2024 Edition

Missouri Real Estate Practice Exam

Take this free practice test to get an idea of what is on the Missouri Real Estate Salesperson exam administered by the Missouri Real Estate Commission (MREC). The actual exam has 145 questions and 4 hours is given to complete it. Tests.com will soon publish a full simulation exam, so check back soon.

To prepare for the actual exam, check out our 145 Question Missouri Real Estate Salesperson Practice Exam with the same number of questions as the actual exam plus 350 bonus core real estate questions.

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I. Real Estate Licenses in MIssouri

1.	Salesperson Sam, a new yet very successful agent in Missouri, forgot to renew his license and is now seven months late. How much will Sam be assessed as a late fee?
		a. $50
		b. $250
		c. $200
		d. $500
Delinquent renewal applications are assessed with a late fee of $50 per month or partial month. Charges are not to exceed a maximum late fee of $200 collectively. Incorrect answer. Please choose another answer.

2.	Savanna, a broker, has just gotten married and changed her name. She has updated her website, business cards, and all her advertising to reflect her new last name. What else must Savanna do to stay compliant with the Missouri Real Estate Commission?
		a. She must notify the real estate commission of her name change within 10 days.
		b. She must submit a copy of her marriage license to the real estate commission within 30 days.
		c. She must submit a copy of her marriage license to the real estate commission within 10 days.
		d. She must notify the real estate commission of her name change within 30 days.
To remain compliant, any change of a licensee's name or address must be made known to the real estate commission within 10 days of the change. Incorrect answer. Please choose another answer.

3.	A licensee must take how many hours of core curriculum continuing education in order to renew a real estate license in Missouri?
		a. 12 hours of core curriculum
		b. 9 hours of core curriculum
		c. 3 hours of core curriculum
		d. No core curriculum is required
Out of the 12 hours of continuing education required to renew a license, a minimum of 3 hours must be core curriculum courses to meet renewal requirements. Classes are either elective or core based on MREC's designation/approval. Incorrect answer. Please choose another answer.

4.	All In Real Estate is opening a new second location across town in St. Louis, MO. What must the broker do to remain compliant with the rules and statutes set forth by the MREC regarding branch offices?
		a. Inform the commission of the lease terms of the new space.
		b. Inform the commission of the new office address within 15 business days.
		c. Inform the commission the office hours will remain the same within 30 days.
		d. Inform the commission of the new location's address within 10 days.
When a broker opens a new office, they must notify the Missouri Real Estate Commission. The new office address must be reported in writing within 10 days of opening. Incorrect answer. Please choose another answer.

5.	Terri is hired for a clerical position at Top Notch Real Estate but does not have a real estate license. Which of the following tasks would Terri NOT be permitted to perform?
		a. Collect rent money and write receipts.
		b. Answer phone inquiries from consumers regarding a property's list price.
		c. Organize the broker's listing files containing a client's private information.
		d. Relay phone messages to agents and the broker from clients and customers.
Unlicensed Clerical personnel may not perform any tasks for which a license is required. This includes discussing property information with consumers; they should take a message and have a licensed agent return the call to discuss property details. Incorrect answer. Please choose another answer.

6.	The Missouri Real Estate Commission is made up of how many broker members and how long must they have held a broker's license?
		a. The MREC contains 7 broker members that must have held a broker's license for 5 years.
		b. The MREC contains 6 broker members that must have held a broker's license for 10 years.
		c. The MREC contains 6 broker members that must have held a broker's license for 5 years.
		d. The MREC contains 10 broker members that must have held a broker's license for 10 years.
The Missouri Real Estate Commission is made up of 7 members. Of those members, 6 are broker members who must have held a broker's license for a minimum of 10 years. The remaining commission member is an unlicensed member of the public. Incorrect answer. Please choose another answer.

II. Business Conduct and Practices in Missouri

7.	Which of the following is considered a material fact to a transaction that must be disclosed?
		a. The seller is selling due to a divorce.
		b. The buyer is motivated to purchase quickly due to a job relocation.
		c. The property was the site of a murder-suicide just months ago.
		d. The buyer was fired from their job while under a contract to purchase.
A material fact can be a limitation of a party's ability to perform under the terms of the contract. Such as a buyer who loses a job and is unable to obtain final financing approval. Buyer's and seller's personal information and motivations are always confidential. A material fact can also be a material defect in the property, title to the property, or environmental hazards affecting the subject property. Incorrect answer. Please choose another answer.

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8.	Which of the following correctly states the fiduciary duties a licensee owes to a client in Missouri?
		a. Obedience, loyalty, disclosure, confidentiality, accounting, reasonable care.
		b. Obedience, loyalty, disclosure, confidentiality, acknowledgment, reasonable care.
		c. Obedience, agency, disclosure, confidentiality, accounting, reasonable care.
		d. Obedience, loyalty, disclosure, confidentiality, accounting, reliability
When a licensee represents either the buyer or seller, or both, in a real estate transaction, the relationship that creates the agency comes with fiduciary responsibilities. Those responsibilities are: obedience, loyalty, disclosure, confidentiality, accounting and reasonable care. Incorrect answer. Please choose another answer.

9.	Licensee Lisa has paid for advertising in a local publication in Missouri. Lisa had included her photo, name, address, and phone number in the advertisement. What else must Lisa include in her ad?
		a. Her website address
		b. Her broker's name and phone number
		c. Her license number
		d. Her broker's license number
When a licensee's name or phone number, or both, is used in an advertisement, the ad must also contain the name and phone number of the broker or firm who holds the licensee's license. Incorrect answer. Please choose another answer.

10.	Ted, a licensed real estate broker, places an advertisement in the local newspaper offering anyone who lists their property for sale with him in the month of July will receive $500 cash on the spot and one entry into a lottery for a chance to win a cruise. Which statement regarding this advertising is true?
		a. This is a good offer and should attract many sellers.
		b. This ad should contain his office address and website.
		c. This ad is a license law violation because it offers inducements.
		d. Ted must offer this same deal to buyers as well.
Licensees shall not use cash, prizes, gifts, lotteries, and the likes thereof as inducements in order to secure customers or clients to buy, list, or lease. No valuable consideration shall be offered by a licensee who is conditioned upon the sale, purchase, or lease of real property. Incorrect answer. Please choose another answer.

11.	Licensee Paula is having her 3rd child and needs a bigger home. She plans to represent herself and her husband in the transaction and looks through the MLS for homes that will suit their needs. She finds a home for sale by owner that is perfect for her growing family. She calls to set a time to view the property and tells the seller she is a licensee and is interested in buying the property. She views the home, writes an offer, and is under contract to purchase. What else must Paula do?
		a. She must disclose in the written offer that she is a licensee.
		b. She must sign a dual agency agreement to represent herself and her husband.
		c. She must let her broker represent her and her husband.
		d. She must also represent the seller since the property is not listed.
A licensee must disclose in writing that they are a licensee when offering to buy property. The oral disclosure is needed to make the seller aware the conversation is taking place with a licensee, but that does not suffice as disclosure; it must be in writing. Incorrect answer. Please choose another answer.

12.	Buyer Karen is making an offer on a property of $125,000, asking the seller to split the title fees. She states that she can provide her preapproval letter and can close the transaction in 30 days. She includes a sapphire necklace as her earnest deposit. Which of the following is true?
		a. Karen cannot offer a necklace as an earnest deposit in the purchase of a home.
		b. The sellers can require Karen to use the title company they choose.
		c. The broker must have a written appraisal stating the necklace's value to accept it as an earnest deposit.
		d. The sellers will have to agree in writing to accept a necklace as an earnest deposit.
A broker may not accept any non-negotiable item as an earnest deposit without the seller's prior written consent. In the event the seller does not agree to accept a non-negotiable item as an earnest deposit, the parties may renegotiate. Incorrect answer. Please choose another answer.

13.	At closing, the buyer, Alan, is reviewing the settlement statement. Under buyer's debits are fees for appraisal, inspections, home-owners insurance, loan origination, title work, and the broker's document preparation fee. Which of the following statements is true?
		a. The seller should always be charged the appraisal fees.
		b. The broker may not charge a separate fee to prepare documents.
		c. Homeowners insurance must be paid outside of closing and will not appear on the settlement statement.
		d. The seller must pay the broker's document preparation fees.
In Missouri, licensees are not permitted to charge a separate fee outside of the sales commission to prepare standardized forms on behalf of buyers and sellers. Homeowner's insurance can be escrowed and, if so, will appear on the settlement statement. While all terms in a transaction may be negotiable, inspections and appraisals are generally a buyer's debit. Incorrect answer. Please choose another answer.

14.	Licensee Brent is working with buyer client Carl on the purchase of a vacation home. Carl has some unique circumstances and requests. Licensee Brent cannot find a suitable form to fit the situation. Brent decides to write a new contract from scratch to better serve his client's needs. Is this allowable under the license law?
		a. No, licensees may not write contracts, only fill in the blanks on standardized forms.
		b. Yes, Brent is looking out for the best interest of his buyer client.
		c. No, only brokers can write new contracts.
		d. Yes, agents can write new contracts under the direct supervision of their brokers.
Licensees are required only to fill in the blanks on standardized forms provided, prepared, and approved by the broker's counsel or by the counsel for a trade association of which the broker is a member or associate member, or by a Missouri state or local bar association. For a licensee to write contracts would constitute the unauthorized practice of law. Incorrect answer. Please choose another answer.

15.	In Missouri, settlement statements must be delivered to the buyer and seller, outlining all the transaction financial information. Who is responsible for delivering or causing the settlement statements to be delivered to the buyer and seller?
		a. The escrow agent
		b. The lender
		c. The listing agent
		d. The buyer's agent
It is the responsibility of the listing broker (if there are two brokers involved in the transaction) to deliver or cause delivery of the settlement statements to buyers and sellers. The statements are to be provided at the time of closing and must outline the accurate sale price, earnest money held by the broker, payments received by the broker, to whom the broker disbursed any payments, and the amount, along with any deeds of trust or mortgages that are being recorded. Incorrect answer. Please choose another answer.

16.	Roger forms a corporation and opens a business to deal in exchanging properties without a real estate license. In the process of a property exchange, one of the parties gets the feeling that Roger is not adequately trained or licensed and refused to pay for his services. Roger starts court proceedings to sue the party for his unpaid commission. Which of the following is true?
		a. Roger will win the lawsuit because his corporation is in good standing with the state.
		b. Roger can prove he was the procuring cause of the sale and is due the commission, so he will win the lawsuit.
		c. Roger cannot sue for the commission because he is not licensed.
		d. Roger may sue for commission within 30 days of the real estate transaction closing.
The Missouri license law chapter 339 requires a person to hold a real estate license in order to receive any type of compensation for real estate services rendered. No fee shall be paid to any unlicensed person for real estate services including but not limited to referral fees and commissions. Incorrect answer. Please choose another answer.

III. Disciplinary Proceedings in Missouri

17.	Licensee Brian's broker Zack has been up to some questionable activities lately, and Brian has been cautious to avoid any involvement in such activities. Brian believes Zack may be violating the license law. What might he be charged with if Zack is found guilty of violating the license law?
		a. A Class B Felony
		b. A Class D Misdemeanor
		c. A Class C Felony
		d. A Class B Misdemeanor
Under the law of the Missouri Real Estate Commission, having been found guilty of a violation of The License Law (Chapter 339) is a Class B Misdemeanor. A Class B Misdemeanor in Missouri carriers a maximum penalty of up to 6 months in a county prison and a $1,000 fine. Incorrect answer. Please choose another answer.

18.	Brokers is Missouri are ultimately responsible for the actions of affiliated licensees. If an agent violates the license law, their broker may also be disciplined for the violation. In which of the following instances would the broker most likely NOT be held liable for the agent's actions?
		a. The broker did not attempt to keep from learning of the violation.
		b. The broker had written policies to ensure proper supervision was in place.
		c. The broker knew of the violation and tried to assist the licensee in concealing the occurrence of the violation.
		d. The licensee acted in direct violation of the broker's written rules and regulations.
A broker may not be held liable for an affiliated licensee's license violation if the broker has written policies to ensure proper supervision and where the broker does not avoid learning of the violation, or attempt to ratify it. Incorrect answer. Please choose another answer.

IV. Brokerage Relationships in Missouri

19.	Salesperson Gavin represents seller Stacy. Gavin shows Stacy's home to several prospective buyers until one particular buyer, Tim, requests to make an offer and asks Gavin to represent him as a buyer's agent. Gavin agrees and signs a buyer's agency agreement with Tim without Stacy's knowledge. Must Gavin disclose his agency relationship with Tim to Stacy?
		a. No, licensees are allowed to enter into agency agreements with buyers and sellers simultaneously.
		b. Yes, this situation creates an undisclosed dual agency which is illegal.
		c. Yes, this situation creates a net listing which is illegal.
		d. No, Tim's decision for representation is confidential.
A licensee is allowed to represent both the buyer and the seller in the same transaction, which is called Dual Agency. A dual agency relationship must be disclosed and agreed upon by both parties in writing. Undisclosed dual agency is illegal in Missouri. Incorrect answer. Please choose another answer.

20.	Which of the following may NOT be included in a listing agreement in Missouri?
		a. A flat rate commission agreement.
		b. The property's legal description.
		c. A clause stating the listing agreement does not automatically renew if the property is not sold.
		d. A clause allowing the listing agreement to automatically renew upon expiration if the property has not sold.
A listing agreement may not include a clause allowing the listing contract to automatically renew upon expiration if the property has not sold, nor a clause requiring the seller to notify the agent prior to the agreement's expiration that they are not extending the listing. Incorrect answer. Please choose another answer.

Quality starts with who wrote the material.

Our practice exam writer

Lisa Risco

Lisa is a licensed real estate broker from Pennsylvania who teaches real estate classes at the Polley Associates School of Real Estate. She has worked with Re/Max and Century 21 in Philadelphia. Lisa received her MBA degree from Eastern University.

Our material is specific to the Pennsylvania Real Estate Salesperson Exam, covering both the National and State sections with these content areas:

Legal Descriptions
Property Use
Forms of Ownership
Recording of Title
Property Appraisal
Contracts
Agency
Financing
Transfer of Property
Disclosures
Settlment
Real Estate Practice
and more..

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