Missouri Real Estate Practice Exam

Delinquent renewal applications are assessed with a late fee of $50 per month or partial month. Charges are not to exceed a maximum late fee of $200 collectively.

To remain compliant, any change of a licensee's name or address must be made known to the real estate commission within 10 days of the change.

Out of the 12 hours of continuing education required to renew a license, a minimum of 3 hours must be core curriculum courses to meet renewal requirements. Classes are either elective or core based on MREC's designation/approval.

When a broker opens a new office, they must notify the Missouri Real Estate Commission. The new office address must be reported in writing within 10 days of opening.

Unlicensed Clerical personnel may not perform any tasks for which a license is required. This includes discussing property information with consumers; they should take a message and have a licensed agent return the call to discuss property details.

The Missouri Real Estate Commission is made up of 7 members. Of those members, 6 are broker members who must have held a broker's license for a minimum of 10 years. The remaining commission member is an unlicensed member of the public.

A material fact can be a limitation of a party's ability to perform under the terms of the contract. Such as a buyer who loses a job and is unable to obtain final financing approval. Buyer's and seller's personal information and motivations are always confidential. A material fact can also be a material defect in the property, title to the property, or environmental hazards affecting the subject property.

When a licensee represents either the buyer or seller, or both, in a real estate transaction, the relationship that creates the agency comes with fiduciary responsibilities. Those responsibilities are: obedience, loyalty, disclosure, confidentiality, accounting and reasonable care.

When a licensee's name or phone number, or both, is used in an advertisement, the ad must also contain the name and phone number of the broker or firm who holds the licensee's license.

Licensees shall not use cash, prizes, gifts, lotteries, and the likes thereof as inducements in order to secure customers or clients to buy, list, or lease. No valuable consideration shall be offered by a licensee who is conditioned upon the sale, purchase, or lease of real property.

A licensee must disclose in writing that they are a licensee when offering to buy property. The oral disclosure is needed to make the seller aware the conversation is taking place with a licensee, but that does not suffice as disclosure; it must be in writing.

A broker may not accept any non-negotiable item as an earnest deposit without the seller's prior written consent. In the event the seller does not agree to accept a non-negotiable item as an earnest deposit, the parties may renegotiate.

In Missouri, licensees are not permitted to charge a separate fee outside of the sales commission to prepare standardized forms on behalf of buyers and sellers. Homeowner's insurance can be escrowed and, if so, will appear on the settlement statement. While all terms in a transaction may be negotiable, inspections and appraisals are generally a buyer's debit.

Licensees are required only to fill in the blanks on standardized forms provided, prepared, and approved by the broker's counsel or by the counsel for a trade association of which the broker is a member or associate member, or by a Missouri state or local bar association. For a licensee to write contracts would constitute the unauthorized practice of law.

It is the responsibility of the listing broker (if there are two brokers involved in the transaction) to deliver or cause delivery of the settlement statements to buyers and sellers. The statements are to be provided at the time of closing and must outline the accurate sale price, earnest money held by the broker, payments received by the broker, to whom the broker disbursed any payments, and the amount, along with any deeds of trust or mortgages that are being recorded.

The Missouri license law chapter 339 requires a person to hold a real estate license in order to receive any type of compensation for real estate services rendered. No fee shall be paid to any unlicensed person for real estate services including but not limited to referral fees and commissions.

Under the law of the Missouri Real Estate Commission, having been found guilty of a violation of The License Law (Chapter 339) is a Class B Misdemeanor. A Class B Misdemeanor in Missouri carriers a maximum penalty of up to 6 months in a county prison and a $1,000 fine.

A broker may not be held liable for an affiliated licensee's license violation if the broker has written policies to ensure proper supervision and where the broker does not avoid learning of the violation, or attempt to ratify it.

A licensee is allowed to represent both the buyer and the seller in the same transaction, which is called Dual Agency. A dual agency relationship must be disclosed and agreed upon by both parties in writing. Undisclosed dual agency is illegal in Missouri.

A listing agreement may not include a clause allowing the listing contract to automatically renew upon expiration if the property has not sold, nor a clause requiring the seller to notify the agent prior to the agreement's expiration that they are not extending the listing.