Chapter 1 - 5

You are conducting an open house on a property, and a couple walks in and asks, " What are they asking for the house?" What would be the best thing for you to say? a. "You cannot look at the house until you sit down and discuss agency relationships with me." b. "Take a look around and let me know if you have any questions." c. "Here is a disclosure form." d. "Do you have representation?"

"Take a look around and let me know if you have any questions." (c)

Section 339.190 (2) of Missouri law

"real estate licensee shall not be the subject of any action and no action shall be instituted against a real estate licensee for any information contained in a seller's disclosure for residential, commercial, industrial, farm, or vacant real estate furnished to a buyer, unless the real estate licensee is a signatory to such or the licensee knew prior to closing that the statement was false or the licensee acted in reckless disregard as to whether the statement was true or false."

A transaction broker shall comply with:

1. All applicable requirements of Missouri Real Estate Statutes and all rules and regulations promulgated pursuant to such Statutes. 2. Any applicable federal, state and local laws, rules, regulations and ordinances, including fair housing and civil rights statutes and regulations.

Section 4 - Structural This is the most extensive portion of this form as it is the most involved. The owner will need to go right down the form and answer detailed questions about the structural characteristics of the house. The questions will be on:

1. The age of the roof, roof type and if it has leaked 2. If there have been any additions or remodeling and if permits and inspections were obtained 3. The age of the house 4. The existence of: moving or shifting of the walls, foundation or crawl spaces, cracks in the walls, ceilings or foundation, water leakage, dry rot, and any repairs to correct any of those things 5. If the foundation, doors, ceilings, walls, fireplaces, etc have any defects and what they are 6. Past inspections 7. Existence of termites and other pests and pest control warranties on the property 8. Existence of any homeowner's insurance claims in the previous 4 years

List three reasons an agency agreement may terminate involuntarily.

1. Death or incapacity of either party - if the contract does not pass to heirs or assigns 2. Agent abandonment 3. Condemnation of the property

Sometimes an agency relationship is terminated even though the parties may not wish it to happen, in other words involuntarily. Some reasons why an agency relationship may terminate in this way include:

1. Death or incapacity of either party - if the contract does not pass to heirs or assigns 2. Agent abandonment 3. Condemnation of the property 4. Destruction of the property through fire, vandalism or natural disaster 5. Renunciation by the client 6. Breach of the contract 7. Bankruptcy 8. Revocation of the agent's license

Buyer hires a broker to find a property and agrees to pay a commission to the broker through an exclusive right to represent (exclusive buyer agency agreement), the broker will be entitled to receive that commission if he or she performs according to the terms of the contract, even if the buyer:

1. Decides against making the purchase. 2. Makes a direct purchase of a "for sale by owner" property. 3. Chooses to purchase a property through another broker

Similar to listing agreements, there are three common types of buyer agency agreements:

1. Exclusive Buyer Agency Agreement 2. Exclusive-agency Buyer Agency Agreement 3. Open Buyer Agency Agreement

Section 3 - Sewer and Septic This section covers the following:

1. How the property is served - public sewer, septic tank, other 2. Is the house connected to the main 3. Existence of a sewer capacity charge 4. Do all plumbing fixtures go to the septic/sewer system? 5. Repairs to the system 6. Does the system exist entirely within the property's boundaries?

Exceptions to Confidentiality

1. If the client to whom the information pertains grants written consent or the disclosure of the information is required by law. 2. If this 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. 3. If this 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.

Section 1 - Title: The first section deals with the seller's knowledge of the title and any potential issues. These include:

1. Legal authority to sell the property 2. Is the property subject to a right of first 3. refusal, lease, life estate, etc 3. Encroachments boundary disputes, etc 4. Easements, rights of way, access limitations, etc 5. Pending assessments or survey projects 6. Zoning violations or non-conformances 7. Does a boundary survey exist? Are the boundaries marked? 8. Existence of fences 9. Dead or diseased trees or other plants 10. Covenants, conditions and restrictions 11. Access to public or private road

The three most common types of listings are:

1. Open Listing 2. Exclusive Right to Sell Listing 3. Exclusive Agency Listing All listing agreements have a compensation clause that addresses the fact that the managing broker will receive compensation for selling the property. The compensation clause also gives specifics as to how the compensation will be paid - percentage or flat-fee.

Duties of a Transaction Broker

1. Perform the terms of any written or oral agreement made with any party to the transaction. 2. Exercise reasonable skill, care, and diligence as a transaction broker. 3. Present all 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. 4. Inform the parties regarding the transaction and suggest 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. 5. Account in a timely manner for all money and property received. 6. Disclose to each party to the transaction any adverse material facts of which the licensee has actual notice or knowledge. 7. Assist the parties in complying with the terms and conditions of any contract.

What is the disclosure requirement for a licensee working with a customer? a. A licensee has no disclosure requirements to a customer. b. A licensee can only disclose to a customer facts that have been approved for release by the client. c. A licensee shall disclose to a customer all adverse material facts actually known or that should have been known by the licensee. d. A licensee has the same disclosure requirements to a customer as he or she has towards a client.

A licensee shall disclose to a customer all adverse material facts actually known or that should have been known by the licensee. (c)

An agency relationship is terminated when one of the following occurs (whichever occurs first or earliest):

1. Performance, which means the licensee has performed the tasks set forth in the agency agreement - that is, helped the buyer find a home for purchase or help the seller find a ready, willing, and able buyer to purchase his or her home. 2. Expiration of the agreement term, which is stated in writing when the relationship is initiated. 3. Termination of the relationship by mutual agreement of the parties. 4. Termination of the relationship by one party, in which case the terminating party must provide notice to the other party that he or she is terminating the relationship. Note: This type of termination does not affect either party's rights under their contract.

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, or disclosed dual agent for the same or for different parties in other real estate transactions.

The following information shall not be disclosed by a transaction broker without the informed consent of all parties:

1. That a buyer is willing to pay more than the purchase price or lease rate offered for the property 2. That a seller 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

What is the disclosure requirement for a licensee working with a customer? a. A licensee has no disclose requirements to a customer. b. A licensee has the same disclose requirements to a customer as he or she has towards a client. c. A licensee shall disclose to a customer only latent adverse material facts. d. A licensee shall disclose to a customer all adverse material facts actually known or that should have been known by the licensee.

A licensee shall disclose to a customer all adverse material facts actually known or that should have been known by the licensee. (d)

What is an open listing? a. A listing assigned to a sub-agent for a specific period of time b. A exclusive contract authorizing a broker to serve as the agent for the seller c. A non-exclusive contract authorizing a licensee to act as a dual agent d. A non-exclusive contract authorizing a broker to serve as the agent for either the sale or the purchase of property

A non-exclusive contract authorizing a broker to serve as the agent for either the sale or the purchase of property (d)

What kind of advice can I give as a transaction broker?

A transaction broker cannot give advice. A transaction broker can assist by providing a wide range of real estate information, including comparable sales data showing a price range of comparable properties.

As a transaction broker what is the requirement regarding disclosing adverse material facts?

A transaction broker must disclose any adverse material facts which are actually know about the property.

Which of the following statements best defines an open buyer agency agreement? a. This is a nonexclusive agency contract between a buyer and a broker and only the broker who actually locates the property that the buyer eventually purchases is entitled to the commission. b. This is an exclusive agency contract between a buyer and a licensee and only the licensee who actually listed the property that the buyer eventually purchases is entitled to the commission. c. This allows the buyer to employee two or more brokers in a shared exclusive agreement. d. This is an exclusive agency agreement with all brokers in a MLS association.

This is a nonexclusive agency contract between a buyer and a broker and only the broker who actually locates the property that the buyer eventually purchases is entitled to the commission. (a)

Which of the following behaviors can lead to disciplinary action? a. Assisting all parties in complying with the terms and conditions of the contract b. Keeping secret confidential information of both parties to the transaction c. Behaving like an agent after disclosing to a party that you are acting as a transaction broker d. Remaining neutral in the transaction

Behaving like an agent after disclosing to a party that you are acting as a transaction broker (c)

What information should be included in the last section box on the form? a. Broker or Entity Name and Address b. Seller's Name c. Buyer's Name d. Listing Description

Broker or Entity Name and Address (a)

In what section of the form would you find what types of representations are offered by the brokerage? a. Designated Agent. b. Transaction Broker c. Disclosed Dual Agent d. Brokerage Authorization Relationships

Brokerage Authorization Relationships (d)

What is the term given to the relationship created between a designated broker, the broker's affiliated licensees, and a client relating to the performance of services of a broker? a. Brokerage Relationship b. Service Agreement c. Disclosure Options d. Representation Options

Brokerage Relationship (a)

What is a major selling point when seeking a buyer's representation agreement? a. Buyer agents can speed up home inspections and loan approvals. b. Buyer agents can negotiate the best deal in the shortest amount of time. c. Buyer agents can offer reduced compensation terms. d. Buyer agents have access to FSBO listings.

Buyer agents can negotiate the best deal in the shortest amount of time. (b)

What is the name of the form used to make changes to a buyer's agreement? a. Amendment Change Rider b. Buyer's Agency Agreement Amendment c. Agency Agreement Rider d. Change Agency Amendment

Buyer's Agency Agreement Amendment (b)

Form # 2125

Buyer's Agency Contract

What is the term given to a person who has entered into a brokerage relationship with a licensee? a. Client b. Customer c. Owner d. Representative

Client (a)

Open Buyer Agency Agreement

This is a nonexclusive agency contract between a buyer and a broker. A buyer can enter into similar agreements with an unlimited number of other brokers. Only the broker who actually locates the property that the buyer eventually purchases is entitled to the commission.

What does the buyer agency agreement state about other potential buyers?

This paragraph says that you can show the same properties to any of your clients and that any of your clients can make offers on such properties through you without violating this agreement.

Section 6 - Common Interest

This section deals with any potential Home Owners' Associations or other common interest agreements that buyers should be aware of. If there are common areas, these will need to be noted on the form.

Section 7 - Appliances, Heating, Plumbing, Electrical and Other Mechanical Systems

This section lists appliances, furniture, systems and other property that may or may not be included in the sale of the property. It is important that your client pay special attention to this section. Typically, most of the things on this list will be included in the sale, but the owner may wish to take certain appliances with them. They must also check "yes" or "no" for whether or not the object is in working order.

You are representing a buyer, and you discover that the buyer has lost his job and will not be able to close the transaction you are involved with. Should you disclose this issue to the seller or seller's agent as soon as possible?

YES. Even though this may appear to be confidential, the issue is a defect in the buyer's ability to close and if true must be disclosed to the seller as soon as possible.

Is Dual Agency legal in MO?

Yes, but it's known as disclosed dual agency because the information must be disclosed to both parties and been given consent in writing.

Colleen is acting as a dual agent in a real estate transaction. At what point, if any, should she disclose her agency status? a. Colleen must disclose her agency status immediately upon its occurrence to all parties of a real estate transaction. b. Colleen must disclose her agency status at the time any written agreement and/or written authorization is obtained. c. Colleen does not have to disclose her agency status. d. Colleen must disclose her agency status during any title closing procedures.

Colleen must disclose her agency status immediately upon its occurrence to all parties of a real estate transaction. (a)

Jack sells one of his own $225,000 listings for $220,000. The commission is 7%. Jack has an 80% commission split with his broker. What is Jack's share of the commission? What is his broker's share?

Commission = $15,400 ($220,000 x .07) Jack's share = $12,320 ($15,400 x .80) Broker's share = $3,080 ($15,400 - $12.320)

Jim listed a home for $250,000 and it sold for $240,000. The owner negotiated a 5% commission on this listing. Sale Price: $240,000

Commission at 5%: $12,000 ($240,000 x .05) Brokerage share: $12,000 Jim's share: $7,200 ($12,000 x .60) John's share: $4,800 ($12,000 - $7,200)

Broker John owns Gaslight Realty. Salesperson Jim's compensation agreement with John states that he will receive 60% of the commission on any transaction he negotiates. Broker John has a co-brokerage split of 50% with the other agencies in town. Jim lists a home that sells for $125,000. The commission rate is set at 6%. The home is sold by Broker Sally of Hometown Realty. What calculation below shows what John and Jim will receive from this transaction and what Sally's share will be. Sale Price: $125,000

Commission at 6%: $7,500 ($125,000 x .06) Broker shares: John's share: $3,750 ($7,500 ÷ 2) Sally's share: $3,750 Gaslight's commission split: Jim's share: $2,250 ($3,750 x .60) John's share: $1,500 ($3,750 - $2,250)

Jim listed a home for $160,000 and it was sold for $150,000 by another agent in the same agency. Sarah has a 75% commission split with broker John. The commission is 6% on this listing. Commission for each "side" is 50%. Sale Price: $150,000

Commission at 6%: $9,000 ($150,000 x .06) Brokerage share: $9,000 Listing side: $4,500 (50%) Selling side: $4,500 (50%) Listing side: Jim's share: $2,700 ($4,500 x .60) John's share: $1,800 ($4,500 - $2,700) Selling side: Sarah's share: $3,375 ($4,500 x .75) John's share: $1,125 ($4,500 - $3,375) John's total on the transaction: $2,925 ($1,800 + $1,125)

Jan is a licensee working with the Shumate family to sell their home. She is also assisting with the purchase of their new home. Is this permissible under the Missouri Transaction Brokerage Law? a. No. A licensee may only work with a single party in one type of transaction. b. Yes. A licensee may work with a single party in separate transactions pursuant to different relationships. c. No. Jan may only work with the Shumate family to sell their home. If they are in need of representation to purchase a new home, they will have to find a new licensee. d. Yes. However, Jan is only allowed to collect compensation on the sale of the Shumate's home.

Yes. A licensee may work with a single party in separate transactions pursuant to different relationships. (b)

Can a transaction broker cooperate on a sale?

Yes. Transaction brokers may cooperate with other brokers, provided cooperation is offered through a MLS or other means from the listing or buyer's broker.

Dual Agency Types

a. Single licensee dual agency b. Broker dual agency

A dual agency disclosure must include:

a. The terms of the agent's compensation b. The fact that the agent will be acting as a dual agent in the transaction

A exclusive right to represent is also called a. an exclusive buyer agreement. b. exclusive right to agency. c. a special agent to purchase. d. an exclusive right to list.

an exclusive buyer agreement. (a)

This one is a little different. It still involves Jim and John, but now we'll add another broker and her affiliated licensee to the mix. Remember there's a 50% co-brokerage split. Gaslight Realty - Broker John and agent Jim (60% commission split) Hamilton Real Estate - Broker Anita and agent Tanya ( 50% commission split) This one is agent Tanya's listing of a $200,000 home Jim sold for $195,000. The commission on this listing is 6%. Sales Price: $195,000

Commission: $11,700 ($195,000 x .06) Listing side commission: $5,850 ($11,700 ÷ 2) Tanya's share: $2,925 ($5,850 ÷ 2)* Anita's share: $2,925 ($5,850 ÷ 2)* * Remember this broker has a 50% split with her agent Selling side commission: $5,850 ($11,700 ÷ 2) Jim's share: $3,510 ($5,850 x .60) John's share: $2,340 ($5,850 - $3,510)

Which of the following options is an alternate way to deal with dual agency situations? a. Subagent b. Shared agency c. Designated agency d. Private agency

Designated agency (c)

A transaction broker is responsible for performing all of the following duties except which? a. Exercising reasonable skill and care b. Presenting all written offers in a timely manner c. Keeping the parties fully informed d. Disclosing the motivating factors for each party

Disclosing the motivating factors for each party (d)

Which of the following is NOT a broker representation option in Missouri? a. Seller's Limited Agent b. Buyer's Limited Agent c. Sub-Agent d. Discounted Dual Agent

Discounted Dual Agent (d)

Dual Agency

Dual agency is a form of agency representation in which a licensee has entered into an agency relationship with both the buyer and seller in the same transaction

A transaction broker has no duty to a. become knowledgeable of the property location. b. be honest and open with all parties in the transaction. c. conduct an independent inspection of, or discover any defects in, the property for the benefit of either party. d. disclose material defects regarding the property.

conduct an independent inspection of, or discover any defects in, the property for the benefit of either party. (c)

Which of the following statements is TRUE regarding dual agency? a. Confidential information can be shared with all parties in the transaction. b. Dual agency does not require the informed consent of all parties. c. Dual agency limits the level of representation that can be offered by the licensee and also prohibits the licensee from acting exclusively for either party. d. Dual agency does not limit the level of representation that can be offered by the licensee.

Dual agency limits the level of representation that can be offered by the licensee and also prohibits the licensee from acting exclusively for either party. (c)

Fiduciary Duties Under Dual Agency

Dual agents owe their clients the same general duties as are owed to customers, as well as the following duties: 1. To take no action that might adversely impact either party's interest in the transaction. This duty takes the place of the traditional fiduciary duty of loyalty that an agent owes in seller or buyer agency situations. 2. To disclose to both parties any potential conflict of interest the dual agent has and to do so in a timely manner. 3. To advise both parties to seek expert counsel on any matter that is not within the dual agent's expertise. 4. To refrain from disclosing any confidential information about or from either party - even after the agency agreement is terminated, unless the agent is ordered to do so by a subpoena or court order.

Commission after Listing Expiration

Even after a listing expires, a licensee may still be entitled to receive a commission. If you recall, most listing agreements have a clause in place (often called a carryover or safety clause) which says that the licensee is still entitled to a commission for a set period of time after the listing expires, if the property is sold to a prospect that the licensee introduced to the property during the time of the listing.

What is the contract agreement called when the buyer is legally bound to compensate the agent when the buyer purchases any property of the same type as described in the contract? a. Purchase Agency Agreement b. Exclusive Buyer Agency Agreement c. Compensation Agreement d. Order of Services Agreement

Exclusive Buyer Agency Agreement (b)

Which type of listing agreement gives a broker the right to market and sell a property for a specified time period, while the owner can seek out FSBO buyers and sell the property without owing the broker a commission? a. Special agency b. FSBO Exemption Listing c. Open agency d. Exclusive agency

Exclusive agency (d)

Which type of listing agreement is the most widely used? a. Non-exclusive right to sell b. Exclusive right to sell c. Open listing d. Limited agent listing

Exclusive right to sell (b)

Which type of listing agreement is the most popular with brokers? a. Exclusive right to market b. Net listing c. Exclusive right to sell d. Limited agent listing

Exclusive right to sell (c)

What type of contract entitles the agent to compensation only when he or she actually finds the property that the buyer purchases? a. Exclusive-Agency Buyer Agency Agreement b. Single Agency Agreement c. Special Agency Agreement d. Extended Agency Agreement

Exclusive-Agency Buyer Agency Agreement (a)

What type of contract entitles the agent to payment only if he or she actually finds the property that the buyer purchases? a. Standard Buyer Agency Agreement b. Special Agency Agreement c. Exclusive-Agency Buyer Agency Agreement d. Executive Agency Agreement

Exclusive-Agency Buyer Agency Agreement (c)

Buyer Norm was under a buyer's agreement, but purchased his neighbor's property. Norm was under no obligation to pay any compensation. What type of agreement did buyer Norm have? a. Exclusive right to buy agreement b. Exclusive-agency buyer agency agreement c. Exclusive-license agency agreement d. Nonexclusive-agency buyer agency agreement

Exclusive-agency buyer agency agreement (b)

Signed Written Document

In Missouri all listing agreements must be in writing and signed by the seller to be enforceable. In other words, if the agreement is not in writing, the broker could not sue for the commission if the situation were to arise. Even though such a situation would be rare, if a seller wrote the following on a piece of paper and signed it, it would likely be an enforceable document. "I, Sally Mayer, will pay broker Sam Donald 7% of the selling price of my home, located at 727 Charisma Drive, Maryland Heights, when he finds a ready, willing and able buyer for the property."

Should you represent every buyer who wants to buy real estate?

In a perfect world you would probably want to represent every buyer or tenant you work with. However, some consumers will not want representation. For example, an attorney or a speculator may not want representation. That being said, in today's real estate environment, licensees would do well to work with pre-approved buyers who agree to sign Exclusive Right to Represent Agreements.

How is Dual Agency Created?

In many cases, dual agency arises unintentionally when the actions of a broker or an agent create an implied agency with a buyer. Or the appearance of dual agency can arise in the case of a customer becoming a client.

Section 5 - Systems and Fixtures

In this section the owner needs to note any defects with the electrical, plumbing, heating, and cooling systems on the property. If appliances are going to remain, the condition and age of those will need to be noted as well.

Where does the term designated agency originate? a. It comes from the action of the cooperating broker designating one licensee to be a dual agent. b. It comes from the action of the licensee designating one licensee to be the seller's agent and another licensee to be the buyer's agent. c. It comes from the action of the broker designating one licensee to be the seller's agent and the same licensee to be the buyer's agent. d. It comes from the action of the broker designating one licensee to be the seller's agent and another licensee to be the buyer's agent.

It comes from the action of the broker designating one licensee to be the seller's agent and another licensee to be the buyer's agent. (d)

What is a major benefit to a buyer who agrees to representation? a. The buyer is allowed access to MLS listings. b. Compensation is reduced when using representation. c. Home inspections and loan approvals are less expensive when using representation. d. It is a buyer agent's job to negotiate the "best deal" in the shortest amount of time and try to save the buyer money.

It is a buyer agent's job to negotiate the "best deal" in the shortest amount of time and try to save the buyer money. (d)

Once a client has entered into a written agreement for services with a designated broker, which of the following is TRUE? a. It is necessary that the licensee make the disclosures again to that party. b. It is necessary for any other licensee in that company to make these brokerage disclosures. c. It is necessary for any other licensee in other companies to document these brokerage disclosures. d. It is not necessary that the licensee make the disclosures again to that party.

It is not necessary that the licensee make the disclosures again to that party. (d)

Will disclosing your representation status reduce procuring cause disputes?

It is very important for buyers to understand that you are representing them. Since you cannot be with your buyers 24/7, they will most likely look at properties without you. Your buyers must disclose to other licensees that you represent them. Procuring-cause issues usually occur when there is confusion later on over representation. These occurrences will be reduced when buyers disclose that they are being represented and by whom.

Dual Agency Key Points:

Key points to remember are: 1. Dual agency requires the informed consent of all parties and means that the licensee owes the same duties to the Seller and the Buyer. 2. Dual agency limits the level of representation that can be offered by the licensee and also prohibits the licensee from acting exclusively for either party. In a dual agency, confidential information such as price and terms must be kept confidential. 3. A licensee acting as a dual agent in a residential real estate transaction shall disclose this agency status immediately upon its occurrence to all parties of a residential real estate transaction. 4. 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 Missouri Real Estate Statutes. 5. The Missouri Broker Disclosure Form does not have to be kept by the disclosing brokerage. However, confirmation of the disclosure must be shown in any subsequent agreement.

What is the term used to describe when a broker gives a commission to a non-authorized party? a. Kickback b. Kick In c. Backdoor Payment d. Leveraged Payment

Kickback (a)

What is the term used to describe the action when a broker shares a commission with a non-authorized party? a. Royalty b. Kickback c. Side Payment d. Leveraged Payment

Kickback (b)

What is the best way to identify a property location? a. Legal description b. Property address c. Subdivision lot number d. GPS location

Legal description (a)

How should a property location be listed? a. Designated Tile Number b. Property address c. Subdivision lot number d. Legal description

Legal description (d)

Designated agency is a form of what type of agency?

Limited Agency

Which entity mandates The Broker Disclosure Form? a. MLS Board b. HUD c. Administrative Hearing Commission d. MREC

MREC (d)

What's the best way to avoid unintentional dual agency when working with a buyer client?

Make sure everything is in writing.

Which of the following Acts might a buyer use to seek relief from a non-disclosed material defect? a. Buyer's Protection Act b. Commerce Justice Act c. Merchandising Practices Act d. Missouri Act 56-21A

Merchandising Practices Act (c)

The Missouri State Real Estate Commission promulgates only which form? a. Property Disclosure Form b. Lead-Based Paint Disclosure c. Missouri Broker Disclosure Form d. Tax Rate Disclosure Form

Missouri Broker Disclosure Form (c)

Which of the following sources authorizes agency relationships? a. MREC b. Brokerages c. Missouri Laws d. Licensees

Missouri Laws (c)

Can you represent a seller as a listing agent and then represent that same client as a buyer in another transaction?

Missouri law allows licensees to work as seller and buyer representatives from transaction to transaction. The best time to ask a seller who is buying a home to sign a buyer agency agreement is when he or she is signing the listing agreement. If the seller is moving out of your marketing area, get permission to refer him or her to another "Buyer's Broker."

How do you avoid unintentional and unauthorized dual agency when working with clients?

Missouri law requires written agreements for buyers and sellers agreeing to Dual Agency. The way to avoid undisclosed dual representation is to make sure everything is in writing.

What role can a buyer's agent take when a seller is asking for an inflated price for a property? a. Negotiator b. Neutral Party c. Uncommitted Third Party d. Recorder of Contract Offers

Negotiator (a)

A transaction broker is a licensee who assists the parties to a transaction without an agency or fiduciary relationship to either party and is considered a. an advocate for either party. b. an advisor to either party. c. neutral. d. passive.

Neutral (c)

When a licensee receives earnest money from a client, when must it be deposited into the broker's escrow or trust account?

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 the contract states otherwise

Can you be a transaction broker to one party and an agent to the other party in the same transaction?

No. You can either be an agent or a transaction broker. You cannot be both at the same time in a transaction.

Under what conditions may a licensee negotiate a buyer agency agreement with a buyer who has an unexpired exclusive agency agreement with another licensee?

ONLY if the buyer or tenant initiates the discussion AND provided the licensee has not directly or indirectly solicited the discussion. Such an agreement would go into effect after the expiration of the agreement with the other licensee.

Licensee Jim accepted a racing boat with the value of $27,000 as a form of escrow on a property. Which of the following statements is TRUE? a. Personal property is not acceptable as escrow in Missouri. b. Personal property is acceptable in Missouri, provided the licensee co-signs the escrow note. c. Personal property is acceptable in Missouri, provided the seller agrees in writing. d. Personal property must be appraised prior to being accepted as a escrow payment.

Personal property is acceptable in Missouri, provided the seller agrees in writing. (c)

Licensee Mary accepted a diamond ring with the value of $37,000 as a form of escrow on a property. Which of the following statements is TRUE? a. Personal property is not acceptable as escrow in Missouri. b. Personal property is acceptable in Missouri, provided the licensee holds the escrow note. c. Personal property with a value of over $10,000 is not acceptable in Missouri as escrow. d. Personal property is acceptable in Missouri, provided the seller agrees in writing.

Personal property is acceptable in Missouri, provided the seller agrees in writing. (d)

Which of the following actions is NOT a form of involuntary agency termination? a. Renunciation by the client b. Agent abandonment c. Bankruptcy d. Redemption by the client

Redemption by the client (d)

Above all else, a transaction broker must do what? a. Remain neutral. b. Render services equal to an agent. c. Advise the party you are working with as a transaction broker. d. Disclose confidential information if requested by any party in the transaction.

Remain neutral (a)

What are the two type of compensation that a broker might use to pay a licensee who is an independent contractor? a. Sales Draw or Percent of Wages b. Income Average or Percent of Sales c. Salary or Commission d. Gross Income Percent or Wage Average Rate

Salary or Commission (c)

In what section of the Disclosure Form does the seller allow the licensee to share property condition information with interested parties? a. Seller's Comments b. Seller Acknowledgment c. Seller Material Defects List d. Seller Remarks

Seller Acknowledgment (b)

According to the Missouri Real Estate Commission, which of the following must be included in a buyer's agreement? a. Specification of whether or not the designated broker is authorized to cooperate with and compensate other designated brokers b. The buyer's duties and responsibilities c. The amount the buyer is willing to spend on a property d. The licensee's MREC license number

Specification of whether or not the designated broker is authorized to cooperate with and compensate other designated brokers (a)

What action might the Commission take if it has reasonable cause to believe that a licensee is about to violate escrow account rules? a. Rescind the licensee's license. b. Seek monetary fine. c. Sue to enjoin any violation action. d. Schedule a hearing with the violator.

Sue to enjoin any violation action. (c)

Why are there no signature blocks at the bottom of the Disclosure Form? a. The Form is an assumed legal contract. b. The Form is not a legal contract or agreement. c. The Form changes format style every 2 years. d. A signature rider is required to be attached to the Form

The Form is not a legal contract or agreement. (b)

The Missouri Broker Disclosure Form is the only form promulgated by a. The Missouri Real Estate Commission. b. ARELLO. c. The Missouri Senate. d. The Missouri House.

The Missouri Real Estate Commission. (a)

Which of the following is an advantage to participating in a MLS program? a. The ability to create a comparative market analysis easily from online data b. The ability to identify latent defects on specific properties c. The ability to allow a buyer broker to act as a subagent without any written agreement d. MLS programs limit the number of out-of-area cooperating brokers

The ability to create a comparative market analysis easily from online data (a)

Buyer's Agency Contract - Brokerage Fee

The agreement makes it clear to the buyer that you are his or her exclusive agent. If the buyer contracts to purchase any property during the term of this agreement, you are entitled to a fee even if you do not introduce the buyer to the property. This statement in the agreement should make it clear to the buyer that he or she needs to work with you - and not anyone else - to satisfy his or her needs. For example, you have been showing your buyer properties for weeks and weeks, but nothing seems to fit his or her wants. One day on the way home from an afternoon with you, the buyer spots a sign (FSBO) in front of a home or possibly stops at another agent's open house. The buyer inspects the property and decides it is exactly what he or she wants to buy. Your buyer must understand that in such a situation, if the negotiations take place without you, you are still entitled to a fee. When explaining the "exclusivity" aspect of the agreement, make it clear to your buyer that you are on his or her side and that working without you could be an expensive mistake.

What critical information must be written into the first paragraph of the buyer agency agreement and why is it critical?

The beginning and end dates of the agreement period. This is critical because MREC rules state there must be a definite beginning and ending date inserted in this agreement.

If a transaction doesn't complete, under what circumstances would the broker still be entitled to a commission?

The broker is still entitled to receive the commission if the transaction does not complete due to the seller's or buyer's default.

How much of a broker's personal funds may be kept in an escrow account and what must this money be used for?

The broker may deposit and keep up to $1000 in the escrow account which must be used to cover service charges related to the account.

Whenever the ownership of any escrow is in dispute by the parties to the transaction, what must the broker do with the money?

The broker must deliver the money to the state treasurer within three hundred sixty-five (365) days of the date of the initial projected closing date.

According to the Listing Contract (Limited Agency), under what conditions is the broker entitled to a commission?

The commission will be payable under any of the following conditions: 1. The agent produces a ready, willing, and able buyer by 11:59 PM on the termination date of the agreement. 2. The property is under contract for sale by the termination date. 3. Within an additional term of some number of days after the termination of the agreement and under special conditions, the owner contracts for the sale of the property.

A Transaction Brokerage Addendum must include which of the following information? a. The date of the original listing contract b. The date of the first official property showing c. The dates for open house showing d. The date when any contracts have been written on the property

The date of the original listing contract (a)

What happens if the supervising broker of two designated agents becomes involved in the transaction? a. The broker can give either party confidential information. b. The designated agency becomes a dual agency situation. c. The agents become dual agents. d. The agents become single agents.

The designated agency becomes a dual agency situation. (c)

Promise of Compensation

The listing agreement must contain an assurance that the broker will receive compensation and state how that will happen. The seller could stipulate that the broker will receive compensation when the buyer is found, when a contract is signed, or only if the sale actually closes.

Specifics of Compensation

The listing agreement must show the broker's compensation as a fixed amount. It is usually indicated as a percentage of the sale price, but it could be a specific flat fee. As we mentioned when we talked about net listings, the compensation may NOT be indicated as whatever is left over from some net price the seller has in mind to receive.

The Missouri Broker Disclosure Form is what type of document? a. The only form promulgated by the MREC b. An open-ended brokerage form c. The only form promulgated by the Department of Commerce d. Required by law to have signatures from both the client and the licensee to be enforceable

The only form promulgated by the MREC (a)

An adverse material fact refers to what aspect of a property? a. The market value of the property b. The seller's motivation for selling c. The physical condition of the property d. The property repair records

The physical condition of the property (c)

What should you disclose to a cooperating agent on initial contact concerning your agency relationships with a client?

The presumption in all Missouri real estate transactions is that you are acting as a Transaction Broker. If you are representing the buyer as a Buyer's Agent, you must disclose to the cooperating agent that you represent the buyer. If you are not the buyer's agent, be sure to ask the cooperating licensee whether his company is agreeing to sub-agency and/or cooperation with Transaction Brokers. Note: If you belong to a multiple listing service, the information concerning cooperation will be listed for you there.

Who is responsible for filling out the Seller's Disclosure Statement?

The seller - NOT the licensee

Broker Melinda works for Managing Broker Mary. Broker Sara works for Managing Broker Rich. Sara sells one of Melinda's listings. Who will receive the commission and how will it be handled?

The seller will pay the commission to Managing Broker Mary. Managing Broker Mary will give an agreed upon share to her broker Melinda and another share to Managing Broker Rich. Managing Broker Rich will then pay a share to broker Sara according to their written agreement.

According to Form 2047a, which of the following best describes the transaction broker's responsibilities regarding inspections and discovery of defects in the property? a. The transaction broker has no duty to conduct an independent inspection of or discover any defects in the property. b. The transaction broker should conduct an independent inspection of the property, but only if he represents the buyer. c. The transaction broker should conduct an independent inspection of the property, but only if he represents the seller. d. The transaction broker owes it to ALL parties to a transaction to perform an independent inspection of and discovery of defects in the property

The transaction broker has no duty to conduct an independent inspection of or discover any defects in the property. (a)

According to Form 2047a, which of the following best describes the transaction broker's duty regarding determining a buyer's financial status? a. The transaction broker has a duty to conduct an investigation of the buyer's financial status. b. The transaction broker should hire a third party to conduct a financial audit of the buyer. c. The transaction broker has not duty to investigate a buyer's financial status. d. The transaction broker should provide the seller with any public and private records of the buyer's financial records.

The transaction broker has not duty to investigate a buyer's financial status. (c)

According to Form 2047a, which of the following best describes the buyer's obligation to inspect the property? a. All property inspections must be paid by the transaction broker. b. Only the transaction broker can conduct a property inspection. c. The buyer is not allowed to order any property inspections. d. There are no limits placed on the buyer regarding property inspections.

There are no limits placed on the buyer regarding property inspections. (d)

Can a broker offer only transaction brokerage?

There is no statutory or regulatory prohibition from offering only transaction brokerage.

Exclusive Buyer Agency Agreement

This agreement is also known as the exclusive right to represent. With the signing of this agreement, the buyer is legally bound to compensate the agent when the buyer purchases any property of the same type as described in the contract. The managing broker is entitled to payment regardless of who locates the property. This means that even if the buyer finds the property himself or herself, the buyer must still pay the agent the agreed upon commission.

Exclusive-Agency Buyer Agency Agreement

This exclusive contract is between the agent and the buyer. However, with this type of agreement the agent is entitled to payment only if he or she actually finds the property that the buyer purchases. If the buyer finds a property himself or herself, the buyer does not owe the agent a commission.

A licensee shall be presumed to be a transaction broker unless a. the broker performs ministerial acts for the listing broker. b. the designated broker enters into a verbal agency agreement. c. the broker and the customer sign a waiver of compensation agreement. d. the designated broker enters into a written seller's agent or landlord's agent agreement.

the designated broker enters into a written seller's agent or landlord's agent agreement. (d)

Sally, a licensee, is helping consumer Mike find a rental building. She would be considered a a. buyer's or tenant's agent. b. special agent. c. transaction broker. d. designated agent.

transaction broker (c)

Buyer/Tenant Agent Duties Other duties include the following:

- To account in a timely manner for all money and property received. - To comply with all applicable sections of Missouri Chapter 339 - To comply with any applicable federal, state, and local laws, rules, regulations, and ordinances, including fair housing and civil rights statutes or regulations - To keep all confidential information about the client confidential, unless disclosure is required by statute, rule, or regulation or failure to disclose the information would constitute a misrepresentation. This rule does not apply if disclosure of such information is necessary to defend the affiliated licensee against the action of wrongful conduct in an administrative or judicial proceeding or before a professional committee. No cause of action for any person will be brought against a licensee acting as a buyer's or tenant's agent for making any required or permitted disclosure.

Escrow Account Rules

1. A broker must maintain books, records, contracts, and other necessary documents in conjunction with each escrow or trust account so that the adequacy of any account may be determined at any time. The account and other records will 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. 2. Whenever the ownership of any escrow moneys received by a broker is in dispute by the parties to a real estate sales transaction, the broker must report and deliver the moneys to the state treasurer within three hundred sixty-five (365) days of the date of the initial projected closing date. The parties to a real estate sales transaction may agree in writing that the funds are not in dispute and notify the broker who is holding the funds. 3. A broker is not 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. 4. When the commission has reasonable cause to believe that a licensee has acted, is acting, or is about to act in violation of these rules, the commission may sue to enjoin any act in violation of the rules. The commission would file the suit through the attorney general or any assistants designated by the attorney general. 5. Any suit filed by the commission will take place in either the county in which the defendant resides or in the county in which the defendant has committed the rule violation. 6. In such a proceeding, the court has the power to issue any temporary restraining or injunction orders, without bond, which are necessary to protect the public interest.

List three advantages of buyer representation.

1. A buyer's agent has an obligation to disclose anything he or she learns about the property and also the sellers' motivation to sell. 2. A buyer's agent will not disclose the buyer's bargaining position. 3. A buyer's agent can help the client negotiate.

Written authorization to show residential property without an agency agreement or transaction brokerage agreement with the owner/landlord must contain all of the following:

1. A definite beginning date 2. An expiration date 3. The signatures of all owners or landlords and the broker or affiliated licensee as authorized by the broker. 4. 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 5. Permission to enter and show the property 6. The commission or fee to be paid, including any and all bonuses 7. All other terms and conditions prescribed by the owners or landlords 8. A statement which confirms that the owner or landlord received the Broker Disclosure Form prescribed by the commission on or before the signing of the other written authorization, or upon the licensee obtaining any personal or financial information, whichever occurs first Any change to the written authorization must contain the initials of all parties.

Every written buyer's or tenant's transaction brokerage agreement must 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. A definite expiration date 5. The licensee's duties and responsibilities 6. The signatures of the buyers or tenants and the broker or agent as authorized by the broker 7. All other terms and conditions prescribed by the buyers or tenants 8. 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 Missouri Real Estate Statutes, including but not limited to seller's agents and/or other transaction brokers 9. A statement which confirms that the buyer received the Broker Disclosure Form prescribed by the commission on or before the signing of the transaction brokerage agreement, or upon the licensee obtaining any personal or financial information, whichever occurs first 10. The agreement cannot contain a provision requiring a buyer or tenant to notify the broker of intent to cancel the agreement after the expiration date. 11. Any change to the agreement must contain the initials of all parties. 12. The licensee must give a legible copy of every written agreement or other authorization to the buyer or tenant at the time the signatures are obtained. The broker must keep a copy of the agreement in his or her office. 13. A licensee may 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. This rule does not hold if the buyer or tenant initiates the discussion and the licensee has not directly or indirectly solicited the discussion, in which case the licensee may negotiate and enter into an agreement that will take effect after the expiration of the current agreement. 14. 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.

A licensee representing a buyer of tenant is also bound by these rules.

1. A licensee acting as a buyer's or tenant's agent owes no duty or obligation to a customer, except that the licensee must 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. 2. 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 does not 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. 3. 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 is a limited agent with all the obligations and responsibilities we have discussed.

What are the minimum brokerage services that should be listed on the agreement?

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 clients or customers questions relating to the offers, counteroffers, notices, and contingencies

Depositing Money Into an Escrow Account

1. All money that a licensee receives must be deposited into the broker's escrow or trust account 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. If the broker receives any earnest money prior to the acceptance of a written contract, he or she may deposit those funds into the escrow account with the written authorization of the person or persons providing the funds. 2. A licensee must immediately deliver all money received in connection with a real estate transaction he or she is working on to his or her employing broker. 3. The broker's escrow account must be a checking account in a bank, savings and loan, or credit union. If the broker's escrow account is an interest-bearing account, the broker must disclose that fact in writing to all parties to the transaction along with a statement indicating who is to receive the interest. 4. Each broker must deposit into the escrow account all funds coming into his or her possession including funds in which the broker may have some future interest or claim. These deposits include, but are 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. 5. As we mentioned earlier, a broker may not commingle personal funds in the escrow account except to the extent allowed to cover bank charges ($1000.00). 6. Payable commissions must be removed from the escrow account at the time the transaction is completed. After the transaction is completed, any interest payable must be disbursed to the appropriate persons 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 is to receive all the earned interest, that interest must be removed from the escrow account within ten (10) banking days following the receipt of the next statement of the escrow account. 7. In addition, each broker must consent to the examination and audit of his or her escrow account by the commission or its agent upon such a request. As part of the consent, when a broker opens any additional accounts, he or she must execute a form entitled "Consent to Examine and Audit Escrow or Trust Account." 8. Identifying information about the related real estate transaction must be indicated on each check written on an escrow account or each corresponding check stub, or other record of disbursement of funds from the account. Also, each deposit ticket must indicate the related real estate transaction. 9. Each check written on an escrow account for the commission must be made payable to the licensee to whom the commission is owed or to the firm's general operating account. 10. The designated broker and the branch office manager are responsible for the maintenance of the escrow account and must ensure the brokerage's compliance with the statutes and rules related to the brokerage escrow accounts.

Every listing agreement must have these four components:

1. An identification of the property 2. A promise of compensation to the broker 3. The specifics of that compensation Written document with signatures of the seller or sellers

What four components must every listing agreement contain?

1. An identification of the property 2. A promise of compensation to the broker 3. The specifics of that compensation 4. Written document with signatures of the seller or sellers

A transaction broker is any licensee who:

1. Assists the parties to a transaction without an agency or fiduciary relationship to either party and is, therefore, neutral, serving as neither an advocate nor an adviser for either party to the transaction. 2. 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. 3. Assists another party to the same transaction either solely or through licensee affiliates. Such licensee is 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 default to transaction broker status, to be confirmed in writing prior to execution of the contract.

If for some reason the transaction does not complete, the seller may still be responsible for paying a commission to the listing broker if he or she:

1. Changes his or her mind and refuses to sell. 2. Has a spouse who won't sign the deed. 3. Has a title with uncorrected defects. 4. Commits fraud with regard to the transaction. 5. Cannot deliver possession. 6. Insists on terms that were not in the listing agreement. 7. Mutually agrees with the buyer to cancel the sale.

A transaction broker has no duty to:

1. Conduct an independent inspection of, or discover any defects in the property. However, nothing in Missouri Law limits the obligation of the buyer to inspect the physical condition of the property. 2. Conduct an independent investigation of the buyer's financial condition.

Transaction Brokerage Guidelines - Do's (Newsletter Dec. 1998)

1. DO establish an office policy that clearly states under what circumstances the company authorizes the practice of transaction brokerage. 2. DO provide the Broker Disclosure Form (signature no longer required) to a buyer or seller in a residential real estate transaction, who has not entered into a brokerage service agreement, at the earliest practicable opportunity during or following the first substantial contact, but not later than taking personal or financial information. 3. DO get a written transaction brokerage employment agreement with the buyer or seller if you expect to be compensated by that party. 4. DO confirm your brokerage relationship disclosure in writing on the brokerage. 5. DO confirm that you have provided the Broker 6. Disclosure Form in your written brokerage service agreement, the contract or other approved disclosure form. 7. DO disclose any adverse material facts which you actually know about the property. Adverse material facts include (1) environmental hazards affecting the property; (2) physical condition of the property; (3) material defects in the property; (4) material defects in the title to the property; and (5) material limitations on the buyers'/sellers' ability to perform under the terms of the contract. 7. DO perform the terms of any written or oral agreement made with any party to the transaction. 9. DO exercise reasonable skill, care and diligence. 10. DO treat all parties honestly. 11. DO assist the parties by suggesting that expert advice be obtained on material matters about which you know, but the specifics of which are beyond your expertise. 12. DO assist in providing relevant information regarding the area, taxes, schools, comparable sales data, municipality requirements or assessments, etc. 13. DO notify the buyers that, although not required by law in Missouri, if they want to have inspections (such as structural, termite, well, septic inspections or survey), they need to be addressed in the contract. 14. DO assist the parties in reaching agreement of price and terms, acceptable to both parties, without advocating for or advising either party. 15. DO present all offers and counter offers in a timely manner, regardless of whether the property is under contract for sale or lease. 16. DO account to the buyer and seller for all money or property received. 17. DO assist the parties by communicating facts and data concerning the transaction. 18. DO assist the parties in complying with the terms and conditions of the contract, including financing and inspections. 19. DO comply with all license laws, regulations, civil rights laws, fair housing laws, and any other applicable laws. 20. DO remain neutral in the transaction. 21. DO keep secret confidential information of both parties to the transaction.

Transaction Brokerage Guidelines - Don'ts (Newsletter Dec. 1998)

1. DON'T advertise or place a sign on any property offering it for sale or lease to prospective buyers/tenants unless you hold a currently effective written listing agreement or other written authorization signed by all owners. 2. DON'T show residential property unless a broker holds a currently effective written seller's/landlord's agency agreement, seller's/landlord's transaction brokerage agreement, or other written authorization to show. 3. DON'T show unlisted (FSBO) residential property unless you have written authorization from the owner. 4. DON'T disclose the following information about a party without the informed consent of that party: a. That the buyer is willing to pay more than the purchase price or lease rate offered for the property. b. That the seller is willing to accept less than the asking price or lease rate for the property. c. What the motivating factors are for any party buying, selling, or leasing the property. d. That the seller or buyer will agree to financing terms other than those offered. 5. DON'T disclose any information designated as confidential about the parties, unless disclosure of such information is required by law, statute, rules or regulations or failure to disclose such information would constitute fraud or dishonest dealings. 6. DON'T advocate for or advise the party you are working with as a transaction broker. 7. DON'T refer to a transaction broker as an "agent." 8. DON'T imply that you can provide the same level of service as a transaction broker that you can as an agent. 9. DON'T behave like an agent after disclosing to a party that you are acting as a transaction broker. Courts are likely to judge licensees by how they act and not by whom they say they are. Remember that a transaction broker is, by definition, neutral.

Agreement provisions as established by Missouri are:

1. The agreement cannot contain a provision requiring an owner to notify the broker of intent to cancel the agreement after the expiration date. 2. Any change to the agreement must contain the initials of all parties. 3. The licensee must give a legible copy of every written agreement to the owner of the property at the time the signature of the owner is obtained. 4. A licensee will 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 brokerage service agreement as to the property with another broker. This rule does not apply if the owner initiates the discussion and 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. 5. A licensee cannot 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. 6. 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.

If a dispute arises over the return or forfeiture of any monies or other valuables a broker holds in escrow, the broker must continue to retain the money or valuables in escrow until one of two things takes place:

1. The broker receives a written release from all parties consenting to its disposition. 2. A civil action is filed to determine its disposition at which time payment may be made into the court. However, if there is no pending civil action or written release and sixty (60) days have passed 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. This disbursement can only be made after the broker has given fifteen (15) days' written notice of his or her proposed action to all concerned parties. This notice must be given by certified mail to all parties at their last known address. Note: The commission will not take disciplinary action against a broker who in good faith disburses escrow monies or other valuables. 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.

A licensee will be considered a transaction broker unless, pursuant to Missouri Real Estate Statutes:

1. The designated broker enters into a written seller's agent or landlord's agent agreement to represent the party or parties. 2. The designated broker enters into a sub-agency agreement with another designated broker. 3. The designated broker enters into a written buyer's agent or tenant's agent agreement to represent the party or parties. 4. The designated broker enters into a written agency agreement. 5. The designated broker and the affiliated licensees are performing ministerial acts.

A transaction brokerage agreement must 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 6. The signatures of all owners and the broker or agent as authorized by the broker 7. 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 8. All other terms and conditions under which the property is to be sold, leased or exchanged 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 Missouri Real Estate Statutes, including but not limited to buyer's agents and/or other transaction brokers 10. A statement which confirms that the seller received the Broker Disclosure Form prescribed by the commission on or before the signing of the transaction brokerage agreement or upon the licensee obtaining any personal or financial information, whichever occurs first.

If the buyer purchases a property that you had introduced him or her to during the term of the agreement, you are entitled to a commission. The compensation is due to the licensee as long as both of these conditions are met:

1. The purchase takes place within the number of days indicated on the agreement (120 days if not specified). 2. The buyer has not entered into a Buyer's Exclusive Agency Contract with and paid compensation to another licensee during the time period stated above.

Buyer's Agency Contract - Brokerage Fee The agreement should indicate "how" compensation will be paid. It can be done in these ways:

1. The seller may pay the commission. However, it needs to be equal to or greater to what you and the buyer agreed to in the agency agreement. If it is less, the buyer must pay the difference. There will be a place for this on your agency agreement. 2. The buyer agrees to pay the licensee additional compensation of a fixed amount which is written into the appropriate space. The licensee then checks when the compensation is due - either on the effective date of the agency contract or on the same date the compensation paid by the seller is due. Note: In most cases the compensation is paid by the seller and the buyer pays nothing. As discussed above, the buyer has the option to pay additional compensation to the licensee; however, if the licensee will receive compensation from both parties, all parties to the transaction MUST be informed.

A dual agency disclosure must include what two items?

1. The terms of the agent's compensation 2. The fact that the agent will be acting as a dual agent in the transaction

Section 2 - Water On this page, the seller will give all the information he or she knows about:

1. The water source 2. Irrigation 3. Outdoor sprinkler systems

What is the rule about a licensee disclosing adverse material facts to a customer?

A licensee must disclose to any customer all adverse material facts actually known or that should have been known by the licensee. However, the licensee does not have to conduct an independent inspection or discover any adverse material facts for the benefit of the customer.

339-740 of the Missouri Revised Statutes 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. 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.

"As transaction broker, REALTOR® 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 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 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.

Missouri law states that a limited agent's duties are as follows:

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 4. To account in a timely manner for all money and property received. 5. To comply with all requirements of the Missouri Revised Statutes concerning limited agency. 6. To comply with any applicable federal, state, and local laws, rules, regulations, and ordinances, including fair housing and civil rights statutes and regulations

If any information changes concerning the escrow account, the Commission must be notified in a. 10 business days. b. 10 days. c. 15 days. d. 15 business days.

10 business days. (a)

Which of the following is true? a. A licensee can be a Transaction Broker to one party and an Agent to the other party in the same transaction. b. Transaction Broker can give advice c. A Licensee cannot be a subagent if the listing broker is a Transaction Broker d. A Transaction Broker cannot cooperate with other brokers

A Licensee cannot be a subagent if the listing broker is a Transaction Broker (c)

Which of the following is true regarding a Transaction Broker? a. He or she need not comply with Federal, State, and Local laws, rules, regulations and ordinances b. A client could be liable for a misrepresentation of such client's Transaction Broker arising out of the Transaction Broker Agreement even if the client has no actual knowledge of the misrepresentation c. A Licensee who is serving as a Transaction Broker shall not be liable for misrepresentation of such licensee's Client arising out of the Brokerage Agreement unless the Licensee had actual knowledge of the misrepresentation. d. Transaction Brokerage Agreements can be assigned, sold, or otherwise transferred to another broker without the express written consent of all parties to the original Transaction Brokerage Agreement.

A Licensee who is serving as a Transaction Broker shall not be liable for misrepresentation of such licensee's Client arising out of the Brokerage Agreement unless the Licensee had actual knowledge of the misrepresentation. (c)

Unacceptable Forms of Earnest Money

A broker cannot 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.

What duties does a buyer agent owe to a customer?

A buyer agent owes no duties or obligation to a customer, except that the licensee must disclose to any customer all adverse material facts actually known or that should have been known by the licensee.

Which of the following is NOT a benefit to having a buyer's agency agreement? a. Licensees tend to work harder for loyal, committed clients. b. A buyer's agent has an obligation to disclose anything he or she learns about the property and also the sellers' motivation to sell. c. A buyer's agent can provide information about financing, including the different options available. d. A buyer's agent can arrange special incentives on home inspections, loan terms and insurance packages that can be used to reduce the overall closing costs for the buyer.

A buyer's agent can arrange special incentives on home inspections, loan terms and insurance packages that can be used to reduce the overall closing costs for the buyer. (d)

Which of the following is a disadvantage to participating in a MLS program? a. A seller is exposed to potentially thousands of properties. b. Property information might include real estate taxes and utility payment amounts. c. Compensation is established by the MLS Board for participating members. d. A home sold by a cooperating broker decreases the amount of commission realized by the listing broker.

A home sold by a cooperating broker decreases the amount of commission realized by the listing broker. (d)

According to the Missouri Real Estate Commission rule 20 CSR 2250-8.090 (5)

According to the Missouri Real Estate Commission rule 20 CSR 2250-8.090 (5), every written buyer or tenant authorization must contain ALL of the following: 1. A description of the type of property sought 2. The commission or fee to be paid 3. A definite beginning date and expiration date 4. The licensee's duties and responsibilities 5. A statement which permits or prohibits the designated broker from offering subagency 6. 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 7. 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 8. Specification of whether or not the designated broker is authorized to cooperate with and compensate other designated brokers 9. A statement which confirms that the buyer received the Broker Disclosure Form on or before the signing of the buyer's agency agreement, or upon the licensee obtaining any personal or financial information 10. The signatures of the buyers or tenants and the broker or agent as authorized by the broker 11. The type of agreement 12. The agreement must not contain any provision that requires the buyer or tenant to notify the broker if he or she intends to cancel the agreement after the expiration date. 13. Addendums, riders, endorsements, attachments, changes to the agreement, or any other written authorization must contain the initials of all parties to the transaction. 14. The licensee must provide a legible copy of EVERY written agreement or other authorization to the buyer or tenant at the time the signatures are obtained. In addition, the broker must keep a copy of the written authorization in his or her office. 15. A licensee must 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 same buyer or tenant has a written unexpired exclusive agreement with another broker. This is allowed ONLY if the buyer or tenant initiates the discussion AND provided the licensee has not directly or indirectly solicited the discussion. If the preceding conditions are true, then the licensee may negotiate and enter into an agreement that will take effect after the expiration of the current agreement. 16. 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 agency agreement. All other terms and conditions prescribed by the buyers or tenants

How can a buyer's agent assist the buyer when a seller is asking for an inflated price for a property? a. Seek an agency relationship with the seller. b. Play a neutral party role. c. Act as a uncommitted third party. d. Act as a negotiator.

Act as a negotiator. (d)

Which of the following would be considered as a ministerial act? a. Providing advice regarding contract terms b. An act that leads to representation c. An act that is informative in nature, but is not to the level of representation d. An act that is fiduciary in nature

An act that is informative in nature, but is not to the level of representation (c)

If a buyer agrees to compensate the buyer agent for any home he or she purchases, what kind of home searches can the agent do in addition to the regular MLS searches?

An agent could then search for homes that are: - For sale by owner - Open listings - Foreclosures - In probate

Give an example of a compensation agreement that is not a listing agreement.

An agreement that a broker signs with an unrepresented seller (a FSBO) in which that seller agrees that if he or she enters into a purchase contract with the buyer named in the agreement within a specified time period, the seller will pay a specified commission to the broker's firm at closing.

If a buyer initiates a discussion for representation while still under contract with another licensee, when might such representation with a new licensee begin? a. An agreement will take effect immediately. b. An agreement will take effect after the expiration of the current agreement. c. An agreement will take effect 5 days after the expiration of the current agreement. d. An agreement will take effect 2 business days after the expiration of the current agreement.

An agreement will take effect after the expiration of the current agreement. (b)

Designated Agency

An alternate way to handle dual agency situations is called designated agency. Designated agency means that a broker may designate one or more licensees to act exclusively as the agent of the seller or landlord, and designate one or more licensees to act exclusively as the agent of the buyer or tenant in the same transaction. This arrangement must also be disclosed to both parties and the broker must obtain the written consent of both the buyer and the seller.

Which of the following items must appear on a transaction brokerage agreement? a. Tax assessment b. School district designation c. An expiration date d. Fire district location

An expiration date (c)

Describe an open listing.

An open listing is a non-exclusive listing that allows a seller or buyer to engage a number of different brokers to sell or help purchase property. The broker who brings the buyer or finds the suitable property gets the commission. If the owner sells the property or the buyer finds his or her own property, no commission is owed to any broker.

Which of the following statements best defines commercial real estate? a. Any real estate other than real estate containing residential units, real estate on which buildings or structures are located, or real estate classified as private enterprise zones b. Any real estate other than real estate containing rental units, real estate on which no buildings or structures are located, or real estate classified as industrial c. Any real estate other than real estate containing one to four residential units, real estate on which no buildings or structures are located, or real estate classified as agricultural and horticultural property for assessment purposes d. Any real estate on which no buildings or structures are located

Any real estate other than real estate containing one to four residential units, real estate on which no buildings or structures are located, or real estate classified as agricultural and horticultural property for assessment purposes (c)

Net listings a. are legal in most states. b. are the same as a open listing. c. are illegal in Missouri d. allow the buyer to establish a minimum offer price.

Are illegal in Missouri (c)

When must a licensee provide a copy of the written agency agreement to his or her buyer client?

At the time the signatures are obtained

What is the Transaction Brokerage Addendum to Listing Contract designed to do?

Avoid a dual agency situation. When the seller signs this form, he or she is authorizing the licensee to act as a transaction broker for both the seller and the buyer if a buyer approaches the licensee for representation in the transaction

When should the prospective buyer, seller, tenant or landlord make the informed choice regarding your real estate licensee? a. After finding a house they want to buy. b. When it's time to pay commission. c. During the time they're working with a real estate licensee. d. Before they work with a real estate licensee.

Before they work with a real estate licensee. (d)

Buyer's Agency Contract

Form # 2125: Typically, the first things on the form are blanks for you to fill in the beginning and ending dates of the period of time that you will be representing your buyer client. You also need to insert the general description of property being sought for the buyer. Some examples of general descriptions that could be used include: a. Residential property in your city, county, and state b. Rental property in your city, county, and state c. Property in your city, county, and state to do an "option with intent to purchase" d. Blanks for you to fill in the beginning and ending dates of the period of time that you will be representing your buyer client. e. You will need to explain that you will do your best to find them a property that fits their needs. f. You are agreeing to show the buyer properties that are listed in a Multiple Listing Service. g. You are not responsible for searching for any properties not listed in your local Multiple Listing Service unless the buyer requests otherwise. h. You are agreeing to disclose your representation of the buyer and the source of the compensation you will receive in all offers to purchase property on behalf of the buyer. The agreement should also declare to the buyer that you are bound by local and federal fair housing laws and will not entertain direction that would cause you to violate the law.

Where can an agent get a copy of the legal description to attach to the listing agreement?

From a title insurance company or from the seller's deed

What are the two exceptions regarding Designated Agency which can both result in Dual Agency? a. If the agent representing the person as a buyer or tenant is also the agent who listed the property the person wants to buy or lease or if the supervising broker of two designated agents becomes involved in the transaction b. If the agent representing the buyer is the cooperating broker or assigned by the cooperating broker c. If the person buying the listed property hires a second agent or requires legal assistance d. If the agent representing the person as a buyer is also the agent who first showed the listed property or if a supervising broker agents has listed the property.

If the agent representing the person as a buyer or tenant is also the agent who listed the property the person wants to buy or lease or if the supervising broker of two designated agents becomes involved in the transaction (a)

When is a buyer obligated to pay compensation to a designated broker? a. If the buyer provides escrow monies when a contract is offered, the broker gets compensation. b. If the buyer has entered into a written agreement with a broker specifying the terms of compensation, then there is an obligation. c. If the buyer completes a transaction on a property that was listed in the MLS, the broker gets a commission. d. If a broker has been working with a buyer and the buyer makes an offer on a property, the broker is owed compensation.

If the buyer has entered into a written agreement with a broker specifying the terms of compensation, then there is an obligation. (b)

Under what conditions might a licensee negotiate a brokerage service agreement with a buyer who is already under contract? a. If the buyer initiates the discussion and provided the licensee has not directly or indirectly solicited the discussion b. If the listing agent initiates the discussion and provided the licensee has not directly or indirectly solicited the discussion c. If the licensee initiates the discussion d. If the licensee initiates the discussion and provided the buyer has not directly or indirectly solicited the discussion

If the buyer initiates the discussion and provided the licensee has not directly or indirectly solicited the discussion (a)

Under what conditions might a broker receive a commission after a listing has expired? a. If the carryover clause has been fulfilled b. If the absent broker clause has been met c. If a sale is the result of any national type of advertisement d. If the buyer is from out-of-state

If the carryover clause has been fulfilled (a)

Under what circumstance should a customer enter into a written agreement? a. If the customer wants representation b. If the customer wants to avoid an escrow payment. c. If the customer wants to avoid a compensation fee. d. If the customer wants to hide any adverse material facts.

If the customer wants representation (a)

According to the Missouri Broker Disclosure Form, there are two exceptions regarding Designated Agency, which can both result in Dual Agency. One of these exceptions is if the agent representing the person as a buyer or tenant is also the agent who listed the property the person wants to buy or lease. What is the other exception? a. If the supervising broker of two subagents becomes involved in the transaction b. If the supervising commissioner becomes involved in the transaction c. If the supervising broker of two designated agents becomes involved in the transaction d. If the agent representing the buyer is the supervising broker

If the supervising broker of two designated agents becomes involved in the transaction (c)

Under what condition may an unlicensed office assistant provide a written copy of the Broker Disclosure form to the tenant? a. When requested by a cooperating broker b. If the unlicensed office personnel does this in the performance of his or her property management-associated duties and on behalf of the landlord's agent or transaction broker c. If the unlicensed office personnel does this within normal working hours d. If the unlicensed office personnel has completed formal training by the brokerage

If the unlicensed office personnel does this in the performance of his or her property management-associated duties and on behalf of the landlord's agent or transaction broker (b)

A licensee shall deliver to the broker with whom affiliated all money received in connection with a real estate transaction in which the licensee is engaged within what timeframe? a. 1 banking day b. 5 banking days c. Immediately d. 10 banking days

Immediately (c)

Which of the following behaviors can lead to disciplinary action? a. Keeping secret confidential information of both parties to the transaction b. Remaining neutral in the transaction c. Presenting all offers and counter offers in a timely manner d. Implying that you can provide the same level of service as a transaction broker that you can as an agent

Implying that you can provide the same level of service as a transaction broker that you can as an agent (d)

What is the procedure to transfer a transaction brokerage agreement to another broker? a. The cooperating receiving broker must complete a compensation exchange notice. b. Written consent must be obtained by all parties to the original agreement. c. A transfer waiver must be requested and signed by the licensee. d. A transaction brokerage agreement cannot be transferred.

Written consent must be obtained by all parties to the original agreement. (b)

Thom, a transaction broker to the Jones (Sellers) - Barker (Buyers) home sale transaction, has been told by the Barkers they will not be consent to the transaction brokerage relationship. What should Thom do? a. Ask the Barkers to sign a subagency agreement. b. Thom should continue his transaction brokerage relationship with the Jones, and withdraw from his relationship with the Barkers without liability while working towards the conclusion of the transaction. c. Have the Barkers sign a written explanation of the facts of refusal that Thom's broker can keep on file. d. Convert his brokerage agreement with the Jones' to a seller's agency agreement.

Thom should continue his transaction brokerage relationship with the Jones, and withdraw from his relationship with the Barkers without liability while working towards the conclusion of the transaction. (b)

Why do sellers like to participate in a MLS service? a. To establish a data base of other known sellers b. To provide a system to track sales based on mortgage lenders in a specific area c. To allow a seller to inflate the value of the listing d. To allow numerous potential buyers to access a seller's listing

To allow numerous potential buyers to access a seller's listing (d)

When would a licensee use the Listing Contract Amendment?

To amend the original listing contract in one of three ways: 1. A change in the termination date 2. A change in the listing price 3. Any other change to the original agreement

What is the purpose of a multiple listing service? a. To establish a data base of licensees b. To provide a system to track sales based on mortgage lenders in a specific area. c. To provide accurate and structured data about properties for sale d. To allow brokers to track and share national real estate trends

To provide accurate and structured data about properties for sale (c)

Duties to Buyer

Two important duties a licensee owes to clients are loyalty and confidentiality (We'll talk more about other duties in an upcoming chapter). Because of these duties in particular, buyers can rest assured that the agent will put their interests above his or her own interests and know that any information they share with the agent will remain confidential.

What occurs when a dual agency relationship is not disclosed and agreed to in writing?

Undisclosed dual agency

What type of contract is an open listing? a. Assigned Contract b. Short-term Contract c. Unilateral Contact d. Lateral Contract

Unilateral Contact (c)

Duties After Termination of Agency

Unless other arrangements have been mutually agreed to in writing, once the relationship has been terminated, the licensee is no longer considered the principal's agent. As such, the licensee does not owe any further duties to the principal, except for the following: 1. Accounting: The licensee must account for all moneys and property received during the relationship. 2. Confidentiality: The licensee must not disclose confidential information he or she obtained during the relationship. *A good rule of thumb to remember here is: Anything you know about the PROPERTY (hidden defects) must be disclosed to a potential buyer or seller. Anything about the PEOPLE cannot be disclosed without written permission.

Advantages of Buyer Representation

When working with a customer to obtain a buyer agency agreement, it may be helpful to point out the advantages of such a relationship. Some of these advantages include the following: - In most cases, there is no cost to a buyer or tenant to be represented. Commissions are typically paid by the seller. - A buyer's agent can provide information about financing, including the different options available. - Licensees tend to work harder for loyal, committed clients. - Commitment to the representation agreement can be short-term if it makes the buyer feel more comfortable. - A licensee can explain how the MLS system works - cooperation with other companies, and how commissions are split between the listing and selling company. - A written buyer or tenant representation agreement allows the buyer's agent to look for properties listed in the MLS, FSBOs, probate properties, and properties not on the market. Note: The agreement should call for payment of a commission no matter what kind of property the client buys or rents. - A buyer's agent has an obligation to disclose anything he or she learns about the property and also the sellers' motivation to sell. - A buyer's agent will not disclose the buyer's bargaining position. - A buyer's agent can help the client negotiate. For example, if a property is overpriced, the licensee can share comparables and advise the client. - A buyer's agent can provide names of inspectors, lenders, and title companies to the client. - Listing or landlord agents will appreciate the fact that the licensee is working with a qualified, pre-approved buyer or tenant, so the transaction could move more quickly and/or more smoothly. - A buyer's agent can help outline expenses and closing costs. - It is a buyer agent's job to negotiate the "best deal" in the shortest amount of time and try to save the buyer money.

What is the major difference between an exclusive right to sell listing and an exclusive agency listing?

With exclusive right to sell, the broker has the exclusive right to market the property and receive a commission regardless of who procures the buyer. With exclusive agency, the owner retains the right to find a buyer and sell the property and owe the exclusive broker no commission.

An agent is best described as a. a person acting as a broker. b. a non-licensed person working for a licensee. c. a person representing two principal brokers. d. a person acting in the interest of others.

a person acting in the interest of others. (d)

Broker dual agency

occurs when two agents in the broker's firm represent both the seller and the buyer in a single transaction. Even though the parties are represented by two different agents, the broker is a dual agent if he or she gets involved in the transaction in any way.

Missouri law does not allow licensees to work a. simultaneously as a designated agent for both parties. b. for the interest of both parties to the transaction. c. in a neutral position. d. for the interest of one party to the transaction.

simultaneously as a designated agent for both parties (a)

Missouri law requires that if you want representation, you must a. enter into a written agreement. b. pay compensation. c. establish financial good faith. d. seek legal council.

enter into a written agreement. (a)

Section 339.105 of the Missouri Statutes

every broker who holds funds belonging to another must maintain those funds in a separate bank account and designate that account as an escrow or trust account.

Escrow checks must be made payable to the a. buyer's mortgage lender. b. licensee to whom the commission is owed or to the firm's general operating account. c. escrow officer or the escrow department. d. holding company or the office manager.

licensee to whom the commission is owed or to the firm's general operating account. (b)

A designated broker acting as a sub-agent is known as a a. limited agent. b. cooperating agent. c. customer's agent. d. agent of record.

limited agent (a)

A designated broker acting as a sub-agent on the seller's or landlord's behalf is known as a a. broker's agent. b. limited agent c. cooperating agent d. customer's agent.

limited agent (b)

A licensee representing a seller a. must account in a timely manner for all money and property received. b. must not disclose adverse material facts. c. must disclose financial information regarding the seller upon disclosure of adverse material facts. d. must provide a inspection report by a third party prior to listing the property.

must account in a timely manner for all money and property received (a)

Single licensee dual agency

occurs when a real estate licensee tries to represent the seller as a client and the buyer as a client in the same transaction.