Missouri Real Estate Broker Exam — All Questions

Buyer and seller dispute the earnest money. No civil action has been filed and no written release obtained. Under 20 CSR 2250-8.130(2), what may the Missouri broker eventually do?

• a.After thirty days from the dispute, disburse in good faith on fifteen days' written notice by certified mail
• b.After sixty days from the dispute, disburse in good faith on five days' written notice by certified mail
• c.After sixty days from the dispute, disburse in good faith on fifteen days' written notice by certified mail✓
• d.After sixty days from the dispute, disburse in good faith without further notice to the parties

20 CSR 2250-8.130(2) requires the broker to hold the funds "until a written release is obtained from all parties consenting to its disposition or until a civil action is filed," then supplies the escape route: "in the absence of a pending civil action or written release and upon passage of sixty (60) days from the date of the dispute, a broker may disburse escrow monies or valuables to either party ... based upon a good faith decision by the broker that the opposite party has failed to perform as agreed, but this disbursement shall only be made after the broker has given fifteen (15) days' written notice by certified mail to all parties concerned at their last known address setting forth the broker's proposed action." Both periods must run — sixty, then fifteen — and the notice is mandatory. The rule protects the broker from Commission discipline for a good-faith disbursement but expressly does not bar a civil action by a damaged party.

Escrow money held by a Missouri broker remains in dispute long after the sale was to have closed. What does section 339.105.4 ultimately require?

• a.Report and deliver the money to the Commission within 365 days of the initial projected closing date
• b.Report and deliver the money to the circuit court within 365 days of the initial projected closing date
• c.Retain the money indefinitely until the parties agree or a court orders its disposition
• d.Report and deliver the money to the state treasurer within 365 days of the initial projected closing date✓

Missouri does not let disputed escrow money sit forever. Section 339.105.4 provides that "Whenever the ownership of any escrow moneys received by a broker pursuant to this section is in dispute by the parties to a real estate sales transaction, the broker shall report and deliver the moneys to the state treasurer within three hundred sixty-five days of the date of the initial projected closing date in compliance with sections 447.500 to 447.595" — the unclaimed property law. The measuring point is the initial projected closing date, not the date of the dispute. The subsection adds that the parties "may agree in writing that the funds are not in dispute and shall notify the broker." The Commission regulates brokers but does not take custody of the funds, and money is paid into court only where a civil action has been filed under 20 CSR 2250-8.130(2).

What must every written offer prepared by a Missouri licensee contain under 20 CSR 2250-8.100(1)?

• a.The legal description and the county parcel number, or the property address and the owner's tax identification number
• b.The legal description or property address and city, or a clear description unmistakably identifying the property✓
• c.The property address and the seller's estimated net proceeds from the transaction
• d.The legal description and a statement of the property's most recent appraised value

20 CSR 2250-8.100(1) requires that "Every written offer shall contain the legal description or property address, or both, and city where the property is located, or in the absence of, a clear description unmistakably identifying the property." The rule offers alternatives rather than demanding a survey-grade description of every contract, but the property must be identifiable beyond doubt. The same subsection carries the other half of the standard-forms duty: the licensee "shall make certain that all of the terms and conditions authorized by the principal in a transaction are specified and included in an offer to sell or buy and shall not offer the property on any other terms." Parcel numbers, seller net figures and appraised values are useful in practice but none is a required content of the offer.

A rider is attached to a Missouri listing agreement after the parties first sign. What does 20 CSR 2250-8.090(4)(C) require?

• a.A new listing agreement replacing the one the addendum would modify
• b.The signature of the broker acknowledging the addendum, rider, endorsement or attachment
• c.The initials of the party who requested the addendum, rider or attachment
• d.The initials of all parties on the addendum, rider, endorsement, attachment or change✓

20 CSR 2250-8.090(4)(C) provides that "Any addendums, riders, endorsements, attachments, or changes to the listing agreement or other written agreement for brokerage services must contain the initials of all parties." The requirement runs to everyone bound by the agreement, so initials from only the requesting party leave the record unable to show mutual assent, and a broker's acknowledgment is not a substitute for the parties' own initials. Missouri does not require the agreement to be torn up and rewritten for every modification; the initialed rider is the mechanism. The parallel provision for contracts is 8.100(3): "Any change to a contract shall be initialed by all buyers and sellers."

A Missouri sale closes with the buyer and seller represented by different brokers. Under 20 CSR 2250-8.150, who is responsible for delivering the closing statements?

• a.The listing broker must deliver, or cause to have delivered, the closing statements✓
• b.The selling broker must deliver, or cause to have delivered, the closing statements
• c.The closing agent alone is responsible once a title company conducts the closing
• d.Each broker must deliver the closing statement to that broker's own client

20 CSR 2250-8.150(1) requires the broker to deliver to buyer and seller, at the time the transaction is consummated, "a complete, accurate and detailed statement showing all material financial aspects of the transaction," and then assigns responsibility where two firms are involved: "If the buyer and seller are represented by different brokers, it shall be the responsibility of the listing broker to deliver, or cause to have delivered, the closing statements." Naming one responsible party avoids the gap that a split duty invites, and the phrase "or cause to have delivered" lets a title company do the work without relieving the listing broker of the obligation. The rule adds that a broker who personally handles a closing "shall sign and date the closing statement" on the day of closing.

May a Missouri salesperson conduct the closing of a real estate transaction?

• a.Yes, without restriction, because closing is within the scope of a salesperson license
• b.No, because closings may be conducted only by a broker, a title company, an escrow company or a licensed attorney
• c.Yes, but only if the salesperson holds a broker-salesperson license in good standing
• d.Yes, but only under the direct supervision of the manager or broker with whom the salesperson is associated✓

20 CSR 2250-8.150(4) is narrow and specific: "A salesperson shall not conduct the closing of any real estate transaction except under the direct supervision of the manager or broker with whom the salesperson is associated." The activity is permitted, so a flat prohibition is wrong, but it is conditioned on direct supervision, so an unrestricted permission is wrong too. The condition is supervision rather than a higher license class, which is what separates this rule from 20 CSR 2250-8.040(1), where acting as a sales manager genuinely does require a broker-salesperson, broker-partner, broker-associate or broker-officer license. The same rule's subsection (3) requires the brokers for buyer and seller to "retain legible copies of both buyer's and seller's signed closing statements."

For how long must a Missouri broker retain copies of the books, records, contracts, brokerage relationship agreements, closing statements and correspondence for each transaction?

• a.At least three years✓
• b.At least five years
• c.At least two years
• d.At least seven years

20 CSR 2250-8.160(1) requires that "Every broker shall retain for a period of at least three (3) years true copies of all business books; accounts, including voided checks; records; contracts; brokerage relationship agreements; closing statements and correspondence relating to each real estate transaction that the broker has handled." The same subsection requires the records to be "made available for inspection by the commission and its authorized agents at all times during usual business hours at the broker's regular place of business," and adds that "No broker shall charge a separate fee relating to retention of records." Subsection (2) applies the same three years to property management agreements and the correspondence and authorizations behind lease, rental and management activity. Three years is the figure throughout; two, five and seven appear nowhere in the rule.

A Missouri broker stops managing a property and wants to hand the management records to the owner rather than keep them. Under 20 CSR 2250-8.160(2), how may that be done?

• a.By written detailed receipt or transmittal letter agreed to in writing by all parties to the transaction✓
• b.By written detailed receipt signed by the owner alone at the time of transfer, with a copy kept by the broker for three years
• c.By written notice to the Commission identifying where the records will be held
• d.By any means, because management records are exempt from the retention requirement

20 CSR 2250-8.160(2) requires three-year retention of property management agreements and related authorizations, then adds that "The broker must also retain all business books, accounts and records unless these records are released to the owner(s) or transferred to another broker by written detailed receipt or transmittal letter agreed to in writing by all parties to the transaction." Release therefore requires written agreement from all parties, not merely the owner's signature, and the records may go to the owner or to another broker. Notifying the Commission of a storage location is a requirement of a different rule — 20 CSR 2250-8.155, on closing a brokerage. Management records are squarely inside the retention rule, not exempt from it.

An unlicensed acquaintance introduces a buyer to a Missouri broker, and the sale closes. May the broker share the commission with that person?

• a.Yes, provided the payment is disclosed to both the buyer and the seller in writing before the closing occurs
• b.No, because a licensee may not pay any part of a commission to an unlicensed person for such services✓
• c.Yes, provided the payment is characterized as a referral fee rather than a commission
• d.No, unless the person is paid directly by the seller rather than by the broker

Section 339.150.2 provides that "No real estate licensee shall pay any part of a fee, commission or other compensation received by the licensee to any person for any service rendered by such person to the licensee in buying, selling, exchanging, leasing, renting or negotiating a loan upon any real estate, unless such a person is a licensed real estate salesperson regularly associated with such a broker, or a licensed real estate broker, or a person regularly engaged in the real estate brokerage business outside of the state of Missouri." Disclosure does not create an exception, and relabelling the payment a referral fee changes nothing, since the subsection reaches "any part of a fee, commission or other compensation" for the service. Routing the payment through the seller does not help either — section 339.100.2(7) separately makes it a ground for discipline to pay "a commission or valuable consideration to any person for acts or services performed in violation" of the chapter.

Section 339.150 was amended effective August 28, 2025. What may a Missouri broker now do with a licensee's earned compensation?

• a.Pay it directly to a business entity owned by the licensee, which must itself be licensed
• b.Pay it directly to any business entity the licensee designates in writing to the broker before closing
• c.Pay it directly to the licensee's spouse if the spouse is not licensed under this chapter
• d.Pay it directly to a business entity owned by the licensee, which need not itself be licensed✓

Section 339.150.4, as amended by L. 2025 H.B. 596, provides that "a broker may pay compensation directly to a business entity owned by a licensee that has been formed for the purpose of receiving compensation earned by such licensee. A business entity that receives compensation from a broker as provided for in this subsection shall not be required to be licensed under this chapter." That exemption from licensure is the whole point of the subsection. The ownership conditions are strict, which is why an entity of the licensee's mere designation will not do: the entity must be owned solely by the licensee; or by the licensee together with a spouse, but only where both are licensed and associated with the same broker or the spouse is not licensed; or by the licensee and other licensees who are all associated with the same broker. Paying a spouse personally is not what the subsection authorizes — it authorizes payment to a qualifying entity.

A brokerage sues a Missouri seller for an unpaid commission. Under section 339.160, what must it plead and prove?

• a.That it was licensed at the time the lawsuit was filed
• b.That it was licensed at the time when the alleged cause of action arose✓
• c.That it held a written listing agreement signed by the seller
• d.That it was licensed at the time the listing agreement was signed by the seller

Section 339.160 bars any person or entity acting as a real estate broker, broker-salesperson or salesperson from bringing or maintaining "an action in any court in this state for the recovery of compensation for services rendered ... without alleging and proving that such person ... was a licensed real estate broker, broker-salesperson or salesperson at the time when the alleged cause of action arose." The moment tested is when the cause of action arose, so a license obtained later — by the filing date — comes too late, and a license held only at signing does not answer the statute either. A written listing agreement matters greatly to whether a commission was earned, but section 339.160 is about licensure as a precondition to the courthouse door. The Missouri courts have described the purpose as closing the courts to unlicensed brokers.

Before showing a rental unit to a prospective tenant, what must a Missouri licensee's broker hold under 20 CSR 2250-8.200?

• a.A current oral or written property management agreement authorized by the owner or the owner's authorized agent
• b.A current written property management agreement filed with the Commission
• c.A current written property management agreement or other written authorization signed by the owner✓
• d.A current written property management agreement signed by the owner and the tenant

20 CSR 2250-8.200(1) bars a licensee from renting or leasing, negotiating, listing, procuring prospects, or showing property to prospective renters or lessees "unless the licensee's broker holds a current written property management agreement or other written authorization signed by the owner of the real estate or the owner's authorized agent." Writing and the owner's signature are both required, so an oral authorization will not do. Nothing is filed with the Commission; 20 CSR 2250-8.090 instead requires the broker to retain a copy of the agreement and of any addenda. A tenant's signature is irrelevant to the broker's authority, which comes from the owner. Note that 20 CSR 2250-8.210, the old rule listing required contents of management agreements, was rescinded effective April 30, 2008.

How often must a Missouri broker withdraw earned fees or commissions from a property management escrow account?

• a.At least once a quarter, unless otherwise agreed in writing
• b.At least once each license period, unless otherwise agreed in writing
• c.At least once a month, unless otherwise agreed in writing✓
• d.Immediately upon the fee being earned, with no exception

20 CSR 2250-8.220(6) provides that "Fees or commissions payable to a broker must be withdrawn from a property management escrow account at least once a month unless otherwise agreed in writing." The monthly rhythm matches the way management income accrues and keeps the broker's own money from accumulating in a trust account. The subsection is a floor with a written-agreement escape, which is why an absolute immediate-withdrawal answer overstates it. The same subsection addresses advance rent: "Any rent paid in advance as a deposit for the last month's rent or as rent other than the current month's rent held by a broker shall be deposited in the property management escrow account unless otherwise agreed to in writing." Under 8.220(3) money received in connection with property management must be deposited within ten banking days.

A Missouri designated broker voluntarily closes the brokerage. Under 20 CSR 2250-8.155, what happens to the licenses of the licensees associated with the firm?

• a.They must be retained by the broker with the firm's records for three years
• b.They must be returned to each licensee so the licensee may transfer to a new broker
• c.They must be returned to the Commission with the closing statement✓
• d.They remain active until each licensee notifies the Commission of a new association

20 CSR 2250-8.155(1)(A)2 requires the individual or designated broker to notify all associated licensees in writing of the effective date of closing, and then provides that "The licenses of any licensees associated with the brokerage at the time of closing must be returned to the commission with the closing statement." Licenses go back to the Commission rather than to the licensees or into the broker's record archive, which is what makes them inactive until each licensee affiliates elsewhere. The rest of the rule requires the broker to notify the Commission in writing of the effective date and the location where records will be stored, notify listing and management clients that they may contract with a broker of their choice, remove all advertising signs and cancel advertising, maintain escrow accounts until the money is properly disbursed, and arrange for pending contracts to be closed.

Section 339.780.7 requires every exclusive brokerage agreement to specify minimum services. Which is among them?

• a.Accepting delivery of and presenting to the client or customer offers and counteroffers✓
• b.Advertising the property in at least one publication of general circulation in the county
• c.Placing the property in a multiple listing service serving the property's market
• d.Holding the property open to the public at least once during the agreement term

Section 339.780.7, added by L. 2025 H.B. 595 & 343 merged with H.B. 596, requires all exclusive brokerage agreements to specify that the broker will provide at a minimum three services. The first is "Accepting delivery of and presenting to the client or customer offers and counteroffers to buy, sell, or lease the client's or customer's property or the property the client or customer seeks to purchase or lease." The second is assisting the client "in developing, communicating, negotiating, and presenting offers, counteroffers, and notices ... until a lease or purchase agreement is signed and all contingencies are satisfied or waived," and the third is "Answering the client's or customer's questions relating to the offers, counteroffers, notices, and contingencies." All three concern handling offers through to contract. Advertising, listing in a multiple listing service and holding an open house are marketing choices for the parties, not statutory minimum services.

A consumer files a written complaint with the Missouri Real Estate Commission about a licensee's conduct. What does section 339.100 require of the Commission?

• a.It may investigate, because investigation is discretionary however the matter arises
• b.It may investigate, but only if the complaint alleges a monetary loss to the consumer
• c.It shall investigate, but only after the licensee's designated broker responds in writing
• d.It shall investigate, because a written complaint makes investigation mandatory✓

Section 339.100.1 draws a deliberate line between the two ways a matter reaches the Commission: it "may, upon its own motion, and shall upon receipt of a written complaint filed by any person, investigate any real estate-related activity of a licensee." A complaint the Commission generates itself is discretionary; a written complaint from any person is not. Treating both as discretionary erases that distinction. The designated broker has no gatekeeping role — the same subsection says only that where the questioned activity involves an affiliated licensee the Commission "may forward a copy of the information received to the affiliated licensee's designated broker," which is notice, not a precondition. And the statute conditions nothing on an alleged monetary loss; conduct can be sanctionable without any consumer having lost money.

During an investigation the Missouri Real Estate Commission needs testimony from a witness who is unwilling to appear. What power does section 339.100 give the Commission?

• a.It may issue a subpoena compelling any person in this state to appear and testify✓
• b.It may compel appearance only from persons currently licensed under Chapter 339
• c.It may ask the administrative hearing commission to issue a subpoena on its behalf
• d.It may request testimony but must sue in circuit court to compel an unwilling witness

Section 339.100.1 gives the Commission the power directly: it "shall have the power to issue a subpoena and to compel any person in this state to come before the commission to offer testimony or any material specified in the subpoena," alongside a separate power to subpoena records and papers. The reach is "any person in this state," so limiting it to licensees misreads it — investigations routinely need testimony from buyers, sellers, and bank staff who hold no license. The subpoena issues from the Commission itself, not by borrowing the administrative hearing commission's authority, and the same subsection provides that these subpoenas "shall be served in the same manner as subpoenas in a criminal case," which presupposes the Commission issuing them rather than petitioning a court first.

A Missouri broker advertises that anyone who lists a home with the firm this month receives a free television. Under section 339.100.2, why is this a ground for discipline?

• a.It fails to disclose the value of the gift in the firm's advertising
• b.It offers a benefit the broker cannot deliver from the firm's own funds
• c.It advertises a service the broker is not separately licensed to provide
• d.It uses a gift as an inducement conditioned upon the listing of property✓

Section 339.100.2(13) makes it a ground for discipline to be "Using prizes, money, gifts or other valuable consideration as inducement to secure customers or clients to purchase, lease, sell or list property when the awarding of such prizes, money, gifts or other valuable consideration is conditioned upon the purchase, lease, sale or listing." The condition is what does the damage: the television is awarded only if the consumer lists. Disclosing the gift's value would not cure that, because the subdivision bans the conditioned inducement rather than an undisclosed one. Whether the broker can afford the television is irrelevant to the subdivision. And no separate license is at issue — the firm is advertising the brokerage service it is already licensed to provide.

A Missouri broker tells a prospective seller that homes in the subdivision will resell for at least fifteen percent more within two years, and puts it in writing. Which ground for discipline does this most directly implicate?

• a.Representing an amount in excess of the true and actual sale price to an interested party
• b.Guaranteeing future profits which may result from the resale of real property✓
• c.Pursuing a flagrant and continued course of misrepresentation through advertising
• d.Failing to advise the client to obtain expert advice on matters beyond the licensee's expertise

Section 339.100.2(8) names this conduct on its own: "Guaranteeing or having authorized or permitted any licensee to guarantee future profits which may result from the resale of real property." It is a ground whether or not the prediction later proves accurate, because the wrong is the guarantee. Subdivision (4) concerns representing "an amount in excess of the true and actual sale price of the real estate" to a lender, guaranteeing agency, or other interested party, which is about the price in the transaction at hand rather than a forecast of a future one. Subdivision (2)'s "flagrant and continued course of misrepresentation" requires a course of conduct rather than a single statement. The expert-advice duty comes from section 339.730.1, which governs a limited agent's duties and is not framed as a prediction of profit.

The administrative hearing commission finds that a Missouri licensee committed an act listed in section 339.100.2. What is the maximum civil penalty the Missouri Real Estate Commission may impose for each offense?

• a.Seven thousand five hundred dollars
• b.One thousand five hundred dollars
• c.Two thousand five hundred dollars✓
• d.Twenty-five thousand dollars

Section 339.100.3 provides that a finding by the administrative hearing commissioner is grounds for suspension or revocation, for probation on terms the Commission deems appropriate, "or the imposition of a civil penalty by the commission not to exceed two thousand five hundred dollars for each offense." The per-offense framing matters as much as the figure, because the same subsection adds that "Each day of a continued violation shall constitute a separate offense" — so a continuing violation can carry a total far above the cap for any single day. One thousand dollars is the unrelated figure in section 339.105.1, the ceiling on the broker's own funds that may sit in an escrow account to cover service charges. Five thousand and ten thousand dollars appear nowhere in the section.

The Missouri Real Estate Commission refuses to issue a license to an applicant. Under section 339.080, what must the applicant be told?

• a.The reasons for the denial, and of the right to request a rehearing before the Commission within thirty days
• b.The reasons for the denial, and of the right to file a complaint with the administrative hearing commission✓
• c.The reasons for the denial, and of the right to reapply after a one-year waiting period
• d.The reasons for the denial, and of the right to appeal directly to the circuit court

Section 339.080.2 requires that a person denied a license or the right to be examined "be so notified by the commission in writing stating the reasons for denial or refusal to examine and informing the person so denied of his right to file a complaint with the administrative hearing commission in accordance with the applicable provisions of sections 621.015 to 621.198." The same subsection directs that notices "be sent by registered or certified mail to the last known address of the applicant." Missouri routes the challenge to the administrative hearing commission rather than back to the licensing body, so a rehearing before the Commission is not the remedy the notice must describe, and direct circuit court review skips the forum the statute names. No one-year waiting period appears in the section.

In a contested Missouri disciplinary case, which body decides whether the licensee actually committed the alleged acts, and which body then imposes the discipline?

• a.The Missouri Real Estate Commission finds the acts; the administrative hearing commission imposes discipline
• b.The administrative hearing commission finds the acts; the Missouri Real Estate Commission imposes discipline✓
• c.The Missouri Real Estate Commission both finds the acts and imposes the discipline
• d.The administrative hearing commission both finds the acts and imposes the discipline

Missouri splits the two functions between two bodies. Section 339.100.2 has the Commission "cause a complaint to be filed with the administrative hearing commission as provided by the provisions of chapter 621," and section 339.100.3 then provides that "A finding of the administrative hearing commissioner that the licensee has performed or attempted to perform one or more of the foregoing acts shall be grounds for the suspension or revocation of his license by the commission," or probation, or a civil penalty imposed by the Commission. The fact-finder is therefore the administrative hearing commission and the sanction comes from the Missouri Real Estate Commission. Combining both roles in either body describes a structure Missouri deliberately does not use, and reversing them inverts chapter 621.

A person who has never held a Missouri license knowingly acts as a real estate broker. Under section 339.170, that person is guilty of what?

• a.A class A misdemeanor
• b.A class D felony
• c.A class B misdemeanor✓
• d.An infraction carrying a fine only

Section 339.170 provides that "Any person or corporation, professional corporation, partnership, limited partnership, limited liability company or association knowingly violating any provision of sections 339.010 to 339.180 and sections 339.710 to 339.860 shall be guilty of a class B misdemeanor," and extends the same classification to officers, members, managers and agents who knowingly and personally participate in or are an accessory to a violation. The section also preserves other exposure, stating that it "shall not be construed to release any person from civil liability or criminal prosecution under any other law of this state" — and section 339.180 separately lets a court enjoin unlicensed practice. The offense is neither elevated to a class A misdemeanor or a felony, nor reduced to a fine-only infraction; "knowingly" is the element that must be proved.

Before showing residential property, what must a Missouri broker hold under 20 CSR 2250-8.090(2)?

• a.A currently effective written buyer's agency agreement with the person being shown the property
• b.A currently effective oral or written listing authorization from the property's owner or the owner's duly authorized agent
• c.A currently effective written seller's agency or transaction brokerage agreement, or other written authorization to show✓
• d.A currently effective written authorization from the multiple listing service carrying the property

20 CSR 2250-8.090(2) provides that "A licensee shall not show residential property unless a broker holds a currently effective written seller's/lessor's agency agreement, seller's/lessor's transaction brokerage agreement, or other written authorization to show." The authority to show comes from the seller's side and must be in writing, so an oral authorization fails. A buyer's agency agreement addresses the licensee's relationship with the buyer and confers no right to enter someone else's property. A multiple listing service is a private cooperative whose rules bind its members; it is not the source of legal authority to show. The related rule 8.090(1) adds that a licensee "shall not advertise or place a sign upon any property offering it for sale or lease to prospective customers without the written consent of the owner."

A Missouri property sells for $272,000 under a listing providing a 6% commission. The seller's loan payoff is $185,400 and other seller-paid closing costs total $3,150. What are the seller's net proceeds?

• a.$66,650
• b.$83,450
• c.$70,280
• d.$67,130✓

Work down the seller's side of the closing statement in order. The commission is calculated on the actual sale price, not the list price: $272,000 x 0.06 = $16,320. Subtract it from the sale price to get $255,680. Subtract the loan payoff of $185,400 to get $70,280, then subtract the $3,150 of other seller-paid costs, leaving net proceeds of $67,130. The $66,650 figure comes from computing the commission on a $280,000 list price instead of the price actually obtained, which overstates the commission by $480. The $70,280 figure is the running total one line early — it omits the other closing costs entirely. The $83,450 figure subtracts the payoff and the costs but forgets the commission altogether.

A Missouri seller wants to net $150,000 after paying a 6% commission and $4,000 in other seller-paid costs. Disregarding any loan payoff, what must the property sell for, to the nearest dollar?

• a.$163,240
• b.$159,574
• c.$164,000
• d.$163,830✓

A net-to-seller problem cannot be solved by adding the commission percentage to the target, because the commission is a percentage of the unknown sale price rather than of the net. Set the sale price as P. The seller keeps P less 6% of P, which is 0.94P, and then pays the $4,000 of other costs, so 0.94P - $4,000 = $150,000. Add the costs to both sides: 0.94P = $154,000. Divide by 0.94 to get P = $163,829.79, or $163,830 to the nearest dollar. Checking it: 6% of $163,830 is $9,829.80, and $163,830 - $9,829.80 - $4,000 = $150,000.20, which rounds correctly. The $163,240 figure comes from multiplying $154,000 by 1.06 rather than dividing by 0.94 — the classic error, since 6% of the larger number is more than 6% of the smaller. The $159,574 figure divides correctly but forgets the $4,000, and $164,000 is simply the target plus the costs plus a round guess.

A Missouri licensee is told by the seller to accept nothing less than certain repair terms, but writes an offer omitting them. Which requirement is breached?

• a.The licensee must obtain the principal's initials on every term before presenting the offer
• b.The licensee must present the offer to the principal's attorney before it is signed
• c.The licensee must include all terms and conditions authorized by the principal and offer on no others✓
• d.The licensee must record the principal's instructions in the transaction file within ten days of receiving them

20 CSR 2250-8.100(1) opens with the duty: "Every licensee shall make certain that all of the terms and conditions authorized by the principal in a transaction are specified and included in an offer to sell or buy and shall not offer the property on any other terms." Both halves are breached here — the authorized terms were left out, and the property was offered on terms the seller did not authorize. Initialing is required by 8.100(3) for changes to a contract, which is a different stage of the process. Missouri requires no attorney review of an offer, and no rule imposes a ten-day filing deadline for a principal's instructions; the retention duty in 20 CSR 2250-8.160(1) runs three years and concerns keeping records, not creating them on a clock.

A buyer's $245,000 offer is accepted on a Missouri property. The buyer obtains an 80% loan-to-value mortgage, has already paid $4,000 earnest money into the broker's escrow account, and owes $6,850 in buyer closing costs at settlement. How much additional cash must the buyer bring to closing?

• a.$55,850
• b.$45,000
• c.$51,850✓
• d.$59,850

Find the loan first, then the gap it leaves. An 80% loan-to-value mortgage on $245,000 is $245,000 x 0.80 = $196,000, so the down payment is $245,000 - $196,000 = $49,000. Add the $6,850 of buyer closing costs to reach $55,850 of total cash required at settlement. The earnest money is money the buyer has already paid, so it is credited against that requirement: $55,850 - $4,000 = $51,850 of additional cash to bring. The $55,850 figure is the total requirement before crediting the earnest money. The $45,000 figure credits the earnest money against the down payment but drops the closing costs. The $59,850 figure adds the earnest money instead of crediting it, moving the answer $8,000 the wrong way.

A Missouri contract shows an offer dated the 3rd, a counteroffer dated the 5th, and the buyer's acceptance signed the 7th. Under 20 CSR 2250-8.100(3), which date governs as the date of final agreement?

• a.The 3rd, as the date the offer that became the contract was written
• b.The 7th, as the date of the last signature or initial to the contract✓
• c.The 5th, as the date the seller stated the terms finally agreed to
• d.The 3rd, unless the parties expressly agree in writing to a different date

20 CSR 2250-8.100(3) requires that "Acceptance of each fully executed contract shall include the date at which final agreement was reached either by 1) specific acknowledgment of final acceptance date; or 2) date of the last signature or initial to the contract." On these facts the last signature is the buyer's acceptance on the 7th, and that is when the parties were finally in agreement — before it, the counteroffer was merely outstanding. Dating the contract from the original offer would start every contingency period before a contract existed. The seller's counteroffer on the 5th stated terms but did not conclude agreement, since the buyer had not yet accepted. The rule's two methods are alternatives for evidencing the same moment, not a license to choose an earlier date by agreement.

What must the closing statement a Missouri broker delivers under 20 CSR 2250-8.150(1) show?

• a.The true sale price, the earnest money received, and the amount and payees of the broker's disbursements✓
• b.The true sale price, the buyer's loan terms, and the appraised value supporting the loan
• c.The true sale price, the earnest money received, and the commission split between the firms
• d.The true sale price, the buyer's loan terms, and each party's estimated income tax consequences

20 CSR 2250-8.150(1) requires "a complete, accurate and detailed statement showing all material financial aspects of the transaction, including the true sale price, the earnest money received, any mortgages or deeds of trust of record, all money received by the broker in the transaction, the amount, and payee(s) of all disbursements made by the broker." The statement traces money through the broker's hands, which is why receipts and disbursements with their payees are central. It is delivered "at the time the transaction is consummated," and a broker who personally handles the closing must sign and date it that day. The internal split of a commission between cooperating firms, the appraised value and the parties' tax consequences are not among the required contents — the first is a matter between the firms, and the last two are outside the broker's remit.

After a Missouri closing in which buyer and seller had different brokers, what does 20 CSR 2250-8.150(3) require each broker to keep?

• a.Legible copies of both the buyer's and the seller's signed closing statements✓
• b.A legible copy of that broker's own client's signed closing statement
• c.Legible copies of both signed closing statements, filed with the Commission
• d.A legible copy of the settlement agent's statement in place of the parties' statements

20 CSR 2250-8.150(3) provides that "The brokers for the buyer and the seller shall retain legible copies of both buyer's and seller's signed closing statements." Each broker keeps both sides, not merely its own client's, so that either firm's file alone shows the whole financial picture of the transaction. Nothing is filed with the Commission; the records are held at the brokerage and, under 20 CSR 2250-8.160(1), retained for at least three years and made available for Commission inspection during usual business hours at the broker's regular place of business. A settlement agent's own statement does not substitute for the parties' signed statements, which are what the rule names.

A Missouri sale closes on September 1. The annual real property tax of $3,600 is payable in arrears. Using a 360-day year of 30-day months and charging the seller through the day before closing, what is the seller's share, credited to the buyer?

• a.$1,200
• b.$2,700
• c.$2,400✓
• d.$3,600

Because Missouri real property taxes are paid in arrears, the buyer will pay the whole year's bill after closing, so the seller's share of the year already used is credited to the buyer at settlement. Charging the seller through August 31 gives eight full 30-day months, January through August, or 240 days. The daily rate is $3,600 / 360 = $10. The seller's share is therefore 240 x $10 = $2,400, and the buyer keeps the remaining four months. The $1,200 figure is the buyer's share rather than the seller's, an easy reversal when the arrears direction is not tracked. The $2,700 figure charges the seller nine months, through the end of September, which runs a month past closing. The $3,600 figure charges the seller the entire year.

A buyer moving to Missouri asks what state or local real estate transfer tax will be charged at closing. What is correct?

• a.A state transfer tax applies to the sale price, and counties may add a local transfer tax of their own
• b.No state transfer tax applies, but counties may impose a local transfer tax
• c.None, because the state and its political subdivisions are barred from imposing such a tax✓
• d.A state transfer tax applies only to transfers of commercial real estate

Missouri is a no-transfer-tax state, and the bar is constitutional rather than merely statutory. Article X, Section 25 of the Missouri Constitution, adopted November 2, 2010 and effective December 2, 2010, provides that "After the effective date of this section, the state, counties, and other political subdivisions are hereby prevented from imposing any new tax, including a sales tax, on the sale or transfer of homes or any other real estate." Because it names counties and other political subdivisions expressly, the answer allowing a local transfer tax is foreclosed, and the provision draws no distinction between residential and commercial property. Recording fees, which pay for the recorder's service, are not a tax on the transfer and continue to appear on Missouri closing statements.

A Missouri broker manages a duplex whose sale closes on June 16. The tenant has paid the full June rent of $1,200 to the broker. Using a 30-day month and giving the buyer the day of closing, what rent is credited to the buyer at closing?

• a.$640
• b.$560
• c.$1,200
• d.$600✓

Rent is collected in advance, so the seller holds money covering days the buyer will own the property, and that portion is credited to the buyer. Giving the buyer the day of closing, the buyer's days are June 16 through June 30 inclusive, which is 30 - 16 + 1 = 15 days. The daily rent is $1,200 / 30 = $40, so the credit is 15 x $40 = $600. The $640 figure counts sixteen days by including June 15, the last day belonging to the seller. The $560 figure counts fourteen days by dropping June 16, the day the convention expressly gives the buyer — the off-by-one error in the other direction. The $1,200 figure credits the entire month, ignoring that the seller owned the property for the first half of it.

Which Missouri closing cost is properly a debit to the seller on the settlement statement?

• a.The lender's origination fee charged on the buyer's new mortgage loan
• b.The recording fee for the deed of trust securing the buyer's new mortgage loan
• c.The premium for the lender's title insurance policy required by the buyer's lender
• d.The brokerage commission the seller agreed to pay under the listing agreement✓

A debit is an amount a party owes at settlement. The commission is the seller's contractual obligation under the listing agreement, so it is debited to the seller and paid from the seller's proceeds — and section 339.105.5 confirms the broker is not entitled to it "until the transaction has been consummated or terminated, unless agreed in writing by all parties." The other three all arise from the buyer's financing and are debited to the buyer: an origination fee is charged by the lender for making the buyer's loan, a lender's title policy protects that lender's interest in the buyer's loan, and the deed of trust being recorded is the instrument securing it. Who pays a given cost can be shifted by contract, but absent such an agreement these three follow the loan, and the loan is the buyer's.

A Missouri licensee meets a prospective buyer at a residential property. The buyer has not signed any agreement with a broker. When must the licensee give the buyer the broker disclosure form prescribed by the Commission?

• a.At the earliest practicable opportunity before the buyer is shown a second property
• b.At the earliest practicable opportunity after a written offer has been prepared
• c.At the earliest practicable opportunity during or following the first substantial contact✓
• d.At the earliest practicable opportunity within seventy-two hours of the first contact

Section 339.770.1 sets the trigger as contact, not paperwork: in a residential real estate transaction the licensee shall provide the written broker disclosure form "at the earliest practicable opportunity during or following the first substantial contact" with a seller, landlord, buyer, or tenant "who has not entered into a written agreement for services." Tying the duty to the preparation of an offer is the Ohio rule, not Missouri's, and it would let a consumer be worked with for weeks before learning who the licensee represents — the very thing the statute is written to prevent. Counting properties shown has no basis in the section at all. And Missouri fixes no measured deadline such as seventy-two hours; the standard is the practicable one keyed to first substantial contact, which can fall due the same afternoon.

A buyer has already signed a written buyer's agency agreement with a designated broker. The buyer then visits a competing firm's open house and speaks with that firm's licensee. Under section 339.770, what must that second licensee do about the broker disclosure form?

• a.Nothing — no other licensee is required to make the disclosure once a written agreement exists✓
• b.Provide the form, because an open house is itself a first substantial contact
• c.Provide the form, unless the buyer's own broker has already filed it with the Commission
• d.Provide the form, because each licensee owes the disclosure independently of any agreement

Section 339.770.2 is explicit: "When a seller, landlord, buyer, or tenant has already entered into a written agreement for services with a designated broker, no other licensee shall be required to make the disclosures required by this section." The disclosure form exists to tell an unrepresented consumer where a licensee stands; a consumer who already has a written brokerage agreement has that information. Treating the duty as independent of any agreement reverses the subsection. The open-house answer confuses the trigger in subsection 1, which applies only to a person who has not entered into a written agreement. And nothing in the section requires a broker to file any disclosure with the Commission; the form runs from the licensee to the consumer.

A Missouri licensee has no written agreement with a prospective buyer. Which act obliges the designated broker to enter into a written agency agreement before proceeding, because it is NOT among the ministerial acts defined in section 339.710?

• a.Attending an open house and answering the buyer's questions about that property
• b.Showing the buyer a property that is listed with another brokerage✓
• c.Setting an appointment for the buyer to view a property at a later date
• d.Showing the buyer through a property being sold by its owner on the owner's own behalf

Section 339.780.3 requires the written agency agreement before any act enumerated in section 339.010 "except ministerial acts defined in section 339.710," so the whole question is whether the act appears on that list. Section 339.710(19) names, among others, "(c) Attending an open house and responding to questions about the property from a consumer," "(d) Setting an appointment to view property," and "(h) Showing a customer through a property being sold by an owner on his or her own behalf." All three of those are therefore carved out. Showing a property listed with another brokerage appears nowhere in the list — paragraph (h) is confined to the for-sale-by-owner situation — so it is an enumerated act that triggers the written agreement. The statute calls ministerial acts those that are "informative in nature and do not rise to the level which requires the creation of a brokerage relationship."

Section 339.780.3 was amended effective August 28, 2025. For a designated broker acting as a single agent for a buyer or tenant, what does the current subsection require?

• a.The written agency agreement must be entered into before engaging in any enumerated act✓
• b.The written agency agreement must be entered into before the first written offer is delivered
• c.The written agency agreement must be entered into before or while engaging in an enumerated act
• d.The written agency agreement must be entered into before the buyer's first property viewing

From 2005 until 2025 the subsection opened "Before or while engaging in any acts enumerated in section 339.010," which let the paperwork catch up to the activity. L. 2025 H.B. 595 & 343 merged with H.B. 596 deleted two words, and since August 28, 2025 the subsection reads "Before engaging in any acts enumerated in section 339.010, except ministerial acts defined in section 339.710, a designated broker acting as a single agent for a buyer or tenant shall enter into a written agency agreement with the buyer or tenant." The agreement must now precede the act rather than accompany it. The offer-delivery and first-viewing answers substitute events the subsection never names; the trigger is any enumerated act that is not ministerial, which can arrive well before either of them.

Under section 339.780.3, what must a Missouri single-agency agreement with a buyer or tenant contain?

• a.The terms of compensation and a statement of the property types the agreement covers
• b.The licensee's duties and responsibilities specified in section 339.740 and a definite expiration date
• c.The licensee's duties and responsibilities specified in section 339.740 and the terms of compensation✓
• d.The terms of compensation and the client's written consent to any future dual agency

The subsection names exactly two contents: "The agreement shall include a licensee's duties and responsibilities specified in section 339.740 and the terms of compensation." Missouri is unusual here in what it leaves out. Most states force a definite expiration date into a buyer agreement; section 339.780.3 imposes none, so an expiration date is a matter for the parties rather than a statutory content requirement. Nor does the subsection limit itself by property type — it covers a buyer or a tenant and any property — so a schedule of covered property types is not required. Consent to dual agency is governed separately by section 339.750.1, under which a licensee may act as a dual agent "only with the consent of all parties to the transaction"; it is not a required term of the single-agency agreement.

A Missouri dual agent learns from the seller that the seller would accept less than the asking price. What does section 339.750 permit the dual agent to do with that information?

• a.Disclose it to the buyer, because a dual agent owes both clients material information
• b.Withhold it, because it may not be disclosed without the consent of the client it concerns✓
• c.Disclose it to the buyer, because price information stops being confidential at dual agency
• d.Withhold it, unless the buyer specifically asks the dual agent about the seller's position

Section 339.750.4 lists five items a dual agent "shall not disclose ... without the consent of the client to whom the information pertains," and the second is "That a seller or landlord is willing to accept less than the asking price or lease rate for the property." Consent, not the buyer's curiosity, is what unlocks it, so conditioning the answer on the buyer asking gets the test wrong. The first distractor states the general rule in subsection 3 — a dual agent may pass along material information gained from one client — but subsection 3 opens "Except as provided in subsections 4 and 5," and this is precisely the exception. The idea that price information loses protection on entering dual agency inverts the statute: dual agency is why the list exists.