Missouri Real Estate Broker Exam — All Questions

A Missouri broker lets an affiliated salesperson run what is effectively the salesperson's own brokerage, taking a monthly fee and exercising no real control. Which rule does this violate?

• a.20 CSR 2250-8.020(2), which forbids a broker to permit others to carry on brokerage for their own benefit✓
• b.20 CSR 2250-8.010(1), which requires a broker to maintain a regularly established place of business
• c.20 CSR 2250-8.040(1), which requires a sales manager to hold a broker-salesperson license
• d.20 CSR 2250-8.030(1), which requires a branch office to operate under the parent office's name

This is what the rules call improper use of a license, and 20 CSR 2250-8.020(2) describes it precisely: a broker shall not permit affiliated licensed or unlicensed persons to "Establish and carry on real estate brokerage business for their own benefit, directly or indirectly, where the broker's primary interest is the receipt of a fee or other valuable consideration for the use of the broker's license by others," or where the broker "has no control or only nominal control of the business affairs conducted under the broker's license or is only nominally associated with the business." The rule's stated purpose is to prohibit a broker "from using his/her license to permit a salesperson to function as a real estate brokerage firm." The place-of-business, sales manager and branch office rules are all real requirements, but none of them reaches the sale of the license itself.

Under 20 CSR 2250-8.020(1), a Missouri broker is NOT held responsible for inadequate supervision when all of the listed conditions are met. Which of the following is one of them?

• a.The broker reported the violation to the Commission within thirty days
• b.The broker did not attempt to avoid learning of the violation✓
• c.The broker required the offending licensee to complete remedial education
• d.The broker terminated the offending licensee's association with the firm

20 CSR 2250-8.020(1) makes brokers, designated brokers and office managers responsible for supervising the real estate related activities "of all licensed and unlicensed persons associated with them," then sets out a six-part safe harbor. Each of the six must hold: the violation conflicted with the broker's specific written policies or instructions; "Reasonable procedures have been established to verify that adequate supervision was being performed"; the broker on learning of it "attempted to prevent or mitigate the damage"; "The broker did not participate in the violation"; "The broker did not ratify the violation"; and "The broker did not attempt to avoid learning of the violation." That last condition is the one listed here — it forecloses willful blindness. Reporting to the Commission, ordering remedial education and terminating the licensee may all be sensible responses, but none of them appears among the six conditions.

A Missouri broker opens a branch office. Under 20 CSR 2250-8.030(1), how must that office be operated?

• a.Under its own branch license issued by the Commission, complying with the place-of-business rule
• b.Under the same name and license as the parent office, complying with the place-of-business rule✓
• c.Under any registered fictitious name of the broker, complying with the place-of-business rule
• d.Under the same name as the parent office but with a separate license for the branch manager

20 CSR 2250-8.030(1) provides that "If a broker maintains a branch office(s), each shall be operated under the same name and license as the parent office and every such place of business shall comply with the provisions of 20 CSR 2250-8.010." Missouri issues no separate branch license and charges no branch fee; the branch is covered by the parent license, and the Commission learns of it through the written notice required by 8.030(4). A branch under a different fictitious name would defeat the "same name" requirement. Note also 8.030(2), which exempts on-site project sales, leasing or management offices in an apartment complex, office building, shopping center or similar development from being registered as branch offices at all.

A Missouri broker changes the managing licensee of an existing branch office. What notice does 20 CSR 2250-8.030(4) require?

• a.Written notice to the Commission within seventy-two hours after the change
• b.Written notice to the Commission within thirty days after the change
• c.Written notice to the Commission before the change takes effect
• d.Written notice to the Commission within ten days after the change✓

20 CSR 2250-8.030(4) states that "A broker shall notify the commission, in writing, within ten (10) days after opening or making any change in the address or managing licensee of a branch office." The same ten-day period covers three separate events — opening the branch, changing its address, and changing who manages it. The notice follows the change rather than preceding it, so an advance-notice answer misstates the rule. Seventy-two hours is the deadline in 20 CSR 2250-4.050(3) for returning a terminated licensee's license, and thirty days is the period in 20 CSR 2250-8.170(1) for responding in writing to a Commission request or inquiry; neither applies to a branch office.

Under 20 CSR 2250-8.040, who may act as a sales manager or assistant sales manager for a Missouri broker?

• a.A salesperson who has completed the forty-eight-hour broker pre-examination course for that broker
• b.A broker-salesperson, or a broker-partner, broker-associate or broker-officer of the broker✓
• c.A salesperson with at least two years of active licensure with that broker
• d.Any licensee the broker designates in writing and reports to the Commission

20 CSR 2250-8.040(1) requires that "Any licensee who acts in the capacity of a sales manager or assistant sales manager for the broker shall be required to hold a broker-salesperson license or to be licensed as a broker-partner, broker-associate or broker-officer of the broker." The rule sets a license-class test, so the role is closed to salespersons no matter how experienced they are or how much of the broker curriculum they have sat through — completing a course is not holding a license. Nor can a broker open the role by designating someone and notifying the Commission; the rule's stated purpose is simply to define "who may be a sales manager," and it does so by license class alone.

Under 20 CSR 2250-8.030(3), what is true of the licensee who directly supervises a Missouri branch office?

• a.The office manager may still list and sell, and thereby assumes responsibility for the branch
• b.The office manager may still list and sell, and the principal broker remains responsible for the branch✓
• c.The office manager may not list or sell, and the principal broker remains responsible for the branch
• d.The office manager may not list or sell, and thereby shares responsibility for the branch

20 CSR 2250-8.030(3) settles both halves. A branch office "shall be under the direct supervision of either a licensed broker, broker-salesperson, or a broker-partner, broker-associate, or broker-officer of the principal licensed broker; provided that nothing contained in this rule shall be construed to relieve the principal licensed broker from responsibility for all brokerage activities conducted at the branch office." The proviso keeps accountability with the principal broker, so answers that shift or share it to the manager get the rule backwards. The rule then adds that "Nothing in this section shall be construed as to prohibit the office manager from engaging in the listing and sale of real estate," which disposes of the idea that managing a branch bars the manager from production work.

What limit does 20 CSR 2250-8.050 place on a Missouri broker's unlicensed clerical or office employees?

• a.Their activities are limited to duties performed in the physical presence of a licensee
• b.Their activities are limited to duties the broker sets out in a written employment agreement
• c.Their activities are limited to duties normally attributed to those positions✓
• d.Their activities are limited to duties that do not involve contact with the public

20 CSR 2250-8.050(1) is one sentence long: "The activities of unlicensed clerical or office employees of a broker shall be limited to the duties normally attributed to those positions. Unlicensed persons shall not do, or attempt to do, any of the activities set out under 339.010.1.(1)-(10), RSMo." The measure is therefore the ordinary content of a clerical job, plus an absolute bar on the acts that define brokerage — selling, leasing, negotiating, listing, procuring prospects and the rest. A broker cannot widen the limit by writing a broader job description, because the rule and the statute set the boundary rather than the employer. Supervision in the same room does not license an unlicensed act either. And public contact is not itself forbidden: answering a phone is ordinary clerical work.

An unlicensed employee is retained to help manage rental property for a Missouri broker. Which activity is within the statutory exemption from licensure?

• a.Listing the rental property for lease and advertising it in the employee's own name
• b.Negotiating the rent and lease terms with a prospective tenant under the direct instructions of the owner
• c.Showing a rental unit to a prospective tenant under the direct instructions of the broker or owner✓
• d.Deciding which of two competing rental applications the owner should accept

Section 339.010.9(5) exempts a person employed or retained to manage real property from holding a license "if the person is limited to one or more of the following activities," and paragraph (c) names "Showing a rental unit to any person, as long as the employee is acting under the direct instructions of the broker or owner, including the execution of leases or rental agreements." The companion paragraphs cover delivering and receiving lease applications and payments, conveying information prepared by the broker or owner, and assisting with administrative, clerical or maintenance tasks. Negotiating, listing and advertising are acts reserved to licensees by section 339.010.1(3) and (4), and exercising judgment over which application to accept is not conveying prepared information. Paragraph (f) also makes the broker subject to discipline for the unlicensed person's violations. (The regulations still cite this list by its former numbering, 339.010.5(5).)

What does 20 CSR 2250-8.010(2) require to be displayed at a Missouri broker's regular place of business?

• a.Each affiliated licensee's current license, framed and visible to the public at the broker's regular place of business
• b.A notice of the broker's escrow account institution and account number
• c.The broker's license together with a schedule of the firm's commission rates
• d.A business sign of sufficient size bearing the name under which the broker or firm is licensed✓

20 CSR 2250-8.010(2) requires that "A broker's business sign of sufficient size to identify it and bearing the name under which the broker or the broker's firm is licensed, or the regular business name, shall be displayed outside of the broker's regular place of business." This is now the operative display requirement in Missouri. The rule that once required licenses themselves to be displayed, 20 CSR 2250-8.060, was rescinded effective July 30, 2023, so an answer built on posting affiliated licensees' licenses states a duty the Commission has withdrawn. Missouri has never required commission rates to be posted — rates are negotiable and posting them would raise antitrust concerns. Escrow account details go to the Commission under section 339.105.2, not onto a wall.

Under 20 CSR 2250-8.010(1), which Missouri broker must maintain a regularly established place of business in this state?

• a.Every resident broker, including those whose licenses are on inactive status
• b.Every broker-salesperson associated with a firm that maintains a regular place of business in this state
• c.Every resident broker who has at least one salesperson associated with the firm
• d.A resident broker who is actively engaged in the real estate business and not on inactive status✓

20 CSR 2250-8.010(1) requires that "Every resident broker, except those who have placed their licenses on inactive status or those not actively engaged in real estate business, shall maintain a regularly established place of business in this state, which shall be open to the public during usual business hours or at regular stated intervals." The two exceptions are written into the sentence, so extending the duty to inactive licensees contradicts it. The rule closes by disapplying itself "to a broker-salesperson or to broker-partners, broker-associates or broker-officers of a firm which maintains a regular place of business," which rules out the broker-salesperson answer. And the duty does not depend on having salespersons; rather, the same subsection provides that "No salesperson may be associated with a broker not maintaining a regularly established place of business."

A Missouri salesperson places a newspaper advertisement for a listed home showing only the property photograph and the salesperson's mobile number. Which requirement does this fail?

• a.Every advertisement must carry the broker's business name and show the advertiser is a broker✓
• b.Every advertisement must carry the Commission's fair housing logo and the broker's address
• c.Every advertisement must carry the seller's written consent reference and the listing expiration
• d.Every advertisement must carry the salesperson's license number and the property's list price

20 CSR 2250-8.070(2) provides that "No real estate advertisement by a licensee shall show only a post office box number, telephone number, or street address. Every advertisement of real estate by a licensee shall contain the broker's regular business name or the name under which the broker or the broker's firm is licensed and shall indicate that the party advertising is a real estate broker and not a private party." This is Missouri's rule against blind advertisements. 8.070(3) adds that where the licensee's own name or telephone number is used, "the advertisement also shall include the name and telephone number of the broker or firm who holds the licensee's license." Missouri requires no license number, list price, Commission logo, or consent reference in the advertisement itself — though 20 CSR 2250-8.090(1) does separately require the owner's written consent before advertising or signing a property.

Three Missouri salespersons associated with one brokerage want to market themselves as "Heartland Realty Group." What does 20 CSR 2250-8.070(5) say?

• a.They may, because a team name is permitted once it is filed with the Commission
• b.They may not, because the name could be construed as a real estate entity they are not licensed as✓
• c.They may, because the restriction reaches only names that omit the brokerage's own name
• d.They may not, because a team may never advertise under any name other than the broker's

20 CSR 2250-8.070(5), added by the amendment effective October 30, 2022, provides that "No licensee or group of licensees shall advertise as a real estate company in any manner, or use any name, team name, or other term that could be construed by members of the public as the advertiser being a real estate partnership, company, brokerage, or business entity, unless the advertiser holds a valid appropriate entity license," and (5)(A) names the trigger words: "realty, brokerage, company, or other terms that may be construed as a real estate entity." Filing with the Commission does not cure it. The bar is not absolute, however, which is why the last option overstates: (5)(B) provides that where the team name "includes or incorporates the name of the broker/brokerage" with which the licensees are affiliated, using those words "shall not constitute a violation" when they identify that affiliation. Section 339.100.2(24)(b) carries the same rule at statute level.

A Missouri broker advertises a guaranteed sales plan in a newspaper. Under 20 CSR 2250-8.070(6), how prominent must the disclaimer of conditions and limitations be?

• a.In print at least one-half as large as the largest print in the advertisement
• b.In print at least one-fourth as large as the largest print in the advertisement✓
• c.In print at least as large as the body text of the advertisement
• d.In print at least eight points in size regardless of the advertisement

20 CSR 2250-8.070(6)(B) fixes a proportion rather than an absolute size: the disclaimer "shall be set forth in print at least one-fourth (1/4) as large as the largest print in the advertisement." Tying it to the largest print means a bolder headline forces a bolder disclaimer, which a fixed point size or a comparison to body text would not achieve. The rule also reaches broadcast, where (6)(C) requires radio and television advertisements to include "a conspicuous statement advising if any conditions and limitations apply," and (6)(D) requires every guaranteed sales agreement to be in writing and to contain the charges for the plan, the price at which the property will be sold or purchased, and "the approximate net proceeds the seller may reasonably expect to receive."

A Missouri broker joins a national franchise and begins using its trade name and insignia in advertising. What does 20 CSR 2250-8.080(1) require?

• a.The broker must furnish the Commission the franchisor's certificate of authority to do business
• b.The broker must obtain the Commission's written approval before using the trade name
• c.The broker must register the franchise trade name as a fictitious name owned by the franchisor
• d.The broker must furnish the Commission a copy of the franchise agreement or contract✓

20 CSR 2250-8.080(1) provides that if a broker "maintains any business relationship or affiliation, whether by franchise agreement, contract or otherwise, with another organization and uses the name, trade name or insignia of the other organization in any manner in real estate advertising, the broker shall furnish the commission a copy of the franchise agreement or contract and such other related information as the commission may require." The duty is to file a copy, not to seek permission, so no prior approval is contemplated. The franchisor's corporate credentials are not what the rule calls for. And where a fictitious name is registered under 20 CSR 2250-8.070(5)(C) for a group of licensees, the rule contemplates it being "owned by the broker/brokerage," not by a franchisor.

A Missouri broker's franchise agreement states that the franchisor has no legal liability for the broker's actions. Where must the broker disclose that?

• a.In all advertising that uses the franchisor's trade name or insignia
• b.In the broker disclosure form given at first substantial contact
• c.In a notice filed with the Commission and posted at the place of business
• d.In all listing agreements, contracts for sale and closing statements✓

20 CSR 2250-8.080(2) names three documents: where the franchise agreement provides that the franchisor or owner of the trade name or insignia "has no legal liability for the actions of the broker using the trade name or insignia, the broker shall include in all listing agreements, contracts for sale and closing statements a clear and explicit statement to that effect in type reasonably calculated to gain the attention of the reader of the document." These are the transaction documents a consumer actually signs, which is why the rule reaches them rather than the advertising that carries the trade name. The broker disclosure form under section 339.770 communicates brokerage relationship status and has nothing to do with franchisor liability, and the rule requires no filing with the Commission or posted notice for this disclosure.

Which pair of dates must appear in every Missouri written listing agreement under 20 CSR 2250-8.090?

• a.A definite beginning date and an expiration date✓
• b.An expiration date and a date for delivery of the seller's disclosure
• c.A definite beginning date and a date for the first price reduction
• d.An expiration date and a date by which the seller must notify the broker of cancellation

20 CSR 2250-8.090(4)(A) lists fourteen contents every written listing agreement or other written agreement for brokerage services must contain, and items 3 and 4 are "A definite beginning date" and "An expiration date." Missouri requires both ends of the term to be fixed, so an open-ended listing is not permissible. The final option describes something Missouri affirmatively forbids: 8.090(4)(B) provides that "The agreement shall contain no provision requiring an owner to notify the broker of intent to cancel the listing after the expiration date," which is the rule against automatic continuation. Price reductions and disclosure delivery dates are matters the parties may address but are not on the required list; the other mandatory items include the price, the commission including any bonuses, the type of listing, the property's description, and statements permitting or prohibiting subagency, dual agency and transaction brokerage.

When must a Missouri licensee give the owner a copy of a signed listing agreement?

• a.Within twenty-four hours after the owner's signature is obtained
• b.At the time the owner's signature is obtained✓
• c.At the time the broker accepts the listing at the office
• d.Within three business days after the owner's signature is obtained

20 CSR 2250-8.090(4)(D) requires that "The licensee shall give a legible copy of every written listing agreement or other written agreement for brokerage services to the owner of the property at the time the signature of the owner is obtained." The delivery is simultaneous with signing rather than measured in hours or days afterwards, so the consumer never signs a document and leaves without it. The same rule applies on the buyer side: 8.090(5)(D) requires a legible copy to go to the buyer or tenant "at the time the signatures are obtained," with a copy retained in the broker's office. Waiting for office acceptance would also fail, because the duty falls on the licensee at the moment of signature. Compare section 339.100.2(5), which makes it a ground for discipline to fail "within a reasonable time to deliver a duplicate original" of instruments prepared by or under the supervision of the licensee.

Under 20 CSR 2250-8.100, what is a Missouri licensee's duty on receiving a written offer to purchase a listed property?

• a.Tender it within twenty-four hours to the seller, and advise the offeror if it is rejected
• b.Tender it promptly to the seller, unless it is below the list price the seller set
• c.Tender it promptly to the seller, and promptly advise the offeror if it is rejected✓
• d.Tender it within three business days to the seller, and advise the offeror if it is rejected

20 CSR 2250-8.100(2) requires that "Every licensee shall promptly tender to the seller or seller's agent every written offer to purchase and shall promptly tender to the buyer or buyer's agent any counteroffer made by the seller, including any back-up contracts properly identified as such," and closes with "A buyer or seller must be promptly advised when an offer or counteroffer has been rejected." The standard is "promptly" — Missouri fixes no number of hours or days, so answers supplying twenty-four hours or three business days invent a deadline the rule does not contain. The word "every" forecloses any low-offer exception, and section 339.100.2(17) reinforces it by making it a ground for discipline to fail "to timely inform seller of all written offers unless otherwise instructed in writing by the seller."

A Missouri contract is amended during negotiation and then accepted. What does 20 CSR 2250-8.100(3) require?

• a.Every change initialed by the licensee, and the date final agreement was reached shown
• b.Every change initialed by all buyers and sellers, and the offer's original date retained
• c.Every change initialed by all buyers and sellers, and the date final agreement was reached shown✓
• d.Every change initialed by the party proposing it, and the date of the first signature shown

20 CSR 2250-8.100(3) provides that "Any change to a contract shall be initialed by all buyers and sellers. 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." Both halves matter. Initialing runs to the principals, not to the licensee and not merely to whoever proposed the change, because the record must show that every party assented. And the operative date is the date of final agreement — the last signature or initial — not the date the offer was first written or first signed, which is what makes contract deadlines run from the right day.

A Missouri salesperson advertises her own home for sale, which is not listed with any brokerage. What must the advertisement contain under 20 CSR 2250-8.070?

• a.A prominent statement that the property is offered for sale by owner without a broker
• b.A prominent statement naming the broker with whom the salesperson's license is held
• c.A prominent statement that no commission will be paid in connection with the sale
• d.A prominent statement reading by owner-broker, by owner-salesperson, or by owner-agent✓

20 CSR 2250-8.070(1)(B) requires that when a licensee advertises property in which the licensee has an interest and which is not listed by a brokerage entity, "the advertisement shall contain, in a prominent fashion, one (1) of the following: 1. By owner-broker; 2. By owner-salesperson; or 3. By owner-agent." The point is that the public must know it is dealing with someone inside the business. That is why the plain "for sale by owner" answer is not merely insufficient but affirmatively prohibited: 8.070(1)(A) forbids a licensee to "advertise to sell, buy, exchange, rent, lease, or manage property in any manner indicating that the offer ... is being made by a private party not engaged in the real estate business." Naming the broker is the requirement in 8.070(3) for property in which the licensee has no interest, and no rule requires a statement about commissions.

A Missouri broker collects a fee from both the buyer and the seller in the same transaction without telling either of them. Under section 339.100.2, what is the consequence?

• a.It is a ground for discipline, because compensation from more than one party requires all parties' knowledge✓
• b.It is a ground for discipline only if the broker also acted as a dual agent in the transaction
• c.It is permitted, because the broker's compensation arrangements are a private contract matter
• d.It is permitted, provided each fee is separately disclosed on that party's closing statement

Section 339.100.2(6) makes it a ground for discipline to be "Acting for more than one party in a transaction without the knowledge of all parties for whom he or she acts, or accepting a commission or valuable consideration for services from more than one party in a real estate transaction without the knowledge of all parties to the transaction." Knowledge of all parties is the condition, and the subdivision reaches the compensation independently of the agency question, so it applies whether or not the broker was a dual agent. Disclosure buried in each party's own closing statement does not satisfy a requirement that all parties know, and it would come far too late in any event. The arrangement is not a purely private matter — this is exactly the conflict the subdivision exists to police.

A Missouri purchase contract is signed by the last party on a Tuesday. Absent a contrary provision in the contract, when must the earnest money be deposited in the broker's escrow account?

• a.No later than five banking days after the last signature is obtained
• b.No later than ten banking days after the last signature is obtained✓
• c.No later than ten banking days after the broker receives the funds
• d.No later than the next banking day after the last signature is obtained

20 CSR 2250-8.120(1) provides that money received as set out in section 339.100.2(1) "shall be deposited in the escrow or trust account maintained by the broker no later than ten (10) banking days following the last date on which the signatures or initials, or both, of all the parties to the contract are obtained, unless otherwise provided in the contract." Two features are easy to get wrong. The clock runs from the last signature, not from the broker's receipt of the money, which is why funds can sit before a contract is fully signed — the same subsection allows earnest money received before acceptance to be deposited early "with the written authorization of the party(ies) providing the funds." And the period is ten banking days rather than five or one. Separately, 8.120(2) requires an affiliated licensee to "immediately deliver to the broker with whom affiliated all money received."

How much of a Missouri broker's own money may be kept in the brokerage escrow account, and for what purpose?

• a.Up to one thousand dollars, specifically identified, to cover service charges on the account✓
• b.Up to five hundred dollars, specifically identified, to cover service charges on the account
• c.Up to one thousand dollars, specifically identified, to cover shortages pending reconciliation
• d.No amount at all, because any personal funds in the account are commingling

Section 339.105.1 forbids commingling but writes in one narrow exception: "No broker shall commingle his or her personal funds or other funds in this account with the exception that a broker may deposit and keep a sum not to exceed one thousand dollars in the account from his or her personal funds, which sum shall be specifically identified and deposited to cover service charges related to the account." So a flat no-personal-funds answer overstates the rule, and five hundred dollars understates the figure. The permitted purpose is bank service charges alone; using the cushion to paper over shortages would not be covering service charges. 20 CSR 2250-8.120(4) repeats the prohibition and refers back to this subsection for the only allowance.

A Missouri transaction closes and the brokerage has earned its commission from funds held in escrow. What does 20 CSR 2250-8.120(4) require?

• a.The commission payable must be removed from the escrow account at the time the transaction is completed✓
• b.The commission payable must be removed from the escrow account within thirty days of closing
• c.The commission payable may remain in the escrow account until the broker's next reconciliation
• d.The commission payable must be removed from the escrow account before the transaction closes

20 CSR 2250-8.120(4) states flatly that "Commissions payable must be removed from the escrow account at the time the transaction is completed." Leaving earned commission in the account turns escrow money into the broker's money sitting in a trust account, which is the commingling the section is built to prevent. Removing it before closing would be worse still, because section 339.105.5 provides that a broker "shall not be entitled to any money ... as part or all of his or her commission or fee until the transaction has been consummated or terminated, unless agreed in writing by all parties." Missouri has no escrow reconciliation rule, so a reconciliation-based answer rests on a procedure the regulations do not require. Under 8.120(6) a commission check must be payable to the licensee owed it or to the firm's general operating account.

A Missouri broker manages rental property and holds tenants' security deposits. Where must those deposits be kept?

• a.Intact in the property management escrow account with the current rents
• b.Intact in an escrow account other than the property management escrow account✓
• c.Intact in the brokerage's general operating account, separately identified
• d.Intact in an interest-bearing account held in each tenant's own name

20 CSR 2250-8.220 requires two separate accounts on the management side. Subsection (1) requires a broker to maintain "a separate escrow account(s), to be designated as a property management escrow account(s), for the deposit of current rents and money received from the owner(s)"; subsection (2) then provides that "All security deposits held by a broker shall be maintained, intact, in an escrow account other than the property management account(s), pursuant to section 339.105, RSMo, unless the owner(s) have agreed otherwise in writing." Deposits therefore sit apart from operating rent money. A general operating account is not an escrow account at all. And Missouri does not require individual tenant accounts; the return of deposits and disputes about them are governed by section 535.300 under 20 CSR 2250-8.230(1).

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.