STATE RE-TEST QUESTIONS
A broker may act as a dual agent in which circumstance? A » If the seller is aware of it B » If the buyer is aware of it C » If both seller and buyer give prior informed consent D » Under no circumstances
C
A buyer makes an offer on a property with some earnest money now and some to follow later. What should the licensee do? A » Pay the difference ahead of time to the broker personally B » Encourage the seller to take the smaller amount of earnest money only C » Write the offer as is with the extra earnest money to follow later D » Not present the offer until the extra earnest money is received
C
A female salesperson was talking with a friend at lunch. The friend mentioned that she was looking to possibly buy some real estate. The salesperson then told the friend that her own property was currently for sale. The friend then decided to purchase the salesperson`s property. The salesperson would have to disclose of the license to the friend: A » in writing prior to closing as verbal disclosure of the license had been given at the lunch meeting B » verbally only C » in writing prior to the signing of the contract D » verbally and in writing prior to the contract
C
A person has passed the pre-license test but has not yet received a license. Which of the following could that person NOT do? A » Collect rent B » Type advertising copy and call it into a local newspaper C » Give the address of a listed property to a buyer D » Deposit money into a broker`s escrow account
C
A person in Missouri attended a pre-license class, passed the test and received a license. After a few months, the licensee decided to place their license on an inactive status. Two years later, the licensee decided to reactivate their license. What must the licensee do in order to reactivate? A » Do nothing, as two years automatically reinstates a license to active status B » Attend a pre-license class for their type of license and apply to the MREC within 90 days C » Attend a practice class and apply to the MREC within 6 months D » Take the required continuing education for the past two years and then apply to the MREC
C
A salesperson told a buyer that the air conditioner would stay with the house. However, he had NOT checked it out with the seller. After closing, the seller took the air conditioner. Which would happen? A » He would have to pay for the air conditioner B » The MREC would automatically revoke his license C » The MREC can take disciplinary action or dismiss a complaint if filed D » The buyer would have to look to the seller for relief
C
An agent was working with a buyer. The agent explained agency to the buyer and presented the buyer with an agency disclosure form as part of a sales contract for the buyer to sign. However, the buyer refused to sign. What should the agent do? A » Refuse to work with the buyer B » Inform the seller of the situation C » Make a note and give to the broker to be kept in the files D » Refer the buyer to another agent
C
One person who owned a company specializing in negotiating sales for buyers and sellers had incorporated the business with that person as the sole officer. The company does not list or sell properties. Does that person need a real estate license to do this? A » No, as the company was not listing property B » No, as the corporation would have the broker`s license C » Yes, the owner would need a broker-officer license D » Yes, the owner would need an individual broker`s license
C
Seller Carr instructed Agent Dole to inform buyers that the plumbing was in excellent shape. However, the plumbing was needing repair. Dole followed the owner`s orders. What can happen in this case? A » Dole can go to prison B » Dole has done nothing wrong as he was following the owner`s orders C » Dole is subject to license revocation D » Carr is subject to discipline by the MREC
C
The MREC may suspend or revoke a broker`s license for each of the following acts EXCEPT: A » NOT giving the seller a copy of the signed listing agreement B » writing up dual contracts C » declaring bankruptcy D » failing to supervise a salesperson who is an independent contractor
C
Which is true regarding the responsibilities of the MREC and the Administrative Hearing Commission (AHC)? A » The MREC MUST send all complaints to the AHC B » The MREC may revoke the license of a person if it believes a legitimate complaint has been made without further hearings from any other body C » The AHC must find the licensee guilty before the MREC can revoke the license D » The AHC makes NO recommendations to the MREC regarding punishment of licensees
C
Which of the following does a broker NOT have to keep for the MREC auditors? 1. Listings 2. Contracts 3. Advertising copy 4. Closing statements
C
Which of the following would be an activity of the Administrative Hearing Commission (AHC)? A » To investigate a claim of wrongdoing against a licensee B » To submit serious law violations of a licensee to the attorney general C » To determine whether a licensee had committed a license law violation D » Fine licensees according to the severity of the act committed
C
Which of the following activities would be a violation of the Missouri License Law? A » Opening a trust account with the broker`s own money B » Depositing trust account funds in the broker`s personal account C » Depositing trust account funds in the trust account D » Opening up a separate trust account for each office
B
A complaint had been filed against a salesperson. However, the salesperson was in the process of switching to another broker. Which of the following is true regarding this situation? A » The salesperson must disclose all information about the complaint to the new broker B » The salesperson must wait 60 days to transfer to another company C » The salesperson must wait 45 days to transfer to another company D » The complainant would get a written record of the salesperson`s answer to the complaint
D
A person is applying for a license who earlier was found guilty of embezzlement. Which is true? A » He could NOT sit for the exam B » He could NOT take the schooling C » He could receive a suspended license D » The MREC may later refuse to issue him a license
D
A salesperson was involved in a transaction that consisted of a 6 month lease and an option to purchase. Which of the following statements best describes how the salesperson should handle the documents? A » Fill in the lease but not the option B » Send the documents to an attorney and have the attorney prepare the forms C » Fill in the option but not the lease as the lease was for 6 months or less D » Fill in both the lease and the option on standard forms and take to the broker for review
D
Which of the following statements is true regarding a salesperson`s activities while the salesperson is in the process of changing brokers? A » A salesperson can continue dealing in real estate if the broker to whom the salesperson is transferring is sent a notice by certified mail certifying to the transfer B » A salesperson can continue dealing in real estate if written notification (temporary work permit) of application being processed is issued by the MREC C » A salesperson can continue dealing in real estate if the salesperson`s original broker signs a transfer request which is taken to the new broker D » A salesperson must cease all activities until the transfer is complete
B
Non-licensee practicing real estate is guilty of a class
B misdemeanor
The temporary broker CAN/CANNOT continue to run the office
cannot
A broker started a real estate company wanting to use the name ABC Realty. What is true regarding this situation? Must the broker send a copy to the MREC or file a request?
copy only
The _____________ investigates wrongdoings.
MREC
Who is the only one that can issue a work permit?
MREC
Only the ____________ or ____________ can fine licensees.
MREC, courts
Can a broker contact a seller while the seller is currently under a listing agreement with a different broker.
NO
Broker A received an offer of 189k on a 200k listing. After the seller gave the offer to his attorney to review, another offer for 176k came in. What should the broker do?
Present immediately
Whether obtaining a new license or transferring, as long as a ___________ __________ has been issued by the MREC, then that person can perform real estate activities.
Work permit
The MREC only sends complaints to the AHC if the MREC believes
a violation has occurred
An unlicensed person may (A) collect rent, (B) type advertising copy or (C) deposit money into escrow? Or can they do all?
all
A second offer is only to be presented as a backup if the first offer has been
already accepted
The MREC can ALWAYS/NEVER investigate, even if the complaint was not put in writing.
always
In order for a broker to use a trade name, a request and approval must be given by the
secretary of state
The MREC can follow up on an oral complaint, but does not have to. t/f
t
The MREC can only revoke a license after the AHC has had a hearing and made such a recommendation. t/f
t
The MREC cannot take any disciplinary action until the AHC makes recommendations. t/f
t
There is no law that says the salesperson would HAVE to pay for the air conditioner. t/f
t
The purpose of a temporary broker is to ________________ or _______________the transactions that are awaiting closing.
terminate, close
A person in Missouri selling or leasing property for others does/does not require a Missouri license, regardless of where the property is located.
does
The law does not require a salesperson to disclose this information to a new broker. The law does/does not require a salesperson to disclose this information to a new broker?
does not
Brokers can never give ___________ advice
legal
One can sell or lease one`s own property without a
license
If a complaint is filed against a licensee, the one who filed the complaint would receive a record of the _____________ _______________.
licensee's response
Can a temporary broker finish selling listings?
no
Do you need a court order to finish closings if broker dies?
no
A new broker can take over when the listing expires but only if the broker had
no contact with the seller
A licensed Florida broker was trying to lease apartments in Florida while in Missouri. The fact that the apartments were in Florida makes what difference? as the activity was taking place in Missouri.
no difference
Failing to give copies of contracts (A), writing a fake contract to take to a lender (B) and failing to supervise salespersons (D) are all ______________
offenses
An option is a possibility contract where one party is bound to ______________ but the other party is not.
perform
A broker can use up to__________ of their own money to open a trust account for service charges.
$1000
A buyer and seller, neither of which is under contract with the broker, ask a broker to write a contract for them. What should the broker do? A » Refuse to do anything because he is not their broker B » Refuse to do anything unless he gets a commission C » Perform his normal services and charge his usual fees D » Perform his normal services and not charge a fee
A
A seller and broker became embroiled in a commission dispute. What should the broker do? A » Take the complaint to the circuit court B » File a complaint with the MREC C » File a complaint with the AHC D » File a complaint with the attorney general
A
The MREC, in investigating a licensee, may: A » issue subpoenas for all records relevant to the complaint B » petition the attorney general for an injunction to keep the licensee from leaving the state C » make the licensee submit to a polygraph examination D » subpoena out of state residents who were involved in the transaction
A
Broker Carr had a 90 day exclusive listing. One month after the listing began, Broker Dole contacted the seller and told him he had a buyer moving in one month after the listing terminates and asked the seller to sign an agreement to take effect after the listing expires. This is: A » misrepresentation B » a violation of state law C » allowable as the listing would have expired D » considered commingling of listings
B
There was a home listed under an exclusive right to sell agreement. Another broker went to show the house without notifying the listing broker. Was this a violation of license law? 1. Yes, because only the listing broker can show the property 2. Yes, because the selling broker must first contact the listing broker in order to show the property
B
Broker Falk had a listing. Broker Carr found a buyer for Broker Falk`s listing. A salesperson could close the transaction if: A » he was under the direct supervision of the listing broker B » he was under the direct supervision of his broker who was also the listing broker C » he was under the direct supervision of a broker who was NOT his broker D » a salesperson cannot close a transaction, only brokers can close them
B
A seller`s listing expired on August 31st. On August 10th, another broker contacted the seller about listing the property when the current listing expired. Is this legal? A » No, because the first broker has a right of first refusal on the listing B » No, because the broker contacted the seller prior to the expiration date C » Yes, because a new broker can take over once the current listing expires D » Yes, because owners should have the right to choose whatever broker they want whenever they want
B
A sole owner of a real estate company died. What options does his daughter have in regard to the business? A » Obtain an order from the court to complete the real estate transactions waiting to close B » Petition the MREC to complete the real estate transactions waiting to close C » Continue to run the real estate company as she is the sole heir D » Continue to run the real estate company while waiting to receive a broker`s license
B
Broker Carr died and a temporary broker was appointed by the MREC. What was the purpose of the temporary broker? A » To finish selling Broker Carr`s listings B » To terminate Broker Carr`s existing sales contracts C » To terminate Broker Carr`s existing salespersons D » To continue to run the office until a new broker is found
B
A broker started a real estate company wanting to use the name ABC Realty. What is true regarding this situation? A » The broker must file a request with the MREC B » The broker must file a request with the secretary of state C » The broker cannot do this as only real names are allowed D » The broker can do this if no one in the area objects
B
A broker was retiring and placing her license inactive. What BEST describes what happens to her only salesperson? A » The salesperson can send her license to the MREC and be assigned to a different broker B » The broker can send the salesperson`s license in and the salesperson can associate with another broker within 6 months C » The salesperson can continue to work there although the broker will not be active D » The salesperson may be appointed a temporary broker by the MREC and continue to run the office
B
A female salesperson was talking with a friend at lunch. The friend mentioned that she was looking to possibly buy some real estate. The salesperson then told the friend that her own property was currently for sale. The friend then decided to purchase the salesperson`s property. The salesperson would have to disclose of the license to the friend: A » in writing prior to closing as verbal disclosure of the license had been given at the lunch meeting B » verbally only C » in writing prior to the signing of the contract D » verbally and in writing prior to the contract
B
A licensed Florida broker was trying to lease apartments in Florida while in Missouri. Which of the following is correct? A » She could do this as the apartments were located in Florida B » She would need a Missouri license in order to try and lease the apartments while in Missouri C » She could draw a commission for this in both states D » She could draw a commission for this in Missouri only
B
A person who is licensed in another state applies for a license in Missouri. The MREC learned that the applicant did NOT have a high school diploma nor a GED. Which of the following is true regarding the issuance of a license? A » The applicant could NOT get a license because of the lack of a high school diploma or a GED B » The applicant could receive a Missouri license C » The applicant would be required to take additional pre-license education D » The applicant would be required to take additional continuing education
B
A salesperson pre-qualified a buyer and took personal information at that time. The salesperson then showed the buyer several homes. Prior to showing the homes the salesperson had the buyer sign an agency disclosure form. Did the salesperson do anything wrong? A » Yes, the salesperson should never show a house without qualifying the buyer B » Yes, the salesperson should have disclosed their agency prior to taking personal information C » No, the salesperson disclosed their agency prior to showing any properties D » No, the salesperson should disclose their agency only if asked
B
A salesperson terminates their working relationship with a broker. How long does the broker have in which to submit the salesperson`s license to the MREC? A » 24 hours B » 72 hours C » 4 days D » 6 weeks
B
If an applicant is turned down for a license, the MREC must notify the applicant: A » orally stating the reasons B » of their right to file in writing a complaint with the AHC in writing C » in writing within 10 days D » of their right to appeal the decision to the MREC
B
A branch office under a principal broker: A » would have to have its own set of licenses B » would operate under its own broker`s license C » would operate under a duly appointed salesperson D » would operate under the principal broker`s license
D
A buyer signed a contract and gave the broker $5,000 in earnest money. The offer was accepted by the seller and the earnest money deposited into the broker`s escrow account. The buyer, however, needed $250 to pay for an appraisal. Could the broker take $250 from the escrow account and give it to the buyer? A » No, the earnest money can never be used for anything other than the down payment B » No, unless the seller provides written agreement C » Yes, provided written authorization is received from the buyer D » Yes, provided written authorization is given by all parties to the contract
D
A citizen phoned the MREC with a complaint on a licensee. The MREC sent him a form to fill out. However, he never followed up the complaint in writing. What would the MREC do? A » The MREC must follow up an oral complaint B » The MREC cannot act on an oral complaint C » The MREC must ignore the complaint D » Even though he did not put it in writing, the MREC may investigate anyway at their own discretion
D
Agency relationship is between a
broker and salesperson
If a property is listed, you must include name of ______________ in ad.
brokerage
A licensee, in buying property, must disclose HOW in the contract of the license?
writing
