Unit 25: Business Conduct and Practices

Question 1

All money received by a licensee must be deposited in the escrow or trust account maintained by the broker no later than __ banking days following the last date on which the signatures or initials of all the parties to the contract are obtained, unless otherwise provided in the contract.

Answer 1

10

Question 2

After __ days from the date of the dispute, if a broker has not received notice of a pending civil action or written release by the parties, the broker may disburse escrow monies or valuables to either party to the transaction based upon a good-faith decision by the broker that the opposite party has failed to perform as agreed.

The disbursement may only be made after the broker has given __ days’ written notice by certified mail to all parties setting forth the broker’s proposed action. In addition, the broker is not required to disburse money or other valuables from the broker’s escrow account when disposition is disputed by the parties.

Answer 2

60, 15

Question 3

Whenever the ownership of any escrow monies received by a broker is in dispute by the parties to a real estate sales transaction, the broker must report and deliver the monies to the state treasurer within ___ days of the date of the initial projected closing date. To prevent this, the parties to a real estate sales transaction may agree, in writing, that the funds are not in dispute and notify the broker who is holding the funds.

Answer 3

365

Question 4

T/F: All money received by a licensee must be deposited in the broker’s escrow account no later than three banking days following the last date signatures or initials of all the parties to the contract are obtained.

Answer 4

False. All money received by a licensee must be deposited in the escrow or trust account maintained by the broker no later than 10 banking days following the last date on which the signatures or initials of all the parties to the contract are obtained, unless otherwise provided in the contract.

Question 5

T/F: Licensees acting with or without a written agreement for brokerage services are required to have the relationships confirmed, in writing, by each party to the real estate transaction.

Answer 5

True. This must be done on or before a party’s first signature to the real estate contract.

Question 6

For each complaint received, a written acknowledgement is sent to the complainant. The complainant is notified of the final disposition of the complaint typically within __ business days after the bi-monthly commission meeting.

Answer 6

10

Question 7

Once a completed complaint form has been filed with the commission, it sends a letter to the subject(s) of the complaint requesting that they respond within __ days.

Answer 7

30

Question 8

If an investigation discloses a probability that the licensee’s acts may justify disciplinary action, the matter is referred to the ______________ _______ commission for determination.

Answer 8

administrative hearing

Question 9

T/F: The commission has the power to issue a subpoena forcing the production of records and papers related to a complaint.

Answer 9

True. The commission has the power to issue a subpoena forcing the production of records and papers related to the complaint. The commission also has the power to issue a subpoena requiring any person in Missouri to come before the commission and offer testimony or any material specified in the subpoena.

Question 10

A person whose license was revoked may appeal the revocation to the administrative hearing commission. Notice of the appeal must be received by the administrative hearing commission within __ days of mailing—by certified mail—the notice of revocation.

Answer 10

90

Question 11

Any person or corporation, professional corporation, partnership, limited partnership, limited liability company, or association knowingly violating any provision of the statutes will be guilty of a class _ misdemeanor.

Answer 11

B

Question 12

Any civil penalty imposed by the commission will not exceed $____ for each offense. Each day of a continued violation constitutes a separate offense, with a maximum penalty of $_____.

Answer 12

2,500, 25,000

Question 13

Payment of a civil penalty will be made within __ days of filing the order, or if the order is held up pending an appeal, within __ days after the court enters a final judgment in favor of the commission.

Answer 13

60, 10

Question 14

If the penalty is not timely paid, the commission will notify the attorney general. The attorney general may commence an action to recover the amount of the penalty, including reasonable attorney’s fees and costs and a surcharge of __% of the penalty plus __% per annum on any amounts owed. In such action, the validity and appropriateness of the final order imposing the civil penalty will not be subject to review.

Answer 14

15, 10

Question 15

T/F: Any civil penalty imposed by the commission will not exceed $5,000 for each offense.

Answer 15

False. Any civil penalty will not exceed $2,500 for each offense. Each day of a continued violation constitutes a separate offense, with a maximum penalty of $25,000.

Question 16

If a licensee’s response to a complaint is not received by the commission within 30 days, the commission will…

Answer 16

review the case without the benefit of the licensee’s response.

Question 17

1 rod = \_\_\_ feet
1 chain = \_\_ feet
1 acre = \_\_\_ square rods
1 acre = \_\_\_\_\_ sq. feet
1 square mile = \_\_\_ acres
1 section = _ square mile(s)
1 township = \_\_ sections

Answer 17

1 rod = 16½ feet
1 chain = 66 feet
1 acre = 160 square rods
1 acre = 43,560 sq. feet
1 square mile = 640 acres
1 section = 1 square mile
1 township = 36 sections

Question 18

When the term _____ ____ is used, it is usually the side of the lot that faces the street, or it might be water frontage if the lot is on a lake or river. If two dimensions are given for a property and they are not labeled, the first dimension is the frontage. Width also refers to ________, and the length is the _____ of the property.

Answer 18

front foot, frontage, depth

Question 19

Income = ____ x _____

Answer 19

Income = Rate x Value

Question 20

Simple Interest = _________ x ________ ____

Answer 20

Simple Interest = Principal x Interest Rate

Question 21

The word point means _______. One point equals _% of the loan amount. The formula to calculate the number of points paid on a loan is:

number of points (R) = ______ ____ in points (I) ÷ loan amount (V).

Answer 21

percent, 1, amount paid,

Question 22

T/F: When the seller gives money to the buyer for an expense that is not yet due, it is a prepaid item.

Answer 22

False. This is an accrued item, and the seller is debited. When the buyer gives money to the seller for items that the seller has paid in advance, it is called prepaid items.

Question 23

If the buyer and seller are represented by different brokers, it is the responsibility of the _______ broker to deliver the closing statements.

Answer 23

listing

Question 24

There are no documentary, mortgage, or ________ taxes in Missouri. Property taxes are payable annually and become delinquent _______ _ (date) for the previous year.

Answer 24

transfer, January 1

Question 25

The term ____ _____ means that the escrow account funds are fully available for withdrawal.

Answer 25

good funds

Question 26

A settlement agent who accepts funds of more than $____ for closing a sale of real estate will require a buyer, seller, or lender who is not a financial institution to convey funds to the settlement agent as certified funds.

Answer 26

2,500

Question 27

Who must retain legible copies of both the buyer’s and seller’s signed closing statements, the Buyer’s broker, Seller’s broker, or both?

Answer 27

The brokers for BOTH the buyer and the seller must retain legible copies of both the buyer’s and seller’s signed closing statements.