Missouri Real Estate Practice Test

Correct: B The Governor, for cause

Section 339.120 RSMo provides that the Governor may remove any commissioner for cause. The other commissioners have no removal power, and while the Missouri Association of REALTORS submits lists of qualified candidates for the broker seats to the Director of the Division of Professional Registration, appointment and removal authority rests with the Governor. A successor appointed to fill a vacancy serves only the remainder of the unexpired term.

Correct: D Under a licensed broker

Missouri salespersons must always work under the supervision of a licensed broker. They cannot operate independently or hold their own escrow accounts. A broker-salesperson also works under a broker and cannot have salespersons licensed under him or her, though one may manage a branch office for the broker (20 CSR 2250-4.050, 8.030).

Correct: B A copy of the complaint with a request to respond within 30 days

MREC sends an exact copy of the complaint to the subject licensee and requests a written response within 30 days; under 20 CSR 2250-8.170(1), failing to respond in writing within 30 days of the commission's request is itself grounds for discipline. The complainant receives a written acknowledgment and is notified of the final disposition (20 CSR 2250-9.010).

Correct: B Transaction broker

A transaction broker facilitates a transaction without representing either party and owes no fiduciary duties. In contrast, seller's agents, buyer's agents, and dual agents (limited agents) all owe some level of fiduciary obligation to the parties they represent.

Correct: A All parties give written consent

RSMo 339.750.1 permits dual agency only with the consent of all parties, and consent is presumed by a written agreement under RSMo 339.780. Section 339.710 defines a dual agent as acting 'with the written consent of all parties,' and 339.780.4 requires the written dual-agency agreement before any brokerage activity. Verbal or implied consent is insufficient.

Correct: B Present all written offers timely

A transaction broker must present all written offers and counteroffers in a timely manner. Unlike an agent with fiduciary duties, a transaction broker does not negotiate on behalf of either party or provide strategic advice. The role is to facilitate, not advocate.

Correct: B 10 banking days

Missouri regulation 20 CSR 2250-8.120 requires earnest money to be deposited no later than 10 banking days after the last signature or initials of all parties to the contract. The contract may specify a different timeline, but 10 banking days is the default.

Correct: C The broker's name as registered with MREC

Missouri requires all real estate advertisements to include the broker's name as registered with the Missouri Real Estate Commission. While a salesperson's name may also appear, the broker's registered name must always be present. This applies to all media including internet and social media.

Correct: C Missouri has no general mandatory disclosure statute

Missouri has no general mandatory seller disclosure statute. The MAR (Missouri Association of REALTORS) Disclosure Form is an industry standard but not a statutory mandate. Sellers still have a common-law duty to disclose known material defects, and a few targeted statutes (such as the RSMo 442.606 methamphetamine disclosure) impose specific written-disclosure duties.

Correct: D Must be in writing and signed by the charged party

Missouri's Statute of Frauds (RSMo 432.010) requires that real estate contracts be in writing and signed by the party to be charged. Oral agreements for real estate are unenforceable.

Correct: C Title companies handle most closings

Missouri is a 'title company state' where title companies typically conduct closings. While attorneys may participate, they are NOT required. Licensed Missouri Title Producers handle title search, examination, closing, recording, and policy issuance.

Correct: D Deed of trust, not a mortgage

Missouri uses a deed of trust rather than a mortgage as the primary security instrument for real estate financing. The deed of trust involves three parties and includes a power of sale clause that enables non-judicial foreclosure.

Correct: B Equitable distribution of marital property

Missouri is an equitable distribution state, NOT a community property state. Courts divide marital property in a way that is fair (equitable) but not necessarily equal. Marital property includes assets acquired during marriage regardless of whose name is on the title.

Correct: C Auditing licensee escrow accounts

MREC has the authority to audit escrow (trust) accounts maintained by licensees to ensure client funds are properly handled. Criminal prosecution falls to the Attorney General or local prosecutors. Commission rates are set by the market, and mortgage oversight belongs to the Division of Finance.

Correct: D Broker-salesperson

In Missouri, a person who holds a broker license but chooses to work under another broker is classified as a broker-salesperson. This person has broker qualifications but functions similarly to a salesperson under the supervising broker. They cannot simultaneously operate an independent brokerage.

Correct: D Administrative Hearing Commission

If MREC's investigation reveals sufficient evidence of a violation, it files a formal complaint with the Administrative Hearing Commission (AHC), an independent tribunal. Missouri uses a two-step process. The AHC first holds a hearing and decides whether cause for discipline exists, and if it does, MREC then holds a separate hearing to determine the actual discipline imposed. A licensee may appeal an adverse decision to the circuit court.

Correct: C Limited agent

Under RSMo 339.750, a dual agent is a limited agent for both parties, owing each the statutory duties of sections 339.730 and 339.740 restricted by dual-agency confidentiality. In Missouri all statutory agents -- seller's, buyer's, and dual -- are 'limited agents'; what distinguishes the dual agent is being a limited agent for both sides at once, which narrows what can be advocated and disclosed.

Correct: D No, unless the buyer consents to disclosure

Even with dual agency consent, a limited agent may disclose material information but must NOT reveal confidential information without the client's consent. A buyer's willingness to pay more is confidential. Martinez needs specific authorization from the buyer before sharing this.

Correct: C Disclose adverse facts the broker actually knows

A transaction broker must disclose adverse material facts of which the broker has actual notice or knowledge (RSMo 339.755.2). Hearing about basement flooding from a neighbor gives the broker actual notice. However, the broker has no duty to conduct an independent investigation to verify the claim.

Correct: D The 5-day contract provision controls

While Missouri's default rule under 20 CSR 2250-8.120 allows 10 banking days, the contract may specify a different timeline. When the contract includes a specific deposit deadline, that contractual provision governs over the default regulation.