Missouri Portion
Jennifer is selling her St. Louis property. She has hired Larry as her agent. After the property's listed, Jane brings her client, Andrew, to see the property, which Andrew is interested in purchasing. Who's Jane in this scenario?
A buyer's agent
Missouri broker Matt is placing his license on inactive status. What must he do to maintain his license in this status?
Matt must renew his license by June 30 of even-numbered years.
Marisa is a Missouri REALTOR®. She believes that another REALTOR® failed to pay her the full commission on her last transaction. From which organization can Marisa seek assistance in managing this dispute?
Missouri Association of REALTORS®
Which Missouri organization offers mediation and arbitration in handling commission disputes between members?
Missouri Association of REALTORS®
Jamila completed the following three-hour courses: Missouri Fair Housing, Time Management Basics, Hot Topics in Real Estate, Managing Escrow Accounts, and Best Practices for Preparing a Market Analysis. Which course(s) could be counted towards core continuing education hours?
Missouri Fair Housing and Managing Escrow Account could count toward core hours.
In Missouri, when a complaint is made against a real estate licensee, what organization investigates the complaint and decides what sanctions to impose?
Missouri Real Estate Commission
Jan hired Anita to assist her with finding a new home, and found out that her Missouri real estate license was revoked. Where can Jan go to file a complaint against Anita?
Missouri Real Estate Commission website
Shannelle is transferring from her current broker, Monica, to a new broker, Robert. Shannelle has three active with Monica's brokerage. When she transfers, to which brokerage will these listings belong?
Monica's brokerage
Gavin, an investor, secures an owner-occupied loan at a much lower rate than the general public is allowed, yet never plans to live in the Springfield, Missouri property. Gavin is committing ______.
Mortgage fraud
Nathan terminated his affiliation with Missouri broker James 10 days ago. He has yet to place his license with a new broker. Which statement best describes activities Nathan can currently perform?
Nathan can't perform any real estate activities until he places his license with a new broker.
Kali's the transaction broker for seller Joshua. Joshua is buying a house in St. Louis from Norman, who's represented by his agent, Marc. To whom does Kali owe fiduciary duties in this transaction?
No one While agents work on behalf of and advocate for their clients, transaction brokers are neutral, not advocating for the buyer or the seller.
Emmett (a buyer) made an offer on Arnold's property. Arnold agrees to all but one of Emmett's terms. Do we have a binding contract?
No, Arnold's counter-offer hasn't been accepted by Emmett.
The following charges are part of a Missouri real estate transaction: sales price, seller concession to buyer's closing costs, seller's loan payoff, buyer's new loan. What item(s) would be listed as a seller's debit on the closing statement?
Seller concession and seller's loan payoff In this example, the seller's concession toward the buyer's closing costs and loan payoff are seller debits.
After several years of working as a Missouri broker, Lea decides she wants to focus on building her client base rather than being responsible for supervising other licensees. She decides she wants to become a broker-salesperson. Which of the following things does she need to do to make this happen?
She must surrender her license to the commission for conversion to a broker-salesperson license.
Celine, a Missouri salesperson, has been selected by her broker to act as a designated agent for a buyer. She owes the buyer the same duties as a _____.
Single agent representing a buyer
Dominic terminated affiliation with his broker 9 months ago. He's now ready to affiliate with a new broker and begin performing real estate activities. What must he do to reinstate his license with his new broker?
Submit a transfer application and proof that the Missouri Real Estate Practice course was completed within the last six months.
Missouri broker Byron has just signed a buyer agency agreement with his new clients, Jamee and Kari. Jamee and Kari are ________.
The buyer
In a seller agency relationship, what relationship does the buyer have to the Missouri licensee?
The buyer is the licensee's customer
In Missouri, anything that's being hidden from ______ that relates to seller concessions, property condition, buyer qualification, or sales price is considered fraud.
The lender
New licensee Kyla is meeting with a potential client, Harmony, in an hour. Harmony wants to list her cabin at Lake of the Ozarks for sale. Which listing agreement should Kyla, who isn't a member of any professional real estate organization, use?
The listing agreement her broker tells her to use
After conducting an investigation, the MREC determines that it's likely broker Kyle has committed a license law violation. What happens next?
The matter is presented to the Administrative Hearing Commission for their determination.
What is the maximum penalty per call that can be assessed for contacting someone on the no-call list in Missouri?
The maximum penalty per call in Missouri is $5,000. Calling a registered number more than once in a 12-month period can also result in up to an additional $5,000 in damages.
Missouri real estate professionals handle many documents related to real estate transactions. Which one of the items listed below is one of the most important in detecting mortgage fraud?
The original sales agreement and any addenda
Which of the following must be included in the written confirmation of brokerage services in Missouri?
The written confirmation of brokerage relationships must identify the licensee's brokerage relationship(s) and compensation source(s), and be signed and dated by the seller, buyer, and the disclosing licensee(s).
Which of the following is a true statement concerning controlled business arrangements in Missouri? They may be disclosed verbally or in writing. They may exist even in situations where there is no financial benefit to the licensee. They must be disclosed in writing to all parties. They're illegal.
They must be disclosed in writing to all parties.
If a licensee commits a violation and it's found the broker didn't adequately supervise the licensee, whose license in jeopardy?
Both the broker's and licensee's
Kevin is a real estate salesperson from a neighboring state who wants to become licensed in Missouri as a salesperson. Which of the following is a true statement regarding the exam requirements he must meet?
He must pass the state portion of the salesperson exam.
It's time for James to renew his non-resident broker license in Missouri. Which of the following is true of this situation?
He must pay the $150 renewal fee.
Missouri broker Joseph tells his client that a property is zoned as residential, even though he knows it's zoned as commercial. This violation is an example of ______.
Making a substantial and willful misrepresentation
Jayden, a Missouri broker, has just received a check for an earnest money deposit. Missouri law requires her to deposit the earnest money into a special account. How many days does she have to do make the deposit?
10 banking days
Lantee's just received notice that her Missouri real estate salesperson license is up for renewal. How many continuing education credits must she earn before the expiration date in order to qualify?
12 continuing education credits in order to renew their licenses. At least three of the credits must be MREC-approved core courses.
Missouri licensee Albert, 86, has applied to the commission to waive his CE requirements, stating that it's not feasible for him to satisfy the requirements before the renewal date. The commission agreed to waive the requirements based on Albert's age. Waivers may be granted for licensees who are at least ________ years of age.
80
Which of the following elements is required in a Missouri buyer representation agreement? A clear description that unmistakably identifies the property being purchased A description of the type of property the buyer seeks The property's complete address The property's legal address
A description of the type of property the buyer seeks
When a sales contract doesn't cover the terms needed by the parties, which of the following actions is a licensee allowed to take?
Add a standard addendum using standard language.
Which of the following is a licensee allowed to do when a sales contract doesn't cover the terms needed by the parties? Add a standard addendum using standard language. Draft an amendment using whatever language is needed to capture the missing terms. Make the changes manually in the contract with party initials. Terminate the contract on the client's behalf.
Add a standard addendum using standard language.
In Missouri, ______ is defined as mortgage fraud.
Any act that's a willful attempt to defraud
Tom worked as a broker in Missouri for 25 years. As he neared retirement, he decided he wasn't feeling the love for running his own brokerage, and decided to surrender his broker's license and work as a salesperson in another brokerage. It's been two years since he made the leap, and Tom couldn't be happier. What type of license does he hold?
Broker-salesperson
In Missouri, how is agricultural or horticultural property categorized?
Commercial
In addition to a completed application and appropriate fees, what else must a Missouri real estate license applicant submit?
Completion certificates for the pre-examination and practice courses
Once an offer or counter-offer is accepted, the Missouri licensee must promptly deliver __________.
Copies of the fully signed offer to purchase to each party to the transaction
In Missouri, the mishandling of escrow funds can result in _____________________.
Disciplinary action and fines for the real estate licensee
At the end of a license law complaint investigation, what actions may the MREC take?
Dismiss the complaint or refer it to the Administrative Hearing Commission for a recommendation
Missouri licensee Carrie is acting as a dual agent. The seller has shared that he's willing to accept less than the list price. Can Carrie share this with the buyer?
No, this information must remain confidential.
Courses on the specific topics may be submitted by approved schools to MREC for core course consideration for continuing education credit. Which of the following is one such topic? Business skills Property management Salesmanship Time management
Property management
A MREC investigation determines a complaint has merit and license law was likely violated. What action does the MREC take next?
Refer the complaint to the Administrative Hearing Commission for a recommendation
Missouri broker Zeus represents buyer Jeff, who's purchasing a residential property from seller Alfred, whose agent is broker Sam. Who is responsible for delivering the closing statements to the parties?
Sam must deliver the closing statements to both Jeff and Alfred.
Missouri salesperson Danny's license was issued on October 14, 2018. When will it expire?
September 30, 2020
Licensee Enrique presents a counter-offer to buyer Jonathan, and then helps Jonathan fill out the paperwork on a counter-counter-offer. Enrique doesn't offer any advice to Jonathan or advocate on his behalf. This is because Enrique is acting under a(n) __________ agreement.
Transaction brokerage
James Putterson is selling his three-story, six-bedroom home in a tony suburb of St. Louis, Missouri. He doesn't need help negotiating with buyers, or a licensee to advocate on his behalf, but he'd like a licensee's help with completing the paperwork. Based on this, he should sign a(n) __________ with a real estate licensee.
Transaction brokerage agreement
Missouri seller Derek Storm agrees that his designated broker, Nicki, can share her compensation with the buyer's agent, Alexis. Is this legally enforceable?
Yes, but only if this arrangement is established in the written agreement Nicki and Derek have signed.
Missouri licensee and real estate instructor Blake teaches a three-hour commission-approved continuing education course to other licensees. Can she earn CE credit toward her own license requirements for this?
Yes, but she can only earn this credit once for each course taught during each renewal period.
What differentiates cooperative housing from other types of residential housing?
Owners are shareholders in a corporation.
Which of these situations would warrant a complaint to the Missouri Real Estate Commission? A licensee demanded a higher commission rate because of "emotional distress" her client caused. A licensee lowered the advertised commission rate after a property went under contract, then tried to pay the lower commission to the cooperating agent without him noticing. A licensee refuses to pay commission until three weeks after closing. Two licensees can't agree on how a commission bonus should be split.
A licensee lowered the advertised commission rate after a property went under contract, then tried to pay the lower commission to the cooperating agent without him noticing.
In Missouri, a licensee can't pay a commission or other valuable consideration unless there's ______ for that payment or there's a contractual relationship with the licensee.
A reasonable cause
Missouri licensee Adam's license has been revoked. He decides to appeal the revocation, so he sends his notice of appeal to the Administrative Hearing Commission 100 days after he receives his notice of revocation. Which of the following is true?
Adam has waited too long to send his notice of appeal to the AHC, so he's considered to have waived his right to appeal If a person's license is revoked, that person may appeal the revocation by submitting a notice of appeal to the Administrative Hearing Commission within 90 days of the notice of revocation being mailed.
Missouri licensee Garrett is acting as a single agent in a transaction. The potential that this relationship may change from single to dual agency occurred. When must he disclose dual agency?
As soon as the potential change occurred
In Missouri, when is a licensee required to provide the Broker Disclosure Form?
At the first substantial contact
In Missouri, if you're acting under a brokerage services agreement, you must have your relationship confirmed in writing by each party to the transaction ______.
At the same time or before each party signs the real estate contract
All Missouri candidates for real estate licensure must ______.
Be at least 18 years old, and complete both the 48-hour pre-examination course and the 24-hour practice course.
Broker Amanda hires Jake to be an assistant at her firm. She would like to compensate Jake on a completed-transaction basis. For this to be permissible, Jake must ______.
Be licensed
At minimum, how many trust or escrow accounts must a Missouri broker operating as a property manager establish?
Brokers must establish two escrow/trust accounts: one may hold security deposits and prepaid rent, and another to hold current rent and property management operating funds.
A Missouri licensee must perform which of the following tasks for a buyer client?
Ensure the buyer understands the importance of due diligence to include a professional inspection of the property.
A complaint has been filed with the MREC against Jared, a Missouri licensee. What does the commission do next?
Determine whether it has merit
Regarding their employment classification, unlicensed assistants are most often ______.
Employees Because unlicensed assistants may not work on commission, they must be paid a salary.
Which one of the following tasks must a Missouri licensee perform for her buyer client? Advise the buyer on how to get the seller to come down on the asking price. Ensure that the buyer receives copies of all signed paperwork. Explain to the buyer how to deposit the earnest money into the seller's personal checking account. Explain to the buyer that there's really no need to review transaction documents because they're all standard.
Ensure that the buyer receives copies of all signed paperwork.
A common form of mortgage fraud that one may see in Missouri—illegal property flipping—involves a recently purchased property being ______
Falsely appraised at an inflated value and then sold for that higher price
What's the most common indicator of illegal property flipping you may see in Missouri?
Falsely inflated appraisal
When is a written brokerage agreement required in Missouri?
For all brokerage agreements, whether it's to establish an agency relationship or a transaction brokerage agreement
You've signed a listing agreement with Janet, who's selling her Victorian home. You get a call at your office from an interested buyer who'd like to come in to talk to you about the house. He says he isn't working with another licensee. What should you do when he comes into your office?
Give him the Missouri Broker Disclosure Form.
Broker Hal wants to open a new on-site leasing office in an office building. He signs the lease and moves into the office, hiring office staff. Three months later, he realizes he's never notified the MREC about the new office. Which of the following is true of this situation?
Hal was never required to register this office with the MREC, because it's not considered a branch office.
When the MREC receives a complaint about a licensee and finds it to have merit, it's forwarded to the Administrative Hearing Commission. What does the AHC do next?
Hold a hearing
Damien is three months late renewing his Missouri real estate license. What is the amount of the delinquency fee he must submit with his renewal?
If licensees fail to renew their license on time, a delinquent fee of $50 per month or partial month, up to $200, must be paid along with regular renewal fees.
In Missouri, after a complaint is filed against a licensee, what does the commission do next?
Investigate to determine whether the complain has merit The commission investigates whether the complaint has merit. If it does, the complaint is referred to the Administrative Hearing Commission for further investigation and a formal hearing.
An injunction may be issued against any person or entity in Missouri for performing or offering to perform real estate services without a license. Who else might be subject to an injunction?
Licensees whose actions pose health or safety risks to the public
What's the Missouri Real Estate Commission's (MREC) role in combatting mortgage fraud?
It has the broad authority to investigate complaints of fraud perpetrated by licensees.
You're hosting an open house at your colleague's Kansas City listing while she's on vacation. A visitor at the open house asks several questions about the house, and you answer them without mentioning that it's not your listing. Why is this a problem?
It's a misrepresentation of your status.
Which of the following statements about the Missouri Broker Disclosure Form is true? It's a legally binding contract. It's informational in nature. It's only a legally binding contract if it's signed by all parties to the transaction. It's used to form an agency agreement.
It's informational in nature. The Missouri Broker Disclosure Form is an informational disclosure. It's not a brokerage agreement or type of legal contract, and it doesn't create an agency relationship.
You're late to an appointment with a potential buyer, Kent, to show your seller client's house. On your way there, your sub-agent, Jax, calls to say he just ran into Kent as he left the house from another showing and disclosed his agency status to Kent and his agent. Which of the following is true of this situation?
Jax's agency disclosure to Kent also served as your disclosure to him.
Shane is no longer practicing real estate, but he has his Missouri broker's license, so he keeps his business going, and collects fees for allowing licensees to use his license. Is this an appropriate business model?
No, because Shane's shirking his supervisory responsibilities.
Missouri licensee Jim is sole owner of three houses. He lists one for sale on Craigslist under the "For Sale by Owner" section, with his name and cell number, and his sponsoring broker's name and phone number. Is this permitted by law?
No, because licensees may not list any properties they own as "for sale by owner."
Ellie has had a Missouri broker's license for 40 years but has decided she doesn't want the responsibility of supervising 24 salespeople any longer. She returned her broker license to the MREC and obtained her broker-salesperson's license, but Sam, her favorite salesperson, begs her to continue supervising him, so he can stay licensed under her. Can she do this?
No. Broker-salespersons aren't allowed to have salespersons licensed under them.
When must Missouri brokerage relationship disclosures be confirmed in writing?
On or before that party's first signature to the real estate contract
What's dual agency?
One or more agents from the same firm represent both the buyer and seller in a single transaction
Richard runs a brokerage. He has an office in town on Main Street, and one in the 'burbs on Industrial Avenue, plus a leasing office in the Charleston Apartment complex, and a trailer office for showing consumers model homes in a new development at Honeymoon Acres. Which of these must be registered as branch offices in Missouri?
Only Industrial needs to be registered as a branch office. The Main office is the main office, of course! The others are exempt from registration as branch offices.
Ansel holds a Missouri broker-salesperson license. From whom may Ansel legally receive compensation?
Only from his associated broker
In your exclusive agency agreement with seller Janet, she prohibited you from acting as a dual agent or as the buyer's transaction broker. An interested buyer, Frank, drops by your office, asking questions about the property. He's not working with another licensee, so you provide him with the Missouri Broker Disclosure Form. What should you do next?
Tell him that you're representing the seller, and because of that, he shouldn't divulge any confidential information to you.
Which of the following licenses can the Missouri Real Estate Commission issue when a broker dies or is incapacitated, and that broker's legal representative takes over running the business until the business can be wrapped up?
Temporary broker
Which of the following topics must be included in the 24-hour Missouri real estate practice course?
The 24-hour real estate practice course must include several required topics, including termination of brokerage relationships, the appraiser's role, pricing property, compensation, and more.
When a complaint against licensee Jeff is made with MREC, which entity determines if Jeff is guilty of violating license law or other Missouri rules?
The Administrative Hearing Commission
A complaint has been filed with MREC about Missouri licensee Jewel. After investigating the complaint, the MREC determines it's likely that Jewel's acts constitute a violation of Missouri license law. What is the Administrative Hearing Commission's role (if any) in dealing with Jewel?
The Administrative Hearing Commission holds a formal hearing to determine whether she is guilty.
A complaint was filed against Missouri licensee Clare. The MREC investigated the complaint and determined that Clare's action doesn't constitute a violation of the license law or rules. What happens next?
The MREC must dismiss the complaint at that point.
The name of the form that all licensees must give to an unrepresented consumer at their first substantive contact with that consumer is _______________.
The Missouri Broker Disclosure Form
The Missouri Administrative Hearing Commission determines that licensee Lassie's actions constitute a violation of license law. Which of the following entities has the power to revoke or suspend Lassie's license?
The Missouri Real Estate Commission
When the term commission is used in relation to Missouri real estate, to what does this term refer?
The Missouri Real Estate Commission
Which entity determines if a complaint made to the Missouri Real Estate Commission has merit and should be investigated?
The Missouri Real Estate Commission
Which of the following parties prescribes the Missouri Broker Disclosure Form?
The Missouri Real Estate Commission
Where can you find information on prohibited practices that would constitute grounds for real estate license denial in Missouri?
The Missouri statutes
In which of the following cases is it legal for a designated broker to act as a dual agent providing real estate brokerage services? Under a written agreement with the buyer and seller in which both give their written consent for the broker to act as a dual agent Under no circumstances, since dual agency is illegal in Missouri With the written consent of the first party with whom he had a written agency agreement With the written consent of the Missouri Real Estate Commission, and only under specific conditions
Under a written agreement with the buyer and seller in which both give their written consent for the broker to act as a dual agent