MISSOURI REAL ESTATE STATE PORTION
EXAM 2026 150 DETAILED CORRECT
ANSWERS WITH RATIONALES AND
CORRECT VERIFIED ANSWERS GRADE
A+ INSTANT DOWNLOAD
1. Under Missouri license law, which of the following acts constitutes a
violation that could result in the suspension or revocation of a real estate
license?
A) Failing to renew a license before the expiration date, provided it is
renewed within the grace period.
B) Accepting a commission from a transaction in which the licensee was
not actively involved as the agent of record.
C) Advertising a property using the broker’s firm name without including
the individual licensee’s name.
D) Refusing to show a property to a prospective buyer who does not have
pre-approval.
Correct Answer: B
Missouri law prohibits receiving compensation for real estate services
unless the licensee is properly licensed and acting under the supervision
of their employing broker. Accepting a "referral fee" or commission for a
transaction where you did not perform licensed activities is illegal.
2. A Missouri broker receives an earnest money deposit check from a
buyer on a Friday afternoon. According to Missouri regulations, when
must this deposit be placed into the broker’s trust account?
A) Immediately upon receipt, regardless of banking hours.
B) By the end of the next business day.
C) Within three banking days of receipt, unless otherwise agreed to in
writing by all parties.
D) Within seven calendar days of receipt.
,Correct Answer: C
Missouri Commission Rule requires that trust funds be deposited within
three banking days. However, if the purchase agreement specifies a
different timeline (e.g., "upon acceptance"), that written agreement
controls.
3. In Missouri, a "Dual Agency" relationship is permitted only if:
A) The broker has been in business for more than five years.
B) Both the buyer and the seller give their informed, written consent
after full disclosure of the dual agency.
C) The transaction involves residential property only.
D) The agents involved are from different brokerage firms.
Correct Answer: B
Missouri law allows dual agency (representing both buyer and seller) but
mandates that both parties must be fully informed of the limitations of
such representation and must consent in writing.
4. Which of the following is a mandatory disclosure required by Missouri
law for a licensee selling their own personally owned property?
A) The licensee must disclose their license status in writing to the buyer
before any offer is made.
B) The licensee must hire an independent appraiser.
C) The licensee must offer a warranty on the property.
D) The licensee must disclose their profit margin to the buyer.
Correct Answer: A
Missouri Statute 339.730 requires that if a licensee is selling their own
interest in real estate, they must disclose in writing that they are a
licensee. This disclosure must be made prior to the signing of any
contract.
5. What is the primary purpose of the Missouri Real Estate Commission
(MREC)?
A) To promote real estate sales and increase market value.
,B) To protect the public through the enforcement of license laws and
regulations.
C) To set standard commission rates for all transactions.
D) To provide legal counsel to real estate brokers.
Correct Answer: B
The MREC’s statutory mandate is consumer protection. It does not set
prices, act as a trade association, or provide legal advice.
6. A Missouri licensee fails to renew their license by the deadline. What
is the consequence?
A) They may continue to practice for 30 days while paying a late fee.
B) Their license becomes inactive, and they cannot engage in any
licensed activity until it is reinstated.
C) They are automatically fined $500 by the Commission.
D) They must retake the entire pre-license course.
Correct Answer: B
If a license is not renewed by the expiration date, it becomes inactive.
Practicing with an inactive or expired license is a violation of Chapter
339. Reinstatement may require continuing education and fees.
7. Under Missouri law, who holds the ultimate responsibility for the
actions of a salesperson?
A) The salesperson themselves.
B) The Missouri Real Estate Commission.
C) The employing broker.
D) The local Realtor® association.
Correct Answer: C
In Missouri, a salesperson must be affiliated with a broker. The broker is
legally responsible for supervising the salesperson’s activities and
ensuring compliance with state law.
8. Which of the following documents is NOT required to be retained in a
broker’s transaction file for at least three years in Missouri?
, A) Copies of all contracts and agreements.
B) Records of all deposits and disbursements.
C) The buyer’s personal credit report obtained during pre-qualification.
D) Disclosure statements signed by the parties.
Correct Answer: C
Brokers must retain records of transactions (contracts, disclosures,
financial records) for three years. Personal credit reports are sensitive
data typically held by lenders, not required in the broker’s permanent
transaction file unless specifically part of the agreement, and retaining
them poses privacy risks.
9. A Missouri licensee advertises a property as "Great Investment
Opportunity! No Money Down!" but the loan program actually requires a
3% down payment. This advertisement is considered:
A) Creative marketing.
B) Misleading and a violation of Missouri license law.
C) Permissible if the lender approves it.
D) Allowed if the text is small.
Correct Answer: B
Missouri law prohibits false, misleading, or deceptive advertising.
Stating "No Money Down" when money is required is a material
misrepresentation.
10. In Missouri, a "Designated Agent" is appointed by:
A) The buyer alone.
B) The seller alone.
C) The broker, with the written consent of the client, to represent one
party in a dual agency situation.
D) The Missouri Real Estate Commission.
Correct Answer: C
EXAM 2026 150 DETAILED CORRECT
ANSWERS WITH RATIONALES AND
CORRECT VERIFIED ANSWERS GRADE
A+ INSTANT DOWNLOAD
1. Under Missouri license law, which of the following acts constitutes a
violation that could result in the suspension or revocation of a real estate
license?
A) Failing to renew a license before the expiration date, provided it is
renewed within the grace period.
B) Accepting a commission from a transaction in which the licensee was
not actively involved as the agent of record.
C) Advertising a property using the broker’s firm name without including
the individual licensee’s name.
D) Refusing to show a property to a prospective buyer who does not have
pre-approval.
Correct Answer: B
Missouri law prohibits receiving compensation for real estate services
unless the licensee is properly licensed and acting under the supervision
of their employing broker. Accepting a "referral fee" or commission for a
transaction where you did not perform licensed activities is illegal.
2. A Missouri broker receives an earnest money deposit check from a
buyer on a Friday afternoon. According to Missouri regulations, when
must this deposit be placed into the broker’s trust account?
A) Immediately upon receipt, regardless of banking hours.
B) By the end of the next business day.
C) Within three banking days of receipt, unless otherwise agreed to in
writing by all parties.
D) Within seven calendar days of receipt.
,Correct Answer: C
Missouri Commission Rule requires that trust funds be deposited within
three banking days. However, if the purchase agreement specifies a
different timeline (e.g., "upon acceptance"), that written agreement
controls.
3. In Missouri, a "Dual Agency" relationship is permitted only if:
A) The broker has been in business for more than five years.
B) Both the buyer and the seller give their informed, written consent
after full disclosure of the dual agency.
C) The transaction involves residential property only.
D) The agents involved are from different brokerage firms.
Correct Answer: B
Missouri law allows dual agency (representing both buyer and seller) but
mandates that both parties must be fully informed of the limitations of
such representation and must consent in writing.
4. Which of the following is a mandatory disclosure required by Missouri
law for a licensee selling their own personally owned property?
A) The licensee must disclose their license status in writing to the buyer
before any offer is made.
B) The licensee must hire an independent appraiser.
C) The licensee must offer a warranty on the property.
D) The licensee must disclose their profit margin to the buyer.
Correct Answer: A
Missouri Statute 339.730 requires that if a licensee is selling their own
interest in real estate, they must disclose in writing that they are a
licensee. This disclosure must be made prior to the signing of any
contract.
5. What is the primary purpose of the Missouri Real Estate Commission
(MREC)?
A) To promote real estate sales and increase market value.
,B) To protect the public through the enforcement of license laws and
regulations.
C) To set standard commission rates for all transactions.
D) To provide legal counsel to real estate brokers.
Correct Answer: B
The MREC’s statutory mandate is consumer protection. It does not set
prices, act as a trade association, or provide legal advice.
6. A Missouri licensee fails to renew their license by the deadline. What
is the consequence?
A) They may continue to practice for 30 days while paying a late fee.
B) Their license becomes inactive, and they cannot engage in any
licensed activity until it is reinstated.
C) They are automatically fined $500 by the Commission.
D) They must retake the entire pre-license course.
Correct Answer: B
If a license is not renewed by the expiration date, it becomes inactive.
Practicing with an inactive or expired license is a violation of Chapter
339. Reinstatement may require continuing education and fees.
7. Under Missouri law, who holds the ultimate responsibility for the
actions of a salesperson?
A) The salesperson themselves.
B) The Missouri Real Estate Commission.
C) The employing broker.
D) The local Realtor® association.
Correct Answer: C
In Missouri, a salesperson must be affiliated with a broker. The broker is
legally responsible for supervising the salesperson’s activities and
ensuring compliance with state law.
8. Which of the following documents is NOT required to be retained in a
broker’s transaction file for at least three years in Missouri?
, A) Copies of all contracts and agreements.
B) Records of all deposits and disbursements.
C) The buyer’s personal credit report obtained during pre-qualification.
D) Disclosure statements signed by the parties.
Correct Answer: C
Brokers must retain records of transactions (contracts, disclosures,
financial records) for three years. Personal credit reports are sensitive
data typically held by lenders, not required in the broker’s permanent
transaction file unless specifically part of the agreement, and retaining
them poses privacy risks.
9. A Missouri licensee advertises a property as "Great Investment
Opportunity! No Money Down!" but the loan program actually requires a
3% down payment. This advertisement is considered:
A) Creative marketing.
B) Misleading and a violation of Missouri license law.
C) Permissible if the lender approves it.
D) Allowed if the text is small.
Correct Answer: B
Missouri law prohibits false, misleading, or deceptive advertising.
Stating "No Money Down" when money is required is a material
misrepresentation.
10. In Missouri, a "Designated Agent" is appointed by:
A) The buyer alone.
B) The seller alone.
C) The broker, with the written consent of the client, to represent one
party in a dual agency situation.
D) The Missouri Real Estate Commission.
Correct Answer: C
