Chapter 1: Montana License Law UPDATED
Exam Questions and CORRECT Answers
The Board Of Realty Regulation Consists of how many members and how are the members
appointed? - CORRECT ANSWER - 7 members and are appointed by the governor
What are the Civil and Criminal Penalties for those engaging in real estate without a license? -
CORRECT ANSWER - Guilty of a misdemeanor
First Offense will be fined b/t $100-$500 or imprisoned for 90 days or BOTH
Subsequent Offense will be fined b/t $500-$2,000 or imprisoned for 6 months or BOTH
What is the Real Estate Recovery Account? - CORRECT ANSWER - -Within the state
special revenue fund for the use of the board there is a recovery account
-Is used to pay claims against licensees that remain unsatisfied - the board maintains a minimum
blanca of $100,000 and to maintain this new licensees pay an additional fee of $35 when
obtaining initial license. If it is lower than minimum balance assessment will take place to
determine how to maintain balance (done by board)
Claims against the recovery account? - CORRECT ANSWER - Applications for claim
must be made within 2 years of final judgement, cannot be made for an amount over $25,000, the
board will conduct a hearing within 30 days of the application
What are the requirements for continuing education for new salesperson license? - CORRECT
ANSWER - they receive an interim license that terminates on Oct. 31st of the year of the
initial license date, must complete the "12-hour rookie course" within 120 days following their
original licensee issue date
Continuing Real Estate Education? - CORRECT ANSWER - All active licensees must
complete board-mandated core education each year along with a 12 hour of continuing real estate
education each year.
,A license may be placed on inactive status by? - CORRECT ANSWER - 1. paying the
required fee
2. forwarding the license to the Board for cancellation of active status
3. Submitting a written request that the license be place inactive
4. must renew the inactive license each year to avoid lapse, expiration or termination
How do you reactivate an inactive license? - CORRECT ANSWER - 1. filing a change of
address application
2. providing evidence of completing 24 hours of continuing education
3. providing evidence of completing the previous license years core course
4. paying the required fee
How many days does a Broker have to notify the department of moving addresses? - CORRECT
ANSWER - 10 days
A salesperson whose license has been cancelled due to termination of association with a
supervising broker must? - CORRECT ANSWER - notify the Board of a new supervising
broker relationship or notify board to place on inactive status, pay the required fees within 10
days
An existing supervising broker may not transfer temporary supervision of a salesperson for more
than how many days? - CORRECT ANSWER - 60 days in a 12-month period
What are the disciplinary guidelines the board may impose against a licensee violating any laws
or rules? - CORRECT ANSWER - they may impose any action, the board decides on a
case-by-case basis that seems appropriate
Where must the board deposit money it receives? - CORRECT ANSWER - must be
deposited in the recovery account
, What are the 6 Real Estate Activities? - CORRECT ANSWER - 1. creation and
improvement
2. management and maintenance
3. demolition
4. investment ownership
5. regulation
6. transfer
Persons requiring a Real Estate License? - CORRECT ANSWER - It is a violation of
license law for a person to act as a real estate broker or salesperson, or to advertise as a real
estate agent without a license
Predetermination for Licensing? - CORRECT ANSWER - Applicants with prior
disciplinary actions, criminal convictions, or deferred sentence may make an application for a
predetermination prior to taking the class and exam to see if they can continue.
All applicants for broker's license must: - CORRECT ANSWER - 18 years of age, have
worked as al license real estate salesperson for two years, or have experience or special
education that the board considers equivalent, complete 60 hours of coursework, pass written
exam, must apply within 12 months of taking exam
All applicants for a salesperson license must: - CORRECT ANSWER - 18 years of age, at
least two years of high school, file license application, complete 60 hours of coursework, pass
written exam, must apply for license within 12 months
How must the license and Pocket card be displayed? - CORRECT ANSWER - a broker
must conspicuously display his or her own license in the broker's place of business, licensees are
issued a pocket card that certifies the holder is registered, the period for which fees have been
paid, and state the name and address of the salespersons supervising broker
What is a supervising broker endorsement? - CORRECT ANSWER - a broker must
complete four hours of continuing education in the area of supervising broker annually, this
cannot be placed on inactive status, must complete the four hours or you can not be reinstated
Exam Questions and CORRECT Answers
The Board Of Realty Regulation Consists of how many members and how are the members
appointed? - CORRECT ANSWER - 7 members and are appointed by the governor
What are the Civil and Criminal Penalties for those engaging in real estate without a license? -
CORRECT ANSWER - Guilty of a misdemeanor
First Offense will be fined b/t $100-$500 or imprisoned for 90 days or BOTH
Subsequent Offense will be fined b/t $500-$2,000 or imprisoned for 6 months or BOTH
What is the Real Estate Recovery Account? - CORRECT ANSWER - -Within the state
special revenue fund for the use of the board there is a recovery account
-Is used to pay claims against licensees that remain unsatisfied - the board maintains a minimum
blanca of $100,000 and to maintain this new licensees pay an additional fee of $35 when
obtaining initial license. If it is lower than minimum balance assessment will take place to
determine how to maintain balance (done by board)
Claims against the recovery account? - CORRECT ANSWER - Applications for claim
must be made within 2 years of final judgement, cannot be made for an amount over $25,000, the
board will conduct a hearing within 30 days of the application
What are the requirements for continuing education for new salesperson license? - CORRECT
ANSWER - they receive an interim license that terminates on Oct. 31st of the year of the
initial license date, must complete the "12-hour rookie course" within 120 days following their
original licensee issue date
Continuing Real Estate Education? - CORRECT ANSWER - All active licensees must
complete board-mandated core education each year along with a 12 hour of continuing real estate
education each year.
,A license may be placed on inactive status by? - CORRECT ANSWER - 1. paying the
required fee
2. forwarding the license to the Board for cancellation of active status
3. Submitting a written request that the license be place inactive
4. must renew the inactive license each year to avoid lapse, expiration or termination
How do you reactivate an inactive license? - CORRECT ANSWER - 1. filing a change of
address application
2. providing evidence of completing 24 hours of continuing education
3. providing evidence of completing the previous license years core course
4. paying the required fee
How many days does a Broker have to notify the department of moving addresses? - CORRECT
ANSWER - 10 days
A salesperson whose license has been cancelled due to termination of association with a
supervising broker must? - CORRECT ANSWER - notify the Board of a new supervising
broker relationship or notify board to place on inactive status, pay the required fees within 10
days
An existing supervising broker may not transfer temporary supervision of a salesperson for more
than how many days? - CORRECT ANSWER - 60 days in a 12-month period
What are the disciplinary guidelines the board may impose against a licensee violating any laws
or rules? - CORRECT ANSWER - they may impose any action, the board decides on a
case-by-case basis that seems appropriate
Where must the board deposit money it receives? - CORRECT ANSWER - must be
deposited in the recovery account
, What are the 6 Real Estate Activities? - CORRECT ANSWER - 1. creation and
improvement
2. management and maintenance
3. demolition
4. investment ownership
5. regulation
6. transfer
Persons requiring a Real Estate License? - CORRECT ANSWER - It is a violation of
license law for a person to act as a real estate broker or salesperson, or to advertise as a real
estate agent without a license
Predetermination for Licensing? - CORRECT ANSWER - Applicants with prior
disciplinary actions, criminal convictions, or deferred sentence may make an application for a
predetermination prior to taking the class and exam to see if they can continue.
All applicants for broker's license must: - CORRECT ANSWER - 18 years of age, have
worked as al license real estate salesperson for two years, or have experience or special
education that the board considers equivalent, complete 60 hours of coursework, pass written
exam, must apply within 12 months of taking exam
All applicants for a salesperson license must: - CORRECT ANSWER - 18 years of age, at
least two years of high school, file license application, complete 60 hours of coursework, pass
written exam, must apply for license within 12 months
How must the license and Pocket card be displayed? - CORRECT ANSWER - a broker
must conspicuously display his or her own license in the broker's place of business, licensees are
issued a pocket card that certifies the holder is registered, the period for which fees have been
paid, and state the name and address of the salespersons supervising broker
What is a supervising broker endorsement? - CORRECT ANSWER - a broker must
complete four hours of continuing education in the area of supervising broker annually, this
cannot be placed on inactive status, must complete the four hours or you can not be reinstated
