Essential Terms and Agency

Question 1

License Law

Answer 1

Chapter 339 of the Missouri Revised Statutes

Question 2

Licensee

Answer 2

Any person who performs ANY act, acts, or transactions as a licensed real estate salesperson or a licensed broker under the Missouri Real Estate License Code

Question 3

Real Estate Broker

Answer 3

The intermediary in real estate who is paid to sell, exchange, purchase, manage, lease real estate, or other actions relating to real estate .

Question 4

Real Estate Salesperson

Answer 4

The intermediary in real estate who is paid to sell, exchange, purchase, manage, lease real estate, or other actions relating to real estate. This is the same as the broker except a salesperson cannot exist independently of a broker.

Question 5

Owner of Property

Answer 5

Someone who owns property. They can sell their property without a license. Remember this by thinking about Exclusive Seller Agency agreements.

Question 6

Real Estate

Answer 6

Interest in a land or estate. Not to be confused with real property which is strictly about land and improvements attached to land. This also includes Leases of real property, which is technically personal property.

Question 7

Adverting

Answer 7

Any communication between someone with ANY type of real estate license or on a real estate licensee’s behalf.

Business cards, signs, letterheads, radio, TV, etc.

Question 8

The Commission

Answer 8

AKA Missouri Real Estate Commission

AKA MREC

Question 9

Correspondance

Answer 9

Any written or electronic communication excluding those which are “ephemeral in nature”

Exclusions include like snapchat videos

Question 10

Commercial Real Estate

Answer 10

Real estate that is for commercial use, like retail properties or factories. This excludes residential propertys with less than 5 units and agriculture & horticultural properties.

Question 11

Residential Real Estate

Answer 11

Real estate meant for living by people. Like condos, coops, or vacant land designed for living. This excludes residential properties with more than 4 units.

Question 12

Confidential Information

Answer 12

Information that is meant to be kept secret because the client designated them as such or because Missouri Law requires they be kept secret. Think of things that can compromise your client’s buying position that ARE NOT material fact.

Question 13

Customer

Answer 13

Term used when talking about a 3rd party to a fiduciary relationship. This 3rd party is someone who is involved with the transaction and is owed some services, but is not a client nor agent in the specific fiduciary relationship

Question 14

Designated Broker

Answer 14

A broker who acts on behalf of a bigger entity, like theyre appointed by a broker or some other bigger company. They provide broker services. Don’t confuse with designated agent, someone who is appointed by the designated broker to represent a client.

Question 15

Transactional Broker

Answer 15

Licensee who acts as a neutral 3rd party in a transaction. They have no fiduciary relationship in the context of that particular transaction they are supporting. They must get consent and give notice to both seller and buyer to begin their job.

Question 16

Designated Transaction Broker

Answer 16

The broker who is named to assist parties as a transaction broker, neutral 3rd party.

Question 17

Designated Agent

Answer 17

Licensee named by broker to be a limited agent for a client. No dual agencies for these agents

Question 18

Agent

Answer 18

Someone who consents to and acts for the benefit of another, the principal, in an agency relationship. In real estate, this is often your real estate agent

Question 19

Dual Agency

Answer 19

Licensee represents two parties to a single transaction. Must have written consent from all parties in the transaction.

Question 20

Exclusive Brokerage Agreement

Answer 20

Written agreement where broker has sole right to act as agent of a client. This means that the broker gets a sale if anyone, besides the client, gets a sale finished.

Question 21

Ministerial Acts

Answer 21

Acts that can be done without creating an Implied Agency.

Some examples:
Answering calls about pricing, property, location.
Attending Open House and answering home questions
Scheduling view appointments
Answer general inquiries about services and properties

Question 22

No License Required for these folks

Answer 22

Some people can do real estate business without a license if it involves their property. These people can include:

Lawyers, auctioneers, estate administrators, federal agency representatives, public utility representatives, banks, developers, company employees, and neighborhood associations for some cases.

Question 23

Single Agent

Answer 23

Agent who represents only one party in a transaction

Question 24

Buyer’s Agent

Answer 24

Single Agent of Buyer

Question 25

Landlord’s Agent

Answer 25

Single Agent of landlord

Question 26

Seller’s Agent

Answer 26

Single Agent of Seller

Question 27

Tenant’s Agent

Answer 27

Single Agent of Tenant