Chapter 1: Montana License Law UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Board of Realty regulation - CORRECT ANSWER - Safeguard public's interest in real
estate; gives licenses; enforces licensing requirements
Statute of Frauds - CORRECT ANSWER - Writing required for sale of goods over $500.
All transfers of estate or interest in real estate with two exceptions must be in writing to be
enforceable
Board required topics - CORRECT ANSWER - Land descriptions, condominium,
landlord/tenant relationships, foreclosures and redemption, stature of frauds, timeshare
Board powers - CORRECT ANSWER - Power to investigate, power to initiate
investigations, power to take disciplinary actions
Real estate recovery fund minimum - CORRECT ANSWER - $100,000
Board of regulation composed of.... - CORRECT ANSWER - 7 Montana residents... 5
members are RE brokers, 2 members are members of the public, president elected by Board, all
appointed by governor... term is 4 years
Prohibited practices - CORRECT ANSWER - Illegal acts, agency, misleading rep, money,
law, standards of practice
Consequences for prohibited practices (acting as salesperson w/o a license, acting as broker
while license is revoked/suspended, violating MT license law) - CORRECT ANSWER -
Misdemeanor:
1 time: $100-$500 fine, imprisonment for up to 90 days or both
2 times: $500-$2000 fine, imprisonment for up to 6 months or both
ACTUAL Exam Questions and CORRECT
Answers
Board of Realty regulation - CORRECT ANSWER - Safeguard public's interest in real
estate; gives licenses; enforces licensing requirements
Statute of Frauds - CORRECT ANSWER - Writing required for sale of goods over $500.
All transfers of estate or interest in real estate with two exceptions must be in writing to be
enforceable
Board required topics - CORRECT ANSWER - Land descriptions, condominium,
landlord/tenant relationships, foreclosures and redemption, stature of frauds, timeshare
Board powers - CORRECT ANSWER - Power to investigate, power to initiate
investigations, power to take disciplinary actions
Real estate recovery fund minimum - CORRECT ANSWER - $100,000
Board of regulation composed of.... - CORRECT ANSWER - 7 Montana residents... 5
members are RE brokers, 2 members are members of the public, president elected by Board, all
appointed by governor... term is 4 years
Prohibited practices - CORRECT ANSWER - Illegal acts, agency, misleading rep, money,
law, standards of practice
Consequences for prohibited practices (acting as salesperson w/o a license, acting as broker
while license is revoked/suspended, violating MT license law) - CORRECT ANSWER -
Misdemeanor:
1 time: $100-$500 fine, imprisonment for up to 90 days or both
2 times: $500-$2000 fine, imprisonment for up to 6 months or both
