Free Missouri Real Estate Practice Exam Questions (April 2024) 40+

“Fees or commissions payable to a broker must be withdrawn from a property management escrow account at least once a month unless otherwise agreed in writing. Any rent paid in advance as a deposit for the last month's rent or as rent other than the current month's rent held by a broker shall be deposited in the property management escrow account unless otherwise agreed to in writing.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents 20 CSR 2250-8.220

Chapter 339 of the MO Statutes is otherwise known as Missouri License Law. The two are often used interchangeably, so you must be familiar with their use.

Missouri is NOT a Community Property state. The states that have community property laws are: Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin. Community property is property acquired that is considered to be obtained by mutual effort.

Generally speaking, everyone must comply. The law applies to owners, managers, salespersons, brokers, builders, appraisers, rental agents, and more.

“A licensee shall not show residential property unless a broker holds a currently effective written seller’s/lessor’s agency agreement, seller’s/lessor’s transaction brokerage agreement, or other written authorization to show.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents 20 CSR 2250-8.090

“Every advertisement of real estate by a licensee shall contain the broker’s regular business name or the name under which the broker or the broker’s firm is licensed and shall indicate that the party advertising is a real estate broker and not a private party.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents 20 CSR 2250-8.070

“A licensee shall not advertise or place a sign upon any property offering it for sale or lease to prospective customers without the written consent of the owner or his or her duly authorized agent.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents 20 CSR 2250-8.090

“Payment of a civil penalty shall be made within sixty days of filing the order, or if the order is stayed pending an appeal, within ten days after the court enters a final judgment in favor of the commission.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents. Section 339.205.

“This rule mandates that all records relating to each real estate transaction handled by the broker be retained for three (3) years, and the broker make them available for commission inspection at all times.” Per Mo. Code Regs. tit. 20 § 2250-8.160

This transaction would be considered a net listing and is illegal in the state of Missouri.

“This rule requires all earnest money to be deposited in a noninterest-bearing escrow account not later than ten (10) banking days next following the execution of a contract. If the account is interest-bearing, all parties must be made aware. A salesperson must immediately deliver to the broker all money received in connection with a transaction in which s/he is engaged.” 20 CSR 2250-8.120 - Deposits to Escrow or Trust Account

“A real estate salesperson is any person, partnership, limited partnership, limited liability company, association, professional corporation, or corporation, domestic or foreign who for a compensation or valuable consideration becomes associated, either as an independent contractor or employee, either directly or indirectly, with a real estate broker to do any of the things above mentioned.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents. Section 339.010.

“If the penalty is not timely paid, the commission shall notify the attorney general. The attorney general may commence an action to recover the amount of the penalty, including reasonable attorney fees and costs and a surcharge of fifteen percent of the penalty plus ten percent per annum on any amounts owed. In such action, the validity and appropriateness of the final order imposing the civil penalty shall not be subject to review.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents. Section 339.205.

No commission. It does not state she is also licensed in Missouri. Since she is not licensed in Missouri as an agent, she cannot accept payment for her services. Per Missouri Real Estate License Law

“Each Real Estate licensee who holds an active license shall complete during the two (2)-year license period prior to renewal a minimum of twelve (12) hours of real estate instruction approved for continuing education credit by the Missouri Real Estate Commission” Per Missouri Real Estate Commission

Unlike some states, in Missouri there is no state law that dictates what a broker may charge for a commission. The commission is completely negotiable in the listing contract.

Dual agency is legal in Missouri as long as there is written consent from all parties prior to entering into negotiations. “A licensee may act as a dual agent only with the consent of all parties to the transaction.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents 339.750.

All of the following are protected. The Missouri Human Rights Act prohibits discrimination in housing, employment, and places of public accommodations based on race, color, religion, national origin, ancestry, sex, disability, age (in employment only), and familial status (in housing only).

“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.” The Commission is the state regulator of RE licenses, established by Missouri legislature.

“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.” Per Missouri Division of Professional Registration

“Within ten (10) days following a change in name or home address, each licensee shall notify the commission in writing.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents. 20 CSR 2250-4.040

Dismiss the case. They will not get involved. The commission does not get involved with broker-to-broker issues, and they will never be involved in disputes between licensees or companies.

“The broker shall have six (6) months in which to change status or reinstate the license. If the application to change status or reinstate the license is not made within the six (6)-month period, the applicant will be required to complete the Missouri Real Estate Practice Course and show proof of satisfactory completion of that course within six (6) months prior to reinstatement of the license.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents. 20 CSR 2250-4.040

It is Missouri state law that brokers must retain copies of purchase contracts for 3 years. So in our case, Tina must hang on to the contract for 3 years.

“Any civil penalty imposed by the commission shall not exceed two thousand five hundred dollars for each offense. Each day of a continued violation constitutes a separate offense, with a maximum penalty of twenty-five thousand dollars.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents. Section 339.205.

“After six (6) months, credit for such course(s) and examination will expire, and satisfactory completion of the required course(s) and examination must be repeated before applying for a license.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents. 20 CSR 2250-3.010

No. “No broker shall commingle his or her personal funds or other funds in this account with the exception that a broker may deposit and keep a sum not to exceed one thousand dollars in the account from his or her personal funds, which sum shall be specifically identified and deposited to cover service charges related to the account.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents 339.105.

“If a licensee advertises to sell, buy, exchange, rent, lease or manage property in which the licensee has an interest, and if the property is not listed by a brokerage entity, the advertisement shall contain, in a prominent fashion, one (1) of the following: 1. By owner-broker; 2. By owner-salesperson; or 3. By owner-agent.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents 20 CSR 2250-8.070

“Using prizes, money, gifts or other valuable consideration as an inducement to secure customers or clients to purchase, lease, sell or list the property when the awarding of such prizes, money, gifts or other valuable consideration is conditioned upon the purchase, lease, sale or listing; or soliciting, selling or offering for sale real property by offering free lots, or conducting lotteries or contests, or offering prizes for the purpose of influencing a purchaser or prospective purchaser of real property;” Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents 339.100.

“Each Real Estate licensee who holds an active license shall complete during the two (2)-year license period prior to renewal a minimum of twelve (12) hours of real estate instruction approved for continuing education credit by the Missouri Real Estate Commission” Per Missouri Real Estate Commission

All these must be included in a written listing agreement in order for it to be valid. “Every written listing agreement or other written agreement for brokerage services shall contain all of the following: 1. The price; 2. The commission to be paid (including any and all bonuses), a definite beginning date, and expiration date...etc.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow 20 CSR 2250-8.090

In Missouri, you can sell as much real estate as you’d like as long as you are doing it legally. Establishing a net listing, however, is not legal in the state of Missouri, while open listings are.

“In the event of the death or incapacity of a licensed broker, or of one or more of the licensed general partners…. or association cannot be carried on, the commission may issue, without examination or fee, to the legal representative or representatives of the deceased or incapacitated individual, or to another individual approved by the commission, a temporary broker license which shall authorize such individual to continue for a period to be designated by the commission to transact business for the sole purpose of winding up the affairs…under the supervision of the commission.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents. 339.030.

“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.” Per Missouri Division of Professional Registration

All the following would be violations of Missouri license law. All of these violations are outlined per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents 339.100.

Familial status is; height and credit are not. The Missouri Human Rights Act prohibits discrimination in housing, employment, and places of public accommodations based on race, color, religion, national origin, ancestry, sex, disability, age (in employment only), and familial status (in housing only).

“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.” Per Missouri Division of Professional Registration

As a Missouri real estate agent, you are obligated to be honest and disclose any information related to the property. This includes issues that may damage the image of the property, like a twenty-year-old termite infestation.

According to Missouri real estate law, ONLY brokers can directly receive fees or bonuses. After the fee is received, then the broker can distribute the funds to the salesperson if applicable.

“Fifteen (15) days written notice by certified mail to all parties concerned at their last known address setting forth the broker’s proposed action.” Per Missouri Chapter 339, Real Estate Agents, Brokers, Appraisers, and Escrow Agents 20 CSR 2250-8.130