Missouri State

inactive license

*only licensee can put it inactive- me* 1. licensee must apply on a special form 2. MREC holds the license (licensee is no longer with a broker) 3. licensee cannot transfer real estate for others while inactive 4. licensee must renew the inactive license every two years and pay regular fee in order to avoid cancellation 5. no continuing education is required while inactive

documents

-listing must clearly indicate type if exclusive (agency or right to sell) - can be cancelled by agreement of all parties - licensee must give a copy to the seller in a timely manner TQ-net listing are illegal

investigations by MREC

1. MREC can investigate licensees at any time- upon formal written complaint on proper forms or on its own motion 2. licensee can be requested to answer in writing (a copy of answer may go to complainant) and produce documents relevant to investigations and possibly appear before the MREC

notice of refusal of license

1. applicant must be told in writing why license was refused 2. applicant must be told of the right to file a complaint in writing with the administrative hearing commission (AHC) - all appeals are through AHC

renewal dates for the license

1. brokers- june 30th of even jears 2. salesperson- september 30th of even years note: if delinquent, licensee must pay a $50 per month late penalty ($200 max) if not renewed within the next licensure period (2 years) licensee will be required to re-qualify as an original applicant

hearings by the MREC

1. can hold investigatory hearings TQ 2. can subpoena persons in missouri and any records that have a bearing on the complaint 3.decisions- a. if MREC thinks innocent the complaint will be dismissed b. if MREC thinks guilty, it is sent to the Administrative Hearing Commission (AHC)

escrow accounts

1. each broker must have (unless exempted by MREC) 2. it must be a checking account a. in a bank, savings and loan or credit union.; MREC must be informed of name of institution and escrow account number b. in missouri (or adjoining state with MRECs permission) c. TQ- if interest bearing, broker must disclose in writing who gets the interest 3. MREC can obtain an injunction against a broker if they believe there may be a possible violation involving the brokerage escrow account

licensee represents a seller. landlord, buyer or tenant owes the following duties to a client

1. exercise reasonable skill and care 2. promote interest of client with loyalty including: a. seeking price and terms acceptable to client b. presenting all offers in a timely manner c. disclosing all adverse material fact actually known or that should have been known by license d. advising client to obtain expert advice outside expertise of licensee

franchises

1. franchisees (brokers) must send a copy of the franchise agreement to the MREC 2. all contracts, listings and closing statements must have a statement that the franchisor is not legally liable for the brokers actions

real estate includes

1. freehold estate 2. non freehold estates

broker- salesperson

1. has passed broker exam but acts as a salesperson for another broker 2. sends own brokers license to the MREC; MREC holds broker license and sends broker- salesperson license to broker 3. MAY act as a branch manager or sales manager 4. may not have a salesperson licensed under him/her TQ: who sends license back to the state- me

obligations to customers and clients- disclosure of possible conflicts of interest

1. if licensee buys, sells or leases real estate personally, directly or indirectly, licensee must disclose in writing, prior to signing of the contract to all parties the he/she is licensed 2. if licensee buys, sells or leases real estate for someone else, licensee must disclose in writing to all parties any ownership which licensee has or will have TQ- licensee is showing listing to their fiancee you have to disclose future possible interest

refusal of license

1. if persons, partners, officers or controlling stockholders have a. committed actions in the past which could lead to revocation b. had their real estate license revoked in the past c. been convicted of 1. forgery 2. embezzlement 3. obtaining money under false pretense 4. extortion 5. criminal fraud 6. dangerous felonies 7. sexual offenses 8. acts against children 2. the MREC has a reasonable time after application to investigate

transfer of license

1. if salesperson is terminated by the broker, the broker sends in the salesperson license to the MREC within 72 hours 2. broker must give salesperson a dated and timed receipt if salesperson submits a letter of termination 3. salesperson then have 6 months to a. transfer to another broker b. place their license inactive 4. license is deemed transferred at time properly completed application with proper fees is postmarked by certified or trackable mail a. TQ- listings stay with broker b. TQ- is salesperson listing under previous broker, sold, previous broker can directly pay salespersons commission

dual agency

1. is an agent for both parties 2. must have written consent of all parties 3. must have written terms regarding paying of commission 4. is default position if licensee does not disclose to both seller and buyer clients of conversion to transaction broker

TQ- use of standard forms by agents (fee simple title only)

1. licensee cannot draft legal documents personally (as an agent) 2. TQ- licensee can only use standard forms (hulse vs crigar) approved by brokers counsel or counsel for a trade association or by a missouri state or local bar association 3. licensee can only fill in the blanks 4. licensee can only handle forms on properties when acting as an agent of the buyer or seller or handling licensees own property ( cannot do contract forms for the general public)

recommendation of services

1. licensee cannot require (directly or indirectly) the parties to use a specific a. lender b. title company c. insurance agency d. escrow company 2. licensee can only receive a profit on expenses for the parties with written consent on a separate form a. insurance commission b. loan commission TQ- a mowing company was hired from a referral and wants to give the licensee a fee from referral - you cannot take the fee

disclosure of property conditions

1. licensee is responsible for checking out the property and disclosing all material facts to potential buyers 2. putting "as is" in the contract does not relieve licensee of the obligation to disclose all material facts

agency agreements with the seller (listing agreements)

1. licensee must have a written agreement with seller to a. advertise property- can only advertise per seller clients instructions b. put a sign on property offering it for sale or lease c. show residential property- cannot show an unlisted property without written authorization TQ: written permission to show commission agreement -an appointment is not a written agreement -must be dated and signed before you show

to reactivate license

1. licensee must retake the 24 hour missouri real estate practice class 2. apply for a license within 6 months after finishing the class 3. licensee does not have to retake the exam

sales contract

1. licensee must submit all offer promptly 2. licensee must also submit any back up offers (properly identified) NOTE: back ups are second contracts if the first falls through 3. upon acceptance, licensee must promptly deliver signed copies to all parties 4. any changes to the contract must be initialed by buyer and seller and dated 5. date of final agreement must be in contract either by a. TQ- specific acknowledgement of final acceptance date or b. TQ- date of last signature or initial to the contract 6. must contain legal description or address or both 7. offer expiration dates are allowed- void after that date 8. legal counsel should be recommended regarding any contractual issues

relationships with other licensees

1. licensees cannot negotiate a listing on a property that is currently listed exclusively with another company unless contacted by the owner directly 2. if owner contacts licensee without any direct or indirect solicitation from licensee, licensee can take a listing that takes effect after the current listing expires

closing statement

1. listing broker is responsible for seeing that both buyer and seller receive a complete detailed closing statement (both listing and selling brokers keep copies of closing statement 2. title companies, lenders or attorneys can close but broker still must review statements for accuracy and see they are delivered 3. salespersons can handle closing only under direct supervision of salesperson own broker (must be listing broker)

activities/powers or the MREC

1. make investigations (for any reason) 2. issue subpoenas for records that have bearing on complaint; can subpoena people in missouri only 3. issue rules and regulations 4. go to any court of competent jurisdiction and ask that its order be enforced 5. TQ- fine license or non license up to $2,500 per violation with a maximum of $25,000 for 10 days of a continued violation NOTE: MREC can file appeal (obtained injunction) in court to stop a non license from acting without a license

commission

1. missouri broker may pay referral fees to brokers licensed in missouri or another state. 2. licensees cannot pay commissions or finders fees to non- licensees 3. persons cannot sue for a commission unless licensed at the time of the sale and performed according to the agency agreement, obtained a ready willing and able buyer on behalf of a seller client 4. salespeople are paid by their own broker

agency agreement

1. must be in writing; agreement must contain information on converting to dual agency or transaction brokerage: if conversion occurs must notify both seller and buyer prior to the first showing 2. licensee presumed to be a transaction broker UNLESS: a. licensee enters into a written agency agreement with seller or buyer b. licensee enters into subagency with another broker 3. licensee may work with one party in separate transactions in different relationships

closing an office- voluntary closing

1. notify the MREC in writing prior to closing a. date of closing b. who will hold records for 3 years c. where records will be stored for 3 years 2. remove and cancel all advertising immediately

broker

1. only one one per company 2. must meet all broker qualifications set out by the MREC 3. may have others licensed under him/her 4. holds ALL licenses for company (main as well as branch offices) 5. responsible for supervising salesperson and unlicensed persons (CANNOT just let salesperson use license and pay a fee) TQ: what if a broker wants to retire in Florida and the salesperson still wants him to be their broker - no cannot because he doesn't have nominal control

actions that you dont have to have a license

1. owner selling or leasing their own property TQ 2. licensed attorney at law- can do for clients, cant be paid commission 3. someone acting under court authority ex: receiver, executor, trustee 4. auctioneer employed by the owner TQ 5. property manager who works for (employed) by an owner or broker who only a. shows units b. executes and delivers leases c. assists in clerical tasks

involuntary closing an office

1. revocation/suspension a. is suspended, post a notice on the outside of the office which cites all applicable violations b. must cease all activities by date specified for suspension or revocation

General for continuing education

1. salesperson licensees must complete a 24 hour missouri real estate practice course prior to applying for a license- after that, the normal 12 hours of continuing education is due each two years 2. licensee must attend 100% of the time (10% miss factor allowed for extenuating circumstances) 3. no examination is required, unless using distance education 4. is licensee fails to receive 12 hours of continuing education credit by renewal date and fails to renew the licensee must retake missouri real estate practice class and pay a fee of $50 per month late penalty ($200 max) 5. licensee can receive credit for courses taken in missouri or another state not previously submitted to MREC for approval if course is acceptable to the MREC

Activities requiring a real estate license

1. sell 2. buy 3. exchange TQ 4. rent/lease 5. list TQ 6. procure prospects (including telemarketing) - paying someone for a lease must have a license for refferal fee

licensee duties to a customer

1. sellers or landlord agent owes no duties to customer except disclosing adverse material facts that the licensee knows or should have known such as a. environmental hazards b. physical condition of property c. material defects in property or title

guaranteed sales

1. the written advertisement telling of the guaranteed sale must advise the seller that costs the conditions apply and advising the seller to inquire; must also set forth in print at least one fourth TQ-(1/4) as large as largest print in advertisement 2. the guaranteed sales agreement must be in writing and contain all conditions and terms, including costs for the service or plan, price for which property will be sold or purchased and the approximate net proceeds for seller

deposits

1. unless agreed to otherwise in the contract, all money belonging to others must be promptly deposited in the brokerage escrow account within 10 banking days after execution of a contract by all parties- broker can have a salesperson or staff member deposits the money a. salesperson must take earnest money to broker immediately b. buyer can submit initial earnest money amount to be followed later with additional earnest money

Broker - Office/ Broker- Partner/ Broker- Associate

1. when corporation, partnership or association gets broker license 2. each qualified partner gets a broker- partner license 3. each qualified officer gets a broker office license 4. each qualified associate gets a broker associate license NOTE: a salesperson can be an officer, partner, associate but cannot supervise real estate activity 5. may act as a branch manager or sales manager 6. may not have a salesperson licensed under him/her

a licensee produces a written advertisement offering a guaranteed sales plan for sellers of property. in relation to the largest print in the advertisement the guaranteed sales information must be at least how large

1/4

a property manager has how many days in which to deposit leasing money into an escrow account

10

a licensee changes their personal address. when should the licensee notify the real estate commission of the change?

10 days

property management - escrow rule

10 days to deposit, no interest without all parties consent

a salesperson has been licensed for the last three years. the salesperson then received her brokers license in missouri in august of an odd numbered year. when she renews her license the following year, what continuing education requirements would she have to satisfy

3 hours of core and 9 hours of electives

education requirements for SP

48 hours of Education requirements - 70% on national exam- 75% on Missouri state exam NOTE: salesperson applicants must complete 24 hour missoruri practice class prior to obtaining a license. educational requirements can be waived if a person has comparable experience. an applicant must submit license application on forms provided by the missouri real estate commission TQ: where do you get the application- at the testing service

a salesperson decided to transfer her license to a different brokerage company. how long does the salesperson have in which to find a new broker

6 months

a salesperson terminates their working relationships with a broker. how long does the broker have in which to submit the salesperson license to the MREC

72 hours

how many elective hours of continuing education does a licensee need for renewal every two years

9

types of licenses

A. Broker B. Salesperson C. Broker Salesperson D. Broker officer/broker partner/ broker associate

continuing education

A. all active licensees must complete 12 hours each licensure period TQ: 3 hours - required core material TQ: 9 hours- elective courses MREC will NOT approve: 1. non real estate courses 2. business skill courses 3. salesmanship courses 4. sales meetings in brokers office 5. time spent for meals

temporary brokers license

A. circumstance: upon death or incapacity of broker NOTE: licensees under broker must cease all activities until transferred to an active broker B. who: MREC can appoint any person, licensed or unlicensed C. Purpose: for the sole purpose of winding up affairs of the broker (terminating the existing sales contract (only happens when broker dies or incapable. records should be held for 3 years - contracts cannot be assigned to new broker- they have to be closed out first - closing out business and thats all their doing- appoint accountant or lawyer)

non resident licenses

A. qualifications- 1. licensed in home state (must provide certificate from home state showing license is in good standing) 2. salesperson must affiliate with a licensed missouri broker (resident or non-resident) B. Examination/Education- 1. non residents actively licensed as a salesperson in another state must a. pass the Missouri state law portion of the salesperson exam b. take the 24 hour Missouri real estate practice class c. apply for licensure within six months of passing the state portion of the exam 2. non residents actively licensed as a broker in another state must a. pass the Missouri state law portion of the brokers exam b. have 24 of the last 30 months experience as a salesperson or broker c. apply for licensure within six months of passing the state portion of the exam (you don't have to have an office in Missouri)

Place of business

A. requirements 1. all brokers must have "regular" place of business open to the public during normal business hours 2. any broker who does not have such an officer or is not actively engaged in real estate cannot have any salespersons 3. each office must have a sign of sufficient size with brokerage name outside the office B. Name 1. a broker that chooses to use a fictitious name must a. register it with the secretary of state b. send a copy to the MREC TQ: names expires and you must renew it 2. any change in business or personal name or address requires broker to notify the MREC within 10 days in writing C. Branch Offices 1. all branch offices operate under same name and license as the primary office 2. each office must have its own manager who devotes full time to management 3. any change in address or manager requires notice within 10 days (somebody wants to open up a new place with a new name -no-) D. management 1. each office must have a manager; broker, broker- salesperson, broker- officer, broker-partner-associate TQ 2. a sales manager must also have some type of brokers license NOTE: a salesperson CANNOT act in any management capacity E: clerical personnel (unlicensed) 1. can only do "office" duties 2. cannot: a. solicit/show/negotiate/telemarket b. perform any activity for which a license is required

a person who applied for a license but was turned down could appeal to.

AHC

escrow account pt 2`

C. broker can pay money from escrow account upon behalf of buyer and seller (upon instructions) NOTE: checks, stubs and deposits tickets must note to which property it applies D. disputes- 1. upon disputes broker must hold funds in escrow until broker receives a written release from all parties or a court order 2. if neither party goes to court within 60 days nor signs release; the broker, based on a good faith decision; after giving 15 days notice by certified mail to all parties, may pay the money to the party opposite the one who failed to perform 3. after one year if there is no resolution; broker must send disputed earnest money to the missouri state treasury

a developer wanted to sell land in their own recently developed subdivision. appropriate documentation was given to the MREC and the federal government. does the developer need a license in Missouri to sell this land

No, since he is the owner of the land

retention of records

TQ 1. must be kept for 3 years at brokers office a. escrow records b. business records c. contracts d. closing statements e. correspondence 2. open for inspections to MREC during normal business hours

Other license info

TQ- at least 18 years of age (do not have to be a US citizen or have a high school diploma) - can be here on a green card or visa and doesnt need a high school dipolma -in order to take a broker pre license course, two years active experience is required -after completing the 48 hour pre exam class, salesperson and broker applicants must pass BOTH parts of the exam (national and state) and make application with the MREC within six months from the date on the pre exam school certificate of completion; if not applicant must retake the school and re-pass the examination -application for license - testing center does it a. given by the testing service automatically after applicant passes the examination - if application not received must contact MREC but cannot work until license or work permit is issued b. send in with a passport type photo c. the MREC may require court documents and other information TQ- salesperson and broker salesperson licenses are NOT renewed until the broker license has been renewed ** cannot renew until broker renews** -license issued to the broker which must be kept in main or branch office and displayed "upon request" (salesperson can only be licensed with one broker) -cannot work until license or work permit is issued

which of the following items could the MREC require of a person before issuing a licensw?

a credit report

designated agent

a licensee designated by the broker as an agent of a client

subagent

a licensee engaged by another broker to act as agent for a client

the MREC would most likely follow up on a complaint when the complaint is in regard to

a licensee not disclosing a utility easement to a buyer

dual agent

a licensee or brokerage firm who represents both the seller and the buyer on the same transaction; requires written consent of all parties

which of the following would need a real estate license under missouri law

a person assisting in telemarketing the brokers service

after taking the pre license class and passing the exam, in applying for license what type of documentation would be required

a photograph

which of the following statements best describe a "net" listing

a price to be received by the owner is listed and the broker is to receive all over that

a broker lists a property for sale on an exclusive right to sell basis. per the sellers instructions, the broker advertises the property as a nice 3 bedroom house- call 777-7777 for more information as a 24 hour recording is available. this would be:

a violation as the advertisement did not contain the brokerage name

reasons for suspension or revocation of license

a. commingling of funds b. false advertising, misrepresentation or omitting material facts c. taking a net listing d. guaranteeing future profit e. using, money, prizes, gifts, as an inducement to buy when they must purchase to receive (can not give them an incentive to sign with me) ex: if you use me you can use my truck for free but then you have to let everyone use that truck for free. f. failing to submit all written offers until one has been accepted NOTE: licensees must also submit back up offers is buyers and sellers desire. g. being found guilty, pleading guilty or no contest to: 1. any offense related to brokerage 2. fraud 3. acts of violence 4. moral turpitude 5. sexual crimes

agency agreements with buyer

a. definite expiration date b. signature of the buyer

examples of money to be deposited

a. earnest money b. security deposits (see property managements trust account ; section 18) NOTE: promissory notes and non negotiable items can only be accepted with written consent of the owner TQ- commingling of brokers personal or business funds with escrow funds is illegal (broker can keep up to $1000 of own money in escrow account to cover service charges)

property management - trust accounts

a. for holding current and advance rents and monies received from the owner for expenses b. similar to a brokers operating account c. broker pay bills from this account

property management- security deposit trust account

a. holds security deposit b. security deposits cannot be placed in property management trust account until due without permission from all parties (including tenant)

listings must have all terms listed including

a. price b. commission c. TQ- expiration date ( no automatic extensions) - for sale signs must be removed d. signature of all parties TQ: NOTE- loan balance information must be obtained from lender on proper forms NOTE- information such as real estate tax amount should be obtained from the county assessors office

Penalties from MREC

a. probation b. suspension of license c. revocation of license d. civil fines up to $2,500 per offense (25,000 max)

Penalties from the court

a. violation of this law is a class B misdemeanor TQ-b. both civil and criminal penalties may be applied NOTE: MREC may file a complaint in any court of competent jurisdiction

hearing from AHC

a. will hold a new hearing and make decision 1. if AHC finds innocent it is dismissed 2. if AHC finds guilty, the AHC recommends punishment - mrec decides punishment b. MREC may prepare a digest of AHC decisions and mail to licensees MREC is the one that does the punishing

property management

a. written management agreement is required to lease, show b. property management agreement must have 1. identification of property 2. the effective date 3. terms and conditions for terminating this agreement 4. signatures of broker and owner TQ 5. frequency and manner of reporting to owner

a seller directs a listing agent to only advertise in the local newspaper and not to put a sign in the yard. what should the listing agent do

advertise as the principle directs

transaction brokerage

agreement must be in writing if licensee is paid by person for whom licensee is acting as a transaction broker

TQ which is true when a corporation receives a brokers license?

all corporate officers involved in the brokerage business must have active broker- officer or salesperson license.

what information must be in written dual agency agreement between seller, buyer and broker

all written terms regarding paying and commission

which of the following activities would be allowed under the missouri license law

allowing a salesperson to accept earnest money with an offer on behalf of the broker

which of the following would be a violation of the missouri license law

an unlicensed secretary assisting a licensed salesperson in marketing a listed property

which of the following items would a broker salesperson be entitled to do?

apply for a regular brokers license after meeting any conditions required by the MREC

the MREC may NOT

arbitrate commission disputes between licensees

a license decided to transfer her license from one brokerage to another. her license shall be deemed to be transferred

at the time the properly completed application with the proper fees is postmarked by certified mail under one cover

a licensee is taking a continuing education class. the licensee must

attend 100% of the time with a 10% exception for extenuating circumstances

a licensee represented both a seller and a buyer on the same transaction. the seller and buyer agency agreements allowed the licensee to automatically convert to transaction brokerage. the licensee failed to disclose to either party the licensee was converting to transaction brokerage. the transaction closed. in this case the licensee would

be considered a dual agency

an advertisment for a home was worded as follows: "for sale - call 555-1212-bob watson" this would be allowed if

bob was not licensed and was the owner of the property selling as a for sale by owner

a salesperson agrees to represent a buyer in the purchase of property. the salesperson finds a property in which the buyer is very interested in making an offer. the salesperson though is also acting as a subagent for the seller on this transaction. to whom should the salesperson disclose of the dual agency

both buyer and seller

buyer/tenant agent

brokerage firm who represents a seller/landlord in a transaction

seller/landlord agent

brokerage firm who represents a seller/landlord in a transaction

an advertisement on a listed property must contain the

brokerage name and phone number

which of the following is NOT required to be in a sales contract in missouri

brokers commission

a broker was retaining interest earned on the escrow account to be used for party funds. the broker

cannot keep personal funds for a party in the escrow account, only funds to cover service charges

an unlicensed interior decorator was instrumental in procuring a buyer for a listed property that sold. the interior designer

cannot receive a fee for this service

a salesperson in doing a market analysis on a property the salesperson is listing for sale, find that the other comparable properties in the neighborhood had a real estate taxes of $1,475 annually. when the salesperson inquired of the seller as the tax bill, the seller responded by saying that the taxes were $1,485 annually. the salesperson then lists the property for sale. regarding the tax information the salesperson should

check with the county assessors office for the exact moment

a licensee from another state was applying for a missouri non resident license. other than producing a current license certification from the home state, what else would be required before a non resident salespersons license would be issued?

completion of the 24 hour practice class and passing the missouri state law portion of the exam

a broker took earnest money from a buyer and told both the buyer and seller that the money would be placed in an interest bearing escrow account. the broker may be subject to disciplinary action from the MREC if the broker

did not inform the MREC of the name of the bank and the escrow account number

a broker who is closing an office voluntarily must

direct that all advertising be cancelled immediately

advertising/promotional practices

disclosure 1. when transferring renting or managing licensees own property and if property is not listed all advertising must included either "by owner broker" or "by owner-salesperson" or "by owner agent" 2. licensee cannot use blind ads (PO box#, only) - the brokerage name must be included in all brokerage advertising, including business cards 3. salesperson name and phone number may be in the ad but if so the ad must also contain the brokerage name and phone number

an agent listed a sellers home for sale. the agent found a buyer for the property who made an offer. the offer stipulated however that the buyer wanted to purchase the property with a "subject to" clause regarding the sellers loan. how should the listing agent proceed with he offer presentation

disclosure to the seller that the buyer will not be liable for the debt and that the seller should consult an attorney before agreeing to any final sales contract

residential broker disclosure form

following first substantial contact or receiving personal or financial information, licensee must give to unrepresented seller, landlord, buyer or tenant at earliest practicable opportunity

a broker with xyz realty personally owned a building. the broker decided to list the property for sale with xyz realty. how could the property be legally advertised?

for sale - call xyz realty

a property manager should always obtain in writing the

frequency and manner of reporting to the owner

a person in missouri was selling real estate for a fee without a real estate license. in order to stop this person from selling without a license, the missouri real estate commission (MREC) can

go to court and get an injunction

a branch office of a principle real estate company must

have all business overseen by either a broker- salesperson, broker partner, broker officer or broker associate

a salesperson listed a sellers house for sale. in gathering information, the salesperson inquired of the seller about the current loan balance and other information concerning the loan. the seller did not have this information readily available. what would be the salesperson best course of action in trying to obtain this information

have the sellers lender fill out an information form concerning the loan

auctioneer grant is negotiating to auction off some odds and ends for a farm family. in the course of the negotiating the farmer asks grant if he could also auction off the farm. which best describes the situation

he would not have to have a real estate license as he was auctioning it for the owner

a property is sold by a cooperating broker acting as a sub agent. who would pay the selling salesperson commission

his broker is paid and then distributes it to him

a salesperson may close a transaction with whose permission

his own broker who was also the listing broker

the purpose of the administrative hearing commission is to

hold hearings to determine whether a licensee has violated the law

a broker- salesperson would be allowed to do all the following except

hold license of other licensees

a licensee is taking a listing as a transaction broker. the seller asks the licensee what amount should be used for the list price. the licensee has done a competitive market analysis which shows a market value of around $175,000. how should the licensee respond to the seller

i cant give you advice but i can share information with you regarding information on the competitive market analysis

a buyer wanted to buy a property using first time buyer bond financing. the buyer income however exceeded the max limit by $2,000. the salesperson wrote another contract that showed the buyer made $2,000 less than the buyers actual income this is

illegal to write such an agreement

how long does a salesperson have to deliver earnest money to the broker

immediately

a salesperson was talking with a friend at lunch. the friend mentioned that she was looking to possibly buy some real estate. the salesperson then told the friend that her own property was currently for sale. the friend then decided to purchase the salesperson property. the salesperson would have to disclose of the license

in writing prior to the signing of the contract

a person completed the process of applying for a salesperson license. what must now happen to the license?

it can only be sent to the broker

when can a salesperson delay in giving earnest money received to a broker

it is not permissible under missouri state law

a buyer contacted a licensee about looking at houses for sale. after signing a buyer agency agreement, the salesperson showed several listed properties to the buyer. as they were driving past a "for sale by owner" property, the buyer asked the salesperson if that house could be viewed. what should the salesperson tell the buyer?

it requires written permission from the seller in order for me to show you the property

transaction broker

licensee or brokerage firm who does not represent either party but merely assists both buyer and seller as customers; cannot give advice

a seller received an offer from a buyer that included earnest money. the seller counteroffered to the buyer requesting a larger earnest money deposit. the buyer, however, could not produce the entire amount or earnest money all at once requested by the seller. which of the following would be appropriate for a licensee to tell the buyer?

make a counteroffer back to the seller with a portion of the earnest money given now with the remainder to come later

a broker told the MREC that another broker was commingling. the MREC

may investigate the complaint on its own motion

salesperson

must have license for 2 years and have sold real estate to apply for brokers license 1. perform all activities under the broker - license is sent to broker 2. may not manage other licenses

authorization to show form required to show an unlisted residential property

must have written consent to show house

when a complaint is received by the MREC they

must investigate if it is a written complaint on proper forms

a missouri broker was acting under the presumption of transaction brokerage in trying to sell a property. the broker found a buyer for the property. the buyers however had not hired a buyers agent for representation. in this scenario who does the broker represent

neither buyer nor seller

a real estate broker hired an employee to help with basic property management duties. does this person need to have a real estate license to do property management activities

no as an employee of an owner or broker may do property management activities without a license

a buyer asked broker carr to find a house for a flat fee of $5,000. carr found a special home listed by broker baird. the buyer agreed to purchase the home. broker carr never mentioned anything about the dual agency. can broker carr retain the $5,000 and share in the commission with baird

no as broker carr had not obtained written, prior permission from both the seller and the buyer

a seller tells a broker that the seller needed so much money from the sale of the property. any amount over the sellers required proceeds would be for the broker to keep as commission. would this be allowed under state law

no as this would be a net listing

on feb 6th john grant finished and passed a saleperson pre license class. on aug 25th john passed the salesperson examination. can john receive a license

no because he did not apply for license within 6 months after finishing the class

a seller had a listing which was due to expire on june 5th. on april 20th another broker contacted the seller and told the seller he had a buyer coming into town on june 6th who was interested in the property. the broker told the seller he could sign the seller up to another listing agreement that would begin on june 6th. can the broker do this

no because the broker cannot contact the seller about taking a listing after the current listing expired

a broker sold a property the broker had listed. the seller asked the broker to prepare some legal documents for the sellers that would be in addition to the standard sales contract. could the broker legally do this for the seller?

no because under Hulse vs Crigar, a broker cannot prepare legal documents only attorneys can

an unlicensed clerical employee of a real estate brokerage is showing listed property to a buyer. is this legal

no this would be a violation of Missouri license as only real estate licensees can show property

a broker was offering a 3 hour course in the brokers office. among the covered items were information about financing, telephone skills and salesmanship. would the MREC be likely to accept the course for continuing education credit?

no, as the course did not meet the requirements

a salesperson had placed their license on inactive status. soon thereafter the salesperson referred a friend who was moving to a real estate company. can the salesperson receive a referral fee?

no, as the salesperson license was not active

a neighbor of a broker wanted the broker to help them fill out a quitclaim deed. can the broker help the neighbor?

no, because a broker cannot fill out forms in which the broker has not been retained as an agent of either seller or buyer

TQ a broker decides to move out of state and retire. the only salesperson in the office convinces the broker to allow the salesperson to continue to run the office and pay the broker a monthly fee for doing so. if the broker agreed, would this be allowed under missouri state law?

no, because the broker would only have nominal control over the salesperson activities

a seller listed their home for sale with a broker. the seller went on an extended vacation and hired a lawn care company to care for the lawn. the company offered a fee to the listing broker for this service. is this fee legal for the broker to accept

no, since there was not a separate written agreement

a broker has 10 branch offices with over 1200 salesperson. the salesperson are charged a small fee for the brokers management skills. the broker visits each office once a month and presents seminars which the salespeople feel are very beneficial to their success. is this arrangement satisfactory?

no, the broker would only have nominal control over the salespeople thus violating missouri license law

broker a of xyz realty was doing quite well and decided he would open a branch office in another part of town. that part of town was experiencing rapid growth and undergoing many changes, broker a decided to call his branch office rapid growth realty to fit in with the changes that were occurring. would this be permitted under the missouri license law?

no, this would not be allowed

a broker was taking a listing on a sellers property. the broker told the seller it should sell for $260,000. however the seller told the broker he wanted a quick sale and wanted to list it at $250,000. after the listing agreement was signed with a price of $250,000 the broker advertised the property for $253,000 with the seller agreeing to pay allowable closing costs on behalf of the buyer? was this advertisement by the broker legal?

no, unless the broker gets written authorization and permission from the seller

a real estate licensee put a for sale sign in a yard without knowledge or consent of the owner. this would:

not be allowed as written consent is required to put a sign on a property offering it for sale

a person completed all course required for a salesperson license and passed the test. which of the following is true when the person applied for a temporary work permit?

once issued by the missouri real estate commission, the person can begin selling real estate

a salesperson did not obtain any continuing education hours and did not renew their license when its expired three months ago. if the salesperson wanted to reinstate the license, the salesperson would have to

pay a penalty of $150 and take the missouri practice course

a sole owner of a real estate company died. what options does his daughter, who was named executor or the estate, have in regard tp the business?

petition the MREC to complete the real estate transaction waiting to close

broker A received an offer of $189,000 on a $200,000 listing. after the seller gave the offer to his attorney to review, another offer for $176,000 came in. what should the broker do?

present the offer immediately

a broker had just received a signed acceptance from the seller and had given copies to the buyer. upon returning to the office, the broker found another offer on the same property. what should the broker do in this situation

present the second offer to the seller in case the seller wants to make a counter offer contingent upon the first buyer not closing

a salesperson is showing a buyer client a listed property. the property she is showing is listed for sale by her own broker under seller agency. how soon must the salesperson disclose to both parties of her conversion to transaction brokerage

prior to the first showing

a licensed agent acting as a property manager deposits current rental money received into

property management escrow account

a salesperson decided to sell her house. she did not want to list the house with her brokerage company. instead she wanted to sell her own house as a for sale by owner. which of the following items would the salesperson have to do

put in all advertising "owner agent" including the yard sign

two brokers owned a real estate brokerage company together. after many years in business, the two brokers decided to split the company in half and each start their own new real estate brokerage company. the brokers wanted to split the current listings 50/50. this could be done if the brokers

received written permission form all parties to the listings

if your license is inactive you must

renew biennially to avoid cancellation of the license

which of the following would be true regarding renewal of licensees under the missouri license law

salesperson licenses are not renewed until the brokers license is renewed

customer

seller, landlord, buyer or tenant in a real estate transaction in which licensee is involved but has not entered into a brokerage relationship (member of general public)

client

seller, landlord, buyer, tenant, who has entered into a brokerage relationships with a license

Missouri real estate commission- makeup

seven us citizens appointed by the governor

a person in applying for a brokers or salesperson license must do which of the following

submit the license application on forms provided by the missouri real estate commission

the MREC was investigating a complaint against a licensee. the MREC could

subpoena all records that have a bearing on the complaint

an unlicensed secretary is the only one in the office as all the licensees are out to lunch, broker carr from another company calls requesting information on a property. the secretary may:

take his name and number to have a licensee return the call

a secretary in real estate office has passed the salesperson exam but has not yet received a license. this person could

tell another salespersons in the office about the address of a listed property

which of the following would be a violation of the missouri license law

telling buyers that they would be able to re sell the property at a profit because of a new school opening across the street.

every guaranteed sales agreement must contain

terms and conditions under which the property is guaranteed to be sold including the sellers estimated net proceeds

a convicted had been found guilty of a felony. this person then wanted to obtain a salespersons license. which of the following statements is true

the MREC could deny this person a license

which is true regarding the findings of the AHC

the MREC could publish a summation report to expose the findings of the AHC

two brokers made an oral agreement to split a commission. after closing, one refused to pay. the other filed a complaint with the MREC to get it settled. which is true?

the MREC will NOT enter into any dispute over commission between licensees

a buyer and seller were involved in a dispute over earnest money on a real estate transaction that did not close. after 60 days of neither party going to court, the broker sent out a certified letter to both parties saying the earnest money should be distributed to the one who did not back out of the contract. which of the following would be correct?

the broker can disburse the earnest money pursuant to the certified letter if neither party responds to the letter within 15 days

the MREC suspended a sole proprietors brokers license for 1 year and put the broker on probation for 2 years. which of the following statements is correct regarding this situation

the broker must cease all activities by the date specified by the MREC

if the MREC receives a complaint against a broker, they could subpoena

the brokers business accounts and records

which of the following actions will be taken by the real estate commission when a complaint is filed against a licensee

the commission will request the licensee to respond to the complaint in writing

a complaint had been filed against a salesperson. however the salesperson was in the process of switching to another broker. which of the following is true regarding this situation

the complainant would get a written record of the salesperson answer to the complaint

a developer who did not have a real estate license wanted a "for sale" sign on a property. which would be allowed under missouri law

the developer could place a sign saying: "for sale by owner/developer"

a licensee talks to a person who is selling his house as a for sale by owner. the seller tells the licensee if she brings a buyer for his home, he will pay her a 8% commission fee. the licensee does find a buyer and shows the property after obtaining from the seller a signed authorization to show form. the seller and buyer close on the house transaction. which of the following statements would be true

the licensee is in violation of the law as she did not have a signed brokerage service agreement as a transaction brokerage with the seller

when a buyer and a seller are being represented by different brokers, who is responsible for making sure that both parties receive copies of the closing statements

the listing broker

a broker is voluntarily closing his office. he must notify the MREC as to

the name of the custodian who will be storing the records and filed for 3 years

a salesperson wrote in her blog about current listings she has for sale. what must she include in her blog

the real estate brokerage name

a salesperson is transferring to a different real estate company. which is true regarding the salespersons current listing

the salesperson must leave all of the listings with the original broker

which of the following items must be contained in a property management agreement

the terms and conditions for the termination date

two people went to apply for real estate brokerage license as a partnership. one of the partners had earlier been found guilty of embezzlement buy had made full restitution. which of the following statements best describes this situation

they can appeal to the administrative hearing commission if they are denied a brokerage license

what is the primary purpose of chapter 339 of the missouri statutes

to protect the public by regulating the actions of brokers and salesperson

a broker-salesperson wants to reinstate her brokers license. what would the broker- salesperson need to do?

turn her broker license in to the MREC and ask the MREC to re-issue her brokers license.

a salesperson wanted to get a brokers license. what conditions must be satisfied

two year experience

when would a listing agent have been deemed to have earned a real estate commission

upon obtaining an offer from a ready, willing and able buyer that met all the terms of the seller

brokers and salesperson license must be displayed

upon request

a person has passed the test but has not yet received a license from the missouri real estate commission. this person should

wait until the license is recieved from the MREC before doing any real estate activity

a buyer wrote an offer to purchase for a $130,000 house. the buyer asked the salesperson if they could use the title to a speed boat as an earnest deposit. would this be acceptable as an earnest deposit

yes as long as it is agreeable with the seller

on sep 12th a salesperson received an offer with earnest money on a listed property. on sep 20th the salesperson submitted the offer and earnest money to the broker. the offer was then accepted by the seller that same day with the broker depositing the earnest moeny into the brokerage escrow account. did the salesperson do anything wrong

yes as the salesperson must submit earnest money immediately to the broker

an investment company hired a person to be a property manager. the person was going to manage property for third party for a fee. does this person need a real estate license

yes because property management activities require a license in missouri

a broker salesperson was retiring. however, she retained her license and kept on receiving commission and referral money for real estate transactions. would this be allowed under missouri law?

yes she can receive compensation but cannot be a managing broker

an out of state broker refers a buyer to a missouri broker who assigns a salesperson to handle the sale. the salesperson sells the buyer a property listed by an in state seller. can the out of state broker receive compensation

yes the missouri broker may pay a referral fee

a licensee took an elective continuing education class that was 6 hours in length. would this course be acceptable by the MREC for continuing education credit

yes, as long as the course had been approved by the MREC

a salesperson sells a listed property to his fiancee for the full price. he tells the seller he is an agent but does not tell the seller that he was engaged to the buyer. did he violate the law

yes, this is a violation of the fiduciary relationship because he did not reveal his future interest