exam smart practice tests

Question 1

A broker started a real estate company wanting to use the name ABC Realty. What is true regarding this situation?
A » The broker must file a request with the MREC
B » The broker must file a request with the secretary of state
C » The broker cannot do this as only real names are allowed
D » The broker can do this if no one in the area objects

Answer 1

B » The broker must file a request with the secretary of state

Question 2

A person in Missouri attended a pre-license class, passed the test and received a license. After a few months, the licensee decided to place their license on an inactive status. Two years later, the licensee decided to reactivate their license. What must the licensee do in order to reactivate?
   A  »  Do nothing, as two years automatically reinstates a license to active status
   B  »  Attend a pre-license class for their type of license and apply to the MREC within 90 days
   C  »  Attend a practice class and apply to the MREC within 6 months
   D  »  Take the required continuing education for the past two years and then apply to the MREC

Answer 2

C » Attend a practice class and apply to the MREC within 6 months

Question 3

A person has passed the pre-license test but has not yet received a license. Which of the following could that person NOT do?
A » Collect rent
B » Type advertising copy and call it into a local newspaper
C » Give the address of a listed property to a buyer
D » Deposit money into a broker`s escrow account

Answer 3

C » Give the address of a listed property to a buyer

Question 4

A broker-salesperson is allowed to:
A » manage an office
B » hold salesperson`s licenses personally
C » accept commission from other brokerage companies
D » give legal advice if it falls under the scope of the broker-salesperson’s expertise

Answer 4

A » manage an office

Question 5

Two brokers owned a real estate brokerage company together. After many years in business, the two brokers decided to split the company in half and each start their own new real estate brokerage company. The brokers wanted to split the current listings 50/50. This could be done if the brokers:
A » agreed in writing between the two of them
B » received authorization from the MREC
C » had all the salespersons in the company agree in writing to this arrangement
D » received written permission from all parties to the listings

Answer 5

D » received written permission from all parties to the listings

Question 6

Which of the following would be exempt under the Federal Fair Housing Law of 1968?
A » An owner of an 8 unit apartment building who lives in one of the units
B » An individual selling a personal residence who does NOT discriminate in advertising
C » A private club that was an annex of a commercial motel
D » A religious group that discriminated only on the basis of national origin

Answer 6

B » An individual selling a personal residence who does NOT discriminate in advertising

Question 7

The Equal Credit Opportunity Act prohibits discrimination based on:
   A  »  length of employment
   B  »  a person being a minor
   C  »  a person being a senior citizen
   D  »  a person's credit rating

Answer 7

C » a person being a senior citizen

Question 8

A broker had several branch offices. Which is true regarding the management?
A » He would have to have direct supervision over the main office and branch offices
B » A broker-salesperson can have direct supervision over the branch office
C » A salesperson must have direct supervision over the branch offices
D » Each branch office must have a full-time broker who does NOT sell or list

Answer 8

B » A broker-salesperson can have direct supervision over the branch office

Question 9

Which approach to value would an appraiser be using when one adds the land value to the depreciated replacement cost of a property?
   A  »  Market Data
   B  »  Cost
   C  »  Income
   D  »  Gross Rent Multiplier

Answer 9

B » Cost

Question 10

When a real estate agent is preparing a competitive market analysis (CMA) for a client, how many comparable properties would make for a good evaluation of value?
   A  »  1 other
   B  »  2
   C  »  3-5
   D  »  A minimum of 5

Answer 10

C » 3-5

Question 11

In advertising for prospects, all of the following terms could be used EXCEPT:
  A  »  political party affiliation
   B  »  military personnel
   C  »  upper bracket buyers
   D  »  national origin

Answer 11

D » national origin

Question 12

Which is true regarding the responsibilities of the MREC and the Administrative Hearing Commission (AHC)?
A » The MREC MUST send all complaints to the AHC
B » The MREC may revoke the license of a person if it believes a legitimate complaint has been made without further hearings from any other body
C » The AHC must find the licensee guilty before the MREC can revoke the license
D » The AHC makes NO recommendations to the MREC regarding punishment of licensees

Answer 12

C » The AHC must find the licensee guilty before the MREC can revoke the license

Question 13

A person who is licensed in another state applies for a license in Missouri. The MREC learned that the applicant did NOT have a high school diploma nor a GED. Which of the following is true regarding the issuance of a license?
A » The applicant could NOT get a license because of the lack of a high school diploma or a GED
B » The applicant could receive a Missouri license
C » The applicant would be required to take additional pre-license education
D » The applicant would be required to take additional continuing education

Answer 13

B » The applicant could receive a Missouri license