State Real Estate Exam

A seller lists a property with a broker on April 1, for $189,000. On July 15, the property sells for $187,500. The sellers loan balance is $17,652 and is assumable with an interest rate of 4.75%, that will increase to 5.25% if assumed. What loan amount should be listed on the original listing agreement?

$17,652

A seller's lender informs him that to pay off his loan and cover closing costs, he will need to net $184,500 on sale of the home, before broker fees. Closing costs are predicted to be $2,800. The broker charges a flat rate of $6,000. If the seller wants to walk away with $3,000, for what should he list the property?

$193,500

A closing takes place on the fifteenth of the month. The seller's loan balance is $23,640 with an interest rate of 6% which is being charged through the end of the month. Additionally, the seller owes closing costs of $275 and $675 for specific inspection. What was the total payoff to the lender?

$23,758.20

A broker shares evenly 7% commission with a cooperative broker. The selling broker's salesperson receives 70% of the selling broker's split. The salesperson received $6,250. What was the sales price of the property?

$255,102

A seller purchases a homeowner's insurance policy on January 1. The seller sold the property on July 27 and the buyer assumed the policy. Using a calendar year, if the insurance policy was $725 how would this show on the closing statement?

$312.43

A bank makes a 75% loan on a property valued at $189,500. How much additional cash would be required if the buyer has paid $2,500 as earnest money?

$44,875

A salesperson sold a property for $229,900. The salesperson's agreement with the employing broker provides a 75% share of the broker's commission in the sale as 4%. What is the salesperson's share of the commission?

$6,897

A buyer is assuming a seller's loan on August 19. This loan has an interest rate of 4.5% and the last monthly payment made by the seller was on August 1. The outstanding balance on the loan is $36,962.50. Using a calendar year, what is the interest the seller must pay through the day of closing?

$87.78

A broker must notify the commission within --------- after a change of address becomes effective

10 days

A broker shall notify the commission in writing, within ------ after changing the address of a branch office

10 days

Which of the following combination of continuing education courses would be acceptable for license renewal?

12 hours elective and 3 hours core

A buyer and seller are disputing earnest money being held by the broker on a purchase the buyer refused to complete. The parties refuse to agree on who is entitled to the earnest money. How many days must the broker wait from the date of the dispute to disburse the escrow money?

60 days

A broker must return the license of a licensee who has been terminated within ------- of the termination

72 hours

Of the following course offerings, which would most likely not be considered by the commission to meet Missouri continuing education requirements?

A course on building a social media page

A listing where a licensee will purchase a seller's real estate if it is not purchased by a third party is known as

A guaranteed listing

Upon receipt of application for license, the commission has ------- to respond to the applicant with a decision of acceptance or denial.

A reasonable length of time

At closing, a seller that is current on her mortgage pays,

Accrued interest

A salesperson is transferring to another broker. At what point is the licensee deemed transferred to the new broker?

At the time the completed license application is mailed by trackable mail

A written listing agreement shall contain all of the following except

Automatic renewal

Marvin is a person who holds a broker license in good standing. Marvin is not the manager of the brokerage, but is on officer in the brokerage corporation. Marvin is most likely

Broker-officer

If the seller is paying for the buyer's title insurance, who will pay the mortgagor's title insurance?

Buyer

A broker hires an unlicensed person part-time to help with certain duties with the broker is out doing property showings. This part-time person

Can perform clerical tasks

When renewing a license, a broker must provide evidence of

Completion of twelve hours of continuing education approved by the MREC

A person applying for a salesperson license is required to submit all of the following except

Copy of government issued identification

A seller accepted an offer for an October 10 closing. Taxes in the amount of $1,263 were prepaid for the year. Using a calander year, what would be the tax proration if seller is paying the day of closing?

Credit seller $283.72

Broker Tom received earnest money in cash from a buyer's agent. The closest branch for Dan's escrow account was twenty miles away. Concerned that the cash could be misplaced, Dan deposited the cash into his local bank business account, wrote a check on the account for the amount of earnest money and drove the deposit to the bank where the escrow was held to deposit the check. Has Dan acted properly in this situation?

Dan has violated MREC rules

Prepaid interest is shown on a closing statement as

Debit buyer

A buyer assumed the homeowner insurance policy of the seller for a property closing December 30. The policy, costing $675 had begun on February 1. If the policy expired January 30, what would be the proration at closing?

Debit buyer $56.40, credit seller $56.40

Tenant Mary paid her December rent on November 28 in the amount of $800. On December 5, Mary's landlord sold the property to a buyer who would become the new landlord. Rounding to the nearest dollar, what was the prorated rent at closing?

Debit seller $667, credit buyer $667

A seller provided a buyer with a purchase money mortgage for the amount of down payment required by the lender for the buyer to assume the seller's loan. How would this appear on the closing statement?

Debit seller, credit buyer

A seller has a loan balance of $23,500 on March 1. His current interest rate is 4.75%. If the closing date us March 18, how will the accrued interest appear on the closing statement?

Debt seller $55.80

Broker Joe believe he is due commission from Broker Suzie because of a buyer she procured for a listing that closed. Joe files a complaint with the Missouri Real Estate Commission. The MREC will,

Dismiss the case

The license of all licensees in a brokerage firm shall be

Displayed to any member of the public upon request

Regarding a dispute on earnest money, in the absence of a pending civil action or written release upon passage of 60 days from the date of the dispute, the broker may disperse the escrow monies to

Either party, based upon a good faith decision by the broker that the opposite party has failed toperform as agreed.

The Missouri Broker Disclosure Form must be presented

Following the first substantial contact by licensee

A broker owns a rental property and manages the property privately and not through a property management company. The current tenant moves, and the property is available for rent. How should the broker advertise the rental?

For rent by broker-owner

Broker Janet is opening her own brokerage but will be using the name "Best Brokerage" as her company name. Broker Janet must

Furnish the commission a copy of the official registration from the secretary of state

Upon a dispute over earnest money, a broker has made a good faith decision to disburse escrow monies to the buyer. How should the broker proceed disbursing the escrow money?

Give fifteen days written notice of the decision by certified mail to all parties concerned

A person found guilty of violating chapter 339 of the Missouri Statues law shall be

Guilty of a class B misdemeanor

A homeowner has a straight term mortgage with an interest rate of 6.5%. The monthly payment is $575. This property has an 80% LTV ratio. What is the market value of the home?

$132,692.31

A seller lists his property with a broker that charges 8% commission. The seller wants to walk away with $53,000 after costs. The loan payoff is $76,989 and closing costs are estimated at $2,000. The seller is willing to pay for a home warranty plan for $425. For what amount should the seller list his property, assuming the some sells for the asking price?

$143,928.26

The broker of Redland Realty decides to open a branch office on the east side of town because of sudden rise in real estate sales in that area. She chooses the name Redbird Realty as the branch name so she can differentiate the filing between the two offices. Is this permissible?

No, the branch office must operate under the same name as the main office

A licensed Missouri broker allows a licensed Arkansas salesperson to pay him a fee to assist a client one-time in purchasing a home in Missouri. Is this permissible?

No, this is not permissible because a broker cannot receive a fee for the use of the broker's license by others

The Administrative Hearing Commission has ruled that the acts of a licensee constitute a violation of license law. The MREC shall

Proceed to revoke, suspend, or otherwise impose authorized as it deems appropriate.

An unlicensed person found guilty of practicing real estate without a license

Shall be guilty of a class B misdemeanor

Salesperson Mark lists his fiancée's home for sale. Salesperson Mark

Shall make his status as a licensee known in writing to the other parties in the transaction

Broker Sam wishes to work under the supervision of Broker Mary at Broker Mary's company. Broker Sam

Shall surrender his license to the commission for the conversion to broker-salesperson

The Missouri Real Estate Commission consists of

Six broker members and one public member

An auctioneer employed by the owner of a property would be defined as:

Someone who is not required to hold a Missouri real estate license

The requirements to take the Missouri real estate exam is

Successful completion of approved 48-hour Missouri Salesperson pre-examination course from an approved provider

In which of the following situations might the MREL suspend the license of a licensee?

The AHC has determined the licensee guilty and has recommended punishment

A buyer contacts his sales agent to write an offer for a farm he wants to purchase. The buyer does not have earnest money, but asks his agent if he could offer a dairy cow instead of earnest money. How should the agent advise the buyer?

The agent should tell the buyer that as long as the seller agrees, the dairy cow is acceptable as earnest money

A buyer obtains a $78,000 loan for 30 years with an interest rate of 6.75%. Monthly payments are $505.91. Which of the following statements are true?

The amount applied to principle in the first month's payment is $67.16

An applicant was denied a license and was notified by the commission. Does the applicant have any recourse?

The applicant has the right to file a complaint with the AHC

Of the following, which is required when applying for a Missouri salesperson or broker license?

The applicant must be at least eighteen years old

A seller disputes the return of a buyer's earnest money held in the brokerage escrow account, after the buyer backed out of the sale 65 days ago. There would be no civil action in this instance. How should the broker proceed in this situation?

The broker can, based on a good faith decision, pay the escrow monies to the party opposite the party that failed to perform, after all parties have been given 15 days' written notice by certified mail.

A broker has left copies of the multiple listing service (MLS) sheets of his listings with his unlicensed assistance in case anyone calls about his listings while he is out of the office. In this situation

The broker has violated the MREC statutes

A broker-salesperson acting as a sales manager for a branch office has terminated his relationship with the principal broker. The principal broker has hired another broker-salesperson as sales manager. How is the commission notified of this change?

The broker shall notify the commission within ten days, in writing, of the change.

While working with a client in a purchase of a home, a broker discovers that the heir of a former owner has claimed ownership interest in the home. What is the best answer for the action the broker should take?

The broker should refer the clients to an attorney and obtain a quitclaim deed

Mortgage tax is calculated on

The buyer's loan amount

When the MREC investigates a licensee

The commission may request the licensee unde3r investigation to answer the charges in writing

In which of the following situations shall the licensee provide a form disclosing the referral of business?

The licensee refers an inspection company in which he has controlling ownership interest

Loan organizations points are calculated from

The loan amount

Random inspections are always paid for by

This is negotiable between the buyer and seller

Joe successfully completed the 48-hour Missouri real estate salesperson pre-exam and 24-hour Missouri real estate practice course, satisfactorily passed the Missouri salesperson licensing exam, completed the requirements for the criminal background check, applied for and is awaiting the arrival of is salesperson's license via the broker he has signed with. Joe can

Wait for his broker's receipt of his license before marketing real estate services

A salesperson is driving his client to a showing and on the way, the client notices a home for sale by owner and he would like to view it immediately. The salesperson asks the owner of the home if he can show his client the property. The homeowner agrees. The salesperson

Has violated Missouri statutes because he did not obtain written authorization from the seller to show the property.

A license candidate has passed his exam, completed the requirements for license application, and is waiting for the MREC to send his license to his broker. He posts on his social media page that within two weeks he will be a licensed real estate agent in Missouri and to be sure to watch for updates so he can be hired to assist his friends in purchasing a home. The candidate

Has violated Missouri statutes because he is advertising his business before his license application is approved

A licensed salesperson for a broker license must provide evidence of

Having been an actively licensed Missouri salesperson for no less that twenty-four of the last thirty months immediately preceding the date of application for the license

The MREC may waive all or part of the educational requirements for salesperson licensing

If an applicant presents proof of other educational background acceptable to the MREC

For sale sign must be removed

Immediately upon the expiration of the listing

Where are the licenses of salespersons held?

In the regular place of business or branch office of the broker

An unlicensed partner in a limited partnership has committed an act of moral turpitude in the past. Is it possible a license would not be issued to the partnership?

In this instance, it is possible the MREC would deny licensure to the partnership.

The MREC received a written complaint on proper forms. The MREC shall

Investigate the actions of the licensee against whom the complaint is made

Auctioneer Dan is paid by property owners to auction a property. Auctioneer Dan

Is exempt from real estate licensing requirements

Client Sam hires salesperson Mary to find a tenant for his rental property. Sam tells Mary that he does not want a for rent sign in the yard. Mary puts a sign in the yard despite what Sam's wishes were because she feels it will move the property quickly. Mary

Is in violation of Missouri statutes

When the MREC approves the license application for salesperson, the license

Is mailed to the broker

An employee who assists a broker in administrative, clerical or maintenance tasks

Is not required to hold a license

Robert works the front desk at Mark 1 Real Estate Company. Robert answers phones, prepares flyers for the agents, assists callers with pricing and amenities on listed properties and takes messages for the agents. Robert

Is required to have a Missouri real estate license

"Rea; Estate," as defined by chapter 339 o Missouri Statues includes

Leaseholds and any other interest or estate in land, freehold or Non freehold, located in Missouri

Chapter 339 of the Missouri Statutes is

License law

Mark receives a certificate of successful completion of the 48 hour pre-exam course on February 15. Mark passes his salesperson exam on March 28. He successfully completed the 24 hour Missouri practice course and applied for his fingerprint background check on August 28. What would be the reason Mark's application was denied by the MREC?

Mark failed to apply for his license withing the six months of the date of completion on the certificate for the 48 pre-exam course.

Salesperson Mary writes a purchase an offer on a property for her buyer client. Mary's client will be submitting $2,000earnest money but will not have access to the funds until Monday morning when a direct deposit will be made into the buyer bank account. What is the bast way for Mary to submit the offer?

Mary should submit the offer and include that the earnest money will be submitted on Monday

A course approved for continuing education in Arkansas

May be approved for continuing education credit by the MREC if submitted for approval on proper forms

Decisions of the Administrative Hearing Commission concerning complaints against licensees

May be mailed to all licensees periodically

An unlicensed person has been found guilty of practicing real estate activities without a license. After the AHC has recommended punishment, the MREC

May fine the violator a civil penalty up to $2,500 for each offence, within a maximum

If after a hearing, the AHC recommends punishment, the MREC

May impose a civil penalty not to exceed $2,500 for each offense.

A broker, after her license was revoked by the MREC for misappropriation of client funds, wants to petition the MREC to have her license reinstated. The MREC

May required the licensee to meet certain conditions before reinstating the license to the broker

Disciplinary proceedings exist for the benefit of

Members of the public who submit complaints to the MREC

Broker Sam lists a property whereby his commission is over 94% of the list price. This type of listing is a

Net listing

Can a broker make changes to the standard language in a listing agreement to accommodate unique genre of the neighborhood?

No, a broker can only fill in the blanks on forms approved by legal counsel

A broker maintains a balance of $500 of her personal funds in her separate escrow account. Is this considered a violation of Missouri Statutes?

No, a broker may keep up to $1,000 of her personal funds in the escrow account to cover bank service charges

Accompanying an offer, a buyer submits a promissory note as earnest money. Would this be acceptable?

No, earnest money cannot be in the form of a promissory note.

An applicant has received a master's degree in real estate from an accredited university. Would the MREC automatically exempt the applicant from completing the 48-hour salesperson pre-exam course prior to taking the exam?

No, the MREC may waive all or part of the education requirements for the applicant

A closing takes place on April 18. Seller's credits are $159,500. Seller debits are $47,430. Buyers' credits are $5,675 and buyers' debits are $249,500. What is the seller's net at closing?

$112,070

What amount would three discount points for a property with a sales price of $149,000, with a 75/25 loan be calculated on

$111,750

Marva is a receptionist at ABC Realty, where she plans to hold a salesperson's license. She recently passed the licensing exam and made arrangements with the broker at ABC Realty to remain as a receptionist after she licensed. The broker signed her license application and Marva mailed the application to the MREC via certified mail. When can Marva start practicing real estate?

When the broker receives her license of work permit from the MREC

A buyer tells her agent she wants to make an offer on a property that does not have a physical address and the legal description is not available. What should the buyer's agent do?

Write an offer with a clear description unmistakably identifying the property

Salesperson Andrea of Marketable Realty lists her client's home for sale. Andrea purchases space on a billboard to advertise the home. Andrea works mostly from her home office, so she orders the billboard to read, "Home for sale by Andrea of Marketable Realty. Call my mobile: 555-5555." Has Andrea done anything wrong?

Yes, Andrea must also include the phone number of Marketable Realty

Mary is a police officer and is applying for her real estate license. Thirty days ago, Mary completed a background check with her police force. Must Maty apply for a fingerprint background check for her real estate license?

Yes, Mary is required to complete an application for fingerprint background check

If a person is found to be practicing real estate without a valid Missouri license

the MREC can file an injunction to discontinue the action