Missouri Real Estate Salesperson Exam — All Questions

Under Missouri's brokerage relationship law, a licensee who assists a party in a transaction without representing that party as an agent acts as a:

• a.Transaction broker✓
• b.Dual agent
• c.Subagent
• d.Designated broker

Missouri statute recognizes several brokerage relationships, including seller's agent, buyer's agent, dual agent, designated agent, subagent, and transaction broker. A transaction broker assists one or more parties without acting as an advocate or agent for any of them.

Missouri requires a licensee to give a party the Broker Disclosure Form that identifies the brokerage relationship:

• a.At the closing table
• b.At the first substantive contact with the party✓
• c.Only after an offer is accepted
• d.Only if the party asks for it

Missouri law requires the written Broker Disclosure Form (the Missouri broker disclosure) to be provided at the first substantive contact with a party, so consumers understand early whether the licensee represents them or is acting in another capacity.

A Missouri licensee who has not entered into any written brokerage agreement with a party is presumed to be:

• a.A transaction broker✓
• b.A subagent of the seller
• c.A limited agent of the buyer
• d.A disclosed dual agent

Missouri's default brokerage relationship is transaction brokerage. A licensee is considered a transaction broker unless one of the written agreements listed in section 339.780 is entered into, or the licensee is performing only ministerial acts. Cite: RSMo 339.720.2.

When a Missouri designated broker appoints a licensee as a designated agent, the appointment:

• a.Automatically makes the broker a dual agent
• b.Must be approved by the commission first
• c.Applies to every client of the brokerage
• d.Excludes all other affiliated licensees✓

The designated broker appoints affiliated licensees in writing as designated agents to the exclusion of all other affiliated licensees, and an affiliated licensee who then assists a party without a written agreement is presumed to be a transaction broker. Cite: RSMo 339.820.1; 20 CSR 2250-8.020(4).

A Missouri designated broker who appoints designated agents for both the buyer and the seller in one transaction:

• a.Automatically becomes a dual agent in that transaction
• b.Is not a dual agent solely because of them✓
• c.Must obtain the commission's written approval
• d.Must withdraw from the transaction

Such a broker becomes a dual agent or transaction broker only upon learning confidential information about either party, upon being consulted by a licensee in the transaction, or by personally representing or assisting one side. Cite: RSMo 339.820.2; 20 CSR 2250-8.020(5).

Missouri permits a licensee to act as a dual agent only when:

• a.All parties to the transaction have consented✓
• b.The seller's designated broker waives the conflict
• c.The commission has issued a written waiver
• d.Both brokerages share one designated broker

A licensee may act as a dual agent only with the consent of all parties, and consent is presumed by a written agreement under section 339.780. Cite: RSMo 339.750.1.

Without consent, a Missouri dual agent may not tell the buyer that:

• a.The property is listed below market value
• b.The seller has received no other written offers
• c.The seller will take less than the asking price✓
• d.The roof has an unrepaired structural defect

The statute bars a dual agent from disclosing, without the client's consent, that a party will accept less or pay more, the party's motivating factors, willingness to change financing terms, or the terms of prior offers. Adverse material facts must still be disclosed. Cite: RSMo 339.750.4.

In Missouri, the fact that a seller pays a cooperating broker's fee:

• a.Creates a limited agency with the seller
• b.Does not by itself create an agency✓
• c.Requires the broker to act as a dual agent
• d.Makes that broker a subagent

Compensation may be paid by the seller, landlord, buyer, tenant, a third party, or shared between designated brokers, and payment alone establishes neither an agency nor a transaction brokerage relationship. Cite: RSMo 339.800.1-.2.

Missouri requires the written confirmation of brokerage relationships to be signed:

• a.Within ten days after acceptance
• b.At the closing of the real estate transaction
• c.Before the property is first shown
• d.On or before a party's first contract signature✓

The confirmation identifies the licensee's brokerage relationship and the source of compensation, confirms that the required disclosures were made and that the Broker Disclosure Form was received, and is signed and dated by the parties. Cite: 20 CSR 2250-8.096(1).

At the latest, a Missouri licensee must give the Broker Disclosure Form to an unrepresented party:

• a.When the purchase contract is first prepared for signature
• b.At the first showing of any listed property
• c.On obtaining personal or financial information✓
• d.Before the closing statement is delivered

The form is due at the earliest practicable opportunity during or following first substantial contact, and in any event upon obtaining any personal or financial information or before a brokerage service agreement is signed, whichever occurs first. Cite: 20 CSR 2250-8.097(1); RSMo 339.770.1.

A Missouri seller's agent must disclose that agency status to an unrepresented buyer:

• a.No later than the first showing✓
• b.Within ten days of first contact
• c.When the sale contract is signed
• d.Only when a written offer is made

A licensee acting as an agent or subagent of the seller or landlord discloses that status no later than the first showing to a buyer or tenant who is not represented by or working with another licensee. Cite: 20 CSR 2250-8.095(1)(A)1.

After a Missouri brokerage agreement expires, the licensee still owes the client:

• a.Continued marketing of the listed property
• b.Accounting and confidentiality✓
• c.Reasonable skill, care and diligence
• d.Loyalty in any later transaction

Only two duties survive termination, expiration, completion or performance: accounting in a timely manner for money and property received during the relationship, and treating the client's information as confidential subject to the listed exceptions. Cite: RSMo 339.790.2.

Which act by a Missouri licensee is ministerial and therefore creates no brokerage relationship?

• a.Preparing a comparative market analysis for a seller
• b.Advising a buyer on what price to offer
• c.Negotiating repairs after inspection
• d.Setting an appointment to view a property✓

Ministerial acts are informative in nature: answering questions about price or availability, setting showing appointments, describing a property, accompanying an inspector, or referring a consumer to another broker or service provider. Cite: RSMo 339.710(19).