Real Estate Practice Exam (Missouri) Questions and Answers

Real Estate Practice Exam (Missouri) Questions and Answers An ad in the local paper was placed by Sarah, a licensed salesperson, on behalf of her seller. The ad reads "Beautiful country lots located on Lake Ivory. Must see! With the purchase of one gorgeous lakeside lot, you will receive a second free. Plus, all purchasers' names will be entered into our lottery sweepstakes! Come soon while lots are still available." Which of the following statements concerning the ad is the most accurate? - Ans:-The ad is in violation of the license law since it offers fee inducements If Henry wished to create a real estate company as a corporation, which license would be required of the corporation itself? - Ans:-"The Corporation" would become "The Broker" and the officers of the corporation would be Broker=Officers Of the following, which would require a license? - Ans:-a property manager actively leasing and selling for a real estate company Joseph Lerner attempted to renew his license, however, he failed to complete the required continuing education course work. After a period of three months time, Joseph wanted to reinstate his license. What action would Joseph need to take? - Ans:-pay a late fee of $50 per month past the renewal date (not to exceed $200), and retake the prescribed prelicense course ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 2/16 Jason Chung, a licensed salesperson for more than two years, has just passed the state broker examination and is ready to apply for a broker-salesperson's license. What must he include with his application to meet the requirements? - Ans:-A certificate from an accredited school stating that within 6 months prior to the date of application he had successfully complete a broker's license course offered by that school A licensed salesperson, took 12 credit hours of continuing education course work during the period of October 1, 2001 and September 30, 2003. Of those hours, how many credits must represent "Core" courses? - Ans:-3 hours Peter a broker with a single salesperson, is retiring and moving to Arizona to run his own golfing range. Can the salesperson continue to operate in the same capacity? - Ans:-No, because Peter would NOT be in control of the salesperson's actions Salesperson Lauren presents a written offer for $155,900 to seller Young. The listed price is $160,000, Mr. Young reviews the offer and seeks further advice from his accountant. Salesperson Lauren receives a second written offer for the property. The second offer was for $149,500. Which of the following statements is true regarding this situation? - Ans:-Lauren must present the second offer immediately Imran Post wants to sell his home. His daughter, Lucy Post, is an agent in a neighboring state, but not in Missouri. Miss Post visits her father with the purpose of helping him sell his property. Miss Post finds a buyer through a local church group and successfully negotiates the sale of Mr. Post's residence. Since ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 3/16 Miss Post's license is not valid in the state of Missouri, to which of the following considerations is she entitled? - Ans:-no commission is due to the agent since she is not licensed in MO Which of the following actions are the MREC allowed to take while conducting an investigation? - Ans:-The MREC may issue subpoenas for all records relevant to the complaint Which of the following details must written authorizations, such as a listing agreement, contain when altered? - Ans:-the initials of all parties Broker Post's friend, Mr. Bauer, was divorcing his wife. Mr. Bauer asked Broker Post to complete a quit claim for him so he could deed property to his ex-wife. Can the broker do this? - Ans:-No, because the broker is not a party to the transaction, he would be practicing law if he completed the form What does the disbursements from an escrow account of a property manager NOT need to show? - Ans:-the balance of the account to the owner Which of the following statements regarding a broker's escrow account are true: - Ans:-Funds must be in a separate bank account in a financial institution which shall be designated an escrow or trust account Joe who is a broker salesperson acting as a sales manager is restricted from which of the following actions? - Ans:-hold all the licenses of the salespeople working under him ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 4/16 How must the officers of a corporation be licensed? - Ans:-All corporate officers involved in brokerage business must have active broker-officer licenses. 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? - Ans:-No, because the properties were not really "For Sale" and this is misrepresentation Which of the following is NOT required for the licensure of a salesperson? - Ans:-citizenship Each of the following statements regarding a net listing in Missouri are false EXCEPT: - Ans:-It is illegal and prohibited in Missouri Lisa Reynolds, a licensed salesperson, lists seller Nick Young's home. After Nick signs the listing agreement, what, if anything, must Lisa then do with the agreement? - Ans:-She