Free Missouri Property Practice Test — LicenseIQ

Question 1

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 2

The periodic report a property manager gives the owner showing rents and other income collected and expenses paid for the period is the:

Accepted Answer

The income statement (P&L) summarizes income and expenses for the accounting period, typically monthly.

Question 3

Adverse possession allows someone to acquire title by:

Accepted Answer

Adverse possession requires open, notorious, exclusive, continuous and hostile use for the statutory period. A tenant's possession is permissive, not hostile. (Reclassified to section 1 / CORE.)

Question 4

Missouri residential real property is assessed at what percentage of true value?

Accepted Answer

RSMo 137.115 sets residential at 19%, agricultural at 12%, and commercial and other at 32%.

Question 5

A quitclaim deed is most often used to:

Accepted Answer

Quitclaim deeds convey whatever interest the grantor may have, without warranties, making them useful for removing clouds or releasing claims.

Question 6

To stop an unlicensed person from brokering real estate, the Commission may:

Accepted Answer

RSMo 339.180 authorizes injunctions on the Commission's application, in addition to other penalties.

Question 7

Applicants for an original Missouri real estate license must submit fingerprints for:

Accepted Answer

20 CSR 2250-3.010 requires original applicants after December 31, 2010 to submit fingerprints through the Highway Patrol's approved vendor for both state and federal checks, with the applicant paying the fees.

Question 8

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 9

A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

Accepted Answer

When no bid meets the lender's minimum, the lender takes title and the property becomes REO inventory.

Question 10

An owner of lakefront property holds:

Accepted Answer

Littoral rights apply to properties abutting standing bodies of water such as lakes and oceans. (Reclassified from section 16 to section 1 / CORE.)

Question 11

Who may perform an appraisal of real property for a lender?

Accepted Answer

Only licensed or certified appraisers perform appraisals. Licensees may prepare a CMA, which is not an appraisal.

Question 12

A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

Accepted Answer

1 mill = $1 per $1,000. $280,000 / 1,000 = 280; 280 x 22 = $6,160.

Question 13

A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

Accepted Answer

Real property tax liens take priority over all others regardless of recording date; other liens generally follow in order of recording.

Question 14

For a deed to be valid it must be:

Accepted Answer

Transfer requires a valid deed signed by the grantor and delivered to and accepted by the grantee. Recording gives constructive notice but is not required for validity between the parties.

Question 15

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 16

A salesperson wants to buy a property for himself. Before doing so he must:

Accepted Answer

20 CSR 2250-8.110 requires a licensee buying, selling, exchanging, renting or leasing for himself to make his status known in writing.

Question 17

In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

Accepted Answer

Seisin = ownership and right to convey. Quiet enjoyment protects against superior title claims; further assurance obligates the grantor to cure defects; warranty forever defends title against all claims.

Question 18

Recording a deed in the county records primarily serves to:

Accepted Answer

Recording provides public (constructive) notice, protecting the owner's interest against later claims.

Question 19

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 20

An owner's title insurance policy protects against:

Accepted Answer

Title insurance covers title defects existing before the policy date, such as forged deeds or undisclosed liens - not physical damage or future events.

Question 21

Knowingly practicing real estate in Missouri without a license is:

Accepted Answer

RSMo 339.170 makes knowing violations a class B misdemeanor; injunctions under RSMo 339.180 are available in addition.

Question 22

The Missouri Real Estate Commission must investigate when:

Accepted Answer

RSMo 339.100.1 requires investigation on a written complaint; the Commission may also investigate on its own motion.

Question 23

After a Missouri deed of trust foreclosure, when does the borrower have a statutory right to redeem?

Accepted Answer

RSMo 443.410 gives a one-year redemption right only if the debt holder buys at the sale and notice of intent was given at the sale or within 10 days before it.

Question 24

In Missouri, which body determines whether cause exists to discipline a real estate license?

Accepted Answer

The Commission files a complaint with the AHC under Chapter 621; an AHC finding that the licensee committed a listed act is grounds for discipline.

Question 25

Under Missouri law, a real estate broker who does not disclose that a prior occupant had AIDS:

Accepted Answer

RSMo 442.600.3 bars any cause of action against an agent or broker for failing to disclose psychologically impacted status.

Missouri real estate property practice test

1. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

2. The periodic report a property manager gives the owner showing rents and other income collected and expenses paid for the period is the:

3. Adverse possession allows someone to acquire title by:

4. Missouri residential real property is assessed at what percentage of true value?

5. A quitclaim deed is most often used to:

6. To stop an unlicensed person from brokering real estate, the Commission may:

7. Applicants for an original Missouri real estate license must submit fingerprints for:

8. In a lease, the tenant holds a estate and the landlord holds a .

9. A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

10. An owner of lakefront property holds:

11. Who may perform an appraisal of real property for a lender?

12. A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

13. A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

14. For a deed to be valid it must be:

15. 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?

16. A salesperson wants to buy a property for himself. Before doing so he must:

17. In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

18. Recording a deed in the county records primarily serves to:

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

20. An owner's title insurance policy protects against:

21. Knowingly practicing real estate in Missouri without a license is:

22. The Missouri Real Estate Commission must investigate when:

23. After a Missouri deed of trust foreclosure, when does the borrower have a statutory right to redeem?

24. In Missouri, which body determines whether cause exists to discipline a real estate license?

25. Under Missouri law, a real estate broker who does not disclose that a prior occupant had AIDS:

Sources