Verified Practice Questions & Answers with
Detailed Rationales (2026 Edition)
1. Which clause in a listing agreement allows the broker to
earn a commission even if the property is sold after
expiration, provided the buyer was introduced during the
listing period?
A. Net listing clause
B. Safety clause (protection clause)
C. Override clause
D. Open listing clause
Answer: B. Safety clause (protection clause)
The safety or protection clause ensures a broker may still earn
a commission if a buyer they introduced during the listing
term purchases the property shortly after expiration, typically
within a specified protection period.
2. Under Missouri law, which of the following would MOST
likely be considered a latent defect?
A. Broken window visible during showing
B. Roof discoloration easily observed
C. Hidden foundation crack covered by drywall
D. Missing cabinet door in kitchen
,Answer: C. Hidden foundation crack covered by drywall
A latent defect is hidden and not discoverable by ordinary
inspection. Structural issues concealed behind surfaces
qualify.
3. A Missouri licensee who knowingly misrepresents a
material fact in a transaction may be guilty of:
A. Civil negligence only
B. Fraud and license discipline
C. Breach of contract only
D. No violation if client benefits
Answer: B. Fraud and license discipline
Intentional misrepresentation of material facts constitutes
fraud and can lead to civil liability and disciplinary action by
the Missouri Real Estate Commission.
4. Which type of agency relationship is created when a
broker acts for both buyer and seller in the same
transaction with informed consent?
A. Designated agency
B. Dual agency
C. Universal agency
D. Special agency
Answer: B. Dual agency
Dual agency occurs when one broker represents both parties
with full disclosure and written consent from both clients.
,5. What is the primary purpose of Missouri’s Statute of
Frauds in real estate transactions?
A. To regulate broker commissions
B. To require notarization of deeds
C. To require real estate contracts to be in writing
D. To enforce zoning compliance
Answer: C. To require real estate contracts to be in writing
The Statute of Frauds ensures enforceability of real estate
contracts by requiring them to be in writing and signed by the
parties.
6. Which lien has the HIGHEST priority in Missouri, assuming
proper recording order?
A. Mechanic’s lien
B. Mortgage lien recorded first
C. Property tax lien
D. Judgment lien
Answer: C. Property tax lien
Property tax liens generally take priority over all other liens
regardless of recording date.
7. A tenant remains in possession after lease expiration
without landlord consent. This tenancy is called:
A. Tenancy at will
B. Tenancy for years
, C. Tenancy at sufferance
D. Periodic tenancy
Answer: C. Tenancy at sufferance
A tenancy at sufferance occurs when a tenant wrongfully
holds over after lease expiration.
8. Which document provides public notice of a buyer’s
interest in real property?
A. Deed
B. Purchase agreement
C. Memorandum of contract
D. Appraisal report
Answer: C. Memorandum of contract
A recorded memorandum gives constructive notice of a
buyer’s equitable interest in property.
9. Under Missouri license law, which act is considered
commingling?
A. Sharing commission with another broker
B. Depositing client funds into personal account
C. Charging excessive commission
D. Failing to disclose defects
Answer: B. Depositing client funds into personal account
Commingling occurs when client funds are mixed with
personal or business operating funds, which is prohibited.