Before you read
Test yourself first: 5 questions
Question 1 of 5
Which of the following property-condition disclosures is required of residential sellers by FEDERAL law and therefore also applies to Missouri sales of qualifying homes?
Answer: B. Federal law (the Residential Lead-Based Paint Hazard Reduction Act) requires sellers of housing built before 1978 to disclose known lead-based paint and hazards and to provide the EPA pamphlet and a 10-day opportunity to inspect. This federal requirement applies to qualifying Missouri homes regardless of any state form.
Question 2 of 5
Missouri requires active licensees to complete continuing education during each license renewal cycle primarily for what purpose?
Answer: B. Continuing education is required as a condition of renewing an active Missouri license. Its purpose is to keep licensees current on changes in real estate law, ethics, and practice. It does not set commissions or promote a salesperson to broker.
Question 3 of 5
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. 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.
Question 4 of 5
Which power does the Missouri Real Estate Commission have with respect to the conduct of licensees?
Answer: B. MREC's authority includes adopting administrative rules to implement the license law and investigating complaints. It cannot fix commission rates, cannot enact statutes (that is the legislature's role), and criminal penalties are imposed by courts, not the Commission.
Question 5 of 5
Which body is authorized to investigate complaints against Missouri real estate licensees and impose disciplinary action such as suspension or revocation of a license?
Answer: A. The Missouri Real Estate Commission (MREC) regulates licensees, investigates complaints, and is the body empowered to discipline licensees, including suspending or revoking a license. Local boards/associations are private trade groups with no statutory licensing authority.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Licensees and sellers must disclose known material defects that adversely affect the property's value and are not readily observable to the buyer. Missouri also requires federally mandated disclosures such as the lead-based paint disclosure for homes built before 1978, though Missouri does not have a statutory stigmatized-property disclosure requirement.
Required Disclosures by Missouri Sellers and Licensees: FAQs
Is Required Disclosures by Missouri Sellers and Licensees on the real estate exam?
Yes. State License Law is a scored domain on the Missouri real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Missouri test this differently?
Missouri applies its own license law on top of the national portion. This page covers the Missouri rules specifically, which is what the state section of your exam tests.
