Missouri State Portion: General Rules Flashcards

Missouri State Portion: General Rules Flashcards

The Missouri Real Estate Commission DOES NOT have

statutory authority to:impose sanctions against those

entities who sell real estate without a license.enforce the provisions of the Real Estate License Law.deny a license to any entity that does not meet their standards.establish rules and regulations for brokers and salespersons.impose sanctions against those entities who sell real estate without a license.The MREC does not have authority to impose "sanctions" against anyone. They do have statutory authority to file a complaint with the Administrative Hearing Commission ("AHC") against an unlicensed person and, if that person is found guilty, impose a civil penalty of up to $2,500 per day per violation up to a maximum of $25,000.They also have the authority to file for an injunction or restraining order in any court of competent jurisdiction to stop anyone from violating the license law."Client" (See 339.710(6))The Client is a seller, landlord, buyer or tenant who has entered into a brokerage relationship with a licensee in accordance with the Statutes."Designated Broker" (See 339.710(11))The designated broker is the broker designated by the company to be in charge of the real estate brokerage business of the company."Subagent" (See 339.710(18))A subagent is an agent of an agent, such as an affiliated licensee in a brokerage office. The broker is the agent and the affiliated licensee is the agent of the broker and the subagent of the client. A subagent may also be a cooperating broker in a real estate transaction. For example, Broker Bob of ABC Realty obtains a listing for a property. Broker Bob is the agent for the seller. Broker Tom of XYZ Realty brings in a buyer who wishes to view the property, but Broker Tom is not an agent for the buyer.Provided the listing agreement gives the Seller's consent and both brokers agree, Broker Tom may act as the subagent of the seller.A subagent is an agent of the agent for the client and, as such, owes the same duties and responsibilities to the client as the agent does."Ministerial Acts" (See 339.710(16)Ministerial Acts are those things that a licensee can do without giving rise to a level which requires the creation of a brokerage relationship with either party. They include services performed by an agent that are informative in nature and do not give rise to an agency relationship such

as:"(A) responding to telephone inquiries by consumers as

to the availability and pricing of brokerage services;"(B) responding to telephone inquiries from a person concerning the price or location of property;"(C) attending an open house and responding to questions about the property from a consumer;"(D) setting an appointment to view

property;"(E) responding to questions of consumers walking into a licensee's office concerning brokerage services offered on particular properties;"(F) accompanying an appraiser, inspector, contractor or similar third party on a visit to a property;"(G) describing a property or the property's condition in response to a person's inquiry;"(H) showing a customer through a property being sold by the owner on his/her own behalf or"(I) referring a customer to another broker or service provider." "Customer" (See 339.710(9))The Customer is the party to a potential or actual real estate transaction who has not entered into a brokerage relationship with the licensee.The MREC WILL NOT get involved in disputes over commissions. Brokers who are members of the Board of Realtors may submit such disputes to the local board for arbitration. Licensees may also bring an action in civil court to compel payment of any commissions due. If a licensee files a complaint with the real estate commission regarding a dispute over commission, the MREC will dismiss the

complaint.However, § 339.151 RSMo prohibits any licensee from paying compensation to anyone without "reasonable cause" or a contractual relationship. The statute says that reasonable cause does not exist unless the party seeking the compensation actually introduces the business to the licensee before a relationship is established between the licensee and a party to the transaction.Further, the statute makes clear that it is a violation to attempt to induce a potential client or customer to break a written representation agreement with another licensee for the purpose of obtaining compensation, including counseling a party on how to get out of an existing representation agreement with another licensee for the purpose of replacing it with another agreement. If a licensee has violated any portion of 339.151 RSMo, and a complaint is filed, the MREC may investigate and, if the licensee is found guilty, take appropriate disciplinary action.This statute is discussed further in the lesson on Business Conduct and Practices.The MREC will NOT get involved in disputes over commissions."Salesperson" (See 339.010.2)A real estate salesperson is one who has successfully passed the real estate salesperson examination, met all of the other requirements for licensure, been granted a salesperson's license and works under a licensed broker.The salesperson is an agent of the broker and has a

fiduciary responsibility to the broker. A salesperson can receive compensation from no one other than his or her broker and cannot pay compensation to any other licensee."MREC" (See 339.120)The Missouri Real Estate Commission (MREC) consists of seven persons, each of which are appointed by the governor with the advice and consent of the senate. Six of the members are real estate brokers and must have had at