found guilty of embezzlement but has made full restitution. Which of the following is true? if the license is denied, they should contact the MAHC for a hearing one broker couldn't get the partnership licenses as long as she was a business associate of the other the MREC may never issue the license the brokers may apply to the MREC for a hearing if the license is denied

if the license is denied, they should contact the MAHC for a hearing

At the time of the listing, a broker noticed a large crack in the wall that was partially covered by boxes. In showing the property, the licensee should: inform the prospective buyer of the crack inform the prospective buyer of the crack only if asked not tell the buyer since the agent represents the seller move the boxes to allow the buyer to see for themselves

inform the prospective buyer of the crack

The MREC, in investigating a licensee, may issue subpoenas for all records relevant to the complaint petition the attorney general for an injunction to keep the licensee from leaving the state make the licensee submit to a polygraph examination subpoena out of state residents who were involved in the transaction

issue subpoenas for all records relevant to the complaint

Which is TRUE regarding a broker's escrow account? it must be an insured account it must be in the state of Missouri it can be in any state as long as it is properly registered with the MREC it must be in an interest bearing account

it can be in any state as long as it is properly registered with the MREC

A new broker is considering opening his office in his home. Which of the following is true? he could only employ 2 salespersons it must be open to the public during regular business hours if he has salespersons licensed under him he could have the office in his home as long as he employs no more than four salespeople He could never employ salespeople while working out of his home

it must be open to the public during regular business hours if he has salespersons licensed under him

Chapter 339 of the Missouri Statutes is also known as:

license law

To receive a real estate license, which of the following is true? must be 18 years of age or older must be a citizen of the United States must be a citizen of North America must be a resident of Missouri

must be 18 years of age or older

In dealing with a potential customer, a salesperson may advertise a guaranteed profit on a property guarantee future profits which may result from the resale of real property both of the above neither of the above

neither of the above

An unlicensed secretary is the only one in a residential real estate office when Broker Carr from another company calls requesting information on a property. The secretary may: give him the sale price and address take his name and have a licensee return the call give any information necessary since it is another broker and not a member of the general public mail the broker information

take his name and have a licensee return the call

A broker dies, and his company is placed in receivership. all sales contracts are canceled by the death of the broker the MREC can appoint a "receiver" to handle the existing sales contracts the MREC can appoint a temporary broker to finish the existing sales contracts the court would receive all contracts

the MREC can appoint a temporary broker to finish the existing sales contracts

A citizen phoned the MREC with a complaint on a licensee. The MREC sent him a form to fill out. However, he never followed up with the complaint in writing. What would the MREC do? the MREC must follow up on an oral complaint the MREC can NOT act on an oral complaint the MREC must ignore the complaint the MREC can investigate on its own volition

the MREC can investigate on its own volition

A salesperson told a buyer that the air conditioner would stay with the house. However, he had not checked it with the seller. After closing the seller took the air conditioner. Which would happen? the salesperson would have to pay for the air conditioner the MREC would automatically revoke his license the MREC can take disciplinary action the buyer would have to look to the seller for action

the MREC can take disciplinary action

Two brokers got into a dispute over who was due what part of a commission. One of the brokers filed a complaint with the MREC to get it settled. Which is true? the MREC will settle the dispute at the next monthly meeting. the MREC will make recommendations as to who should get the commission but will NOT make the final decision the MREC may revoke the license of the broker who withheld the commission falsely the MREC will NOT enter into any dispute over commissions between licensees.

the MREC will NOT enter into any dispute over commissions between licensees.

The authorities are investigating a violation of the law by a licensee. Which could happen? the Administrative Hearing Commission could revoke or suspend his license the Missouri Real Estate Commission could revoke or suspend his license the Missouri Real Estate Commission could impose criminal penalties the Administrative Hearing Commission could impose criminal penalties

the Missouri Real Estate Commission could revoke or suspend his license

In the event of a dispute over earnest money: the broker should release the money to whomever the contract calls for the broker should release the money to the seller due to the fiduciary situation the broker should hold the money until both parties sign a release the broker should hold the money until all parties to the contract sign a release, or within 365 days if the parties cannot come to terms, release the monies to the State Treasury.

the broker should release the money to whomever the contract calls for

Which of the following individuals would be required to have a real estate license? An attorney An auctioneer employed by the owner A friend of a licensee who receives compensation for referring a client to the licensee A developer selling Missouri land owned by the developer.

A friend of a licensee who receives compensation for referring a client to the licensee

Tom, a licensed salesperson for 20 years obtains his broker's license during the current licensing period. Which of the following will Tom have to take in order to renew his license? 3 hours of core - 9 hours of electives 6 hours of core - 6 hours of electives 24 hours of continuing education 24 hours - Missouri Real Estate Practices Course

3 hours of core - 9 hours of electives

Rich, a licensed salesperson, took 12 hours of continuing education courses during the current licensing period. How many of those hours had to represent "Core" courses? 12 9 3 6

3

The broker changes his company address. He must phone the MREC notify the MREC by registered mail give the MREC written notice within 5 days give the MREC written notice within 10 days

give the MREC written notice within 10 days

Broker Carr has taken a listing from Seller Dole. Which is true? he must give him a copy at the time of signing he may send him a copy the next business day he must give him a copy within 3 business days he must give him a copy at the time of signing if requested by the seller

he must give him a copy at the time of signing

Broker Falk has a listing. Broker Carr found a buyer for Broker's Falk's listing. A salesperson could close the transaction if: he was under the direct supervision of the listing broker he was under the direct supervision of the manager or broker with whom the salesperson is associated he was under the direct supervision of a broker who was not his broker a salesperson cannot close a transaction, only a broker can close them

he was under the direct supervision of the manager or broker with whom the salesperson is associated

A salesperson licensed in another state but NOT in Missouri comes into Missouri and refers her brother to a real estate company in Missouri to assist him in the purchase of a home. The salesperson did this with the knowledge and permission of her broker, and the salesperson's broker cooperated with a Missouri broker in the sale of the property. What commission is she due? the full commission since she is licensed in another state half the commission since the other half would go to her company her commission would be based on her agreement with her broker no commission since she is NOT licensed in Missouri

her commission would be based on her agreement with her broker

A broker-salesperson acting as a sales manager cannot: act as a sales manager and supervisor at a branch office act as a salesperson working under a brokerterm-29 hold all the licenses of the salespeople working under him/her sell and list property

hold all the licenses of the salespeople working under him/her

A buyer asked Broker Carr to find a house for a flat fee of $5,000. The buyer and broker signed a buyer's agency agreement in which the buyer agreed to pay the $5,000 fee. Carr found a special home listed by Broker Baird. The buyer agreed to purchase the home. Broker Carr never mentioned anything about the buyer's agency agreement or the fee to the cooperating broker, nor was it disclosed in writing in the contract. Can Broker Carr retain the $5000 and share in the seller's commission with Baird? yes, since both brokers had agency agreements yes, because brokers can decide to split commissions as the brokers see fit no, it is illegal to receive commission from more than one party to a transaction no, as Broker Carr had not obtained written, prior permission from both the seller and buyer in the contract between the parties

no, as Broker Carr had not obtained written, prior permission from both the seller and buyer in the contract between the parties

On February 6, John Grant finished and passed a salesperson's pre-license class. On August 25, John passed the salesperson's examination. Can John receive a license? yes, because he took a pre-license course yes, because he passed a pre-license course no, because he did Not apply for license within 6 months of the date on his class certificate no, because he did Not apply for license within 60 days after passing the exam

no, because he did Not apply for license within 6 months of the date on his class certificate

A broker with one salesperson is retiring and moving to Florida to run a grocery store. He wants the salesperson to continue to have her job. Can he still do this? yes, but both he and the salesperson would have to get both Missouri and Florida licenses yes, as long as he retained his Missouri broker's license no, because he would NOT be in control of the salesperson's actions no, because his license is automatically terminated when he moves from the state

no, because he would NOT be in control of the salesperson's actions

An out of state owner calls a broker wanting to sell his property for $50,000. The broker knows that zoning has recently been changed and the property is now worth $75,000. The broker does not inform the seller. Is this legal? yes, as the broker bought it himself and did NOT put it on the market. yes, as the broker got the price the seller was asking no, the broker must inform the owner of the zoning and increased value no, the broker can NOT buy listed property as this would be a conflict of interest

no, the broker must inform the owner of the zoning and increased value

Jim and Larry who are not licensees form a company to deal in exchanges of property. After completion of a deal, the parties refuse to pay them a commission. Can they sue for the commission? yes, as they had performed according to the agreement yes, no license is required as the properties were exchanged rather than sold no, since the properties were exchanged no valuable consideration was given no, they were unlicensed; therefore, they were in violation of state license law

no, they were unlicensed; therefore, they were in violation of state license law

The property manager must make a written statement of property income to the owners of rental properties how often? once a week once a month once every six months once a year

once a year

Jamie Jones tried to renew his license, but he failed to complete the continuing education requirements. Three months later Jamie wanted to reinstate his license. Jamie would have to do which of the following? pay a late fee of $150 only pay a late fee and take the continuing education he had missed pay a late fee, take the pre-license class and pass the real estate test pay a late fee of $50 a month not to exceed $200, and take the Missouri Practices course.

pay a late fee of $50 a month not to exceed $200, and take the Missouri Practices course.

Broker A received an offer of $189,000 on a $200,000 listing. After the seller had given the offer to his attorney to review, another offer for $176,000 came in. What should the broker do? present the offer as a backup do not present because it was not for full price wait until the first offer is acted upon present the offer immediately

present the offer immediately

If an owner gave a broker money for repairs on a rental property, where should the broker deposit the money? property management escrow account property management repair account broker's escrow account broker's operating account

property management escrow account

A complaint has been filed against Broker Grant. The MREC has the power to: subpoena Broker Grant and his business records subpoena Broker Grant's personal accounts fine Broker Grant subpoena anyone in any state the commission chooses

subpoena Broker Grant and his business records