MO license law Flashcards
Salesperson French presents a written offer for $189,000 to seller Dutch. The listed price is $200,000. Dutch reviews the offer and seeks further advice from her accountant. Salesperson French receives a second written offer, this one for $175,000. Which of the following is true about this situation?
French must wait until Dutch accepts or rejects the first offer before he presents the second offer to Dutch.
French must present the second offer promptly.
French cannot present the second offer at any time because it is 90% lower than the list price.
French must present the second offer as a backup contract.
French must present the second offer promptly.
When a salesperson terminates his/her association with a broker, which of the following statements is true?
The agent has six months to place his license with another broker or put his/her license on inactive status with the MREC.
The agent may have friends’ listings transferred to his/her new broker.
The broker must return the salesperson’s license to the MREC within 48 hours.
The broker must give the agent his license when the agent submits a written notification of resignation.
The agent has six months to place his license with another broker or put his/her license on inactive status with the MREC.
Salesperson Link brings an offer to the seller of a listed property. After considering the offer for an hour, the seller accepts and signs the offer without changing any of the terms presented. Link then presents the buyer with a copy of the accepted contract. Which of the following must be included in this contract for sale?
The date the property was shown to the buyer.
The date the buyer signed the offer and instructed Link to present it to the seller.
The date the offer was presented to the seller.
The date of final agreement between the parties.
The date of final agreement between the parties.
Which of the following is a true statement about a salesperson who violates the Missouri Real Estate License Law? (Chapter 339-250)
The agent could be charged with a class B felony.
The agent may not be subject to criminal prosecution under the general laws of the state.
The agent may not incur civil liability under the general laws of the state.
The agent could have his license revoked for violation of the law. Violation of MREC rules is a Class B Misdemeanor.
The agent could have his license revoked for violation of the law. Violation of MREC rules is a Class B Misdemeanor.
As a condition of license renewal, all active salespeople must complete the following:
Three hours of required core curriculum by June 30th and nine hours of elective courses by September 30th.
Attend at least 1 hour of a continuing education lecture every other month throughout the licensing period.
Attend 6 hours of core curriculum courses and 6 hours of elective courses during the renewal period.
Attend 12 hours of certified continuing education courses, 3 hours of core credit and 9 hours of elective credit, by September 30th of even years.
Attend 12 hours of certified continuing education courses, 3 hours of core credit and 9 hours of elective credit, by September 30th of even years.
A buyer was told, by a licensed agent, that the second-story window air conditioner would remain with the house if the buyer paid the asking price. The salesperson had not confirmed this with the seller, and the seller removed the unit before closing. The buyer paid the full price for the house then discovered the unit missing and contacted the MREC to file a complaint. Which of the following statements is correct?
The MREC will require the broker to buy an air conditioner for the buyers.
The MREC may suspend the salesperson’s license for making a misrepresentation.
The MREC can only levy a fine against the salesperson equal to the cost of a new air conditioner.
The MREC has no power or authority to take action.
The MREC may suspend the salesperson’s license for making a misrepresentation.
A person finished pre-license school on July 31, 2012. After taking the examination on December 15, the applicant received a passing score on December 31, 2012. The person applied for a license on January 15, 2013. Could this person receive a license?
No, because the applicant had taken the school in a different calendar year from applying for a license.
Yes, because the applicant applied for a license within six (6) months after completing the school.
No, because it had been over six (6) months from the time of completing the school and applying for a license.
Yes, because the applicant applied for a license within sixty (60) days after passing the examination.
Yes, because the applicant applied for a license within six (6) months after completing the school.
If the MREC receives a complaint against a broker, they could subpoena:
past clients and customers from out of state
the broker’s business and personal records
people from out of state
the broker’s business accounts and records
the broker’s business accounts and records
To renew a salesperson’s inactive license, how often must the licensee pay?
Once – when the license goes inactive.
Once a year to the MREC.
Never. An inactive licensee never has to renew. He/she is inactive for life.
By Sept 30 of even years.
By Sept 30 of even years.
Salesperson Bird, has been licensed as a salesperson for at least two years. He has just passed the state broker examination and would like to apply for a broker-salesperson’s license. In order to meet the requirements, he must include which of the following with his application?
His personal affidavit stating that he has been actively engaged in the real estate business for at least one year.
A certificate from an accredited school stating that within 6 months prior to the date of application that he had successfully completed a broker’s license course offered by that school.
A letter of proficiency from his broker stating that Bird has procured at least ten listings and at least ten closed sales.
A statement from his broker indicating that Bird has finished management training and has been assigned as a branch manager for one of his broker’s branch offices.
A certificate from an accredited school stating that within 6 months prior to the date of application that he had successfully completed a broker’s license course offered by that school.
All of the following are violations of Missouri License Law except:
Telling a potential buyer that the property will definitely appreciate in value and that a substantial profit will be made on the resale of this real estate investment.
Advising a young married couple to take title as tenancy by the entirety; explaining their rights in the event the seller breaches the contract, and helping them to rewrite a better offer to purchase.
Placing the buyer’s $2,000 earnest money deposit in an escrow account after acceptance of a contract by the seller.
Preparing a special sales contract to suit the needs of a new home buyer who disagrees with the terms of a standard form and who intends to fill in the blanks after the contract is accepted.
Placing the buyer’s $2,000 earnest money deposit in an escrow account after acceptance of a contract by the seller.
Eager Edgar, a licensed salesperson, lists seller Sue’s home. After Sue signs the listing agreement, what is the proper procedure for Edgar to take?
He must leave a copy of the listing agreement with Sue at the time of signing.
He may wait to send a copy of the listing agreement to Sue until after the broker reviews and signs the documents.
He may wait to send a copy of the listing agreement to Sue until after the property is placed in MLS.
He is not required to furnish a copy of the listing agreement at any time because it is an employment contract rather than a sale contract.
He must leave a copy of the listing agreement with Sue at the time of signing.
A salesperson, licensed in another state (not in Missouri), is visiting St. Louis and helps her father sell his listed property. The agent finds a buyer through a local church group and successfully negotiates the sale of the St. Louis residence. The salesperson is entitled to which of the following considerations from the listing broker of her father’s property?
A finder’s fee.
The buyer’s agency commission offered in MLS.
The normal commission offered by the broker under the sub-agency clause of the listing contract signed by the agent’s father.
No commission is due to the agent because she is not licensed in MO.
No commission is due to the agent because she is not licensed in MO.
A salesperson associated with Rainbow 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/he is an agent with Rainbow Realty. This agent may be charged with which of the following license law violations?
Undisclosed Dual Contracts
Undisclosed Dual Listings
Undisclosed Dual Agency
Undisclosed Commingling
Undisclosed Dual Agency
A friend who was getting a divorce called the broker to ask the broker to complete a quit claim for the friend to deed the property to his ex-wife. Can the broker do this?
Yes, because a broker is allowed to complete standardized forms even when he is not involved in the transaction.
Yes, the broker may complete the form for a nominal fee.
No, the broker can never complete a quit claim deed since it is not a standardized form.
No, since he is not a party to the transaction, he would be practicing law if he completed the form.
No, since he is not a party to the transaction, he would be practicing law if he completed the form.
Auctioneer Grant is negotiating to auction off some odds and ends for a farm family. In the course of the negotiation, the farmer asks Grant if he could also auction off the farm. Which BEST describes the situation?
He would NOT have to have a real estate license as long as he sold the personal property and the farm together.
He would NOT have to be licensed as long as he sold only the personal property and the land without any improvement on the land itself.
He would have to have a real estate license to auction off the farm.
He would NOT have to have a real estate license as he was auctioning it for the owner.
He would NOT have to have a real estate license as he was auctioning it for the owner.
Which of the following is true about a net listing in Missouri?
It may be in oral form only.
It must be in writing according to the Statute of Frauds.
It is the only type of listing allowable in Missouri that can be canceled without notice to the broker.
It is illegal and prohibited in Missouri.
It is illegal and prohibited in Missouri.
If you are turned down for a license, what would be your most reasonable course of action?
Request a hearing before the MREC (Missouri Real Estate Commission).
Request an investigation by the attorney general.
Request a hearing before the local Board of Realtors.
Request a hearing before the AHC (Administrative Hearing Commission).
Request a hearing before the AHC (Administrative Hearing Commission).
Salesperson Karr negotiated a purchase contract with a prospect who met the conditions of a special first time buyer bond proposal, except for the fact that the negotiated sale price was $2,000 higher than the authorized limit set in order to qualify for the bond monies fully. Karr arranged another agreement with the seller, whereby the sale contract indicated a price within the limit, and another contract covered the $2,000 excess. Which of the following statements about this situation is true?
This arrangement is considered creative financing and is perfectly legal.
Although such arrangements are discouraged, Karr acted legally because he was carrying out the direct orders of the seller in order to sell the property for the list price.
If the AHC (Administrative Hearing Commission) finds out about this arrangement, it will automatically suspend Karr’s license.
Karr is subject to disciplinary action by the MREC for violating the law against dual contracts.
Karr is subject to disciplinary action by the MREC for violating the law against dual contracts.
