Requirements Governing the Activities of Licensees
Area III is 26 of the 40 scored items — 65% of the Montana state portion in one block. Its ten lettered subtopics are advertising and marketing; the broker/salesperson relationship; unprofessional conduct; compensation; disclosure (conflict of interest, property disclosure, agency disclosure); agency duties and responsibilities; handling of documents; handling of monies; listings and buyer brokerage agreements; and illegal inducements and ethics. The sources are 37-51-102, 37-51-306, 37-51-309, 37-51-313, 37-51-314, 37-51-321 and 37-51-401 MCA, together with ARM 24.210.428 and 24.210.641.
Advertising, marketing and the broker/salesperson relationship
A licensee may not openly advertise property belonging to others without a signed listing agreement from the owner that is valid as of the date of the advertisement (37-51-321(2)(a), MCA). Every advertisement must carry a truthful, accurate and detailed description of the property or service, the licensee's name, and a statement that the advertisement is made by the licensee or a brokerage company; in an internet advertisement a link to that information may be used (ARM 24.210.428(1)). A broker advertising under a franchise name must incorporate the broker's own name or trade name in the franchise name or logotype (37-51-321(1)(a)). A salesperson may not be associated with more than one supervising broker except on the temporary basis allowed by rule (37-51-309(1)), and a temporary transfer may not exceed 60 days in any 12-month period without board approval (ARM 24.210.607(2)(d)). A listing agreement negotiated by a salesperson is not valid until reviewed, signed and dated by the supervising broker (ARM 24.210.607(3)). Salespersons may conduct for-sale-by-owner personal transactions outside the firm, but must disclose in writing to the other party that the transaction does not involve the supervising broker or firm (37-51-309(6)).
Unprofessional conduct, compensation and inducements
Section 37-51-321(1), MCA lists twenty-four practices as unprofessional conduct, on top of the general list in 37-1-316 and the board's own list in ARM 24.210.641. Among the ones most often tested: misleading advertising; false promises likely to influence or induce; use of the term 'realtor' by a person not authorized; failing to account for or remit money belonging to others; undisclosed commissions, rebates or profits; acting as broker and undisclosed principal; guaranteeing future resale profits; conducting lotteries to influence purchasers; failing voluntarily to furnish a copy of a written instrument to a party at the time of execution; and failing to maintain professional liability coverage. Board rule adds falsifying documents or signing for a party without a written power of attorney (ARM 24.210.641(1)(h)); saying an offer has been accepted without holding a signed document evidencing acceptance ((1)(i)); recommending a title company, appraiser or attorney without disclosing a family or financial relationship ((1)(e)); and running lotteries, raffles or contests, though door prizes are allowed where the participant pays no consideration and enters no contract to take part ((1)(bb)). On compensation, a broker may not employ or pay an unlicensed person for regulated acts, but may pay a commission to a broker licensed in another jurisdiction who has not conducted a fee-earning service in Montana (37-51-306(1)); and no one may maintain a court action for a commission without alleging and proving licensure at the time the claim arose (37-51-401).
Agency, disclosure and the handling of documents and money
Montana replaces the common law of agency for these relationships with the statutory duties in 37-51-313, MCA. A licensee is presumed to be a statutory broker — assisting parties without representing any of them — unless there is a listing agreement, a buyer broker agreement, or a disclosed other relationship (37-51-102(23)). A written agreement must be in place before acting as a buyer or seller agent, and acting without one does not excuse compliance with the chapter (37-51-313(10)). A dual agent must disclose adverse material facts regardless of confidentiality (37-51-313(7)) but may not, without written consent, reveal that a buyer will pay more, that a seller will take less, either party's motivation, or anything a party has designated confidential in writing (37-51-313(8)). On termination only two duties survive: accounting for the principal's money and property, and keeping designated information confidential (37-51-313(12)). Initial relationship disclosure goes to the seller when the listing agreement is executed and to the buyer when the buyer broker agreement is executed; subsequent disclosure is made when negotiations commence; a statutory broker discloses to the buyer when first endeavouring to locate property (37-51-314(2)–(4)). Dual agency requires the signed written consent of both seller and buyer (37-51-314(6)(b)). 'Adverse material fact' is a defined term and expressly excludes the fact that an occupant has or has had a communicable disease or that the property was the site of a suicide or felony (37-51-102(1)(b)); a licensee's duty on sexual or violent offender registration is limited to disclosing that the information may be maintained, by whom, and any actual knowledge the licensee has (37-51-105). Changes to terms between execution of the buy-sell and closing must be documented in writing and signed by the parties (ARM 24.210.641(1)(l)). A salesperson must place deposit money in the supervising broker's custody as soon after receipt as practicably possible (37-51-321(1)(r)), and a seller agent must submit all offers and counteroffers to the seller until closing or termination of the listing unless the seller waives that in writing (ARM 24.210.641(1)(n)).
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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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