Real Estate Practice Exam Missouri Flashcards

Real Estate Practice Exam (Missouri) Flashcards What would happen if a broker were to die, and his company was placed in receivership?The MREC can appoint a temporary broker to finish the existing sales contracts Lauren, a salesperson licensed only in Nevada, travels, with her broker's permission, to Missouri to help her brother purchase a home. Her broker works in cooperation with a Missouri broker to complete the sale. What, if any, commission is she due?She would receive whatever commission is agreed upon with her broker A broker salesperson acting as a sales manager is restricted from which of the following actions?Anne Seddon is the secretary at a residential real estate office. Liila Raath, a broker from another company calls her office seeking information on a current listing. There are no licensed agents at the office at the time of the call. What action may Anne legally take?Which of the following statements regarding the termination of a salesperson's association with a broker is true?The agent has six months to place his license in association with another broker or to notify the MREC of it's inactivation Each of the following statements regarding a net listing in

Missouri are false EXCEPT:

It is illegal and prohibited in Missouri Linda and Sabi Post are looking to buy a new house due to a job relocation. They are staying at a hotel while looking for a place to live. The hotel clerk offers to give their names to a local agent, and they agree. Is the hotel clerk legally able to collect a fee from the licensed agent for this referral?No, he would need a license to accept compensation for making a referral Salesperson Chung negotiated a purchase contract with a prospect who met the conditions of a special first time buyer bond proposal. However, the negotiated sales price was $2000 higher than the authorized limit set in order to fully qualify for the bond monies. In order to remedy the situation, Chung arranged another agreement with the seller. Chung wrote 2 contracts. The first contract listed he sales price with the bond proposal limit. The second contract covered the $2000 excess. Which statement best describes this situation?Chung is subject to disciplinary action by the MREC for violating the law against dual contracts Who administers the Interstate Land Sale Full Disclosure Act?the Department of Housing and Urban Development (HUD) Claire Green filed a complaint with the MREC against Broker Carol Bukov. Which of the following could the MREC do?subpoena Broker Bukov and her business records The license fee for a non-resident broker or salesperson

applying for a Missouri license is:

$150 for a broker and $100 for a salesperson

All of the following is required on a current Listing

Agreement except:

a provision requiring an owner to notify the broker of intent to cancel the listing after the expiration date Auctioneer Leslie is negotiating to auction some odds and ends for a retired farmer. In the course of the negotiation,the farmer asks Leslie to auction off the farm.Which of the following statements best describes the situation?Auctioneer Leslie would NOT have to have a real estate license as she was auctioning it for the owner Which of the following statements concerning the management of several branch offices owned by one broker is true?A broker-salesperson can have direct supervision over a branch office What must the MREC do if it denies licensure to a salesperson applicant?send the notification of denial by registered or certified mail, to inform the applicant in writing of his right to an appeal with the MREC Douglas is renting property and wishes to ensure he is working with a licensed real estate broker. He asks to see the license of the agent and the broker with whom he is working. Which of the following statements is accurate?Douglas is a member of the public and is entitled to see the license, or he may call the real estate commission and verify the licensure of the individuals Salesperson Nick brings an offer to Mr and Mrs Reynolds, the sellers of a listed property accept and sign the offer without changing any of the terms presented. Nick then presents the buyer with a copy of the accepted contract.Which of the following must be included on the sale contract?The date of the final agreement between the parties A salesperson associated with Rose Realty decides to purchase one of the company's listed properties and submits an offer to purchase. The agent did not disclose to the seller that she is an agent at Rose Realty. Which of the following license law violations could the agent be charged>?undisclosed dual agency Lupita's incorporated business specializes in negotiating sales for buyers and sellers. Since Lupita neither lists nor sells properties, does she need a real estate license?Lupita is required to have a broker-officer's license and her corporation would need a broker's license Mr. Perez was a broker with several branch offices. since he employed no other broker, he visited each branch every week. Is this a legal form of management?No, because he was not in direct control of the salesperson's actions Broker Carol Noonan agreed to find a house for buyer Sarah James for a flat fee of $5000. A buyer's agency agreement was signed by both parties stating that James would pay Noonan $5000 for her service. Noonan found a home listed by broker Vivian Randolph. Buyer James agreed to buy the home. Noonan never mentioned the buyer's agency agreement or dual agency. Is she able to retain the $5000 AND share the seller's commission?No, because Noonan had not obtained a prior written statement of permission from both the buyer and the seller What would legally allow a broker to keep an escrow account in an interest bearing checking account If all parties to the transaction agree that the escrow funds be housed in an interest bearing account, and if all parties

agree as to who should collect the interest

A broker's business was inundated with lawsuits. He decided to avoid more problems by changing the name of his branch offices. Is this legal?No, all branch offices must have the same name as the parent office By what title is Chapter 339 of the Missouri State Statues also known the license law What does the disbursements from an escrow account of a property manager NOT need to show?the balance of the account to the owner What form of payments are acceptable for license fees?Cashier's check, personal check, or money order made payable to the Missouri Real Estate Commission What actions could be taken against a salesperson who violates the Missouri Real Estate License Law (Chapter

339-250)

The agent could have his license revoked for violation of the law. Violation of MREC rules is a Class B Misdemeanor.Before a salesperson can list or sell real estate after transferring to a new broker, what must be done first?The new broker must obtain the salesperson's work permit from the MREC Which of the following statements regarding the operation of a broker's branch office is not false?A broker's branch office would operate under the same name and license as the parent office What must all active salespeople complete as a condition of license renewal?Attend 12 hours of certified continuing education Nick, a licensed salesperson, was at a party and a young couple expressed interest in buying a new home. Nick mentioned that his own home was for sale and that he would be happy to show it to them. Which of the following statements are true in regards to this situation?Nick must disclose that he is a licensed salesperson and the owner of the property Is it possible for the MREC to suspend a license while the salesperson is under investigation?No, a salesperson must have a hearing and be found guilty by the AHC before the MREC can suspend his license How many elective course work are needed to renew an active license 9 Dan Doshi is a licensed salesperson. He has listed his property in the local paper. He is selling the property as FOR SALE BY OWNER (FSBO). What information must he disclose in his ad?For Sale By Owner- Salesperson Into what kind of an account would a licensed broker acting as a property manager deposit current rental money?property management escrow account After what period of time does a broker's license expire?A broker's license is good for two years and must be renewed by June 30th Molly, a new agent, was anxious to find new leads. She asked her friends if she could put "For Sale" signs in their yards. When buyers contacted Molly about the houses, she told them that they had already sold, but she would be glad to help them find another property. Is this a legitimate action?No, because the properties were not really "For Sale" and this is misrepresentation Broker Carol took a listing from Seller Noonan. Which of the following statements is accurate?Broker Carol must give Seller Noonan a copy at the time of signing A real estate agent is in process of transferring a listing to another broker when a complaint is filed against him.