Free Missouri State Law Practice Test — LicenseIQ

Question 1

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 2

Disputed escrow funds in a Missouri sale that remain unresolved must be delivered to the state treasurer within:

Accepted Answer

RSMo 339.105 requires delivery to the state treasurer within 365 days of the initial projected closing date unless the parties agree in writing the funds are not disputed.

Question 3

A guaranteed-sale ad has a headline in 48-point type. The required 'costs and conditions may apply' statement must be at least:

Accepted Answer

The disclaimer must be at least one-fourth as large as the largest print: 48 / 4 = 12-point.

Question 4

A broker operates under a franchise trade name. Commission rules require the broker to:

Accepted Answer

20 CSR 2250-8.080 requires a copy of the franchise agreement, plus a clear statement in documents if the franchisor has no legal liability.

Question 5

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 6

When the Commission refuses to license an applicant, it must:

Accepted Answer

RSMo 339.080 requires written notice by registered or certified mail stating reasons and advising of the right to file with the AHC.

Question 7

A licensee pleads nolo contendere to a felony involving fraud. For Missouri license discipline, the plea:

Accepted Answer

RSMo 339.100.2(18) includes guilty and nolo contendere pleas for offenses involving fraud, dishonesty or violence, or related to the profession.

Question 8

Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

Accepted Answer

Agreeing with competitors to refuse to deal with another business is an illegal group boycott.

Question 9

Unless all parties agree otherwise in writing, a Missouri broker is entitled to take a commission from escrow funds when:

Accepted Answer

RSMo 339.105 states the broker is not entitled to a commission until the transaction is consummated or terminated unless otherwise agreed in writing.

Question 10

A licensee's advertising must generally:

Accepted Answer

Ads must identify the licensed broker/brokerage; salespersons cannot advertise under only their own name.

Question 11

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 12

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 13

A life estate is measured by:

Accepted Answer

A life estate lasts for the duration of a specified person's life, then passes to the remainderman or reverts to the grantor. A fixed term describes an estate for years (a leasehold).

Question 14

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 15

In Missouri, when no written agency agreement exists and no other statutory exception applies, a licensee working with a party is considered:

Accepted Answer

RSMo 339.720.2 states a licensee shall be considered a transaction broker unless one of the listed exceptions applies. Missouri does not presume agency.

Question 16

How many members serve on the Missouri Real Estate Commission?

Accepted Answer

RSMo 339.120 creates a seven-member Commission appointed by the governor with Senate consent. Five is the length of a member's term in years, which is why it tempts.

Question 17

The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

Accepted Answer

The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.

Question 18

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Question 19

A licensee may manage property for an owner for a fee only if there is:

Accepted Answer

Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.

Question 20

A licensee representing the seller who learns the buyer will pay more than the offer must:

Accepted Answer

Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.

Question 21

On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:

Accepted Answer

Earnest money and loan proceeds are sources of funds that reduce what the buyer must bring, so they are buyer credits.

Question 22

When an owner dies with no will and no heirs, the property passes to the state through:

Accepted Answer

Escheat transfers ownerless property to the state when there is no will and no heirs.

Question 23

Which statement about FHA-insured loans is correct?

Accepted Answer

FHA loans are made by approved lenders and insured by FHA, with down payments as low as 3.5% and mortgage insurance premium (MIP) required on all FHA loans, for 1-4 family homes.

Question 24

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 25

A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

Accepted Answer

Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.

Missouri real estate state law practice test

1. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

2. Disputed escrow funds in a Missouri sale that remain unresolved must be delivered to the state treasurer within:

3. A guaranteed-sale ad has a headline in 48-point type. The required 'costs and conditions may apply' statement must be at least:

4. A broker operates under a franchise trade name. Commission rules require the broker to:

5. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

6. When the Commission refuses to license an applicant, it must:

7. A licensee pleads nolo contendere to a felony involving fraud. For Missouri license discipline, the plea:

8. Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

9. Unless all parties agree otherwise in writing, a Missouri broker is entitled to take a commission from escrow funds when:

10. A licensee's advertising must generally:

11. The Missouri Real Estate Commission must investigate when:

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

13. A life estate is measured by:

14. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

15. In Missouri, when no written agency agreement exists and no other statutory exception applies, a licensee working with a party is considered:

16. How many members serve on the Missouri Real Estate Commission?

17. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

18. Which action may a life tenant take WITHOUT the remainderman's consent?

19. A licensee may manage property for an owner for a fee only if there is:

20. A licensee representing the seller who learns the buyer will pay more than the offer must:

21. On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:

22. When an owner dies with no will and no heirs, the property passes to the state through:

23. Which statement about FHA-insured loans is correct?

24. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

25. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

Sources