Chapter 27: Missouri Business Conduct & Practices

2011 Missouri Revised Statutes TITLE XXII OCCUPATIONS AND PROFESSIONS Chapter 339 Real Estate Agents, Brokers, Appraisers and Escrow Agents Section 339.710. Definitions.

For purposes of sections 339.010 to 339.180, and sections 339.710 to 339.860*, the following terms mean: (1) "Adverse material fact", a fact related to the property not reasonably ascertainable or known to a party which negatively affects the value of the property. Adverse material facts may include matters pertaining to: (a) Environmental hazards affecting the property; (b) Physical condition of the property which adversely affects the value of the property; (c) Material defects in the property; (d) Material defects in the title to the property; (e) Material limitation of the party's ability to perform under the terms of the contract; (2) "Affiliated licensee", any broker or salesperson who works under the supervision of a designated broker; (3) "Agent", a person or entity acting pursuant to the provisions of this chapter; (4) "Broker disclosure form", the current form prescribed by the commission for presentation to a seller, landlord, buyer or tenant who has not entered into a written agreement for brokerage services; (5) "Brokerage relationship", the relationship created between a designated broker, the broker's affiliated licensees, and a client relating to the performance of services of a broker as defined in section 339.010, and sections 339.710 to 339.860*. If a designated broker makes an appointment of an affiliated licensee or affiliated licensees pursuant to section 339.820, such brokerage relationships are created between the appointed licensee or licensees and the client. Nothing in this subdivision shall: (a) Alleviate the designated broker from duties of supervision of the appointed licensee or licensees; or (b) Alter the designated broker's underlying contractual agreement with the client; (6) "Client", a seller, landlord, buyer, or tenant who has entered into a brokerage relationship with a licensee pursuant to sections 339.710 to 339.860*; (7) "Commercial real estate", any real estate other than real estate containing one to four residential units or real estate classified as agricultural and horticultural property for assessment purposes pursuant to section 137.016. Commercial real estate does not include single family residential units including condominiums, townhouses, or homes in a subdivision when that real estate is sold, leased, or otherwise conveyed on a unit-by-unit basis even though the units may be part of a larger building or parcel of real estate containing more than four units; (8) "Commission", the Missouri real estate commission; (9) "Confidential information", information obtained by the licensee from the client and designated as confidential by the client, information made confidential by sections 339.710 to 339.860* or any other statute or regulation, or written instructions from the client unless the information is made public or becomes public by the words or conduct of the client to whom the information pertains or by a source other than the licensee; (10) "Customer", an actual or potential seller, landlord, buyer, or tenant in a real estate transaction in which a licensee is involved but who has not entered into a brokerage relationship with the licensee; (11) "Designated agent", a licensee named by a designated broker as the limited agent of a client as provided for in section 339.820; (12) "Designated broker", any individual licensed as a broker who is operating pursuant to the definition of real estate broker as defined in section 339.010, or any individual licensed as a broker who is appointed by a partnership, limited partnership, association, limited liability corporation, professional corporation, or a corporation engaged in the real estate brokerage business to be responsible for the acts of the partnership, limited partnership, association, limited liability company, professional corporation or corporation. Every real estate broker partnership, limited partnership, association, limited liability company, professional corporation or corporation shall appoint a designated broker; (13) "Designated transaction broker", a licensee named by a designated broker or deemed appointed by a designated broker as the transaction broker for a client pursuant to section 339.820; (14) "Dual agency", a form of agency which may result when an agent licensee or someone affiliated with the agent licensee represents another party to the same transaction; (15) "Dual agent", a limited agent who, with the written consent of all parties to a contemplated real estate transaction, has entered into an agency brokerage relationship, and not a transaction brokerage relationship, with and therefore represents both the seller and buyer or both the landlord and tenant; (16) "Exclusive brokerage agreement", means a written brokerage agreement which provides that the broker has the sole right, through the broker or through one or more affiliated licensees, to act as the exclusive limited agent, representative, or transaction broker of the client or customer that meets the requirements of section 339.780; (17) "Licensee", a real estate broker or salesperson as defined in section 339.010; (18) "Limited agent", a licensee whose duties and obligations to a client are those set forth in sections 339.730 to 339.750; (19) "Ministerial acts", those acts that a licensee may perform for a person or entity that are informative in nature and do not rise to the level which requires the creation of a brokerage relationship. Examples of these acts include, but are not limited to: (a) Responding to telephone inquiries by consumers as to the availability and pricing of brokerage services; (b) Responding to telephone inquiries from a person concerning the price or location of property; (c) Attending an open house and responding to questions about the property from a consumer; (d) Setting an appointment to view property; (e) Responding to questions of consumers walking into a licensee's office concerning brokerage services offered on particular properties; (f) Accompanying an appraiser, inspector, contractor, or similar third party on a visit to a property; (g) Describing a property or the property's condition in response to a person's inquiry; (h) Showing a customer through a property being sold by an owner on his or her own behalf; or (i) Referral to another broker or service provider; (20) "Residential real estate", all real property improved by a structure that is used or intended to be used primarily for residential living by human occupants and that contains not more than four dwelling units or that contains single dwelling units owned as a condominium or in a cooperative housing association, and vacant land classified as residential property. The term "cooperative housing association" means an association, whether incorporated or unincorporated, organized for the purpose of owning and operating residential real property in Missouri, the shareholders or members of which, by reason of their ownership of a stock or membership certificate, a proprietary lease, or other evidence of membership, are entitled to occupy a dwelling unit pursuant to the terms of a proprietary lease or occupancy agreement; (21) "Single agent", a licensee who has entered into a brokerage relationship with and therefore represents only one party in a real estate transaction. A single agent may be one of the following: (a) "Buyer's agent", which shall mean a licensee who represents the buyer in a real estate transaction; (b) "Landlord's agent", which shall mean a licensee who represents a landlord in a leasing transaction; (c) "Seller's agent", which shall mean a licensee who represents the seller in a real estate transaction; and (d) "Tenant's agent", which shall mean a licensee who represents the tenant in a leasing transaction; (22) "Subagent", a designated broker, together with the broker's affiliated licensees, engaged by another designated broker, together with the broker's affiliated or appointed affiliated licensees, to act as a limited agent for a client, or a designated broker's unappointed affiliated licensees engaged by the designated broker, together with the broker's appointed affiliated licensees, to act as a limited agent for a client. A subagent owes the same obligations and responsibilities to the client pursuant to sections 339.730 to 339.740 as does the client's designated broker; (23) "Transaction broker", any licensee acting pursuant to sections 339.710 to 339.860*, who: (a) Assists the parties to a transaction without an agency or fiduciary relationship to either party and is, therefore, neutral, serving neither as an advocate or advisor for either party to the transaction; (b) Assists one or more parties to a transaction and who has not entered into a specific written agency agreement to represent one or more of the parties; or (c) Assists another party to the same transaction either solely or through licensee affiliates. Such licensee shall be deemed to be a transaction broker and not a dual agent, provided that, notice of assumption of transaction broker status is provided to the buyer and seller immediately upon such default to transaction broker status, to be confirmed in writing prior to execution of the contract.

20 CSR 2250-8.095 Brokerage Relationship Disclosure

PURPOSE: The commission is proposing this rule in order to comply with provisions in HB 1601 of the 89th General Assembly and HB 866 of the 90th General Assembly. (1) Licensees acting with or without a written agreement for brokerage services pursuant to sections 339.710 to 339.860, RSMo, are required to disclose such relationships in the following instances and manner: (A) Seller's/Landlord's Agent or Subagent. 1. A licensee acting as an agent or subagent of the seller/landlord shall disclose this agency status no later than the first showing to a buyer/tenant who is not represented by or working with another licensee pursuant to sections 339.710 to 339.860, RSMo. 2. If the buyer/tenant is represented by another licensee, the disclosure may be made to the buyer/tenant or their agent upon first contact with the buyer/tenant or their agent, whichever occurs first. 3. If the seller's/landlord's agent is cooperating with another licensee under a written agreement of subagency or through a unilateral offer of subagency, the disclosure made by the subagent shall serve as the disclosure of the seller's/landlord's agent. 4. In a cooperative sale/lease between a seller's/landlord's agent and a licensee working with a buyer/tenant as a transaction broker, the seller's/landlord's agent shall make disclosure of this agency status to the buyer/tenant and also to the licensee assisting the buyer/tenant upon first contact with each respective party. 5. In a contemplated real estate transaction where no contact occurs with the buyer/tenant, their agent, or transaction broker, the seller's/landlord's agent shall disclose this agency status to the buyer's/tenant's agent or transaction broker when first contact is established pursuant to paragraph (B)5. or (E)5. of this section. 6. If the landlord's agent is conducting property management pursuant to 20 CSR 2250-8.200, the unlicensed office personnel may, in their performance of the duties enumerated in section 339.010.5(5)(a)-(e), RSMo, make the disclosure described herein on behalf of the landlord's agent; (B) Buyer's/Tenant's Agent or Subagent. 1. A licensee acting as an agent or subagent of the buyer/tenant shall disclose this agency status no later than the first showing to a seller/landlord who is not represented by or working with another licensee pursuant to sections 339.710 to 339.860, RSMo. 2. If the seller/landlord is represented by another licensee, the disclosure may be made to the seller/landlord or their agent upon first contact with the seller/landlord or their agent, whichever occurs first. 3. If the buyer's/tenant's agent is cooperating with another licensee under a written agreement of subagency or through a unilateral offer of subagency, the disclosure made by the subagent shall serve as the disclosure of the buyer's/tenant's agent. 4. In a cooperative sale/lease between a buyer's/tenant's agent and a licensee working with a seller/landlord as a transaction broker, the buyer's/tenant's agent shall make disclosure of this agency status to the seller/landlord and also to the licensee assisting the seller/landlord upon first contact with each respective party. 5. In a contemplated real estate transaction where no contact occurs with the seller/landlord, their agent, or transaction broker, the buyer's/tenant's agent shall establish first contact with the seller's/landlord's agent or transaction broker and disclose this agency status prior to the presentation of an offer to exchange, purchase, rent, or lease. 6. If the landlord's agent or transaction broker is conducting property management pursuant to 20 CSR 2250-8.200, the unlicensed office personnel may, in their performance of the duties enumerated in section 339.010.5(5)(a)-(e), RSMo, receive the disclosure described herein on behalf of the landlord's agent or transaction broker; (C) Dual Agent. 1. A licensee acting as a dual agent in a real estate transaction shall disclose this agency status immediately upon its occurrence to all parties of a real estate transaction. 2. In a non-designated agency transaction, the disclosure made by the licensee procuring the buyer/tenant (selling licensee) shall serve as disclosure for the listing licensee and designated broker. 3. A designated broker who becomes a dual agent and does not personally represent any of the parties in a designated agency transaction shall not be required to make disclosure of this agency status provided written consent was given by all parties to the real estate transaction pursuant to 339.750.1, RSMo; (D) Transaction Broker Assisting Seller/Landlord. 1. A licensee assisting a seller/landlord as a transaction broker who has not been deemed a transaction broker pursuant to section 339.710(19)(c), RSMo, shall disclose this brokerage relationship no later than the first showing to buyer/tenant who is not represented by or working with another licensee pursuant to sections 339.710 to 339.860, RSMo. 2. If the buyer/tenant is represented by another licensee, this disclosure may be made to the buyer/tenant or their agent upon first contact with the buyer/tenant or their agent, whichever occurs first. 3. If the licensee has not entered into a written transaction brokerage agreement with the seller/landlord, the licensee shall disclose the licensee's transaction broker status to the seller/landlord upon establishing such relationship with the seller/landlord. 4. In a cooperative sale between a seller's/landlord's transaction broker and a licensee working with a buyer/tenant as a transaction broker, the seller's/landlord's transaction broker shall make disclosure of this brokerage relationship status to the buyer/tenant and also to the licensee assisting the buyer/tenant upon first contact with each respective party. 5. In a contemplated real estate transaction where no contact occurs with the buyer/tenant, or their agent or transaction broker, the seller's/landlord's transaction broker shall disclose this brokerage relationship status to the buyer's/tenant's agent or transaction broker when first contact is established pursuant to paragraph (B)5. or (E)5. of this section. 6. If the landlord's transaction broker is conducting property management pursuant to 20 CSR 2250-8.200, the unlicensed office personnel may, in their performance of the duties enumerated in section 339.010.5(5)(a)-(e), RSMo, make the disclosure described herein on behalf of the landlord's transaction broker; (E) Transaction Broker Assisting Buyer/Tenant. 1. A licensee assisting a buyer/tenant as a transaction broker who has not been deemed a transaction broker pursuant to section 339.710(19)(c), RSMo, shall disclose this brokerage relationship no later than the first showing to a seller/landlord who is not represented by or working with another licensee pursuant to sections 339.710 to 339.860, RSMo. 2. If the seller/landlord is represented by another licensee, this disclosure may be made to the seller/landlord or their agent upon first contact with the seller/landlord or their agent, whichever occurs first. 3. If the licensee has not entered into a written transaction brokerage agreement with the buyer/tenant, the licensee shall disclose the licensee's transaction broker status to the buyer/tenant upon establishing such relationship with the buyer/tenant. 4. In a cooperative sale/lease between a buyer's/tenant's transaction broker and a licensee working with a seller/landlord as a transaction broker, the buyer's/tenant's transaction broker shall make disclosure of this brokerage relationship status to the seller/landlord and also to the licensee assisting the seller/landlord upon first contact with each respective party. 5. In a contemplated real estate transaction where no contact occurs with the seller/landlord, their agent, or transaction broker, the buyer's/tenant's transaction broker shall establish first contact with the seller's/landlord's agent or transaction broker and disclose this brokerage relationship status prior to the presentation of an offer to exchange, purchase, rent, or lease. 6. If the landlord's agent or transaction broker is conducting property management pursuant to 20 CSR 2250-8.200, the unlicensed office personnel may, in their performance of the duties enumerated in section 339.010.5(5)(a)-(e), RSMo, receive the disclosure described herein on behalf of the landlord's agent or transaction broker; (F) Transaction Broker Pursuant to 339.710(19)(c), RSMo. 1. A licensee who becomes a transaction broker pursuant to 339.710(19)(c), RSMo, shall disclose this transaction broker status immediately upon its occurrence to all parties to the real estate transaction to be confirmed in writing prior to the execution of the contract. 2. The disclosure of the licensee procuring the buyer (selling licensee) shall serve as disclosure for the listing licensee and designated broker. 3. A designated broker who becomes a transaction broker and does not personally represent any of the parties in a designated agency transaction shall not be required to make disclosure of this status provided written consent was given by all parties to the real estate transaction.

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

ten days

20 CSR 2250-8.210 Management Agreements

(Rescinded April 30, 2008)

Business Conduct and Practices - Key Points

-A broker cannot let a licensed or unlicensed person pay a fee to use his or her license -A broker must have control over the broker's office. No control or only nominal control of the business affairs conducted under the broker's license is not allowed. -Branch offices must be operated under the same name and license of the main office. -A broker shall notify the commission, in writing, within ten days after opening or making any change in the address or managing licensee of a branch office. -Unlicensed persons (clerical workers) shall not do, or attempt to do, any of the activities that require a license. -Advertising must be in the business name of the broker. -An advertisement must not appear that it is not coming from a licensee/brokerage (giving the impression that it is a for sale by owner when it is not). -When a licensee is advertising his or her own property and it is not listed through a broker, then all signs, advertising, etc. must read "For Sale by:" Owner-Broker, Owner-Salesperson, Owner-Agent -Any written advertisement by a licensee of a guaranteed sales plan shall include a statement advising the seller that if the seller is eligible, costs and conditions may apply and advising the seller to inquire of the licensee as to the terms of the guaranteed sales agreement. This information shall be set forth in print at least 1/4 as large as the largest print in the advertisement. -A licensee may not place a for sale sign on a property without the owner's consent.

Advertising - Guaranteed Sales

-A guaranteed sales plan includes, but is not limited to: 1) any plan in which a seller's real estate is guaranteed to be sold, or 2) any plan where a licensee or anyone affiliated with a licensee will purchase a seller's real estate if it is not purchased by a third party in the specified period of a listing or within some other specified period of time. -Any written advertisement by a licensee of a guaranteed sales plan shall include a statement advising the seller that if the seller is eligible, costs and conditions may apply and advising the seller to inquire of the licensee as to the terms of the guaranteed sales agreement. This information shall be set forth in print at least 1/4 as large as the largest print in the advertisement. -Any radio or television advertisement by a licensee of a guaranteed sales plan shall include a conspicuous statement advising if any conditions and limitations apply. -Every guaranteed sales agreement must be in writing and contain all of the conditions and other terms under which the property is guaranteed to be sold or purchased, including the charges or other costs for the service or plan, the price for which the property will be sold or purchased and the approximate net proceeds the seller may reasonably expect to receive.

Licensee's Interest in Transactions - Relationship with Parties

-A licensee shall not acquire an interest in, sell, buy, exchange, rent, or lease any real estate, directly or indirectly, without first making the licensee's status as a licensee known in writing to the other parties in the transaction. -Before buying, exchanging, selling, or leasing real estate for another party, the licensee shall disclose in writing any ownership which a licensee has or will have and the licensee's status as a licensee to all parties to the transaction.

Licensee's Interest in Transactions - Key Points

-A licensee shall not acquire interest a property, directly or indirectly, without first making the licensee's status known in writing. -A licensee shall disclose in writing any ownership, or future ownership to all parties to the transaction.

Listings - Listings

-A licensee shall not advertise or place a sign upon any property offering it for sale or lease to prospective customers without the written consent of the owner of his or her duly authorized agent. -A licensee shall not show residential property unless a broker holds a currently effective written seller's/lessor's agency agreement, seller's/lessor's transaction brokerage agreement, or other written authorization to show.

Business Conduct & Practices - Advertising

-A licensee shall not advertise to sell, buy, exchange, rent, lease, or manage property in any manner indicating that the offer is being made by a private party not engaged in the real estate business. If any part of the offering, negotiation, or completion of a real estate transaction is to be handled by, through, or under the direction or supervision of a licensee, directly or indirectly, the licensee shall not advertise or represent to the public in any manner that the property is for sale or lease by the owner. -No real estate advertisement by a licensee shall show only a post office box number, telephone number, or street address. Every advertisement of real estate by a licensee shall contain the broker's regular business name or the name under which the broker or the broker's firm is licensed and shall indicate that the party advertising is a real estate broker and not a private party. -Every advertisement of real estate by a licensee where the licensee has no interest in the real estate shall be made under the direct supervision and in the name of the broker or firm who holds the licensee's license. If the licensee's name or telephone number, or both, is used in any advertisement, the advertisement also shall include the name and telephone number of the broker or firm who holds the licensee's license. -No licensee shall advertise to buy, sell, rent, lease, manage, or exchange property in any manner that indicates, directly or indirectly, any unlawful discrimination against any individual or group because of race, color, religion, national origin, ancestry, sex, handicap, or familial status.

Earnest Money - Earnest Money

-All escrow money received by a licensee shall be deposited in the escrow or trust account maintained by the broker no later than 10 banking days following the last date on which the signatures or initials, or both, of all the parties to the contract are obtained, unless otherwise provided in the contract. Earnest money received prior to acceptance of a written contract may be deposited into the escrow account by the broker with the written authorization of the party(ies) providing the funds. -A licensee shall immediately deliver to the broker with whom affiliated all money received in connection with real estate transaction in which the licensee is engaged. -The escrow or trust account maintained by a broker, as required by the license law, shall be a checking account in a bank, savings and loan or credit union. If the escrow or trust account maintained by a broker is an interest-bearing account, the broker shall disclose in writing to all parties to the transaction that the account is interest-bearing and the disclosure shall indicate who is to receive the interest. -Each broker shall deposit into the escrow or trust account all funds coming into the broker's possession including funds in which the broker may have some future interest or claim and including, but not limited to, earnest money deposits, prepaid rents, security deposits, loan proceeds, and funds paid by or for the parties upon closing of the transaction. No broker shall commingle personal funds or other funds in the broker's escrow account except with permission of all parties. Commissions payable must be removed from the escrow account at the time the transaction is completed. After the transaction is completed, interest payable shall be disbursed to the appropriate party(ies) from the escrow account no later than 10 banking days following the receipt of the next statement of the escrow account. -Each broker shall consent upon the request of the commission or its agent to the examination and audit of the broker's escrow or trust account by the commission or its agent. -Each check written on an escrow account or each corresponding check stub, or other record of disbursement of funds from the account and each deposit ticket shall indicate the related real estate transaction(s).

Business Conduct & Practices - Branch Offices

-Each branch office shall be operated under the same name and license as the parent office -A branch office shall be under the direct supervision of either a licensed broker, broker-salesperson, or a broker-partner, broker-associate, or broker-officer of the principal licensed broker; provided that nothing contained in this rule shall be construed to relieve the principal licensed broker from responsibility for all brokerage activities conducted at the branch office. Nothing in this section shall be construed as to prohibit the office manager from engaging in the listing and sale of real estate. -A broker shall notify the commission, in writing, within 10 days after opening or making any change in the address or managing licensee of a branch office

Earnest Money - Key Points

-Escrow money shall be deposited within 10 days following the date of acceptance of a contract. -Earnest money shall be delivered to the affiliated broker immediately. -The escrow or trust accounts shall be a checking account in a bank, savings and loan, or credit union. -If an escrow or trust account is interest bearing, all parties must agree and be notified in writing who will receive the interest. -A broker shall not commingle personal or business funds with the escrow account without permission from all parties. -Each check written on an escrow account or each corresponding check stub, or other record of disbursement of funds from the account and each deposit ticket shall indicate the related real estate transaction(s).

Improper Use of License & Office - Place of Business

-Every active resident broker, except those not actively engaged in real estate business, shall maintain a regularly established place of business, which shall be open to the public during usual business hours or at regular stated intervals. No salesperson may be associated with a broker not maintaining a regularly established place of business or a broker not actively engaged in the real estate business. -A broker's business sign must be of sufficient size to identify it and bear the name under which the broker or the broker's firm is licensed, or the regular business name, shall be displayed outside of the broker's regular place of business.

Offers - Offers

-Every licensee shall make certain that all of the terms and conditions authorized by the principal in a transaction are specified and included in an offer to sell or buy and shall not offer the property on any other terms. Every written offer shall contain the legal description or property address, or both, and city where the property is located, or in the absence of, a clear description unmistakably identifying the property. -Every licensee shall promptly tender to the seller or seller's agent every written offer to purchase and shall promptly tender to the buyer or buyer's agent any counteroffer made by the seller, including any back-up contracts properly identified as such, and upon procuring a proper acceptance of an offer to purchase shall promptly deliver copies of the same, signed by both buyer and seller, to each party to the transaction. A buyer or seller must be promptly advised when an offer or counteroffer has been rejected. -Any change to a contract shall be initialed by all buyers and sellers. Acceptance of each fully executed contract shall include the date at which final agreement was reached either by 1) specific acknowledgment of final acceptance date; or 2) date of the last signature or initial to the contract.

Agency Disclosure - Broker Disclosure Form

-In a residential real estate transaction, at the earliest practicable opportunity during or following the first substantial contact by the designated broker or the affiliated licensees with a seller, landlord, buyer, or tenant who has not entered into a brokerage relationship, the licensee shall provide that person with a written copy of the current Broker Disclosure Form prescribed by the Missouri Real Estate Commission. A licensee shall provide the party that has not entered into a brokerage relationship the Broker Disclosure Form upon obtaining any personal or financial information or before the signing of a brokerage service agreement, whichever occurs first.

Earnest Money - Disputes

-In the event a dispute arises concerning the return or forfeiture of any monies or other valuables held by a broker in escrow, the broker shall continue to retain the money or valuables in escrow until a written release is obtained from all parties consenting to its disposition or until a civil action is filed to determine its disposition at which time payment may be made into the court. In the absence of a pending civil action or written release and upon passage of 60 days from the date of the dispute, and after giving 15 days' written notice by certified mail to all parties concerned at their last known address, a broker may disburse escrow monies or valuables to either party to the transaction based upon a good faith decision by the broker that the opposite party has failed to perform as agreed.

Improper Use of License & Office - Broker Supervision and Improper Use of License and Office

-Individual brokers, designated brokers, and office managers/supervising brokers shall be responsible for supervising the real estate related activities including the protection of any confidential information of all licensed and unlicensed persons associated with them. -A broker shall not permit licensed and unlicensed persons affiliated with the broker to establish and carry on real estate brokerage business for their own benefit, directly or indirectly, where the broker's primary interest is the receipt of a fee or other valuable consideration for the use of the broker's license by others; or where the broker has no control or only nominal control of the business affairs conducted under the broker's license or is only nominally associated with the business.

Listings - Brokerage Service Agreements Key Points

-Listings must have an expiration date. There are no automatic renewals. -A residential property may not be shown without written authorization from the seller. -Net listings are illegal -A "for sale" sign cannot be placed on a property that is not for sale. -A "for sale" sign must be removed immediately upon expiration of the listing. -The licensee shall give a legible copy of every written listing agreement or other written agreement for brokerage services to the owner of the property at the time the signature of the owner is obtained. -Addendums and amendments must have the initials of all parties to the transaction. -A licensee shall not enter into a brokerage service agreement with an owner if the owner is in an exclusive brokerage service agreement with another broker, unless the owner initiates the discussion and provided the licensee has not directly or indirectly solicited the discussion, in which case the licensee may negotiate and enter into an agreement which will take effect after the expiration of the current agreement.

Commissions - Commissions

-No licensee shall pay a commission or any other valuable consideration unless reasonable cause for payment exists or a contractual relationship exists with the licensee. Salesperson shall be paid by their own broker.

Earnest Money - Earnest and Escrow Money Key Points

-Non-negotiable items may only be accepted as earnest money without the written consent of the owner of the real estate. -In the event a dispute arises concerning the return of forfeiture of any monies or other valuables held by a broker in escrow, the broker shall retain the funds in escrow until a written release is obtained from all parties consenting to its release or until a civil action is filed to determine its disposition. In the absence of a pending civil action or written release and upon passage of sixty days from the date of the dispute, and after giving fifteen days' written notice by certified mail to all parties concerned at their last known address, a broker may disburse escrow monies or valuables to either party to the transaction based upon a good faith decision by the broker that the opposite party has failed to perform as agreed. A broker shall not accept any note, non-negotiable instrument, or anything of value not readily negotiable as earnest money in a transaction without the signed, written consent of the owner of the real estate.

Listings - Additional Listing Requirements

-The agreement shall contain no provision requiring an owner to notify the broker of intent to cancel the listing after the expiration date. -Any addendums, riders, endorsements, attachments, or changes to the listing agreement or other written agreement for the brokerage services must contain the initials of all parties. -The licensee shall give a legible copy of every written listing agreement or other written agreement for brokerage services to the owner of the property at the time the signature of the owner is obtained. -A licensee shall not negotiate or enter into a brokerage service agreement with an owner if the licensee knows, or has reason to know, that the owner has a written unexpired exclusive brokerage service agreement as to the property with another broker, unless the owner initiates the discussion and provided the license has not directly or indirectly solicited the discussion, in which case the licensee may negotiate and enter into an agreement which will take effect after the expiration of the current agreement. -No licensee shall make or enter into a net listing agreement for the sale or lease of real property or any interest in real property; this agreement is defined as one that stipulates a net price to be received by the owner with the excess over that price to be received by the broker as commission. -A listing agreement or other written agreement for brokerage services may not be assigned, sold, or otherwise transferred to another broker without the express written consent of all parties to the original agreement.

Standard Forms - Standard Forms

-When acting as a broker in a transaction, a broker may use current standardized forms including, but not limited to, contracts, agency disclosures, property management agreements, listing agreements, warranty deeds, quit claim deeds, trust deeds, notes, security instruments and leases, prepared or approved by the broker's counsel or by the counsel for a trade association of which the broker is a member of associate member, or by a Missouri state or local bar association and may complete them by filling in blank spaces to show the parties, property description and terms necessary to close the transaction the broker has procured. -A real estate broke shall not make a separated charge for completing any standardized forms and shall not prepare those forms for persons in transactions in which s/he is not acting as a broker, unless the broker is one of the parties to the contract.

Offers - Key Points

-Written offers shall contain the legal description or property address, or both. -Every written offer shall be presented promptly, including back-up offers, properly identified. -Copies of all documents shall be delivered promptly to all parties to the transaction. -Any change to a contract shall be initialed by all parties to the transaction.

2011 Missouri Revised Statutes TITLE XXII OCCUPATIONS AND PROFESSIONS Chapter 339 Real Estate Agents, Brokers, Appraisers and Escrow Agents Section 339.750. Dual agent, consent--dual agent as limited agent--disclosure of nonconfidential information, when--nondisclosure of information, when--confidential information--no imputation of information.

1. A licensee may act as a dual agent only with the consent of all parties to the transaction. Consent shall be presumed by a written agreement pursuant to section 339.780. 2. A dual agent shall be a limited agent for both the seller and buyer or the landlord and tenant and shall have the duties and obligations required by sections 339.730 and 339.740 unless otherwise provided for in this section. 3. Except as provided in subsections 4 and 5 of this section, a dual agent may disclose any information to one client that the licensee gains from the other client if the information is material to the transaction unless it is confidential information as defined in section 339.710. 4. The following information shall not be disclosed by a dual agent without the consent of the client to whom the information pertains: (1) That a buyer or tenant is willing to pay more than the purchase price or lease rate offered for the property; (2) That a seller or landlord is willing to accept less than the asking price or lease rate for the property; (3) What the motivating factors are for any client buying, selling, or leasing the property; (4) That a client will agree to financing terms other than those offered; and (5) The terms of any prior offers or counter offers made by any party. 5. A dual agent shall not disclose to one client any confidential information about the other client unless the disclosure is required by statute, rule, or regulation or failure to disclose the information would constitute a misrepresentation or unless disclosure is necessary to defend the affiliated licensee against an action of wrongful conduct in an administrative or judicial proceeding or before a professional committee. No cause of action for any person shall arise against a dual agent for making any required or permitted disclosure. A dual agent does not terminate the dual agency relationship by making any required or permitted disclosure. 6. In a dual agency relationship there shall be no imputation of knowledge or information between the client and the dual agent or among persons within an entity engaged as a dual agent.

2011 Missouri Revised Statutes TITLE XXII OCCUPATIONS AND PROFESSIONS Chapter 339 Real Estate Agents, Brokers, Appraisers and Escrow Agents Section 339.740. Licensee representing head buyer or tenant--duties and obligations of--disclosure of confidential information--licensee's duty to a customer--showing of properties--subagents.

1. A licensee representing a buyer or tenant as a buyer's or tenant's agent shall be a limited agent with the following duties and obligations: (1) To perform the terms of any written agreement made with the client; (2) To exercise reasonable skill and care for the client; (3) To promote the interests of the client with the utmost good faith, loyalty, and fidelity, including: (a) Seeking a price and terms which are acceptable to the client, except that the licensee shall not be obligated to seek other properties while the client is a party to a contract to purchase property or to a lease or letter of intent to lease; (b) Presenting all written offers to and from the client in a timely manner regardless of whether the client is already a party to a contract to purchase property or is already a party to a contract or a letter of intent to lease; (c) Disclosing to the client adverse material facts actually known or that should have been known by the licensee; and (d) Advising the client to obtain expert advice as to material matters about which the licensee knows but the specifics of which are beyond the expertise of the licensee; (4) To account in a timely manner for all money and property received; (5) To comply with all requirements of sections 339.710 to 339.860, subsection 2 of section 339.100, and any rules and regulations promulgated pursuant to those sections; and (6) To comply with any applicable federal, state, and local laws, rules, regulations, and ordinances, including fair housing and civil rights statutes or regulations. 2. A licensee acting as a buyer's or tenant's agent shall not disclose any confidential information about the client unless disclosure is required by statute, rule, or regulation or failure to disclose the information would constitute a misrepresentation or unless disclosure is necessary to defend the affiliated licensee against an action of wrongful conduct in an administrative or judicial proceeding or before a professional committee. No cause of action for any person shall arise against a licensee acting as a buyer's or tenant's agent for making any required or permitted disclosure. 3. A licensee acting as a buyer's or tenant's agent owes no duty or obligation to a customer, except that the licensee shall disclose to any customer all adverse material facts actually known or that should have been known by the licensee. A buyer's or tenant's agent owes no duty to conduct an independent investigation of the client's financial condition for the benefit of the customer and owes no duty to independently verify the accuracy or completeness of statements made by the client or any independent inspector. 4. A buyer's or tenant's agent may show properties in which the client is interested to other prospective buyers or tenants without breaching any duty or obligation to the client. This section shall not be construed to prohibit a buyer's or tenant's agent from showing competing buyers or tenants the same property and from assisting competing buyers or tenants in attempting to purchase or lease a particular property. 5. A client may agree in writing with a buyer's or tenant's agent that other designated brokers may be retained and compensated as subagents. Any designated broker acting on the buyer's or tenant's behalf as a subagent shall be a limited agent with the obligations and responsibilities set forth in subsections 1 to 4 of this section.

2011 Missouri Revised Statutes TITLE XXII OCCUPATIONS AND PROFESSIONS Chapter 339 Real Estate Agents, Brokers, Appraisers and Escrow Agents Section 339.730. Licensee as limited agent representing seller or landlord, duties--confidential information disclosure, when--licensee's duties to customer--showing alternative properties--subagent, duties.

1. A licensee representing a seller or landlord as a seller's agent or a landlord's agent shall be a limited agent with the following duties and obligations: (1) To perform the terms of the written agreement made with the client; (2) To exercise reasonable skill and care for the client; (3) To promote the interests of the client with the utmost good faith, loyalty, and fidelity, including: (a) Seeking a price and terms which are acceptable to the client, except that the licensee shall not be obligated to seek additional offers to purchase the property while the property is subject to a contract for sale or to seek additional offers to lease the property while the property is subject to a lease or letter of intent to lease; (b) Presenting all written offers to and from the client in a timely manner regardless of whether the property is subject to a contract for sale or lease or a letter of intent to lease; (c) Disclosing to the client all adverse material facts actually known or that should have been known by the licensee; and (d) Advising the client to obtain expert advice as to material matters about which the licensee knows but the specifics of which are beyond the expertise of the licensee; (4) To account in a timely manner for all money and property received; (5) To comply with all requirements of sections 339.710 to 339.860, subsection 2 of section 339.100, and any rules and regulations promulgated pursuant to those sections; and (6) To comply with any applicable federal, state, and local laws, rules, regulations, and ordinances, including fair housing and civil rights statutes and regulations. 2. A licensee acting as a seller's or landlord's agent shall not disclose any confidential information about the client unless disclosure is required by statute, rule or regulation or failure to disclose the information would constitute a misrepresentation or unless disclosure is necessary to defend the affiliated licensee against an action of wrongful conduct in an administrative or judicial proceeding or before a professional committee. No cause of action shall arise against a licensee acting as a seller's or landlord's agent for making any required or permitted disclosure. 3. A licensee acting as a seller's or landlord's agent owes no duty or obligation to a customer, except that a licensee shall disclose to any customer all adverse material facts actually known or that should have been known by the licensee. A seller's or landlord's agent owes no duty to conduct an independent inspection or discover any adverse material facts for the benefit of the customer and owes no duty to independently verify the accuracy or completeness of any statement made by the client or any independent inspector. 4. A seller's or landlord's agent may show alternative properties not owned by the client to prospective buyers or tenants and may list competing properties for sale or lease without breaching any duty or obligation to the client. 5. A seller or landlord may agree in writing with a seller's or landlord's agent that other designated brokers may be retained and compensated as subagents. Any designated broker acting as a subagent on the seller's or landlord's behalf shall be a limited agent with the obligations and responsibilities set forth in subsections 1 to 4 of this section.

2011 Missouri Revised Statutes TITLE XXII OCCUPATIONS AND PROFESSIONS Chapter 339 Real Estate Agents, Brokers, Appraisers and Escrow Agents Section 339.720. Licensee's duties and obligations in writing--licensee as transaction broker, exceptions.

1. A licensee's general duties and obligations arising from the limited agency relationship shall be disclosed in writing to the seller and the buyer or to the landlord and the tenant pursuant to sections 339.760 to 339.780. Alternatively, when engaged in any of the activities enumerated in section 339.010, a licensee may act as an agent in any transaction in accordance with a written agreement as described in section 339.780. 2. A licensee shall be considered a transaction broker unless: (1) The designated broker enters into a written seller's agent or landlord's agent agreement with the party or parties to be represented pursuant to subsection 2 of section 339.780; (2) The designated broker enters into a subagency agreement with another designated broker pursuant to subsection 5 of section 339.780; (3) The designated broker establishes a buyer's or tenant's agency relationship pursuant to subsection 3 of section 339.780; (4) The designated broker enters into a written agency agreement pursuant to subsection 8 of section 339.780; (5) The designated broker and the affiliated licensees are performing ministerial acts; (6) The designated broker enters into a written dual agency agreement with the parties pursuant to subsection 4 of section 339.780; (7) The designated broker is acting in a manner described in paragraph (c) of subdivision (23) of section 339.710 without proper notice of assumption of transaction broker status; or (8) The licensee is making a listing presentation, which may include pricing and marketing advice about a potential future transaction, to a customer in anticipation of entering into a signed agency brokerage service agreement as a direct result of the presentation. 3. Sections 339.710 to 339.860 do not obligate any buyer or tenant to pay compensation to a designated broker unless the buyer or tenant has entered into a written agreement with the designated broker specifying the compensation terms in accordance with subsection 3 of section 339.780. 4. A licensee may work with a single party in separate transactions pursuant to different relationships, including, but not limited to, selling one property as a transaction broker or a seller's agent working with that seller in buying another property as a buyer's agent, as a subagent or as a transaction broker if the licensee complies with sections 339.710 to 339.860 in establishing the relationships for each transaction.

2011 Missouri Revised Statutes TITLE XXII OCCUPATIONS AND PROFESSIONS Chapter 339 Real Estate Agents, Brokers, Appraisers and Escrow Agents Section 339.755. Duties and obligations of transaction broker.

1. A real estate licensee may provide real estate service to any party in a prospective transaction without an agency or fiduciary relationship to one or more parties to the transaction. Such licensee shall be called a transaction broker. 2. A transaction broker shall have the following duties and obligations: (1) To perform the terms of any written or oral agreement made with any party to the transaction; (2) To exercise reasonable skill, care and diligence as a transaction broker, including but not limited to: (a) Presenting all written offers and counteroffers in a timely manner regardless of whether the property is subject to a contract for sale or lease or a letter of intent unless otherwise provided in the agreement entered with the party; (b) Informing the parties regarding the transaction and suggesting that such parties obtain expert advice as to material matters about which the transaction broker knows but the specifics of which are beyond the expertise of such broker; (c) Accounting in a timely manner for all money and property received; (d) To disclose to each party to the transaction any adverse material facts of which the licensee has actual notice or knowledge; (e) Assisting the parties in complying with the terms and conditions of any contract; (f) The parties to a transaction brokerage transaction shall not be liable for any acts of the transaction broker. 3. The following information shall not be disclosed by a transaction broker without the informed consent of the party or parties disclosing such information to the broker: (1) That a buyer or tenant is willing to pay more than the purchase price or lease rate offered for the property; (2) That a seller or landlord is willing to accept less than the asking price or lease rate for the property; (3) What the motivating factors are for any party buying, selling or leasing the property; (4) That a seller or buyer will agree to financing terms other than those offered; (5) Any confidential information about the other party, unless disclosure of such information is required by law, statute, rules or regulations or failure to disclose such information would constitute fraud or dishonest dealing. 4. A transaction broker has no duty to conduct an independent inspection or investigation for adverse material facts for the parties. 5. A transaction broker has no duty to conduct an independent investigation of the buyer's financial condition. 6. A transaction broker may do the following without breaching any obligation or responsibility: (1) Show alternative properties not owned by the seller or landlord to a prospective buyer or tenant; (2) List competing properties for sale or lease; (3) Show properties in which the buyer or tenant is interested to other prospective buyers or tenants; (4) Serve as a single agent, subagent or designated agent or broker, limited agent, disclosed dual agent for the same or for different parties in other real estate transactions. 7. In a transaction broker relationship each party and the transaction broker, including all persons within an entity engaged as the transaction broker if the transaction broker is an entity, are considered to possess only actual knowledge and information. There is no imputation of knowledge or information by operation of law between any party and the transaction broker or between any party and any person within an entity engaged as the transaction broker if the transaction broker is an entity. 8. A transaction broker may cooperate with other brokers and such cooperation does not establish an agency or subagency relationship. 9. Nothing in this section prohibits a transaction broker from acting as a single limited agent, dual agent or subagent whether on behalf of a buyer or seller, as long as the requirements governing disclosure of such fact are met. 10. Nothing in this section alters or eliminates the responsibility of a broker as set forth in this section for the conduct and actions of a licensee operating under the broker's license. 11. A transaction broker shall: (1) Comply with all applicable requirements of sections 339.710 to 339.860, subsection 2 of section 339.010 and all rules and regulations promulgated pursuant to such sections; and (2) Comply with any applicable federal, state and local laws, rules, regulations and ordinances, including fair housing and civil rights statutes and regulations. 12. If any licensee who represents another party to the same transaction either solely or through affiliate licensees refuses transaction broker status and wants to continue an agency relationship with both parties to the transaction, such licensee shall have the right to become a designated agent or a dual agent as provided for in sections 339.730 to 339.860. 13. In any transaction a licensee may without liability withdraw from representing a client who has not consented to a conversion to transaction brokerage. Such withdrawal shall not prejudice the ability of the licensee or affiliated licensee to continue to represent the other client in the transaction or limit the licensee from representing the client who refused the transaction brokerage representation in another transaction not involving transaction brokerage.

2011 Missouri Revised Statutes TITLE XXII OCCUPATIONS AND PROFESSIONS Chapter 339 Real Estate Agents, Brokers, Appraisers and Escrow Agents Section 339.780. Brokerage services, written agreements for, parties to, authorizations by designated broker--written agreements, limited agency, single agent, dual agent or subagent.

1. All written agreements for brokerage services on behalf of a seller, landlord, buyer, or tenant shall be entered into by the designated broker on behalf of that broker and affiliated licensees, except that the designated broker may authorize affiliated licensees in writing to enter into the written agreements on behalf of the designated broker. 2. Before engaging in any of the activities enumerated in section 339.010, a designated broker intending to establish a limited agency relationship with a seller or landlord shall enter into a written agency agreement with the party to be represented. The agreement shall include a licensee's duties and responsibilities specified in section 339.730 and the terms of compensation and shall specify whether an offer of subagency may be made to any other designated broker. 3. Before or while engaging in any acts enumerated in section 339.010, except ministerial acts defined in section 339.710, a designated broker acting as a single agent for a buyer or tenant shall enter into a written agency agreement with the buyer or tenant. The agreement shall include a licensee's duties and responsibilities specified in section 339.740 and the terms of compensation. 4. Before engaging in any of the activities enumerated in section 339.010, a designated broker intending to act as a dual agent shall enter into a written agreement with the seller and buyer or landlord and tenant permitting the designated broker to serve as a dual agent. The agreement shall include a licensee's duties and responsibilities specified in section 339.750 and the terms of compensation. 5. Before engaging in any of the activities enumerated in section 339.010, a designated broker intending to act as a subagent shall enter into a written agreement with the designated broker for the client. If a designated broker has made a unilateral offer of subagency, another designated broker can enter into the subagency relationship by the act of disclosing to the customer that he or she is a subagent of the client. If a designated broker has made an appointment pursuant to section 339.820, an affiliated licensee that has been excluded by such appointment may enter into the subagency relationship by the act of disclosing to the customer that he or she is a subagent of the client. 6. A designated broker who intends to act as a transaction broker and who expects to receive compensation from the party he or she assists shall enter into a written transaction brokerage agreement with such party or parties contracting for the broker's service. The transaction brokerage agreement shall include a licensee's duties and responsibilities specified in section 339.755 and the terms of compensation. 7. All exclusive brokerage agreements shall specify that the broker, through the broker or through one or more affiliated licensees, shall provide, at a minimum, the following services: (1) Accepting delivery of and presenting to the client or customer offers and counteroffers to buy, sell, or lease the client's or customer's property or the property the client or customer seeks to purchase or lease; (2) Assisting the client or customer in developing, communicating, negotiating, and presenting offers, counteroffers, and notices that relate to the offers and the counteroffers until a lease or purchase agreement is signed and all contingencies are satisfied or waived; and (3) Answering the client's or customer's questions relating to the offers, counteroffers, notices, and contingencies. 8. Nothing contained in this section shall prohibit the public from entering into written contracts with any broker which contain duties, obligations, or responsibilities which are in addition to those specified in this section.

2011 Missouri Revised Statutes TITLE XXII OCCUPATIONS AND PROFESSIONS Chapter 339 Real Estate Agents, Brokers, Appraisers and Escrow Agents Section 339.105. Separate bank escrow accounts required--service charges for account may be made by personal deposit by broker, amount allowed.

1. Each broker who holds funds belonging to another shall maintain such funds in a separate bank account in a financial institution which shall be designated an escrow or trust account. This requirement includes funds in which he or she may have some future interest or claim. Such funds shall be deposited promptly unless all parties having an interest in the funds have agreed otherwise in writing. No broker shall commingle his or her personal funds or other funds in this account with the exception that a broker may deposit and keep a sum not to exceed one thousand dollars in the account from his or her personal funds, which sum shall be specifically identified and deposited to cover service charges related to the account. 2. Each broker shall notify the commission of his or her intent not to maintain an escrow account, or the name of the financial institution in which each escrow or trust account is maintained, the name and number of each such account, and shall file written authorization directed to each financial institution to allow the commission or its authorized representative to examine each such account; such notification and authorization shall be submitted on forms provided therefor by the commission. A broker shall notify the commission within ten business days of any change of his or her intent to maintain an escrow account, the financial institution, account numbers, or change in account status. 3. In conjunction with each escrow or trust account a broker shall maintain books, records, contracts and other necessary documents so that the adequacy of said account may be determined at any time. The account and other records shall be provided to the commission and its duly authorized agents for inspection at all times during regular business hours at the broker's usual place of business. 4. Whenever the ownership of any escrow moneys received by a broker pursuant to this section is in dispute by the parties to a real estate sales transaction, the broker shall report and deliver the moneys to the state treasurer within three hundred sixty-five days of the date of the initial projected closing date in compliance with sections 447.500 to 447.595. The parties to a real estate sales transaction may agree in writing that the funds are not in dispute and shall notify the broker who is holding the funds. 5. A broker shall not be entitled to any money or other money paid to him or her in connection with any real estate sales transaction as part or all of his or her commission or fee until the transaction has been consummated or terminated, unless agreed in writing by all parties to the transaction. 6. When, through investigations or otherwise, the commission has reasonable cause to believe that a licensee has acted, is acting or is about to act in violation of this section, the commission may, through the attorney general or any assistants designated by the attorney general, proceed in the name of the commission to institute suit to enjoin any act or acts in violation of this section. 7. Any such suit shall be commenced in either the county in which the defendant resides or in the county in which the defendant has acted, is acting or is about to act in violation of this section. 8. In such proceeding, the court shall have power to issue such temporary restraining or injunction orders, without bond, which are necessary to protect the public interest. Any action brought under this section shall be in addition to and not in lieu of any other provisions of this chapter. In such action, the commission or the state need not allege or prove that there is no adequate remedy at law or that any individual has suffered any economic injury as a result of the activity sought to be enjoined.

2011 Missouri Revised Statutes TITLE XXII OCCUPATIONS AND PROFESSIONS Chapter 339 Real Estate Agents, Brokers, Appraisers and Escrow Agents Section 339.770. Broker disclosure form for residential real estate transaction, provided by licensee, prior agreement, effect.

1. In a residential real estate transaction, at the earliest practicable opportunity during or following the first substantial contact by the designated broker or the affiliated licensees with a seller, landlord, buyer, or tenant who has not entered into a written agreement for services as described in subdivision (5) of section 339.710, the licensee shall provide that person with a written copy of the current broker disclosure form which has been prescribed by the commission. 2. When a seller, landlord, buyer, or tenant has already entered into a written agreement for services with a designated broker, no other licensee shall be required to make the disclosures required by this section. 3. Disclosures made in accordance with sections 339.710 to 339.860 shall be sufficient as a matter of law to disclose brokerage relationships to the public.

2011 Missouri Revised Statutes TITLE XXII OCCUPATIONS AND PROFESSIONS Chapter 339 Real Estate Agents, Brokers, Appraisers and Escrow Agents Section 339.800. Compensation of designated broker, paid by whom, sharing compensation--payment establishing agency--agreement by seller or buyer on sharing compensation.

1. In any real estate transaction, the designated broker's compensation may be paid by the seller, the landlord, the buyer, the tenant, or a third party or by sharing the compensation between designated brokers. 2. Payment of compensation by itself shall not establish an agency relationship or transaction brokerage relationship between the party who paid the compensation and the designated broker or any affiliated licensee. 3. A seller or landlord may agree that a designated broker may share with another designated broker the compensation paid by the seller or landlord. 4. A buyer or tenant may agree that a designated broker may share with another designated broker the compensation paid by the buyer or tenant. 5. A designated broker may be compensated by more than one party for services in a transaction with the knowledge of all the parties at or before the time of entering into a written contract to buy, sell, or lease. 6. Nothing contained in this section shall relieve the licensee from the requirement of obtaining a written agreement for brokerage services or other written agreement addressing compensation.

2011 Missouri Revised Statutes TITLE XXII OCCUPATIONS AND PROFESSIONS Chapter 339 Real Estate Agents, Brokers, Appraisers and Escrow Agents Section 339.151. No commission or consideration unless reasonable cause for payment or contractual relationship exists.

1. No licensee shall pay a commission or any other valuable consideration unless reasonable cause for payment exists or a contractual relationship exists with the licensee. Reasonable cause does not exist unless the party seeking the compensation or other valuable consideration actually introduces the business to the real estate licensee before a relationship is established between the licensee and a principal to the transaction, including, but not limited to: (1) A subagency relationship; (2) A transaction brokerage relationship; or (3) A cooperative brokerage relationship. 2. It shall be a violation of this section to: (1) Solicit or request compensation or other valuable consideration from a real estate licensee without reasonable cause; (2) Interfere with a written representation relationship of another licensee or attempt to induce a customer or client to break a written representation agreement with another licensee for the purpose of replacing such agreement with a new representation agreement in order to obtain a commission or other valuable consideration. Interfering with the written representation agreement of another licensee includes, but is not limited to: (a) Threatening to reduce or withhold employee relocation benefits or to take other action adverse to the interests of a customer or client of a real estate licensee because of an existing representation agreement in order to obtain compensation or other valuable consideration; or (b) Counseling a customer or client of another real estate licensee on how to terminate or amend an existing relationship agreement in order to obtain a commission or other valuable consideration. Communicating corporate relocation policy or benefits to a transferring employee shall not be considered interference as long as the communication does not involve advice or encouragement on how to terminate or amend an existing relationship agreement. 3. The fact that reasonable cause to solicit or request a commission or other valuable consideration exists does not necessarily mean that a legal right to the commission or other valuable consideration exists. 4. Any violation of this section shall be grounds for investigation, complaint, proceedings and discipline pursuant to section 339.100. 5. Nothing in this chapter shall prevent any consumer from joining any organization in which one of the benefits of membership may be that such organization can negotiate a reduced rate or price for real estate costs for its members nor shall it prohibit an inducement to the buyer or lessee paid and supplied by the owner of the property directly to a buyer or lessee of the property. 6. Nothing in this section shall be construed to limit the ability of an employer to direct an employee to follow the terms of the relocation package provided for that employee, nor shall it be construed to limit an employer's choice of relocation service providers.

2011 Missouri Revised Statutes TITLE XXII OCCUPATIONS AND PROFESSIONS Chapter 339 Real Estate Agents, Brokers, Appraisers and Escrow Agents Section 339.150. No fee to be paid to unlicensed person--exception when broker refuses to pay for services rendered knowing the person was unlicensed, effect.

1. No real estate broker shall knowingly employ or engage any person to perform any service to the broker for which licensure as a real estate broker or a real estate salesperson is required pursuant to sections 339.010 to 339.180 and sections 339.710 to 339.860*, unless such a person is: (1) A licensed real estate salesperson or a licensed real estate broker as required by section 339.020; or (2) For a transaction involving commercial real estate as defined in section 339.710, a person regularly engaged in the real estate brokerage business outside the state of Missouri who has, in such forms as the commission may adopt by rule: (a) Executed a brokerage agreement with the Missouri real estate broker; (b) Consented to the jurisdiction of Missouri and the commission; (c) Consented to disciplinary procedures under section 339.100; and (d) Appointed the commission as his or her agent for service of process regarding any administrative or legal actions relating to the conduct in Missouri; or (3) For any other transaction, a person regularly engaged in the real estate brokerage business outside of the state of Missouri. Any such action shall be unlawful as provided by section 339.100 and shall be grounds for investigation, complaint, proceedings and discipline as provided by section 339.100. 2. No real estate licensee shall pay any part of a fee, commission or other compensation received by the licensee to any person for any service rendered by such person to the licensee in buying, selling, exchanging, leasing, renting or negotiating a loan upon any real estate, unless such a person is a licensed real estate salesperson regularly associated with such a broker, or a licensed real estate broker, or a person regularly engaged in the real estate brokerage business outside of the state of Missouri. 3. Notwithstanding the provisions of subsections 1 and 2 of this section, any real estate broker who shall refuse to pay any person for services rendered by such person to the broker, with the consent, knowledge and acquiescence of the broker that such person was not licensed as required by section 339.020, in buying, selling, exchanging, leasing, renting or negotiating a loan upon any real estate for which services a license is required, and who is employed or engaged by such broker to perform such services, shall be liable to such person for the reasonable value of the same or similar services rendered to the broker, regardless of whether or not the person possesses or holds any particular license, permit or certification at the time the service was performed. Any such person may bring a civil action for the reasonable value of his services rendered to a broker notwithstanding the provisions of section 339.160.

2011 Missouri Revised Statutes TITLE XXII OCCUPATIONS AND PROFESSIONS Chapter 339 Real Estate Agents, Brokers, Appraisers and Escrow Agents Section 339.790. Commencement of agreement, when--duties after termination of agreement.

1. The relationships set forth in this section commence on the effective date of the real estate broker's agreement and continue until performance, completion, termination or expiration of that agreement. 2. A real estate broker and an affiliated licensee owe no further duty or obligation after termination, expiration, completion or performance of the brokerage agreement, except the duties of: (1) Accounting in a timely manner for all money and property related to, and received during, the relationship; and (2) Treating as confidential information provided by the client during the course of the relationship that may reasonably be expected to have a negative impact on the client's real estate activity unless: (a) The client to whom the information pertains grants written consent; (b) Disclosure of the information is required by law; (c) The information is made public or becomes public by the words or conduct of the client to whom the information pertains or from a source other than the real estate brokerage or the affiliated licensee; or (d) Disclosure is necessary to defend the designated broker or an affiliated licensee against an action of wrongful conduct in an administrative or judicial proceeding or before a professional committee.

2011 Missouri Revised Statutes TITLE XXII OCCUPATIONS AND PROFESSIONS Chapter 339 Real Estate Agents, Brokers, Appraisers and Escrow Agents Section 339.760. Written agreement, adoption by designated broker, scope.

Every designated broker who has affiliated licensees shall adopt a written policy which identifies and describes the relationships in which the designated broker and affiliated licensees may engage with any seller, landlord, buyer, or tenant as part of any real estate brokerage activities.

Listings - Seller's/Lessor's Agency (Sale/Lease Listing) Agreement

Every written listing agreement or other written agreement for brokerage services shall contain all of the following: -The price; -The commission to be paid (including any and all bonuses); -A definite beginning date; -An expiration date; -The licensee's duties and responsibilities; -A statement which permits or prohibits the designated broker from offering subagency; -A statement which permits or prohibits the designated broker and/or affiliated licensee from acting as a disclosed dual agent and if permitted, the duties and responsibilities of a dual agent. -A statement which permits or prohibits the designated broker and/or affiliated licensee from acting as a transaction broker and if permitted, the duties and responsibilities of a transaction broker; -Specification of whether or not the designated broker is authorized to cooperate with and compensate other designated brokers acting pursuant to any other brokerage relationship, including but not limited to buyer's agents and/or transaction brokers; -A statement which confirms that the seller/lessor received the Broker Disclosure Form prescribed by the commission: a) on or before the signing of the seller's agency agreement, or b) upon the licensee obtaining any personal or financial information, whichever occurs first; -The signatures of all owners and the listing broker or listing agent as authorized by the broker; -The type of listing; -The legal description or the complete street address of the property, which includes the city where the property is located; or, in the absence of a legal description or address, a clear description which unmistakably identifies the property; and -All other terms and conditions under which the property is to be sold, leased, or exchanged.

Advertising - Advertising Licensee's Own Property

If a licensee advertises to sell, buy, exchange, rent, lease, or manage property in which the licensee has an interest, and if the property is not listed by a brokerage entity, the advertisement shall contain, in a prominent fashion, 1 of the following: 1. By owner-broker; 2. By owner-salesperson; or 3. By owner-agent

Where are the licenses of salespersons held?

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

The principal broker of an independent real estate company takes an extended vacation for nine months. The broker appoints her top-selling salesperson to manage the other salespersons while on vacation. Is this acceptable?

No. A salesperson cannot act in the capacity of a sales manager

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

20 CSR 2250-8.100 Offers

PURPOSE: This rule affirms that all offers to sell shall contain all the terms and conditions authorized by the owner. It demands that all written offers to buy must be submitted promptly to the seller. (1) Every licensee shall make certain that all of the terms and conditions authorized by the principal in a transaction are specified and included in an offer to sell or buy and shall not offer the property on any other terms. Every written offer shall contain the legal description or property address, or both, and city where the property is located, or in the absence of, a clear description unmistakably identifying the property. (2) Every licensee shall promptly tender to the seller or seller's agent every written offer to purchase and shall promptly tender to the buyer or buyer's agent any counteroffer made by the seller, including any back-up contracts properly identified as such, and upon procuring a proper acceptance of an offer to purchase shall promptly deliver copies of the same, signed by both buyer and seller, to each party to the transaction. A buyer or seller must be promptly advised when an offer or counteroffer has been rejected. (3) Any change to a contract shall be initialed by all buyers and sellers. Acceptance of each fully executed contract shall include the date at which final agreement was reached either by 1) specific acknowledgement of final acceptance date; or 2) date of the last signature or initial to the contract.

20 CSR 2250-8.010 Place of Business

PURPOSE: This rule affirms the fact that a broker who holds him/herself out to the public as a broker must clearly identify him/herself and his/her location and maintain regular business hours. (1) Every resident broker, except those who have placed their licenses on inactive status or those not actively engaged in real estate business, shall maintain a regularly established place of business in this state, which shall be open to the public during usual business hours or at regular stated intervals. No salesperson may be associated with a broker not maintaining a regularly established place of business or a broker not actively engaged in the real estate business. This rule does not apply to a broker-salesperson or to broker-partners, broker-associates or broker-officers of a firm which maintains a regular place of business. (2) A broker's business sign of sufficient size to identify it and bearing the name under which the broker or the broker's firm is licensed, or the regular business name, shall be displayed outside of the broker's regular place of business.

20 CSR 2250-8.050 Clerical Personnel

PURPOSE: This rule defines clerical personnel and their limitations. (1) The activities of unlicensed clerical or office employees of a broker shall be limited to the duties normally attributed to those positions. Unlicensed persons shall not do, or attempt to do, any of the activities set out under 339.010.1.(1)-(10), RSMo.

20 CSR 2250-8.040 Sales Manager

PURPOSE: This rule defines who may be a sales manager. (1) Any licensee who acts in the capacity of a sales manager or assistant sales manager for the broker shall be required to hold a broker-salesperson license or to be licensed as a broker-partner, broker-associate or broker-officer of the broker.

20 CSR 2250-8.060 Display of License

PURPOSE: This rule directs the display of brokers' and associates' licenses. (1) Every broker shall maintain his/her license and the licenses of all associates in the regular place of business or branch office(s). The licenses shall be displayed to any member of the public on request.

20 CSR 2250-8.020 Broker Supervision and Improper Use of License and Office

PURPOSE: This rule explicitly prohibits a broker from using his/her license to permit a salesperson to function as a real estate brokerage firm. (1) Individual brokers, designated brokers, and office managers/supervising brokers shall be responsible for supervising the real estate related activities including the protection of any confidential information as defined under 339.710.8, RSMo of all licensed and unlicensed persons associated with them, whether in an individual capacity or through a corporate entity, association or partnership. A broker shall not be held responsible for inadequate supervision if— (A) A licensed or unlicensed person violates a provision of Chapter 339, RSMo or the rules for it in conflict with the supervising broker's specific written policies or instructions; (B) Reasonable procedures have been established to verify that adequate supervision was being performed; (C) The broker, upon learning of the violation, attempted to prevent or mitigate the damage; (D) The broker did not participate in the violation; (E) The broker did not ratify the violation; and (F) The broker did not attempt to avoid learning of the violation. (2) A broker shall not permit licensed and unlicensed persons affiliated with the broker to— (A) Establish and carry on real estate brokerage business for their own benefit, directly or indirectly, where the broker's primary interest is the receipt of a fee or other valuable consideration for the use of the broker's license by others; or (B) Where the broker has no control or only nominal control of the business affairs conducted under the broker's license or is only nominally associated with the business. (3) Appointments of designated agents and designated transaction brokers under section 339.820, RSMo shall be entered into by the designated broker or office manager/supervising broker on behalf of that broker and affiliated licensees. (4) Appointments of designated agents and designated transaction brokers under section 339.820, RSMo shall be made in a written agreement for brokerage services or other written notice to the client or party, unless such appointment is presumed pursuant to section 339.820.1, RSMo. (5) Individual brokers, designated brokers, and office managers/supervising brokers shall not be considered to be a dual agent or a transaction broker solely because such broker makes an appointment under section 339.820, RSMo. However, when such broker supervises the licensees for both sides of a transaction, that broker will be a dual agent or a transaction broker upon learning confidential information about either party to a transaction or upon being consulted by any licensee involved in the transaction. Also, when the broker supervises the licensee representing or assisting one (1) side of the transaction and personally represents or assists the other side, that broker will be a dual agent or a transaction broker.

20 CSR 2250-8.097 Broker Disclosure Form

PURPOSE: This rule implements a statutory requirement that licensees must present agency alternatives to the public using a Broker Disclosure Form prescribed by the Missouri Real Estate Commission. (1) In a residential real estate transaction, at the earliest practicable opportunity during or following the first substantial contact by the designated broker or the affiliated licensees with a seller, landlord, buyer, or tenant who has not entered into a brokerage relationship as described in section 339.710.5, RSMo, the licensee shall provide that person with a written copy of the current Broker Disclosure Form prescribed by the Missouri Real Estate Commission. In any event, a licensee shall provide the party that has not entered into a brokerage relationship as described in section 339.710.5, RSMo, the Broker Disclosure Form upon obtaining any personal or financial information or before the signing of a brokerage service agreement, whichever occurs first. If a landlord's agent or transaction broker is conducting property management pursuant to 20 CSR 2250-8.200, the unlicensed office personnel may, in their performance of the duties enumerated in section 339.010.5(5)(a)-(e), RSMo, provide a tenant with a written copy of the current Broker Disclosure Form prescribed by the commission on behalf of the landlord's agent or transaction broker. (2) The brokerage relationship marked as offered on the Broker Disclosure Form shall correspond to the written office policy adopted by the designated broker pursuant to 339.760.1, RSMo.

20 CSR 2250-8.155 Closing a Real Estate Brokerage Firm

PURPOSE: This rule informs licensees of the procedures they need to follow when closing a real estate firm. (1) Voluntary Closing. (A) A real estate brokerage shall be closed in the following manner. The individual broker or the designated broker shall— 1. Notify the commission in writing on a form prescribed by the commission of the effective date of the closing, the location where the records will be stored, and that all requirements of 20 CSR 2250-8.155(1) have been met; 2. Notify all licensees associated with the brokerage in writing of the effective date of closing. The licenses of any licensees associated with the brokerage at the time of closing must be returned to the commission with the closing statement; 3. Notify all current listing, buyer or tenant agreement, and management contract clients as well as parties and co-brokers to existing contracts, in writing, advising of the date the brokerage will close. All listing, buyer, tenant, and management clients must be advised in writing that they may enter into a new listing, buyer, tenant, or management agreement with the broker of their choice; 4. Remove all advertising signs from all properties which were listed with or managed by the brokerage. Arrange to cancel all advertising in the name of the brokerage, including office signs and telephone listing advertisements; 5. Maintain all escrow or trust accounts until all monies are transferred to a title company, an escrow company, or an attorney for closing of the transaction, or are otherwise properly disbursed as agreed to in writing by the parties having an interest in the funds; and 6. Arrange for pending contracts to be closed by a title company, a lending institution, an escrow company, or an attorney. In the case of a sale, transfer, or merger of an existing brokerage, the acquiring broker may close the pending transactions acquired from the selling broker after having first obtained the express written consent of all parties to the transactions. Notify all parties involved in pending transactions as to the name, address, and telephone number of the closing agent. (2) Revocation/Suspension. (A) Individual Broker or Corporation, Partnership, or Association. Upon the revocation or suspension of an individual broker, corporation, partnership, or association, the individual broker or designated broker shall— 1. Cease all brokerage business immediately upon the effective date of the suspension or revocation order; 2. Notify the commission of the location where records and files will be stored, as well as the name, address, and phone number of the custodian who will be storing the records and files; 3. Notify all licensees associated with the brokerage of the revocation/suspension and return all licenses held by the broker to the commission; 4. Notify all current listing, buyer or tenant agreement, and management contract clients as well as parties and co-brokers to existing contracts, in writing, advising of the date the brokerage will close. All listing, buyer, tenant, and management clients must be advised in writing that they may enter into a new listing, buyer, tenant, or management agreement with the brokerage of their choice; 5. Remove all advertising signs from all properties which were listed with or managed by the brokerage; 6. Cancel or suspend all advertising and telephone listing advertisements. In case of suspension, post a notice of the suspension period on the outside of the office in a prominent location. In case of revocation, the licensee shall remove all office signs visible to the public; 7. Maintain all escrow or trust accounts until all monies are transferred to a title company, a lending institution, an escrow company, or an attorney for closing the transaction, or are otherwise properly disbursed as agreed to in writing by the parties having an interest in the funds; 8. Arrange for pending contracts to be closed by a title company, a lending institution, an escrow company, or an attorney. Notify all parties involved in pending transactions as to the name, address, and telephone number of the closing agent. 9. Notify the commission in writing on a form prescribed by the commission of the location where the records will be stored and that all requirements of 20 CSR 2250- 8.155(2) have been met. (3) Closing as a Result of Death or Disability. Upon the death or disability of an individual broker, or upon the death or disability of one (1) or more of the licensed broker-partners, broker-officers, or broker-associates of a real estate partnership, corporation, or association in which the affairs of the partnership, corporation, or association cannot be carried on, the following procedures shall apply: (A) All licensees associated with the broker, corporation, partnership, or association must cease all brokerage activity until their licenses have been transferred to another broker; and (B) The administrator or executor of the broker's, broker-officer's, broker-partner's, or broker-associate's estate or the legal representative thereof— 1. May, as provided in section 339.040.8, RSMo, apply for a temporary broker license for the sole purpose of concluding pending business; 2. Shall follow the procedures established in section (1) for voluntary closing; and 3. Shall notify the commission in writing on a form prescribed by the commission of the effective date of the closing, the location where the records will be stored, and that all requirements of 20 CSR 2250- 8.155(3) have been met.

20 CSR 2250-8.140 Standard Forms

PURPOSE: This rule instructs a broker as to his/her use and preparation of standard forms approved by counsel. S/he may not complete these forms for a separate charge for persons in which s/he is not acting as a broker, unless s/he is one of the parties to the contract or instrument. (1) When acting as a broker in a transaction, a broker may use current standardized forms including, but not limited to, contracts, agency disclosures, property management agreements, listing agreements, warranty deeds, quit claim deeds, trust deeds, notes, security instruments and leases, prepared or approved by the broker's counsel or by the counsel for a trade association of which the broker is a member or associate member, or by a Missouri state or local bar association and may complete them by filling in blank spaces to show the parties, property description and terms necessary to close the transaction the broker has procured. (2) A real estate broker shall not make a separate charge for completing any standardized forms and shall not prepare those forms for persons in transactions in which s/he is not acting as a broker, unless the broker is one of the parties to the contract or instrument or owns or is employed by an escrow company or closing firm which is handling the closing.

20 CSR 2250-8.110 Licensee's Interest in Transactions; Relationship with Parties

PURPOSE: This rule makes very clear the licensee's responsibility and relationship as an agent. It demands the licensee make declaration of any personal involvement in a transaction in which the licensee might have an interest. It prohibits his/her requiring the parties in a transaction to use the service of any lending, title insurance or other groups. It forbids any forms of related or direct profit on expenditures made for a party in a transaction. The licensee must disclose all material facts regarding the condition of property which s/he is offering for sale or lease. (1) A licensee shall not acquire an interest in, sell, buy, exchange, rent, or lease any real estate, directly or indirectly, without first making the licensee's status as a licensee known in writing to the other parties in the transaction. (2) Before buying, exchanging, selling, or leasing real estate for another party, the licensee shall disclose in writing any ownership which a licensee has or will have and the licensee's status as a licensee to all parties to the transaction. (3) A licensee shall not advise against or discourage the use of the services of an attorney by any party in any real estate transaction. (4) Directed or Controlled Business. (A) Definitions. 1. The term settlement service includes any service provided in connection with a real estate sale, lease, trade, exchange or settlement including, but not limited to, the following: mortgage or other financing, title searches, title examinations, the provision of title certificates, title insurance, hazard insurance, services rendered by an attorney, the preparation of documents, property surveys, the rendering of credit reports or appraisals, pest, fungus, mechanical or other inspections, services rendered by a real estate agent or broker, and the handling of the processing and closing or settlement. 2. The term controlled business arrangement means an arrangement in which a real estate licensee, or an associate of a real estate licensee, has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent (1%) in a provider of settlement services. 3. The term associate means one who has one (1) or more of the following relationships with a real estate licensee: A. A spouse, parent, or child of a real estate licensee; B. A corporation or business entity that controls, is controlled by, or is under common control with a real estate licensee; C. An employer, officer, director, partner, franchisor, or franchisee of a real estate licensee; or D. Anyone who has an agreement, arrangement, or understanding with a real estate licensee, the purpose or substantial effect of which is to enable the real estate licensee to refer settlement business to benefit financially from the referrals of that business. (B) A licensee who has a controlled business arrangement with a provider of settlement services and who, directly or indirectly, refers business to that provider or affirmatively influences the selection of that provider shall disclose the arrangement to the person whose business is referred or influenced. This disclosure shall be given on a separate form and shall be signed by the person whose business is referred or influenced. The disclosure shall be given and signed before or at substantially the same time that the business is referred or the provider is selected. The licensee shall retain a copy of the signed form. The form shall be in at least ten (10)- point type and shall contain the following language: DISCLOSURE OF REFERRAL OF BUSINESS I understand that (Name of Real Estate Licensee) has an affiliate relationship with or owns an interest in (Name of Company to Which Business is Being Referred) and is also recommending that I employ this company for (Type of Service). I realize that (Name of Real Estate Licensee) may earn financial benefits from my use of this company. I understand that I am not obligated to use this company, and may select a different company if I wish to do so. This form has been fully explained to me. ____________________________________ (Date) ____________________________________ (Signature of Person Whose Business is Being Referred) The form may be modified to describe more accurately the nature of the service, the referring entity and the entity receiving the referral, provided that its content and meaning are not changed in substance. (C) A licensee, directly or indirectly, shall not require a party to a real estate sale or lease to use and shall not condition the performance of real estate brokerage services on the use by a party of any particular provider of settlement services. (5) A licensee shall comply in all respects with the requirements of the federal Real Estate Settlement Procedures Act and corresponding regulations, in transactions governed by the law and regulations. (6) An "as is clause" written into a contract for the sale of real estate does not relieve a licensee of the requirements of section 339.100.2(2), RSMo.

20 CSR 2250-8.160 Retention of Records

PURPOSE: This rule mandates that all records relating to each real estate transaction handled by the broker be retained for three (3) years and the broker make them available for commission inspection at all times. (1) Every broker shall retain for a period of at least three (3) years true copies of all business books; accounts, including voided checks; records; contracts; brokerage relationship agreements; closing statements and correspondence relating to each real estate transaction that the broker has handled. The records shall be made available for inspection by the commission and its authorized agents at all times during usual business hours at the broker's regular place of business. No broker shall charge a separate fee relating to retention of records. (2) Every broker shall retain for a period of at least three (3) years true copies of all property management agreements, correspondence or other written authorization relating to each real estate transaction relating to leases, rentals or management activities the broker has handled. The broker must also retain all business books, accounts and records unless these records are released to the owner(s) or transferred to another broker by written detailed receipt or transmittal letter agreed to in writing by all parties to the transaction.

20 CSR 2250-8.070 Advertising

PURPOSE: This rule not only defines advertising, but it also regulates the manner, form, requirements and restrictions imposed on advertising. It prohibits advertising by a salesperson in his/her own name. It explicitly prohibits a free offering of any value in promotional material. Further, it forbids discrimination of any group because of race, creed, color or national origin. (1) Disclosure. (A) A licensee shall not advertise to sell, buy, exchange, rent, lease or manage property in any manner indicating that the offer to sell, buy, exchange, rent, lease or manage the property is being made by a private party not engaged in the real estate business. If any part of the offering, negotiation or completion of a real estate transaction is to be handled by, through or under the direction or supervision of a licensee, directly or indirectly, the licensee shall not advertise or represent to the public in any manner that the property is for sale or lease by the owner. (B) If a licensee advertises to sell, buy, exchange, rent, lease or manage property in which the licensee has an interest, and if the property is not listed by a brokerage entity, the advertisement shall contain, in a prominent fashion, 1 of the following: 1. By owner-broker; 2. By owner-salesperson; or 3. By owner-agent. (C) Nothing in this section shall be construed to eliminate the disclosure requirements found elsewhere in these rules, including those contained in 20 CSR 2250-8.110. (2) No real estate advertisement by a licensee shall show only a post office box number, telephone number or street address. Every advertisement of real estate by a licensee shall contain the broker's regular business name or the name under which the broker or the broker's firm is licensed and shall indicate that the party advertising is a real estate broker and not a private party. (3) Every advertisement of real estate by a licensee where the licensee has no interest in the real estate shall be made under the direct supervision and in the name of the broker or firm who holds the licensee's license. If the licensee's name or telephone number, or both, is used in any advertisement, the advertisement also shall include the name and telephone number of the broker or firm who holds the licensee's license. (4) No licensee shall advertise to buy, sell, rent, lease, manage or exchange property in any manner that indicates, directly or indirectly, any unlawful discrimination against any individual or group because of race, color, religion, national origin, ancestry, sex, handicap or familial status. (5) Guaranteed Sales. (A) As used in this rule, the term guaranteed sales plan includes, but is not limited to: i) any plan in which a seller's real estate is guaranteed to be sold, or ii) any plan where a licensee or anyone affiliated with a licensee will purchase a seller's real estate if it is not purchased by a third party in the specified period of a listing or within some other specified period of time. (B) Any written advertisement by a licensee of a guaranteed sales plan shall include a statement advising the seller that if the seller is eligible, costs and conditions may apply and advising the seller to inquire of the licensee as to the terms of the guaranteed sales agreement. This information shall be set forth in print at least one-fourth (1/4) as large as the largest print in the advertisement. (C) Any radio or television advertisement by a licensee of a guaranteed sales plan shall include a conspicuous statement advising if any conditions and limitations apply. (D) Every guaranteed sales agreement must be in writing and contain all of the conditions and other terms under which the property is guaranteed to be sold or purchased, including the charges or other costs for the service or plan, the price for which the property will be sold or purchased and the approximate net proceeds the seller may reasonably expect to receive.

20 CSR 2250-8.096 Brokerage Relationship Confirmation

PURPOSE: This rule outlines requirements for a brokerage relationship confirmation. (1) Licensees acting with or without a written agreement for brokerage services pursuant to sections 339.710 to 339.860, RSMo, are required to have such relationships confirmed in writing by each party to the real estate transaction on or before such party's first signature to the real estate contract. Nothing contained herein prohibits the written confirmation of brokerage relationships from being included or incorporated into the real estate contract, provided that any addendum or incorporated document containing the written confirmation must include a separate signature section for acknowledging the written confirmation that shall be signed and dated by each party to the real estate transaction. (A) Written confirmation must— 1. Identify the licensee's brokerage relationship; 2. Identify the source or sources of compensation; 3. Confirm that the brokerage relationships, if required by rule or regulation, were disclosed to the seller/landlord and/or buyer/tenant or their respective agents and/or transaction brokers no later than the first showing, upon first contact, or immediately upon the occurrence of any change to that relationship; 4. Confirm the seller's/landlord's and buyer's/tenant's receipt of the Broker Disclosure Form prescribed by the commission; 5. Be signed and dated by the seller/landlord and buyer/tenant. If the landlord has entered into a written property management agreement pursuant to 20 CSR 2250-8.200-20 CSR 2250-8.210, the landlord shall not be required to sign the written confirmation; and 6. Be signed and dated by the disclosing licensees on or before the contract date. If a landlord's agent or transaction broker is conducting property management pursuant to 20 CSR 2250-8.200-20 CSR 2250-8.210, the unlicensed office personnel may, in their performance of the duties enumerated in 339.010.5(5)(a)-(e), sign the written confirmation on behalf of the landlord's agent or transaction broker. (B) A signed copy shall be given to the seller/landlord and buyer/tenant and a signed copy shall be retained by the disclosing licensee's broker. If any party to the real estate transaction refuses to sign the confirmation, the licensee working with that party pursuant to 339.710 to 339.860, RSMo, shall set forth, sign and date a written explanation of the facts of refusal and the explanation shall be retained by the licensee's broker. (2) In a commercial real estate transaction where the real estate contract is prepared by legal counsel for the seller/landlord or buyer/tenant, the written confirmation by the party or parties who are represented by legal counsel shall not be required.

20 CSR 2250-8.230 Security Deposits: Disputes

PURPOSE: This rule points out that disputes over security deposits are governed by other law. (1) The return of security deposits to lessees and disputes with lessees are governed by section 535.300, RSMo and any other applicable law.

20 CSR 2250-8.130 Earnest and Escrow Money; Disputes

PURPOSE: This rule prohibits acceptance of nonnegotiable securities as earnest money without the knowledge and consent of the owner. In the event of a dispute over the return of an earnest money deposit, it instructs the broker as to its proper disposition. (1) A broker shall not accept any note, nonnegotiable instrument or anything of value not readily negotiable as earnest money in a transaction without the signed, written consent of the owner of the real estate. (2) In the event a dispute arises concerning the return or forfeiture of any monies or other valuables held by a broker in escrow, the broker shall continue to retain the money or valuables in escrow until a written release is obtained from all parties consenting to its disposition or until a civil action is filed to determine its disposition at which time payment may be made into the court. However, in the absence of a pending civil action or written release and upon passage of sixty (60) days from the date of the dispute, a broker may disburse escrow monies or valuables to either party to the transaction based upon a good faith decision by the broker that the opposite party has failed to perform as agreed, but this disbursement shall only be made after the broker has given fifteen (15) days' written notice by certified mail to all parties concerned at their last known address setting forth the broker's proposed action. The commission will not take disciplinary action against a broker who in good faith disburses escrow monies or other valuables pursuant to this rule; however, nothing in this rule relieves a broker of any civil action which the damaged party may file in a court of law nor does this rule require a broker to remove money or other valuables from the broker's escrow account when disposition is disputed by the parties.

20 CSR 2250-8.030 Branch Offices

PURPOSE: This rule qualifies a branch office and stipulates who may manage and direct same. (1) If a broker maintains a branch office(s), each shall be operated under the same name and license as the parent office and every such place of business shall comply with the provisions of 20 CSR 2250-8.010. (2) Project sales, leasing, or management offices maintained on-site in an apartment building, development project, duplex, apartment complex, court, office building, shopping center, or industrial development are not required to be registered as branch offices. (3) A branch office shall be under the direct supervision of either a licensed broker, broker-salesperson, or a broker-partner, broker-associate, or broker-officer of the principal licensed broker; provided that nothing contained in this rule shall be construed to relieve the principal licensed broker from responsibility for all brokerage activities conducted at the branch office. Nothing in this section shall be construed as to prohibit the office manager from engaging in the listing and sale of real estate. (4) A broker shall notify the commission, in writing, within ten (10) days after opening or making any change in the address or managing licensee of a branch office.

20 CSR 2250-8.200 Management Agreement Required

PURPOSE: This rule regulates the employment contract between a broker and a member of the public so that the public will know what s/he may expect from the licensee who is managing the leasing or rental of real estate. (1) When managing property a licensee shall not rent or lease, offer to rent or lease, negotiate, or offer or agree to negotiate, the rent or lease, list or offer to list for lease or rent, assist or direct in procuring of prospects calculated to result in the lease or rent, assist or direct in the negotiation of any transaction calculated or intended to result in the lease or rent, or show that property to prospective renters or lessees unless the licensee's broker holds a current written property management agreement or other written authorization signed by the owner of the real estate or the owner's authorized agent. (2) A licensee who is managing the leasing or rental of real estate shall not act as an agent in the sale or exchange of that real estate unless the licensee complies with the requirements of 20 CSR 2250-8.090.

20 CSR 2250-8.220 Escrow or Trust Account and a Separate Property Management Escrow Account Required

PURPOSE: This rule removes any uncertainty as to how monies received in connection with the management or rental of real estate are required to be maintained. A broker must establish and maintain a separate escrow account as a property management escrow account to act as an operating account for the rental property(ies) managed. A broker must deposit in this account current rents and monies received for payments to third parties. A broker may establish and maintain additional property management escrow accounts as needed, provided the broker complies with this rule and section 339.105, RSMo. A broker is also required to deposit into an escrow account, other than the property management escrow account, security deposits and any rent, other than current rent, and to maintain these funds intact. This rule also requires a salesperson to immediately deliver to the broker money received in connection with property management. This rule makes other specific requirements for the handling of escrowed funds. (1) A broker shall establish and maintain a separate escrow account(s), to be designated as a property management escrow account(s), for the deposit of current rents and money received from the owner(s) or on the owner's(s') behalf for payment of expenses related to property management. Before making disbursements from a property management escrow account, a broker shall ensure that the account balance for that owner's(s') property(ies) is sufficient to cover the disbursements. (2) All security deposits held by a broker shall be maintained, intact, in an escrow account other than the property management account(s), pursuant to section 339.105, RSMo, unless the owner(s) have agreed otherwise in writing. (3) All money received by a broker in connection with any property management must be deposited within ten (10) banking days to the escrow or trust account maintained by the broker. (4) A property manager shall immediately deliver to the supervising broker all money received in connection with any property management. (5) The property management escrow account(s) maintained by the broker shall be an account in a bank, savings and loan, or credit union. (6) Fees or commissions payable to a broker must be withdrawn from a property management escrow account at least once a month unless otherwise agreed in writing. Any rent paid in advance as a deposit for the last month's rent or as rent other than the current month's rent held by a broker shall be deposited in the property management escrow account unless otherwise agreed to in writing. (7) In addition to the notification required by section 339.105.2, RSMo, each broker, upon the request of the commission or its agent, shall consent to the examination and audit of the broker's property management escrow account(s) by the commission or its agent. As part of the consent, each broker shall execute a form presented to him/her by the commission or its agent entitled Consent to Examine and Audit Escrow or Trust Account. (8) Each check written on an escrow account, or each corresponding check stub, or other record of disbursement of funds from the account and each deposit ticket shall indicate the related transaction. Each check written on an escrow account for licensee fees or commission shall be made payable to the licensee who is owed the fee or commission or to the firm's general operating account.

20 CSR 2250-8.120 Deposits to Escrow or Trust Account

PURPOSE: This rule requires all earnest money be deposited in a noninterest bearing escrow account not later than ten (10) banking days next following the execution of a contract. If the account is interest-bearing, all parties must be made aware. A salesperson must immediately deliver to the broker all money received in connection with a transaction in which s/he is engaged. (1) All money received by a licensee as set out in section 339.100.2(1), RSMo shall be deposited in the escrow or trust account maintained by the broker no later than ten (10) banking days following the last date on which the signatures or initials, or both, of all the parties to the contract are obtained, unless otherwise provided in the contract. Earnest money received prior to acceptance of a written contract may be deposited into the escrow account by the broker with the written authorization of the party(ies) providing the funds. (2) A licensee shall immediately deliver to the broker with whom affiliated all money received in connection with a real estate transaction in which the licensee is engaged. (3) The escrow or trust account maintained by a broker, as required by the license law, shall be a checking account in a bank, savings and loan, or credit union. If the escrow or trust account maintained by a broker is an interest-bearing account, the broker shall disclose in writing to all parties to the transaction that the account is interest-bearing and the disclosure shall indicate who is to receive the interest. (4) Each broker shall deposit into the escrow or trust account all funds coming into the broker's possession as set out in section 339.100.2(1), RSMo, including funds in which the broker may have some future interest or claim and including, but not limited to, earnest money deposits, prepaid rents, security deposits, loan proceeds, and funds paid by or for the parties upon closing of the transaction. No broker shall commingle personal funds or other funds in the broker's escrow account except to the extent provided by section 339.105.1, RSMo. Commissions payable must be removed from the escrow account at the time the transaction is completed. After the transaction is completed, interest payable shall be disbursed to the appropriate party(ies) from the escrow account no later than ten (10) banking days following the receipt of the next statement of the escrow account. When the licensee receives all interest earned, interest payable to a licensee must be removed from the escrow account within ten (10) banking days following the receipt of the next statement of the escrow account. (5) In addition to the notification required by section 339.105.2, RSMo, each broker shall consent upon the request of the commission or its agent to the examination and audit of the broker's escrow or trust account by the commission or its agent. As part of the consent, each broker, upon opening any additional account(s), shall execute a form entitled Consent to Examine and Audit Escrow or Trust Account. (6) Each check written on an escrow account or each corresponding check stub, or other record of disbursement of funds from the account and each deposit ticket shall indicate the related real estate transaction(s). Each check written on an escrow account for commission shall be made payable to the licensee to whom the commission is owed or to the firm's general operating account. (7) The designated broker and the branch office manager shall be responsible for the maintenance of the escrow account and shall ensure the brokerage's compliance with the statutes and rules related to the brokerage escrow account(s).

20 CSR 2250-8.150 Closings and Closing Statements

PURPOSE: This rule requires that a broker deliver a closing statement, containing a complete, accurate and detailed statement showing all receipts and disbursements at the time a contract is consummated to the interested party. If the closing is handled by anyone other than the broker, it is the listing broker's responsibility to deliver the closing statement to the buyer and seller. (1) Every broker shall deliver or cause to have delivered to the buyer and the seller in every real estate transaction where s/he acts as a broker, at the time the transaction is consummated, a complete, accurate and detailed statement showing all material financial aspects of the transaction, including the true sale price, the earnest money received, any mortgages or deeds of trust of record, all money received by the broker in the transaction, the amount, and payee(s) of all disbursements made by the broker. If the buyer and seller are represented by different brokers, it shall be the responsibility of the listing broker to deliver, or cause to have delivered, the closing statements. If a broker personally handles a closing, on the day of closing the broker shall sign and date the closing statement. (2) A broker may arrange for a closing to be administered by a title company, an escrow company, a lending institution or an attorney, in which case the broker shall not be required to sign the closing statement; however, it shall remain each broker's responsibility to require closing statements to be prepared, to review the closing statements to verify their accuracy and to deliver the closing statements to the buyer and the seller or cause them to be delivered. The detailed closing statement shall contain all material financial aspects of the transaction, including the true sale price, the earnest money received, any mortgages or deeds of trust of record, all monies received by the broker, closing agent or company in the transaction, the amount, and payee(s) of all disbursements made by the broker, closing agency or company and the signatures of the buyer and seller. (3) The brokers for the buyer and the seller shall retain legible copies of both buyer's and seller's signed closing statements. (4) A salesperson shall not conduct the closing of any real estate transaction except under the direct supervision of the manager or broker with whom the salesperson is associated

20 CSR 2250-8.090 Brokerage Service Agreements

PURPOSE: This rule requires that a listing agreement be in writing and that a copy of the agreement be delivered to the owner before a broker may advertise or place a sign on the property. The agreement must contain all terms, conditions, a definite expiration date, and signatures of all parties. All information contained on the agreement shall be carefully investigated for accuracy by the listing agent. In a cooperative listing, the selling broker shall be presumed to be a subagent of the listing broker. (1) A licensee shall not advertise or place a sign upon any property offering it for sale or lease to prospective customers without the written consent of the owner or his or her duly authorized agent. (2) A licensee shall not show residential property unless a broker holds a currently effective written seller's/lessor's agency agreement, seller's/lessor's transaction brokerage agreement, or other written authorization to show. (3) In a commercial real estate transaction, a brokerage service agreement prepared by legal counsel for the client/customer to be represented or assisted shall not be subject to the provisions of 20 CSR 2250-8.090(4)-(7). (4) Seller's/Lessor's Agency (Sale/Lease Listing) Agreement. (A) Every written listing agreement or other written agreement for brokerage services shall contain all of the following: 1. The price; 2. The commission to be paid (including any and all bonuses); 3. A definite beginning date; 4. An expiration date; 5. The licensee's duties and responsibilities; 6. A statement which permits or prohibits the designated broker from offering subagency; 7. A statement which permits or prohibits the designated broker and/or affiliated licensee from acting as a disclosed dual agent and if permitted, the duties and responsibilities of a dual agent; 8. A statement which permits or prohibits the designated broker and/or affiliated licensee from acting as a transaction broker and if permitted, the duties and responsibilities of a transaction broker; 9. Specification of whether or not the designated broker is authorized to cooperate with and compensate other designated brokers acting pursuant to any other brokerage relationship as defined by 339.710 to 339.860, RSMo, including but not limited to buyer's agents and/or transaction brokers; 10. A statement which confirms that the seller/lessor received the Broker Disclosure Form prescribed by the commission: a) on or before the signing of the seller's agency agreement, or b) upon the licensee obtaining any personal or financial information, whichever occurs first; 11. The signatures of all owners and the listing broker or listing agent as authorized by the broker; 12. The type of listing; 13. The legal description or the complete street address of the property, which includes the city where the property is located; or, in the absence of a legal description or address, a clear description which unmistakably identifies the property; and 14. All other terms and conditions under which the property is to be sold, leased, or exchanged. (B) The agreement shall contain no provision requiring an owner to notify the broker of intent to cancel the listing after the expiration date. (C) Any addendums, riders, endorsements, attachments, or changes to the listing agreement or other written agreement for brokerage services must contain the initials of all parties. (D) The licensee shall give a legible copy of every written listing agreement or other written agreement for brokerage services to the owner of the property at the time the signature of the owner is obtained. (E) A licensee shall not negotiate or enter into a brokerage service agreement with an owner if the licensee knows, or has reason to know, that the owner has a written unexpired exclusive brokerage service agreement as to the property with another broker, unless the owner initiates the discussion and provided the licensee has not directly or indirectly solicited the discussion, in which case the licensee may negotiate and enter into an agreement which will take effect after the expiration of the current agreement. (F) No licensee shall make or enter into a net listing agreement for the sale or lease of real property or any interest in real property; this agreement is defined as one that stipulates a net price to be received by the owner with the excess over that price to be received by the broker as commission. (G) A listing agreement or other written agreement for brokerage services may not be assigned, sold, or otherwise transferred to another broker without the express written consent of all parties to the original agreement. (5) Buyer's/Tenant's Agency Agreement. (A) Every written buyer or tenant authorization shall contain all of the following: 1. A description of the type of property sought by the buyer or tenant; 2. The commission or fee to be paid (including any and all bonuses); 3. A definite beginning date; 4. An expiration date; 5. The licensee's duties and responsibilities; 6. A statement which permits or prohibits the designated broker from offering subagency; 7. A statement which permits or prohibits the designated broker and/or affiliated licensee from acting as a disclosed dual agent and if permitted, the duties and responsibilities of a dual agent; 8. A statement which permits or prohibits the designated broker and/or affiliated licensee from acting as a transaction broker and if permitted, the duties and responsibilities of a transaction broker; 9. Specification of whether or not the designated broker is authorized to cooperate with and compensate other designated brokers acting pursuant to any other brokerage relationship as defined by 339.710 to 339.860, RSMo, including but not limited to seller's agents and/or transaction brokers; 10. A statement which confirms that the buyer received the Broker Disclosure Form prescribed by the commission: a) on or before the signing of the buyer's agency agreement, or b) upon the licensee obtaining any personal or financial information, whichever occurs first; 11. The signatures of the buyers or tenants and the broker or agent as authorized by the broker; 12. The type of agreement; and 13. All other terms and conditions prescribed by the buyers or tenants. (B) The agreement shall contain no provision requiring a buyer or tenant to notify the broker of intent to cancel the agreement after the expiration date. (C) Any addendums, riders, endorsements, attachments, or changes to the agreement or other written authorization must contain the initials of all parties. (D) The licensee shall give a legible copy of every written agreement or other authorization to the buyer or tenant at the time the signatures are obtained and a copy of the written authorization shall be retained in the broker's office. (E) A licensee shall not negotiate or enter into a brokerage service agreement with a buyer or tenant if the licensee knows, or has reason to know, that the buyer or tenant has a written unexpired exclusive agreement with another broker, unless the buyer or tenant initiates the discussion and provided the licensee has not directly or indirectly solicited the discussion, in which case the licensee may negotiate and enter into an agreement which will take effect after the expiration of the current agreement. (F) A buyer or tenant agency agreement may not be assigned, sold, or otherwise transferred to another broker without the express written consent of all parties to the original buyer or tenant agency agreement. (6) Transaction Brokerage Agreement Between Broker and Seller/Lessor. (A) Every written seller's or lessor's transaction brokerage agreement shall contain all of the following: 1. The price; 2. The commission to be paid (including any and all bonuses); 3. A definite beginning date; 4. An expiration date; 5. The licensee's duties and responsibilities; 6. The signatures of all owners and the broker or affiliated licensee as authorized by the broker; 7. The type of agreement; 8. The legal description or the complete street address of the property, which includes the city where the property is located; or, in the absence of a legal description or address, a clear description which unmistakably identifies the property; 9. All other terms and conditions under which the property is to be sold, leased, or exchanged; 10. Specification of whether or not the designated broker is authorized to cooperate with and compensate other designated brokers acting pursuant to any other brokerage relationship as defined by 339.710 to 339.860, RSMo, including but not limited to buyer's agents and/or other transaction brokers; and 11. A statement which confirms that the seller/lessor received the Broker Disclosure Form prescribed by the commission: a) on or before the signing of the transaction brokerage agreement, or b) upon the licensee obtaining any personal or financial information, whichever occurs first. (B) The agreement shall contain no provision requiring an owner to notify the broker of intent to cancel the agreement after the expiration date. (C) Any addendums, riders, endorsements, attachments, or changes to the agreement must contain the initials of all parties. (D) The licensee shall give a legible copy of every written agreement to the owner of the property at the time the signature of the owner(s) is obtained. (E) A licensee shall not negotiate or enter into a brokerage service agreement with an owner if the licensee knows, or has reason to know, that the owner has a written unexpired exclusive brokerage service agreement as to the property with another broker, unless the owner initiates the discussion and provided the licensee has not directly or indirectly solicited the discussion, in which case the licensee may negotiate and enter into an agreement which will take effect after the expiration of the current agreement. (F) No licensee shall make or enter into a net agreement for the sale or lease of real property or any interest in real property; this agreement is defined as one that stipulates a net price to be received by the owner with the excess over that price to be received by the broker as commission. (G) Transaction brokerage agreements may not be assigned, sold, or otherwise transferred to another broker without the express written consent of all parties to the original transaction brokerage agreement. (7) Transaction Brokerage Agreement Between Broker and Buyer/Tenant. (A) Every written buyer's or tenant's transaction brokerage agreement shall contain all of the following: 1. A description of the type of property sought by the buyer or tenant; 2. The commission or fee to be paid (including any and all bonuses); 3. A definite beginning date; 4. An expiration date; 5. The licensee's duties and responsibilities; 6. The signatures of the buyers or tenants and the broker or affiliated licensee as authorized by the broker; 7. The type of agreement; 8. All other terms and conditions prescribed by the buyers or tenants; 9. Specification of whether or not the designated broker is authorized to cooperate with and compensate other designated brokers acting pursuant to any other brokerage relationship as defined by 339.710 to 339.860, RSMo, including but not limited to seller's agents and/or other transaction brokers; and 10. A statement which confirms that the buyer received the Broker Disclosure Form prescribed by the commission: a) on or before the signing of the transaction brokerage agreement, or b) upon the licensee obtaining any personal or financial information, whichever occurs first. (B) The agreement shall contain no provision requiring a buyer or tenant to notify the broker of intent to cancel the agreement after the expiration date. (C) Any addendums, riders, endorsements, attachments, or changes to the agreement must contain the initials of all parties. (D) The licensee shall give a legible copy of every written agreement or other authorization to the buyer or tenant at the time the signatures are obtained and a copy of the agreement shall be retained in the broker's office. (E) A licensee shall not negotiate or enter into a brokerage service agreement with a buyer or tenant if the licensee knows, or has reason to know, that the buyer or tenant has a written unexpired exclusive agreement with another broker, unless the buyer or tenant initiates the discussion and provided the licensee has not directly or indirectly solicited the discussion, in which case the licensee may negotiate and enter into an agreement which will take effect after the expiration of the current agreement. (F) Transaction brokerage agreements may not be assigned, sold, or otherwise transferred to another broker without the express written consent of all parties to the original transaction brokerage agreement. (8) Other Written Authorization. Written authorization to show residential property without an agency agreement or transaction brokerage agreement with the owner/landlord must contain all of the following: (A) A definite beginning date; (B) An expiration date; (C) The signatures of all owners or landlords and the broker or licensee as authorized by the broker; (D) The legal description or the complete street address of the property, which includes the city where the property is located; or, in the absence of a legal description or address, a clear description which unmistakably identifies the property; (E) Permission to enter and show the property; (F) The commission or fee to be paid (including any and all bonuses); (G) All other terms and conditions prescribed by the owners or landlords; (H) Any addendums, riders, endorsements, attachments, or changes to the written authorization must contain the initials of all parties; and (I) A statement which confirms that the owner or landlord received the Broker Disclosure Form prescribed by the commission: a) on or before the signing of the other written authorization, or b) upon the licensee obtaining any personal or financial information, whichever occurs first. (9) Every written property management agreement or other written authorization between a broker and the owners of the real estate shall: (A) Identify the property to be managed; (B) State the amount of fee or commission to be paid and when the fee or commission will be paid; (C) Specify whether security deposits and prepaid rents will be held by the broker or the owner; (D) Contain the beginning date of the agreement; (E) Provide the terms and conditions for termination of the property management agreement by the broker or the owner of the property; (F) Include the licensee's duties and responsibilities; (G) Contain a statement which permits or prohibits the designated broker from offering subagency (not applicable for transaction broker agreements); (H) Contain a statement which permits or prohibits the designated broker and/or affiliated licensee from acting as a disclosed dual agent and if permitted, the duties and responsibilities of a dual agent; (I) Contain a statement which permits or prohibits the designated broker and/or affiliated licensee from acting as a transaction broker and if permitted, the duties and responsibilities of a transaction broker; (J) Include specification of whether or not the designated broker is authorized to cooperate with and compensate other designated brokers acting pursuant to any other brokerage relationship as defined by sections 339.710 to 339.860, RSMo, including but not limited to tenant's agents and/or transaction brokers; (K) Contain a statement which confirms that the landlord received the Broker Disclosure Form prescribed by the commission: 1. On or before the signing of the brokerage relationship agreement; or 2. Upon the licensee obtaining any personal or financial information, whichever occurs first; (L) Contain the signatures of all the owners and the broker or affiliated licensee as authorized by the broker; and (M) Any addendums, riders, endorsements, or attachments to the property management agreement or other written authorization between a broker and the owners of the real estate shall contain the signatures of all the owners and the broker or affiliated licensee as authorized by the broker. (10) The licensee shall give to the owner or the owner's authorized agent a legible copy of every written property management agreement or other written authorization at the time the signature of the owner is obtained. The licensee's broker shall retain a copy of the written property management agreement or other written authorization and a signed copy of any addendums, riders, endorsements, or attachments to the written property management agreement or other written authorization.

20 CSR 2250-8.080 Franchises; Trade Names; Insignia

PURPOSE: This rule sets forth the requirements that the use of a trade name in advertising must be clearly revealed that the broker owns and operates the entity and, if the franchisor has no legal liability, that must also be revealed on all documents. (1) If a broker maintains any business relationship or affiliation, whether by franchise agreement, contract or otherwise, with another organization and uses the name, trade name or insignia of the other organization in any manner in real estate advertising, the broker shall furnish the commission a copy of the franchise agreement or contract and such other related information as the commission may require. (2) If the franchise agreement or contract under which a broker is operating provides that the franchisor or owner of the trade name or insignia has no legal liability for the actions of the broker using the trade name or insignia, the broker shall include in all listing agreements, contracts for sale and closing statements a clear and explicit statement to that effect in type reasonably calculated to gain the attention of the reader of the document.

20 CSR 2250-8.170 General

PURPOSE: This rule stipulates the commission's authority to present a complaint to the Administrative Hearing Commission against any licensee who is acting in any manner inimical to the public interest. (1) Failure of a licensee to respond in writing, within thirty (30) days from the date of the commission's written request or inquiry, mailed to the licensee's address currently registered with the commission, will be sufficient grounds for taking disciplinary action against that licensee.

Earnest Money - Deposits to Escrow or Trust Account

Quick Review: In Missouri, the terms "escrow account" and "trust account" are very similar in meaning. In both cases, these are accounts where money belonging to other persons is deposited and held separately for future disbursement upon completion of a contract. -Brokers use an "escrow account" for depositing buyer's earnest money held as good faith for a transaction. So, the earnest money is considered "escrow money." -A "trust account" is associated with security deposit money held by a property management company. This money is held in trust for the tenant until he or she moves out. It is refunded to the tenant if terms of the lease are fulfilled. The same rules apply for escrow and trust accounts.

Business Conduct & Practices - Professional Assistants

The activities of unlicensed clerical or office employees of a broker shall be limited to the duties normally attributed to those positions. Unlicensed persons shall not do, or attempt to do, any of the activities that require a license.

A broker hires an unlicensed receptionist and instructs her to give information regarding listings to anyone who calls during the lunch hour, if there are no sales agents in the office. The broker

is in violation of MREC rules by instructing the receptionist to give the listing information

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

is mailed to the broker

A broker-associate is the sales manager at a branch office with over fifty sales agents. The main office, managed by the principal broker, has seventy-five sales agents. One of the salespersons working at the branch office has been found guilty of a violation of chapter 339 of the Missouri statutes. Could the principal broker be held responsible for the sales agent's actions?

Yes. Even if the sales agent is not under direct supervision, the principal broker could be held responsible for activities that occur at the branch office

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

can perform clerical tasks

The licenses of all licensees in a brokerage firm shall be

displayed to any member of the public on request Next question

A real estate brokerage has 1,000 agents split between the main office and one branch office. The branch office is managed by a broker-associate. The broker-associate takes a six-month leave of absence. Because the broker-associate will be returning to his position, the principal broker oversees the operation of the branch office by visiting the branch for an hour every third day, time permitting. In this situation

the broker only has nominal control over the branch office and is in violation of Missouri 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

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 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 or work permit from the MREC