MO State Law for Real Estate Salesperson Exam Flashcards

MO State Law for Real Estate Salesperson Exam Flashcards ReciprocityTwo states let each other get by ... for a fee Unlicensed clerical personnel may NOTMay NOT --Unlicensed may not - Be a licensee with one firm and do any real estate activities requiring a license at another firm; if licensee working for another company, they may only do what unlicensed person can doUnlicensed may not - host open houses, kiosks, home show booths, fairsUnlicensed may not - hand out materials!Unlicensed may not - prepare promo materials without review of licensee and broker;Unlicensed may not - show propertyUnlicensed may not - answer ANY questions on listings, title, financing, closing for anyone outside the firm;Unlicensed may not - discuss contractsUnlicensed may not - be paid on the basis of real estate activityUnlicensed may not - get a commission Escrow Accounts Held by BrokerProperty Management Escrow Account (for income/rents);Escrow Account for Security Deposits ComplaintsPending ones are closed to the public; formal complaints are on an MREC form; MREC may investigate on their own regardless of whether a complaint has been filed; if complainant does not sign - he/she will not be informed of outcome; MREC can dismiss a complaint; MREC may hold investigatory hearing to gather probable cause or evidence Ministerial ActsRoutine duties of licensee that do not rise to the level of "agency," such as answering incoming real estate calls, calling for home inspection MRECDoes not settle disputes re commissions/compensation Unclaimed funds in broker's escrow account Within 365 days from intended closing broker is to send to Missouri Treasury Department If license denied30 days to appeal or complain to AHC BrokerCan be an individual or an entity Penalty for Violation of License Laws (339) and/or Rules & Regulations (2250) Class B Misdemeanor; MREC may go through Attorney General if more is needed ClosingsBroker responsible for accuracy of closing statements and delivery of closing statements; salesperson not allowed to conduct a closing without direct supervision of broker Correspondence from MRECRespond within 30 days or face disciplinary action Acquiring ListingsIllegal for licensee to "initiate" discussion with an owner who has a current "exclusive" listing on property;Owner may initiate discussion with licensee, at which point licensee may write a listing to become effective after expiration of current listing;Party must be given copy of

listing "at the time it is signed";All changes to a listing initialed by all parties involved Brokers in chargeMay list and sell as well as manage Not Branch OfficesKiosks in mall; trailers at construction site are temporary in nature and no need to register with MREC

Continuing EdBoth brokers and salespersons: 9 hrs. electives + 3 hrs.

core If applicant license revoked90 days to complain/appeal to AHC Inactive licensesBroker sends your license to MREC, then you have 6 months to place license on active by filling out the proper form and attaching required fees;If licensee fails to fill out form and send fees within 6 months - must retake 24-hr MREP course;"Inactive" may not represent other parties in real estate transactions;Licensee must disclose that they are licensed even when inactive if buying or selling real estate;Inactive licensee still pays renewal fees;Inactive licensee does not need Continuing Ed throughout inactive status;Reactive license by retaking 24-hr MREP course Broker/salesperson or Salesperson loyalty Only licensed with one broker at a time Transaction BrokerRepresents NEITHER buyer nor seller;May not advocate or advise either party;Is neutral, represents transaction only, facilitatorMust have a document in writing to receive a commission Missouri Broker Disclosure FormTo be given to a prospective client at "earliest practicable opportunity" AND "first substantial contact";Delineates possible relationships available to prospective client;Must directly reflect broker's "Office Policy Manual" Legal opinion of titleOnly by attorney To Hold Another's License a Broker MustHave a fixed place of business; be actively engaged in real estate business; have an "active" license Persons exempt from having a license but can participate in real estate Owners and their employees;Attorneys working on their own, not co-broking or receiving a commission;Auctioneers;Court-appointed people;Some property managers (those who take instruction from either an owner or a broker and paid only by wages, never commissions;Federal or State Official;Railroad or Public Utilities;Banks;Publication of "General" circulation and content;Developer;Employees of non-profits that are set up for advancement of community Complaints part 2Probable cause forwarded to Administrative Hearing Commission which makes a JUDGMENT - guilty or not guilty; judgment forwarded to MREC which determines penalty If applicant license denied30 days to complain/appeal to AHC (Administrative Hearing Commission) Inactive Status meansNo continuing edMust still pay renewal fees Out of State Broker Wants to be Broker in MO Must pass state portion of exam, no coursework requied Escrow AccountBroker to deposit within 10 banking days of acceptance of offer (unless otherwise agreed to in writing)

House shopping and buyer likes FSBOBuyer must be left in the car, salesperson must get written consent from the owner to bring buyer onto premises Exemptions to Federal Fair Housing LawsOwner of 3 homes or fewer; if home unoccupied, owner allowed 1 exemption every 2 yrs;Owner-occupied duplex, triplex or four-plex;Religious organization who is not discriminatory re who can join, may allow only members to use or rent facility;Private clubs who do not operate commercially for profit Purpose of licensing lawsProtect the public Dual Agency DisclosureImmediately verbally to both sides; in writing no later than offer to purchase Records and MREC AuditsBrokers must retain records for 3 years Escrow Account ManagementSalesperson or Broker/Salesperson must deliver any check received immediately to broker in charge 339Missouri Real Estate License Laws If license revoked90 days to appeal or complain to AHC ComminglingIllegal! Except for $1,000 of own money for bank fees Change of Name or Home AddressLicensee must notify MREC in writing within 10 days of change Hulse vs. CriegerGives brokers right to fill out standardized forms only for deals in which they are a party and never receive a separate fee for it OffersAll written offers must be presented unless the client states otherwise in writing;Must be presented promptly;Rejections & counter-offers also must be presented promptly;Any changes initialed by all parties Broker SignageMust read at a minimum, the name of the brokerage "For Sale by ABC Realty" When Licensee Exempt from Continuing EdExemption must be requested in writing:80 years old;sick for 2 yrs;serving in military for 2 yrs;member of Senate or House;member of MREC;licensed attorney Broker may not use escrow funds for own use Funds remain in account until transaction closed or otherwise agreed to in writing License renewalEven years, every 2 years (biennially)Brokers June 30, Salespersons September 30 Branch OfficesLicensed under EXACT same name and license as "parent" office; managed by a broker; salespersons cannot manage branch office; renewal will require MREC having name of broker in charge and address of branch; changes of the broker in charge must be reported within 10 days Termination of Employment with BrokerBroker has 72 hrs (3 days) to send licensee's license to MREC; everything pertaining to listings remains with broker; licensee has 6 months to choose whether inactive or transfer; if 6 months passes and not done, licensee has to take the 48-hr. pre-exam course and send certificate of