15 free questions from the Cinna RE Missouri real estate exam bank (91 in the app). Tap an answer to check it. The rationale opens right away.
Missouri's brokerage relationship law recognizes a non-agency relationship in which the licensee assists parties in a transaction without representing either as an advocate. What is this relationship called?
Answer: C. Transaction broker
Missouri statutorily recognizes the transaction broker, a non-agent who assists one or more parties in a transaction without being an advocate for either party's interests. This differs from agency relationships such as seller's agent, buyer's agent, dual agent, or designated agent.
A licensee acting as a transaction broker in Missouri learns that the buyer is willing to pay more than the offer being submitted. What may the transaction broker do with that information?
Answer: C. May not disclose the buyer's willingness to pay more without the buyer's consent, since a transaction broker does not advocate for either party
A Missouri transaction broker is a neutral facilitator and is not an advocate or agent for either party. The transaction broker should not disclose one party's negotiating position, such as a buyer's willingness to pay more, without that party's consent, and owes neither party the loyalty of a fiduciary.
In Missouri, who is ultimately responsible to the MREC for the proper handling of escrow/trust funds and the supervision of affiliated licensees in a brokerage?
Answer: B. The designated/responsible broker
The designated or responsible broker is accountable for the firm's trust account and for supervising the affiliated salespersons and brokers. Failure to properly supervise or to maintain trust funds is a disciplinable offense for the broker.
A Missouri broker wants to represent both the seller and the buyer in the same transaction as a disclosed dual agent. What does Missouri law require before the broker may act in this capacity?
Answer: C. Written consent from both the seller and the buyer after disclosure of the nature of dual agency
Missouri permits disclosed dual agency only with the written, informed consent of both the buyer and the seller. The broker must disclose what dual agency means and the limitations it places on the duties owed before either party consents. MREC approval per transaction is not required.
A buyer in Missouri asks the seller's agent directly whether the well water has ever tested unsafe. The agent does not know the answer. What is the agent's proper response under Missouri disclosure duties?
Answer: C. Tell the buyer the agent does not know and advise the buyer to investigate or obtain testing, without misrepresenting the condition
An agent must not misrepresent or guess at a property's condition. When the agent genuinely does not know, the proper course is to say so honestly and direct the buyer to investigate further, for example by obtaining a water test or inspection. Reassuring the buyer falsely or hiding behind caveat emptor would breach the duty of honesty and could constitute misrepresentation.
A Missouri broker mixes earnest-money deposits with the firm's own operating funds in a single account. This practice is best described as:
Answer: B. Commingling, which is prohibited
Commingling is the mixing of client or customer funds with the broker's own money. Missouri prohibits commingling; client funds must be held separately in an escrow/trust account. Conversion (using others' funds for the broker's own purposes) is a related but distinct and even more serious violation.
A Missouri salesperson wants to advertise a personal listing on social media. Which practice is consistent with Missouri advertising rules?
Answer: B. Include the brokerage firm's name in the advertisement
All advertising by a salesperson must include the affiliated brokerage firm's name. Omitting the broker, using a self-invented company, or implying the salesperson is an independent brokerage would constitute prohibited blind or misleading advertising.
Missouri's stigmatized-property statute addresses whether certain facts are material defects requiring disclosure. Which of the following does Missouri law specifically state is NOT a material fact that a licensee must disclose?
Answer: B. A prior occupant having died of HIV/AIDS or that a homicide or suicide occurred on the property
Missouri statute provides that psychological stigmas, including that an occupant was HIV-positive, died of AIDS, or that a homicide, suicide, or felony occurred on the property, are not material facts requiring disclosure. Physical defects affecting the property (roof, foundation, termites) remain disclosable material facts.
Missouri brokerage law expressly recognizes a relationship in which a licensee assists a party in a transaction without acting as that party's agent or advocate. This relationship is known as a:
Answer: B. Transaction broker
Missouri's brokerage relationships statute recognizes the transaction broker, who assists buyers and/or sellers with a transaction without being the agent or fiduciary of either party. This is distinct from a seller's agent, buyer's agent, dual agent, or designated agent.
When the Missouri Real Estate Commission seeks to discipline a licensee, in which forum is a contested disciplinary case generally heard first?
Answer: B. The Administrative Hearing Commission (AHC), with the Commission then imposing discipline
In Missouri, MREC files a complaint with the Administrative Hearing Commission, which determines whether grounds for discipline exist. If the AHC finds cause, MREC then holds a disciplinary hearing to set the sanction (e.g., reprimand, probation, suspension, revocation).
A Missouri broker wants to represent both the buyer and the seller in the same transaction as a disclosed dual agent. For this to be proper, the broker must:
Answer: B. Obtain the written consent of both the buyer and the seller before acting as dual agent
Disclosed dual agency in Missouri requires the informed, written consent of both parties. Because the broker cannot give undivided loyalty to opposing parties, the relationship must be disclosed and consented to in writing before the broker acts as a dual agent.
Which Missouri statutory provision generally protects a licensee from a duty to disclose that a prior occupant of a property had a contagious disease such as HIV/AIDS, or that a death by natural causes occurred on the property?
Answer: A. Missouri's psychologically impacted property (stigmatized property) protections
Missouri law addresses 'psychologically impacted' (stigmatized) property, providing that facts such as a prior occupant having a contagious disease, or a death on the property not affecting its physical condition, are generally not material facts that a licensee must disclose. Physical/material defects must still be disclosed.
If a dispute arises over the disbursement of earnest money held in a Missouri broker's escrow account, the safest course for the broker is to:
Answer: B. Retain the funds in escrow until the parties agree in writing, a court orders disbursement, or the broker interpleads the funds
When buyer and seller dispute who is entitled to earnest money, the broker must not unilaterally decide. The broker holds the funds in escrow until there is written mutual agreement, a court order, or the broker deposits the money with the court (interpleader). Improperly releasing or keeping the funds exposes the broker to liability.
Which of the following arrangements is prohibited for Missouri licensees because it creates a conflict of interest in pricing the owner's property?
Answer: B. A net listing
Net listings, where the broker keeps everything above a net price set by the seller, are prohibited in Missouri because they create an incentive to overprice or underserve the seller. Exclusive-right-to-sell, open, and exclusive-agency listings are permitted.
Missouri continuing education for license renewal must include a required course covering current law and regulatory changes commonly known as the:
Answer: B. Core / mandatory CE course
Missouri CE requirements include a mandatory 'core' course addressing license law, regulations, and updates, with the remaining hours available as elective continuing education. The pre-license practice course is a one-time entry requirement, not part of renewal CE.
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