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MO Real Estate State Portion
Terms in this set (91)
If a licensee violates a provision of the Missouri License Law, the licensee:
Shall be guilty of a class B misdemeanor and may be liable for criminal prosecution
A broker takes a listing, which one is illegal in Missouri?
Seller collects 94% of list price and broker is to get all above that
If a licensee breaches his fiduciary responsibilities to the principal, which of the following actions could not be taken against the licensee?
The state may rescind all contracts negotiated by the licensee with other principals during the past year
Broker Carr decides to sell her own house and puts a classified ad in the paper with her name and phone number only. Is this permissible?
No, she must include information in the ad that she is licensed
The commission may suspend or revoke a license for all of the following reasons EXCEPT:
A broker deposits a commission in his business account
A person in Missouri attended a pre-license class, passed the test, took Missouri Real Estate Practice and received a license. After a few months, the licensee decided to place their license on inactive status. Two years later, the licensee decided to re-activate their license. What must the licensee do in order to re-activate?
Complete 24 Hour Missouri Real Estate Practice Course for their type of license and apply to the MREC within 6 months
A broker may not conduct his business under any name other than the one in which his license is issued. A broker acting as a sole proprietor would conduct his business in the name
On his application for the licensure
A seller's listing has expired and the licensee did not take down his sign until two days later. Did the licensee violate Missouri License Law?
Yes, because he did not have a contract to advertise the property.
All of the following usually appear only in the seller closing statement EXCEPT:
Seller's loan balance as of May 1 is $60,000. His current interest rate is 8%, the closing date is May 20. What is the prorated interest at closing?
Debit Seller $267
Taxes of $1320 were paid for the previous calendar year. The property was sold and closing took place on August 16. The seller was responsible for the day of closing. Taxes would be prorated as follows:
$828 debit to the seller, $828 credit to the buyer
A $10,000 insurance policy was issued for 3 years. The 3 year premium is $180.00. If the policy was dated June 1, 1994, what would the approximate value of the unused portion be after December 8, 1994 closing?
Interest is always a:
Debit to the seller
All of the following regarding the settlement statement are true EXCEPT:
It is a good faith breakdown of the buyer's monthly payment
A closing statement would contain all of the following EXCEPT:
Sale of personal property
Rent of $600 was collected on August 1. Closing is on August 20. What is the best pro-ration?
Debit seller $200, credit buyer $200
A home sold for $118,500 under an Exclusive Right to Sell listing agreement at 7% commission. The sellers remaining loan balance of $61,200 was subject to an Alienation Clause. Closing expenses for the seller were $1500 and for the buyer were $2800. In addition, the buyer had purchased a $60 termite inspection. What amount did the seller receive at closing?
On a closing statement how would the seller's loan balance be shown?
A debit to the seller
Salesperson Roberts plans to purchase a piece of property he has listed for sale. Before presenting the contract, he must:
State in the contract that he is a licensed real estate salesperson
Mr. Baird was the sole proprietor of a commercial real estate company. He died. His daughter, Kay Baird, did not have a real estate license, but was named executor of the estate. Kay Baird:
Can be appointed by the MREC to finish only the business in process
If an applicant is turned down for a license, the MREC would do all of the following EXCEPT:
Notify him in writing within 10 days
Bob Browne and Jeff Jones, both licensed brokers in Missouri, form Browne and Jones Real Estate, Inc. It is agreed that Jeff will be the designated broker and president of the corporation, and Bob will be the secretary/treasurer. Based upon this information, which of the following statements is true?
A broker's license will be issued to Browne and Jones Real Estate, Inc. , and a broker-officer's license will be issued to both Bob and Jeff
A salesperson in writing an offer to purchase on a pre-printed contract approved for use, may:
Fill in the blanks but leave the contract in its current form
A salesperson may conduct the closing of a real estate transaction if:
The broker is present and gives the salesperson direct supervision
You disclose orally and in writing to the buyer that you are a seller's agent. The buyer won't sign your discloser form. What are you to do?
Continue to show houses
A person is applying for a license who earlier was found guilty of fraud. Which of the following is true?
The MREC may later refuse to give him a license
Before he can receive a commission, a broker would have to prove all of the following in court except that:
He was a resident of Missouri at the time of the transaction
Before suspending or revoking a license, the commission will:
File the complaint with the Administrative Hearing Commission
Who does not have the right to make up standardized legal forms?
Board of Realtors
Commingling occurs when
Money belonging to others is placed in the broker's business account
The license laws give the MREC the power to do all of the following EXCEPT to:
Fine licensees up to a minimum of $5,000
The responsibilities of the MREC include all of the following EXCEPT:
Setting the fee for licensing examinations
Under the rules and regulations of the MREC, a licensed broker in Missouri cannot:
Conduct his business in more than one name
The MREC, with recommendations from the AHC, may file a complaint in:
Any court of competent jurisdiction
If the MREC receives a complaint against a broker, they could subpoena:
The broker's business accounts and records
Which of the following items could the MREC require of a person before issuing a license?
A credit report
A salesperson who is 3 months late in renewing his license can be
Required to attend the pre-license course and penalized $150
Agency is disclosed to the buyer
Prior to obtaining financial information
Chapter 339, known as the real estate license law, was passed to:
Protect the general public
A broker/salesperson goes to his broker to inform him that he is transferring to another company. How long does the broker have to return the broker/salesperson's license to the commission?
A licensee whose license is inactive has to do all of the following to reactivate his license EXCEPT:
Needs 12 hours of continuing education
Which of the following is necessary to receive a Missouri real estate license?
The MREC is comprised of how many brokers that are allowed to vote on new rules and regulations
A buyer who thought her agent misrepresented the facts, filed a written complaint with the MREC and signed it anonymously. The commission must do which of the following?
Nothing, as the compliant was not valid
A real estate broker specializes in helping both buyers and sellers with the necessary paperwork involved in transferring the property. While the broker is not an agent of either party, the broker may not disclose either party's confidential information to the other. The broker is best described as a(n):
How much time does a licensee have to notify the MREC regarding a name or address change
A licensee was denied a license. The MREC must do which of the following?
Inform the applicant in writing of his/her right to appeal
A broker salesperson transferred from one broker to another broker. When can the agent begin listing property with the new broker?
When the application for transfer is mailed by certified, registered, or overnight delivery
A married couple wants to list their house at $52,500. The agree to pay the broker a 7% commission. As of April 1st they have $42,500 remaining on a loan at 10.5% interest which will convert to 12% if assumed. The taxes of $680 were paid for the previous calendar year. The buyer has agreed to provide title insurance at a price of $150 and a termite inspection of $35. The closing date is April 30th. A calendar year for this purpose is 360 days. The couple asks their salesperson what will be their net gain if the house sells for the list price?
A class that teaches about mortgage loans, changes in tax laws and sales promotions would be credited for what type of continuing education?
What statement could cause the MREC to investigate a license?
You will make a profit when the new school is built
A developer who is also a broker wanted to advertise his new subdivision in the local newspaper. What must appear in the ad for him to be able to do this?
Developer broker, subdivision name and phone number
An agent transfers from Broker Faulk to Broker Dole. However, she was due a commission for a sale that was consummated before the transfer but the closing took place after the transfer. Who should the agent collect her commission from?
If a licensee whose license is on inactive status, sells his own residence
He must disclose in writing that he is a licensed inactive real estate agent.
Broker Carr has taken a listing from Seller Dole. What are his responsibilities to Seller Dole?
He must give him a copy of all documents in a timely manner.
A broker opened a branch office. Who could have authority to manage the office?
The broker did not like the new contract forms he was using. He wished certain items to be offed to the form to make it more usable for his business. Where should he get new contract forms?
His own attorney
Which is true when a corporation receives a broker's license?
All corporate officer's involved in the management must have active broker-officer license's.
A person owns her own company, specializing in negotiating sales of property for buyers and sellers. She does not take listings or show property. Does she need a real estate license to do this?
She would need a broker-officer license and the corporation would need a broker's license.
Salesperson Baird takes a listing and also sells the property. To whom does the seller pay the commission?
The listing broker
An office manager working for a broker misappropriates an earnest money deposit given to him buy a buyer. What can protect the broker?
A fidelity or surety bond
An un-licensed secretary is the only one in the office when Broker Carr, from another company, calls requesting information on a property. The secretary may
Take his name and number to have a licensee return the call.
A real estate office was located in a nice residential neighborhood. The broker did not want to put up a large sign so she put a small sign with her name and phone number. Is this permissible?
Yes, as long as it is of sufficient size to identify it.
Upon renewal of his license, a broker with a branch office must reveal to the MREC:
The office and name of the licensee in charge
A broker may pay part of his commission to any of the following EXCEPT:
The salesperson of a cooperating broker
A broker moves his office location. He mist notify the MREC
In writing - within 10 days
A licensee attended three continuing education courses for the elective hours at six hours each. How can she apply these to her renewal requirement?
She can receive credit for nine hours only
Upon holding a hearing, the Missouri Real Estate Commission may
Determine if a license law violation has occurred
An out of state owner calls a broker wanting to sell his property for $50,000. The broker knows that the zoning has recently been changed and the property is now worth more. The broker buys it himself and six months later sells it for $75,000. Is this legal?
No, the broker must inform the owner of the zoning change and the increased value.
A real estate licensee is subject to license suspension, revocation or probation in all of the following cases EXCEPT:
Failure to notify the seller that an offer has come in is
A buyer purchases a property for $250,000 with an 80% LTV. He is required by the lender to pay two points. How much will the buyer have to pay in points?
Tom and Fred, neither of which is under contract with a broker, come to Broker Bill and ask him to handle the closing of the transaction for a fee. What can he do?
He cannot close it since he was not an agent of the buyer or seller
If a sole proprietors broker's license is revoked, what can happen?
All business conducted under the broker's license must stop immediately
All of the following are true about a trust account EXCEPT:
The broker may disperse funds in a disputed escrow account if he gives 10 days notice to all parties
A salesperson has decided to take the brokers course to get a new broker's license during the renewal year. What CE will she be required to take?
3 Hour core course and 9 hours of electives
In the event of a dispute over earnest money,
The broker should release the money to the seller due to the fiduciary situation
Broker Carr has a 90-day listing on a property. One month after the listing began, Broker Dole contacted the seller and told him he had a buyer moving in one month after the listing terminates and asks the seller to sign an agreement to take effect after the listing expires. This is:
A violation of state law.
A broker prepared a sales contract for a buyer and seller. The purchase was to be a loan assumption with the buyer putting down $30,000, the current loan of $53,000 being assumed and an earnest deposit of $5,000. in his hurry to write the contract, the broker did not include a sale price on the contract. Which is true?
The contract is valid and binding on all parties because the sale price is not a required element under Missouri Law
A broker advertises on TV, "if we don't sell your home, we'll buy it!" This may lead to revocation of license because
There was not enough information given in the advertisement
A broker who has a property management agreement with an owner, notices that there is a lack of funds from the owner to pay the bills that month. The broker places his/her own money in a trust account to balance the owner's account. What should the broker do to get his/her money back?
A broker is prohibited from placing his money in a trust account for an owner
Commingling funds results in all of the following EXCEPT
Depositing earnest money in a trust account
If a salesperson terminates her employment with a broker and goes to another broker
She may receive compensation from her old broker for transactions negotiated during her employment with the old broker.
When may a broker pay a referral fee or share a commission?
With an out-of-state broker involved in a cooperative sale.
The Director of the Missouri Real Estate Commission may issue a work permit for which of the following?
Any applicant who has passed the broker's exam and whose application is in process.
After completing the educational requirement and successfully passing the exam, how long does an individual have to make application for a real estate license?
Six months from the completion of the course
When a non-resident salesperson wishes to apply for a license in Missouri, she must
Get a letter from the state real estate licensing commission where she is currently licensed, stating she is in good standing
If a broker collected security deposits on a property for an owner, where should the money be placed?
In the broker's trust account
Buyer Jones wishes to buy a million dollar property. She wants to deposit $100,000 in earnest money, but she wants it placed in a interest-bearing trust account where she will receive the interest until the day of closing. What should the broker do?
Have the company attorney make an agreement with all parties for the disbursement of interest.
The owner of a local real estate firm wanted to rent out space in the building he owned and occupied. The company name was clearly marked on the side of the building for everyone to see. He put out a sign "For Lease, Call 688-4902." What could happen?
The sign is a blind ad and could result in disciplinary action by the MREC
A real estate company has several salespeople working for builders. One of the builders wishes to retain the earnest money that buyers pay on the construction of new homes without stating this in the contract for sale. Could the builder do this?
No, because the broker must retain earnest money deposits unless the buyer signs an agreement to let the builder hold the money.
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