Montana Real Estate Salesperson Exam –
Verified Practice Questions & Answers
with Detailed Rationales (2026 Edition)
1. Which statement best describes Montana’s requirement
for disclosure of agency relationships?
A. Disclosure is optional unless the client requests it
B. Only buyer’s agents must disclose agency
C. Disclosure must be made at first substantive contact or
before representation begins
D. Disclosure is required only at closing
Rationale: In Montana, licensees must disclose agency
relationships at the earliest practical opportunity—typically
before or at the time of establishing representation. This
ensures clients understand fiduciary duties and avoids
undisclosed dual agency issues.
2. In Montana, a listing agreement without a definite
termination date is:
A. Valid for 90 days
B. Automatically void
C. Enforceable until the broker cancels it
D. Considered voidable due to lack of essential terms
,Rationale: A valid listing agreement must include a definite
termination date. Without it, the contract lacks essential
elements and may be considered voidable under contract law
principles.
3. Which of the following is TRUE regarding Montana real
estate trust accounts?
A. Brokers may commingle personal funds with client funds
up to $1,000
B. Trust accounts are optional for brokers
C. Earnest money must be deposited in a trust account
unless otherwise agreed in writing
D. Only attorneys may hold trust funds in Montana
Rationale: Montana requires brokers to place earnest money
in a trust account unless all parties agree otherwise in
writing. Commingling is strictly prohibited except minimal
amounts for account maintenance.
4. A broker acting as a disclosed dual agent in Montana
must:
A. Favor the seller if commission is higher
B. Provide full fiduciary duties to both parties
C. Limit fiduciary duties equally and obtain informed written
consent
D. Represent neither party in negotiations
,Rationale: Dual agents in Montana must obtain informed
written consent and provide limited fiduciary duties equally to
both parties, avoiding full advocacy for either side.
5. Which action would MOST likely constitute
misrepresentation?
A. Stating an opinion about future property values
B. Failing to disclose known material defects
C. Advertising a property as “cozy”
D. Intentionally stating incorrect square footage in MLS
Rationale: Intentional false statements of material facts, such
as incorrect square footage, constitute misrepresentation and
may lead to disciplinary action or legal liability.
6. Under Montana law, a buyer’s earnest money deposit is
typically:
A. Paid directly to the seller
B. Held by the mortgage lender
C. Held by the broker in a trust account
D. Automatically forfeited upon acceptance of offer
Rationale: Earnest money is held in a broker’s trust account
until closing or disbursement per contract terms or mutual
agreement.
7. Which contract is required to be in writing under
Montana’s Statute of Frauds?
, A. Lease for 9 months
B. Oral buyer representation agreement
C. Listing agreement for real estate sale
D. Open house agreement
Rationale: Listing agreements and contracts for the sale of
real estate must be in writing under the Statute of Frauds to
be enforceable.
8. Which of the following BEST defines “subagency”?
A. A buyer representing themselves
B. A broker representing only the seller’s interests
C. A cooperating broker who represents the seller through
the listing broker
D. Dual representation of buyer and seller
Rationale: Subagency occurs when a cooperating broker
works with the listing broker and owes fiduciary duties to the
seller, not the buyer.
9. In Montana, which entity enforces real estate licensing
laws?
A. Federal Trade Commission
B. County clerk’s office
C. Montana Board of Realty Regulation
D. Montana Department of Revenue
Verified Practice Questions & Answers
with Detailed Rationales (2026 Edition)
1. Which statement best describes Montana’s requirement
for disclosure of agency relationships?
A. Disclosure is optional unless the client requests it
B. Only buyer’s agents must disclose agency
C. Disclosure must be made at first substantive contact or
before representation begins
D. Disclosure is required only at closing
Rationale: In Montana, licensees must disclose agency
relationships at the earliest practical opportunity—typically
before or at the time of establishing representation. This
ensures clients understand fiduciary duties and avoids
undisclosed dual agency issues.
2. In Montana, a listing agreement without a definite
termination date is:
A. Valid for 90 days
B. Automatically void
C. Enforceable until the broker cancels it
D. Considered voidable due to lack of essential terms
,Rationale: A valid listing agreement must include a definite
termination date. Without it, the contract lacks essential
elements and may be considered voidable under contract law
principles.
3. Which of the following is TRUE regarding Montana real
estate trust accounts?
A. Brokers may commingle personal funds with client funds
up to $1,000
B. Trust accounts are optional for brokers
C. Earnest money must be deposited in a trust account
unless otherwise agreed in writing
D. Only attorneys may hold trust funds in Montana
Rationale: Montana requires brokers to place earnest money
in a trust account unless all parties agree otherwise in
writing. Commingling is strictly prohibited except minimal
amounts for account maintenance.
4. A broker acting as a disclosed dual agent in Montana
must:
A. Favor the seller if commission is higher
B. Provide full fiduciary duties to both parties
C. Limit fiduciary duties equally and obtain informed written
consent
D. Represent neither party in negotiations
,Rationale: Dual agents in Montana must obtain informed
written consent and provide limited fiduciary duties equally to
both parties, avoiding full advocacy for either side.
5. Which action would MOST likely constitute
misrepresentation?
A. Stating an opinion about future property values
B. Failing to disclose known material defects
C. Advertising a property as “cozy”
D. Intentionally stating incorrect square footage in MLS
Rationale: Intentional false statements of material facts, such
as incorrect square footage, constitute misrepresentation and
may lead to disciplinary action or legal liability.
6. Under Montana law, a buyer’s earnest money deposit is
typically:
A. Paid directly to the seller
B. Held by the mortgage lender
C. Held by the broker in a trust account
D. Automatically forfeited upon acceptance of offer
Rationale: Earnest money is held in a broker’s trust account
until closing or disbursement per contract terms or mutual
agreement.
7. Which contract is required to be in writing under
Montana’s Statute of Frauds?
, A. Lease for 9 months
B. Oral buyer representation agreement
C. Listing agreement for real estate sale
D. Open house agreement
Rationale: Listing agreements and contracts for the sale of
real estate must be in writing under the Statute of Frauds to
be enforceable.
8. Which of the following BEST defines “subagency”?
A. A buyer representing themselves
B. A broker representing only the seller’s interests
C. A cooperating broker who represents the seller through
the listing broker
D. Dual representation of buyer and seller
Rationale: Subagency occurs when a cooperating broker
works with the listing broker and owes fiduciary duties to the
seller, not the buyer.
9. In Montana, which entity enforces real estate licensing
laws?
A. Federal Trade Commission
B. County clerk’s office
C. Montana Board of Realty Regulation
D. Montana Department of Revenue
