Missouri Real Estate Broker Exam — All Questions

In Missouri, a supervising broker who fails to oversee an affiliated salesperson's advertising and contract handling may be:

• a.Excused because only the salesperson acted
• b.Fined only if a consumer complains in writing
• c.Held harmless under Chapter 339
• d.Disciplined for failure to supervise✓

Missouri's supervising or designated broker has an affirmative duty to supervise affiliated licensees. Failure to supervise is an independent basis for Commission discipline even when the broker did not personally commit the underlying violation. The duty cannot be avoided simply because the salesperson performed the act.

A Missouri broker receives an earnest-money deposit belonging to the parties. The broker must:

• a.Deposit it into the firm's operating account
• b.Place it in a separate escrow or trust account, not commingled with the broker's funds✓
• c.Keep it as an advance on the commission
• d.Return it to the buyer's agent for safekeeping

Funds belonging to others must be placed in a separate escrow or trust account and may not be commingled with the broker's own money or treated as commission. The broker must account for and disburse the money according to the contract or a proper release. Commingling escrow money is one of the most serious Missouri violations.

The buyer and seller in a Missouri transaction dispute who is entitled to the escrowed earnest money. The broker should:

• a.Pay the money to whichever party the broker believes is right
• b.Keep the money as a fee for the inconvenience
• c.Hold the funds until the parties agree in writing, a court orders disbursement, or another lawful method resolves it✓
• d.Split the deposit evenly and close the file

When entitlement to escrowed money is disputed, the broker must hold the funds until the parties reach a written agreement, a court orders disbursement, or another lawful resolution occurs. The broker may not unilaterally decide the dispute, keep the money, or arbitrarily split it, which would risk a conversion claim.