MO Real Estate Exam Practice Questions and Answers

MO Real Estate Exam Practice Questions and Answers Mo Statute 339 - Correct Answer ️️ -License Law RSMO 1986 License Law - Correct Answer ️️ -Any person who performs a RE service on behalf of another party for CONSIDERATION must be licensed; i.e. broker transactions, managing property, appraising, counseling, syndicating, auctioning Consideration - Correct Answer ️️ -Includes $ compensation, exchange of free services, or any other valuable good or service that a person expects to be paid (Vital in license law requirement) MO Real Estate Commission (MREC) - Correct Answer ️️ --authority is: 1. Regulatory 2. Judicial 3. Administrative State level gov't entity that regulates and administers license law by passing rules and making known in license law - violate MO license law and guilty= Class B Misdemeanor MREC - State regulator of RE licenses, established by legislature, 7 members 5 years, protect the public: suspend, revoke, or probation - can never fine a licensee and will not involve in a commission $ dispute -subpoenas -civil penalty $2,500 fine/occurrence - can investigate without complaint - can file complaint in ANY COURT OF COMPETENT JURISDICTION MREC CAUSES COMPLAINT FILED WITH ADMIN HEARING COMMISSION; The Missouri Real Estate Commission was created by an act of the 61st General Assembly and approved by the governor on July 31, 1941. The Commission consists of seven voting members. Six of those members must have at least 10 years experience as real estate brokers. A public member serves as the seventh member. Each commissioner is appointed for a five-year term. Under the provisions of the real estate act, no real estate broker or salesperson may act as such without first procuring a license from the Commission. Other responsibilities include investigating complaints generated by consumers against the acts of a real estate licensee and auditing real estate escrow accounts to verify proper handling of buyers' earnest money. The Commission also approves all real estate prelicensing and continuing education courses. The Commission meets regularly to review complaints, investigations and audits and to take up other matters. The Missouri Real Estate Commission performs duties necessary to carry out the provisions of the real estate license law. MO Admin Hearing Commission (MAHC) - Correct Answer ️️ -Determines guilt/innocence; if guilty, sent to MREC for punishment or dismissal. - 3 attorneys, work for attorney general - public crimes (other than license laws) sent to attorney general for disposition Brokers License Types - Correct Answer ️️ -- Individual: active or inactive - corporation - LLC - Partnership - Non resident VOIDED: expiration, suspension, revocation Salesperson's License Types - Correct Answer ️️ -Individual: active or inactive Broker Salesperson: Active or Inactive Branch Offices - Correct Answer ️️ -- Broker salesperson office (NOT salesperson) can manage branch office - branch office under a principal broker would operate under principal broker's license Licensing - Renewals/ Termination Etc - Correct Answer ️️ -Brokers license renews by 6/30 of even years ($50) Salesp must renew by 9/30 of even years ($40) -2 yrs salesperson before broker - broker must notify MREC within 72 hours of termination - Salesperson has 6 months to find new broker or place on inactive - Listings belong to broker (transfer req written consent) - "Dual Contracts" to deceive lender = federal offense Broker Requirements - Place of Biz - Correct Answer ️️ -Sufficient size sign est RE office, maintain pl of biz in state during biz hrs, supervise all salesp, same name at branch off Broker Reqs - Deposits / $ - Correct Answer ️️ -Brokers must have Escrow or Trust accts unless exempted by MREC Deposits - broker must deposit $ w/in 10 days of accepting purchase offer - unless other agrmt, cobroker transfer funds deposit into listing brokers escrow acct Accounts must be NON int bearing unless otherwise agreed in writing; must clarify who receives interest - only negotiable items can be placed in escrow (check, cash, or money order); Seller must agree to other items as earnest deposit (i.e. ring, boat, note, etc) -salesperson must deliver earnest $ to broker IMMEDIATELY -if dispute over earnest $, broker should hold $ until all parties sign a release, or within 365 days, if no agrmt, release and to state treasury - Contract failed: AFTER 60 days broker sent registered letter saying would give earnest $ to seller; lacking response from either party could release $ AFTER 15 DAYS Broker has 15 days to notify buyer and seller of escrow problem Net Listing - Correct Answer ️️ -Illegal in MO; An owner sets a minimum amount that he wants to receiver from the sale of the property and lets the broker have as commission any amount above the set minimum. Commingling/ Conversion - Correct Answer ️️ -=doing something wrong with someone's money; i.e. depositing late, taking out too soon, or using $ without permission Advertising Laws (sec 6)**** - Correct Answer ️️ -Discrimi