Free Missouri Real Estate Practice Test (2026) — LicenseIQ

Question 1

Which document is recorded in the county records and makes the property collateral for a loan?

Accepted Answer

The mortgage creates the lien and is recorded. The promissory note is the borrower's personal promise to repay and is not recorded.

Question 2

The four unities required to create a joint tenancy are:

Accepted Answer

PITT: joint tenants must take equal interests, at the same time, by the same deed, with equal rights of possession.

Question 3

A property manager collects $1,250 rent from each of 16 units. The management fee is 7% of collected rent. What is the fee, and how often must fees at least be withdrawn absent another written agreement?

Accepted Answer

16 x $1,250 = $20,000 collected. 0.07 x $20,000 = $1,400. 20 CSR 2250-8.220 requires fees to be withdrawn at least once a month unless otherwise agreed in writing.

Question 4

The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

Accepted Answer

Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.

Question 5

The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?

Accepted Answer

Daily = $4,320 / 360 = $12. Seller owned Jan 1-Apr 20 = 3 months + 20 days = 110 days, so the buyer owes for 360 - 110 = 250 days. 250 x $12 = $3,000, credited to the seller (who prepaid) and debited to the buyer.

Question 6

On a closing statement, the purchase price is a:

Accepted Answer

The seller receives the price (credit); the buyer owes it (debit).

Question 7

After the buyer and seller sign a sales contract but before closing, the contract is:

Accepted Answer

A contract is executory while obligations remain to be performed; it becomes executed when fully performed (at closing).

Question 8

Which Missouri license expires on June 30 of even-numbered years?

Accepted Answer

Broker-type licenses, including broker-salesperson, expire June 30 of even years. Salesperson, inactive salesperson and salesperson P.C. licenses expire September 30.

Question 9

An 8-unit building rents for $1,100 per unit per month with 5% vacancy. Annual operating expenses are $28,320 (excluding debt service). At an 8% capitalization rate, what is the value?

Accepted Answer

PGI = 8 x $1,100 x 12 = $105,600; less 5% vacancy = $100,320; NOI = $100,320 - $28,320 = $72,000; value = $72,000 / 0.08 = $900,000.

Question 10

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Question 11

How much of the broker's own money may be kept in a Missouri escrow account?

Accepted Answer

RSMo 339.105 permits up to $1,000 of identified personal funds to pay account service charges; anything more is commingling.

Question 12

Adding a new financing contingency to an existing sales contract is done by a(n) ____, while changing the existing closing date is done by a(n) ____.

Accepted Answer

An addendum ADDs new terms; an amendment changes existing terms. Both require agreement of both parties.

Question 13

Rights of an owner whose land borders a flowing river are called:

Accepted Answer

Riparian rights pertain to land along a flowing waterway; littoral rights pertain to lakes and oceans. (Reclassified from section 16 to section 1 / CORE - a general principle.)

Question 14

Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

Accepted Answer

Dividing territories or customers among competitors eliminates competition and is illegal market allocation.

Question 15

A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

Accepted Answer

LTV is applied to the LESSER of price or appraised value: $290,000 x 0.75 = $217,500. Using the $300,000 price ($225,000) is the common mistake.

Question 16

A broker wants to do business under a fictitious name. The broker must:

Accepted Answer

20 CSR 2250-4.030 requires fictitious-name registration under RSMo 417.200-417.230 and a copy to the Commission within 10 days.

Question 17

A designated broker appoints Agent Kim for the seller and Agent Luis for the buyer in the same in-house sale. The designated broker:

Accepted Answer

RSMo 339.820.2 says the designated broker is not a dual agent or transaction broker solely because of the appointments. Only a licensee personally working with both sides is.

Question 18

A licensee may place a 'For Sale' sign on a property only with:

Accepted Answer

RSMo 339.100.2(14) and 20 CSR 2250-8.090 prohibit signs or advertising without the owner's written consent.

Question 19

Under Missouri's brokerage relationship statutes, a buyer is obligated to pay a designated broker only if:

Accepted Answer

RSMo 339.720.3 states the sections do not obligate any buyer or tenant to pay a broker unless there is a written agreement with compensation terms.

Question 20

A buyer agrees to give the seller a valuable painting in exchange for vacant land. Is there valid consideration?

Accepted Answer

Consideration is anything of value exchanged. A $0 purchase price would lack consideration, but goods or services can qualify.

Question 21

Monthly rent is $1,325. What is the largest security deposit the landlord may collect?

Accepted Answer

Two months' rent: 2 x $1,325 = $2,650.

Question 22

Which act is a listed ground for discipline in RSMo 339.100.2?

Accepted Answer

Guaranteeing future profits is listed. The other acts are expressly permitted by the brokerage statutes or are good practice.

Question 23

The maximum civil penalty the Commission may impose per offense is:

Accepted Answer

RSMo 339.100.3 authorizes a civil penalty of up to $2,500 per offense.

Question 24

A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

Accepted Answer

A legal nonconforming ('grandfathered') use predates the ordinance and may continue, usually with limits on expansion. A variance is permission to deviate from a current requirement.

Question 25

A salesperson receives an earnest money check from a buyer. The salesperson should:

Accepted Answer

The broker manages the trust account; licensees must promptly deliver trust funds to the broker.

Missouri real estate practice test

1. Which document is recorded in the county records and makes the property collateral for a loan?

2. The four unities required to create a joint tenancy are:

3. A property manager collects $1,250 rent from each of 16 units. The management fee is 7% of collected rent. What is the fee, and how often must fees at least be withdrawn absent another written agreement?

4. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

5. The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?

6. On a closing statement, the purchase price is a:

7. After the buyer and seller sign a sales contract but before closing, the contract is:

8. Which Missouri license expires on June 30 of even-numbered years?

9. An 8-unit building rents for $1,100 per unit per month with 5% vacancy. Annual operating expenses are $28,320 (excluding debt service). At an 8% capitalization rate, what is the value?

10. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

11. How much of the broker's own money may be kept in a Missouri escrow account?

12. Adding a new financing contingency to an existing sales contract is done by a(n) , while changing the existing closing date is done by a(n) .

13. Rights of an owner whose land borders a flowing river are called:

14. Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

15. A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

16. A broker wants to do business under a fictitious name. The broker must:

17. A designated broker appoints Agent Kim for the seller and Agent Luis for the buyer in the same in-house sale. The designated broker:

18. A licensee may place a 'For Sale' sign on a property only with:

19. Under Missouri's brokerage relationship statutes, a buyer is obligated to pay a designated broker only if:

20. A buyer agrees to give the seller a valuable painting in exchange for vacant land. Is there valid consideration?

21. Monthly rent is $1,325. What is the largest security deposit the landlord may collect?

22. Which act is a listed ground for discipline in RSMo 339.100.2?

23. The maximum civil penalty the Commission may impose per offense is:

24. A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

25. A salesperson receives an earnest money check from a buyer. The salesperson should:

Sources