Additional Broker Topics
Area V is brokers only and is worth 6 of the 40 scored items. Its five subtopics are trust accounts, supervision, place of business, recordkeeping and closing statements. Two of the governing rules were replaced very recently: ARM 24.210.427 took over trust accounts and ARM 24.210.607 took over salesperson supervision on 21 February 2026, and ARM 24.210.414 took over record retention on 23 August 2025.
Trust accounts
Brokers who receive any monies on behalf of other persons must deposit the funds in a trust account and maintain the account under ARM 24.210.427(1); where funds go to a third party the broker must obtain and retain documentation of receipt. The account must be liquid, readily accessible, insured in a Montana financial institution, identified as a trust account, and reconciled each month having activity (24.210.427(2)); trust funds may not sit in sweep accounts or be invested in certificates of deposit, repurchase agreements or anything else that puts them at risk (24.210.427(3)). Monies belonging to others must be deposited within three business days unless the parties agree otherwise (24.210.427(4)(d)). A broker may hold up to $1,000 of personal funds in the account, and money due the broker must be withdrawn within ten business days once due and payable (24.210.427(6)). Records must be complete and chronological with a running balance, identifying dates, parties, payees, sources and amounts (24.210.427(7)). Trust funds stay in the account until the transaction is closed or terminated, though they may go to the closing agent in anticipation of closing on the written agreement of the buyers and sellers (24.210.427(9)), and a broker is not entitled to any of the earnest money as commission until the transaction has closed or terminated (24.210.427(11)). Failing to comply with trust account maintenance requirements draws a citation carrying a $50 civil fine per cited violation, with 5 business days to pay or dispute (37-51-324).
Supervision and place of business
Only a broker holding a valid active Montana broker's license and a supervising broker endorsement may supervise salespersons or act as a supervising broker (37-51-301(2), MCA). The endorsement is issued on completing the pre-endorsement course and is maintained with four hours of board-approved supervising broker education each licensure year; it cannot be placed on inactive status, and once terminated it cannot be reinstated (ARM 24.210.604). Reasonable supervision of a salesperson with two or more years of experience means a written office policy read and signed by each licensee and available for board inspection, auditing all transaction files, consulting throughout transactions, regular direct communication, regular training, and reviewing all advertising (ARM 24.210.605). A high level of supervision is owed to salespersons with less than two years of experience or fewer than ten transaction sides in a calendar year, adding specific training in office policy, assistance preparing contracts, monitoring transactions from contract to closing, and reviewing documents in preparation for closing (ARM 24.210.606). Failing to supervise adequately is unprofessional conduct and can cost the endorsement (ARM 24.210.641(1)(uu)). A licensed broker must maintain a designated physical address with the license prominently displayed, must display a copy of each associated salesperson's current license if a supervising broker, and must notify the department of a move before the removal or within 10 days after it (37-51-308).
Recordkeeping and closing statements
Licensees must maintain trust account records and real estate related documents — including 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). Records may be kept electronically provided they are maintained so as to facilitate auditing (ARM 24.210.427(8)). At closing, trust funds may be released to the closing agent ahead of the closing only on the written agreement of the buyers and sellers (ARM 24.210.427(9)), and the broker may not take any of the earnest money as commission until the transaction closes or terminates (24.210.427(11)); any division of forfeited earnest money between broker and seller must rest on a written agreement between them. A copy of every written instrument must be furnished voluntarily to the party executing it at the time of execution (37-51-321(1)(o)), and changes to terms between the buy-sell and closing must be documented in writing and signed by the parties (ARM 24.210.641(1)(l)).
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State-specific details
State exam facts
- State regulator
- Montana Board of Realty Regulation (DLI)
- 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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