Real Estate 48 hr Chptrs 1-3
James wants to make sure he is working with a licensed real estate broker when he is renting property. He asks to see the license of the agent and the broker with whom he is working. Which is true?
James is a member of the public and is entitled to see a license, or he may call the real estate commission and verify whether or not the individuals are licensed
A corporation was entering the real estate business. It must be registered with:
MREC
If an unlicensed person sells real estate for a fee, or accepts a referral fee for a real estate transaction, the MREC:
May file a restraining order and assess a civil penalty of up to $2,500 per occurrence (based on the finding of the Missouri Administrative Hearing Commissioner (MAHC).
A salesperson decides to transfer to another broker. He wants to take his listings with him. If he gets the consent of each seller to do this, is he within his rights to take these listings to another broker?
No, a listing agreement may not be transferred to another broker without the express written consent of the seller and the original broker.
A broker had so many lawsuits that he decided to change the name of his branch offices to avoid further problems. Could he do this?
No, all branch offices must have the same name as the parent office.
A broker who had several offices went about once a week to each office to check them out. Since he had no other broker on staff, is this legal?
No, because he was not in direct control of the salespersons' actions.
A salesperson did not renew his/her license, or take twelve (12) hours of continuing education. Three (3) months later, he/she decides to renew. What must a salesperson do to renew a license under these circumstances?
Pay the fee and take the 24-hour Missouri practices course.
Real estate license activities include:
Sells Buy or purchase Rents or leases* Lists Negotiates Exchanges Deals in options Advertises as a broker Procures prospects or makes referrals Charges an advanced fee for promoting real estate in a publication A real estate salesperson can do any of the above activities but must do them under the supervision of a broker (could be an employee or an independent contractor).
Bill, a licensed real estate salesperson places an ad in the newspaper for a buyer of a property he has listed for sale. His ad reads: "Come and see this wonderful lake lot located on beautiful Lake Scenic. If you purchase one lot, we will give you a second lot free and also enter your name in our lottery sweepstakes." Which is true of this advertisement?
The ad is a violation of the license law because it offers free inducements
Which of the following is a true statement about a salesperson who violates the Missouri Real Estate License Law? (Chapter 339-250)
The agent could have his license revoked for violation of the law. Violation of MREC rules is a Class B Misdemeanor.
A salesperson is transferring to a new broker. What must be done before he/she can list or sell real estate?
The new broker must obtain the salesperson's work permit from the MREC.
A young couple is selling their first residence and would like a lawyer to check over the sale contract. The listing agent, who knows the contract is well written and that the contract used is approved by the attorney of their local association of REALTORS ®, advises them that a lawyer's services would be an unnecessary expense and would only serve to reduce their net proceeds from the sale. Which of the following statements is true?
The salesperson should never advise against or discourage the use of an attorney in any transaction in which he/she is involved.
Which of the following would NOT count for continuing education credit in Missouri?
Training in business skills such as typing, personal motivation, salesmanship, sales psychology, or time management
Dole is considering creating a real estate company as a corporation. If he does so, which license would be required of the corporation itself?
a broker's license
Which of the following statements about real estate licenses is true?
a new license will be issued only upon receipt of the fee and properly completed application.
Which of the following would require a real estate license?
a person who negotiates or helps consumers consummate option to buy or sell real estate
Which would require a license?
a property manager actively leasing and selling for a real estate company
Which of the following is not needed on a current Listing Agreement?
a provision requiring an owner to notify the broker of intent to cancel the listing after the expiration date
A disclosure to the buyer from a subagent working as a seller's agent must include all the following EXCEPT
a statement that the seller is facing bankruptcy
Broker Carr has a 90 day listing on a property. One month after the listing had begun, Broker Dole contacted the seller and told him that he had a buyer moving in one month after the listing terminates and ask the seller to sign an agreement to take effect after the listing expires. This is:
a violation of state real estate law
A contract between the buyer and seller failed. The buyer claimed the earnest money was his; the seller claimed the earnest money was his. After 60 days the broker sent a registered letter saying he would give the earnest money to the seller. Lacking response from either party when could the broker release the money?
after 15 days
Which is true when a corporation receives a broker's license?
all corporate officers involved in the brokerage business must have active broker-officer licenses or a salesperson's license, but the salesperson cannot participate in the supervision of the office
The MREC, believing an unlicensed person has violated the law, may file a complaint in:
any court of competent jurisdiction
Fees and commissions must be removed from a property management escrow account unless otherwise stated in a written agreement how often?
at least once a month
The disbursements from an escrow account of a property manager must show all EXCEPT
balance of the account to the owner
Which of the following is not grounds for the MREC to refuse to issue a license?
bankruptcy
At what point must a listing broker FIRST disclose to a buyer the broker's agency relationship with the seller in a residential real estate transaction?
before the buyer gives the broker personal or financial information
All are true regarding listings EXCEPT
both buyer and seller must sign the listing agreement
A broker opened a branch office. Who could have authority to manage the office?
broker-salesperson
Mr. Baird was the sole proprietor of a commercial real estate company. He died. His son, Jim Baird did not have a real estate license, but he was named executor of the estate. Jim Baird
can be appointed to finish only the business in process
The license fees are payable by:
cashier's check, personal check, or money order made payable to Missouri Real Estate Commission
All of the following are requirements for licensure of a salesperson EXCEPT
citizenship
A broker took earnest money from a friend and deposited it in the broker's personal account. This is:
commingling
The broker changes his company address. He must
give the MREC written notice within 10 days
Broker Carr has taken a listing from Seller Dole. Which is true?
he must give him a copy at the time of signing
Broker Falk has a listing. Broker Carr found a buyer for Broker's Falk's listing. A salesperson could close the transaction if:
he was under the direct supervision of the manager or broker with whom the salesperson is associated
A salesperson licensed in another state but NOT in Missouri comes into Missouri and refers her brother to a real estate company in Missouri to assist him in the purchase of a home. The salesperson did this with the knowledge and permission of her broker, and the salesperson's broker cooperated with a Missouri broker in the sale of the property. What commission is she due?
her commission would be based on her agreement with her broker
A broker-salesperson acting as a sales manager cannot:
hold all the licenses of the salespeople working under him/her
When a broker closes his office, the salesperson must find a new broker. The broker who is closing the office and the salesperson must do all of the following EXCEPT
if the broker does not notify the MREC, then the salesperson can never transfer to a new broker
If an individual broker's license is revoked or suspended, all of the following are true EXCEPT
if the broker's license is suspended, a salesperson can continue to operate the company until the suspension is over
Two brokers are applying for a broker's license as a partnership. One of the two had been found guilty of embezzlement but has made full restitution. Which of the following is true?
if the license is denied, they should contact the MAHC for a hearing
The MREC, believing a licensee has violated the law, may file a complaint
in any court of competent jurisdiction.
At the time of the listing, a broker noticed a large crack in the wall that was partially covered by boxes. In showing the property, the licensee should:
inform the prospective buyer of the crack
The MREC, in investigating a licensee, may
issue subpoenas for all records relevant to the complaint
Which is TRUE regarding a broker's escrow account?
it can be in any state as long as it is properly registered with the MREC
A new broker is considering opening his office in his home. Which of the following is true?
it must be open to the public during regular business hours if he has salespersons licensed under him
Chapter 339 of the Missouri Statutes is also known as:
license law
To receive a real estate license, which of the following is true?
must be 18 years of age or older
In dealing with a potential customer, a salesperson may
neither of the above ( No selling over future projected value or advertise guaranteed profits.
A buyer asked Broker Carr to find a house for a flat fee of $5,000. The buyer and broker signed a buyer's agency agreement in which the buyer agreed to pay the $5,000 fee. Carr found a special home listed by Broker Baird. The buyer agreed to purchase the home. Broker Carr never mentioned anything about the buyer's agency agreement or the fee to the cooperating broker, nor was it disclosed in writing in the contract. Can Broker Carr retain the $5000 and share in the seller's commission with Baird?
no, as Broker Carr had not obtained written, prior permission from both the seller and buyer in the contract between the parties
On February 6, John Grant finished and passed a salesperson's pre-license class. On August 25, John passed the salesperson's examination. Can John receive a license?
no, because he did Not apply for license within 6 months of the date on his class certificate
A broker with one salesperson is retiring and moving to Florida to run a grocery store. He wants the salesperson to continue to have her job. Can he still do this?
no, because he would NOT be in control of the salesperson's actions
An out of state owner calls a broker wanting to sell his property for $50,000. The broker knows that zoning has recently been changed and the property is now worth $75,000. The broker does not inform the seller. Is this legal?
no, the broker must inform the owner of the zoning and increased value
Jim and Larry who are not licensees form a company to deal in exchanges of property. After completion of a deal, the parties refuse to pay them a commission. Can they sue for the commission?
no, they were unlicensed; therefore, they were in violation of state license laws
The property manager must make a written statement of property income to the owners of rental properties how often?
once a year
Jamie Jones tried to renew his license, but he failed to complete the continuing education requirements. Three months later Jamie wanted to reinstate his license. Jamie would have to do which of the following?
pay a late fee of $50 a month not to exceed $200, and take the Missouri Practices course.
Broker A received an offer of $189,000 on a $200,000 listing. After the seller had given the offer to his attorney to review, another offer for $176,000 came in. What should the broker do?
present the offer immediately
If an owner gave a broker money for repairs on a rental property, where should the broker deposit the money?
property management escrow account
A complaint has been filed against Broker Grant. The MREC has the power to:
subpoena Broker Grant and his business records
An unlicensed secretary is the only one in a residential real estate office when Broker Carr from another company calls requesting information on a property. The secretary may:
take his name and have a licensee return the call
A broker dies, and his company is placed in receivership
the MREC can appoint a temporary broker to finish the existing sales contracts
A citizen phoned the MREC with a complaint on a licensee. The MREC sent him a form to fill out. However, he never followed up with the complaint in writing. What would the MREC do?
the MREC can investigate on its own volition
A salesperson told a buyer that the air conditioner would stay with the house. However, he had not checked it with the seller. After closing the seller took the air conditioner. Which would happen?
the MREC can take disciplinary action
Two brokers got into a dispute over who was due what part of a commission. One of the brokers filed a complaint with the MREC to get it settled. Which is true?
the MREC will NOT enter into any dispute over commissions between licensees.
The authorities are investigating a violation of the law by a licensee. Which could happen?
the Missouri Real Estate Commission could revoke or suspend his license
In the event of a dispute over earnest money
the broker should hold the money until all parties to the contract sign a release, or within 365 days if the parties cannot come to terms, release the monies to the State Treasury.
When Susan listed a home for the Smiths, she was told by the sellers that the lot measured 75' x 150'. Susan told the buyers this information and the house sold. After taking possession, the buyers had the lot surveyed and discovered that the lot was only 75' x 130'. Which best describes this situation?
the buyers may sue Susan and her broker for damages
Any change to a listing agreement or other written authorization must contain
the initials or signatures of all parties
A written complaint had been filed against a salesperson. However, the salesperson was in the process of transferring to another broker. Which of the following is TRUE regarding the situation?
the new broker would usually be notified by the Real Estate Commission (MREC) of the fact that a complaint is pending
Persons with which of the following qualifications may apply for a broker's license?
the person has completed an approved course and has passed the state's examination and has been an active salesperson for at least two years.
Which must be licensed by the Missouri Real Estate Commission?
the publisher of a magazine to aid "for sale by owners " in selling their homes
A motel desk clerk gives the names of persons looking to purchase a home who are moving into town to a salesperson friend in exchange for a referral fee. Which BEST describes the situation?
they would need a license and would only be able to accept compensation from their broker
A management agreement between a property manager and an owner must include all of the following EXCEPT
today's date
When Brokers' Licenses are renewed, they are issued for a period ending
two-year period on June 30
The MREC can appoint a temporary legal license in which case?
upon the death of the broker to terminate all listing agreements and coordinate the closing of pending contracts between sellers and buyers
A licensee attended three continuing education courses for the elective hours. Each course was 6 hours long. How can she apply these to her renewal requirement?
use 9 hours for electives
A branch office under a principal broker:
would operate under the principal broker's license
A broker's branch office
would operate under the same name and license as the parent office
A broker desires to keep an escrow account in an interest bearing checking account. Would this be legal?
yes, if all parties to the transaction agree, in writing, that the money is to go into an interest-bearing account and who is to receive the interest
The MREC has heard rumors that a broker is violating the law. Can the MREC investigate?
yes, no complaint is necessary for the MREC to investigate
A person owned her own company specializing in negotiating sales for buyers and sellers. She had incorporated her business but does not get listings or sell properties. Does she need a real estate license to do this?
yes, she would need a broker-officer's license and her corporation would need a broker's license
Salesperson Baird was born in Finland. He moved to Missouri, went to a prelicense school, took the test, passed and was licensed under a broker. He then sold a property. Would Baird be eligible for a commission?
yes, since he fulfilled the legal requirements of the law
A salesperson pre-qualified a buyer and took personal information at that time. The salesperson then showed a buyer several homes. Prior to showing the homes, the salesperson had the buyer sign an agency disclosure form. Did the salesperson do anything wrong?
yes, the salesperson should have disclosed his/her agency relationship prior to taking personal information
In applying for a real estate license
you must enclose the license fee as a cashier's check, money order, or personal check
Which is true of license forms?
you must send in the appropriate application and renewal fee
Margaret King is a licensed salesperson. She is selling her property as a FOR SALE BY OWNER (FSBO). What must she disclose in her advertisement in the newspaper?
For Sale-Owner-Salesperson
Salesperson French presents a written offer for $189,000 to seller Dutch. The listed price is $200,000. Dutch reviews the offer and seeks further advice from her accountant. Salesperson French receives a second written offer, this one for $175,000. Which of the following is true about this situation?
French must present the second offer promptly.
An inactive licensee refers his brother as a buyer to an out-of-state broker. How much money can he receive for a referral fee?
He will get nothing.
Auctioneer Grant is negotiating to auction off some odds and ends for a farm family. In the course of the negotiation, the farmer asks Grant if he could also auction off the farm. Which BEST describes the situation?
He would NOT have to have a real estate license as he was auctioning it for the owner.
How long does a salesperson have to deliver earnest money to the broker?
Immediately
The following are excluded from needing a license:
-An owner selling or leasing his/her own property -Regular employees selling or leasing property for their employer when owner is not in real estate as a vocation -A licensed Attorney at Law (who is practicing law and not listing and selling real estate) -An auctioneer employed by the owner -Anyone performing under a court order (executor, trustee) -A property manager performing certain functions while under the direction of a broker or the owner of the property -Rent collectors or counter clerks in a broker's office -Government employees performing their duties -Regular employees or officers of railroads/public utilities -Banks, loan companies, or insurance companies handling their own property -Newspapers and magazines of general circulation whose advertising is incidental to the publication -Developers registered with HUD under the Interstate Land Sales Act -An employee acting on behalf of a nonprofit community or regional economic development association
Rich, a licensed salesperson, took 12 hours of continuing education courses during the current licensing period. How many of those hours had to represent "Core" courses?
3
2 of 5 Tom, a licensed salesperson for 20 years obtains his broker's license during the current licensing period. Which of the following will Tom have to take in order to renew his license?
3 hours of core - 9 hours of electives
Which of the following is legal advertising?
A broker has a listing on his own property with a sign that reads, "For Sale, call ABC Realty."
Which of the following individuals would be required to have a real estate license?
A friend of a licensee who receives compensation for referring a client to the licensee
If an individual broker dies (there is no other broker in the company) who can be appointed as a "Temporary broker" and for what purpose?
Anyone licensed or not can be appointed as a "Temporary broker" to "Terminate the existing transactions," close the company, and return all the salespersons' licensees to the MREC
As a condition of license renewal, all active salespeople must complete the following:
Attend 12 hours of certified continuing education courses, 3 hours of core credit and 9 hours of elective credit, by September 30th of even years.
If you receive a "Certificate of Completion" on Feb. 1, what is the last date that you may apply for the license?
August 1
To renew a salesperson's inactive license, how often must the licensee pay?
By Sept 30 of even years.
The license law is known as
Chapter 339