Chapter 1 of 165% of exam

The Board's Powers: Investigations, Sanctions, Records

Area I of the Montana state outline is worth 2 of the 40 scored items and covers three things: investigations, hearings and appeals; sanctions, meaning disciplinary actions and penalties; and examination of records. Most of the machinery is in Title 37, chapter 1 MCA, which applies to every licensing board in the state, rather than in the real estate chapter itself.

Complaint, investigation, hearing, appeal

Anyone may submit a written complaint to the department under 37-1-308(1), MCA. With the concurrence of a screening panel member the department may investigate whether there is reasonable cause to believe a violation occurred (37-1-308(2)(a)). If reasonable cause is found, department legal staff prepare a notice and serve it on the alleged violator (37-1-309(1)). The licensee then has 21 days after receipt to request a hearing in writing; failure to request one is a default and the board may decide on the facts available (37-1-309(2)). Hearings run under Title 2, chapter 4 (37-1-310), and a person disciplined or denied a license may appeal to district court (37-1-313(1)). A board may issue subpoenas for witnesses and documents and administer oaths in connection with investigations and disciplinary proceedings (37-1-307(1)(b)). Members who sat on the screening panel may not sit on the hearing (37-1-307(2)).

Sanctions and penalties

On a finding of unprofessional conduct the board may order any combination of the sanctions in 37-1-312(1), MCA: revocation; suspension for a fixed or indefinite term; probation for a period not to exceed 3 years; restriction or limitation of the practice; supervised monitoring; remedial education or treatment; a fine not to exceed $5,000 for each violation, deposited in the general fund; denial of an application or a probationary license for up to 3 years; censure or reprimand; refund of costs and fees collected from a consumer; or other appropriate action. Trust-account failures carry their own civil fine: a department employee may issue a citation to the broker responsible for the account, and the fine is $50 for each cited violation (37-51-324(3)), with 5 business days to pay or file a written dispute (37-51-324(5)). The department may also administratively suspend a license for continuing-education or qualification deficiencies after giving the licensee 60 days to cure (37-1-321).

Examination of records

A Montana broker's trust account and related documents are open to the board. Trust account records must be maintained so as to facilitate auditing (ARM 24.210.427(8)), and licensees must keep trust account records and real estate related documents — sales contracts, offers, leases and options, agency agreements and closing statements — for eight years from the date of receipt or the date the transaction was completed, whichever is later (ARM 24.210.414). A supervising broker's written office policy must also be available for inspection on request by any authorized representative of the board (ARM 24.210.605(1)(a)(ii)). Interference with an audit or investigation by failing to respond or cooperate is itself unprofessional conduct under 37-1-316(1)(p), and failing to respond to a request from the board is unprofessional conduct under ARM 24.210.641(1)(hh).

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State-specific details

State exam facts

Exam vendor
Pearson VUE
Prelicensing education
60 hours of broker pre-license education, in addition to the salesperson hours
Passing score
Scaled score of 75 on each portion
Scored questions
120
Time limit
240 minutes
Who regulates real estate brokers in Montana?

The Montana Board of Realty Regulation, within the Department of Labor and Industry (DLI), licenses brokers and salespersons under Title 37, chapter 51 MCA. Pearson VUE delivers the licensing exams. Property managers are licensed separately by the department under Title 37, chapter 56 MCA, though a licensed broker may act as a property manager without that separate credential.

What experience do I need before the Montana broker exam?

A broker applicant must be at least 18, have a high school diploma or equivalent, and have been actively engaged as a licensed real estate salesperson for 2 years or have equivalent experience or special education as determined by the Board (37-51-302(2), MCA). The applicant must also furnish evidence of 60 classroom or equivalent hours beyond the salesperson requirement, completed within the 18 months before application, and show 30 points earned in the 36 months before application from transactions, qualifying degrees and designations, or brokerage supervision (ARM 24.210.611(9)).

How is the Montana broker exam structured?

Two separately scored portions delivered by Pearson VUE: a national broker portion of 80 scored items plus 5 pretest items in 150 minutes, and a Montana state portion of 40 scored items plus 10 pretest items in 90 minutes — 120 scored items and 240 minutes in total. A passing score of 75 is required on each portion, and you retake only the portion you fail.

Sources: https://boards.bsd.dli.mt.gov/realty-regulation/, https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/092700.pdf, https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/092701.pdf

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