MO REAL ESTATE EXAM PRACTICE QUESTIONS AND WELL DETAILED 100% CORRECT ANSWERS|2025/2026|GUARANTEED A+

AND WELL DETAILED 100% CORRECT


Mo Statute 339 - ANSWER
B B B B License Law RSMO 1986 B B B




License Law - B B



ANSWER
B Any person who performs a RE service on behalf of another party for CONSID B B B B B B B B B B B B B



ERATION must be licensed; i.e. broker transactions, managing property, appraising, counselin
B B B B B B B B B B



g, syndicating, auctioning
B B




Consideration - B



ANSWER
B Includes $ compensation, exchange of free services, or any other valuable go B B B B B B B B B B B



od or service that a person expects to be paid (Vital in license law requirement)
B B B B B B B B B B B B B B




MO Real Estate Commission (MREC) - ANSWER
B B B B B B -authority is: B




1. Regulatory
B




2. Judicial
B




3. Administrative
B




State level gov't entity that regulates and administers license law by passing rules and making
B B B B B B B B B B B B B B B



known in license law B B B




- violate MO license law and guilty= Class B Misdemeanor
B B B B B B B B B




MREC - B



State regulator of RE licenses, established by legislature, 7 members 5 years, protect the publi
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c: suspend, revoke, or probation
B B B B




- can never fine a licensee and will not involve in a commission $ dispute
B B B B B B B B B B B B B B




-subpoenas

-civil penalty $2,500 fine/occurrence
B B B




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,- can investigate without complaint
B B B B




- can file complaint in ANY COURT OF COMPETENT JURISDICTION
B B B B B B B B B B




MREC CAUSES COMPLAINT FILED WITH ADMIN HEARING COMMISSION;
B B B B B B B B




The Missouri Real Estate Commission was created by an act of the 61st General Assembly and
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approved by the governor on July 31, 1941. B B B B B B B




The Commission consists of seven voting members. Six of those members must have at least 1
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0 years experience as real estate brokers. A public member serves as the seventh member. Eac
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h commissioner is appointed for a five-year term.
B B B B B B B




Under the provisions of the real estate act, no real estate broker or salesperson may act as suc
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h without first procuring a license from the Commission. Other responsibilities include investi
B B B B B B B B B B B B



gating complaints generated by consumers against the acts of a real estate licensee and auditi
B B B B B B B B B B B B B B



ng real estate escrow accounts to verify proper handling of buyers' earnest money. The Comm
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ission also approves all real estate prelicensing and continuing education courses.
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The Commission meets regularly to review complaints, investigations and audits and to take u
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p other matters. The Missouri Real Estate Commission performs duties necessary to carry out
B B B B B B B B B B B B B B



the provisions of the real estate license law.
B B B B B B B




MO Admin Hearing Commission (MAHC) -
B B B B B



ANSWER
B Determines guilt/innocence; if guilty, sent to MREC for punishment or dismiss
B B B B B B B B B B



al. B




- 3 attorneys, work for attorney general
B B B B B B




- public crimes (other than license laws) sent to attorney general for disposition
B B B B B B B B B B B B




Brokers License Types - ANSWER B B B B - Individual: active or inactive
B B B B




- corporation
B




- LLC
B




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,- Partnership
B




- Non resident
B B




VOIDED: expiration, suspension, revocation
B B B




Salesperson's License Types - ANSWER B B B B Individual: active or inactive B B B




Broker Salesperson: Active or Inactive
B B B B




Branch Offices - ANSWER B - B B



Broker salesperson office (NOT salesperson) can manage branch office
B B B B B B B B B




- branch office under a principal broker would operate under principal broker's license
B B B B B B B B B B B B




Licensing - Renewals/ Termination Etc -
B B B B B



B ANSWER Brokers license renews by 6/30 of even years ($50)
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Salesp must renew by 9/30 of even years ($40)
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-2 yrs salesperson before broker
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- broker must notify MREC within 72 hours of termination
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- Salesperson has 6 months to find new broker or place on inactive
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- Listings belong to broker (transfer req written consent)
B B B B B B B B




- "Dual Contracts" to deceive lender = federal offense
B B B B B B B B




Broker Requirements - Place of Biz -
B B B B B B



ANSWER
B Sufficient size sign est RE office, maintain pl of biz in state during biz hrs, super
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vise all salesp, same name at branch off
B B B B B B B




Broker Reqs - Deposits / $ -
B B B B B B



B ANSWER Brokers must have Escrow or Trust accts unless exempted by MREC
B B B B B B B B B B




Deposits - broker must deposit $ w/in 10 days of accepting purchase offer
B B B B B B B B B B B B




- unless other agrmt, cobroker transfer funds deposit into listing brokers escrow acct
B B B B B B B B B B B B




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, Accounts must be NON int bearing unless otherwise agreed in writing; must clarify who receiv
B B B B B B B B B B B B B B



es interest B




-
Bonly negotiable items can be placed in escrow (check, cash, or money order); Seller must agre
B B B B B B B B B B B B B B B



e to other items as earnest deposit (i.e. ring, boat, note, etc)
B B B B B B B B B B B




-salesperson must deliver earnest $ to broker IMMEDIATELY B B B B B B B




-
if dispute over earnest $, broker should hold $ until all parties sign a release, or within 365 day
B B B B B B B B B B B B B B B B B B



s, if no agrmt, release and to state treasury
B B B B B B B B




-
BContract failed: AFTER 60 days broker sent registered letter saying would give earnest $ to sell
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er; lacking response from either party could release $ AFTER 15 DAYS
B B B B B B B B B B B




Broker has 15 days to notify buyer and seller of escrow problem
B B B B B B B B B B B




Net Listing - B B



ANSWER
B Illegal in MO; An owner sets a minimum amount that he wants to receiver fro B B B B B B B B B B B B B B



m the sale of the property and lets the broker have as commission any amount above the set
B B B B B B B B B B B B B B B B B B



minimum.



Commingling/ Conversion - B B



ANSWER
B =doing something wrong with someone's money; i.e. depositing late, taking o B B B B B B B B B B



ut too soon, or using $ without permission
B B B B B B B




Advertising Laws (sec 6)**** - ANSWER Discrimin. Adv -
B B B B B B B



illegal and violation of Federal Fair Housing Law
B B B B B B B B




- NO inducements: valuable consideration for secure customer to lease, purchase, list, sell
B B B B B B B B B B B B




- Guaranteed profit: guaranteeing future profits if resale not allowed
B B B B B B B B B




- Co name must always appear
B B B B B




- Salesp contact info, equivalent brokerage info
B B B B B B




- Blind Advertising: must include broker's reg biz name
B B B B B B B B




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