Missouri Real Estate Broker Exam — All Questions
2 questions
The Missouri Merchandising Practices Act can apply to a real estate broker who:
- a.Belongs to a trade association
- b.Splits a commission with an affiliated salesperson
- c.Discloses a known defect to a buyer
- d.Conceals a known material defect in a deceptive sale✓
The Merchandising Practices Act prohibits deception, misrepresentation, and concealment of a material fact in the sale or advertisement of merchandise, including real estate. A broker who conceals a known material defect can face liability under the Act in addition to Commission discipline. Lawful activities like association membership, commission splits, and proper disclosure are not violations.
A notable feature of the Missouri Merchandising Practices Act for real estate brokers is that it:
- a.Is enforced only by the Real Estate Commission
- b.Gives consumers a private right of action separate from license-law discipline✓
- c.Applies only to new-home builders
- d.Replaces the broker's duty to disclose material facts
The Merchandising Practices Act is enforced by the Attorney General and gives consumers a private right of action to recover damages, separate from and in addition to Real Estate Commission discipline. It applies broadly to deceptive real estate conduct, not only to builders, and it supplements rather than replaces the broker's disclosure duties.