Montana Real Estate Salesperson Exam — All Questions

Under Montana law, which relationship is a licensee presumed to have with a party unless the licensee and that party enter a written agency agreement?

• a.Seller agent
• b.Buyer agent
• c.Dual agent
• d.Statutory broker (a non-agent who assists without representing the party)✓

Montana recognizes the 'statutory broker,' a licensee who assists a party in a transaction without acting as that party's agent. Unless a written agency agreement creates a seller-agent or buyer-agent relationship, the licensee is treated as a statutory broker who owes limited duties such as honesty, disclosure of known adverse material facts, and reasonable care, but not the loyalty of an agent.

How does a Montana statutory broker differ from a seller agent or buyer agent?

• a.A statutory broker owes full fiduciary loyalty to both parties
• b.A statutory broker assists a party without representing that party as an agent and owes no duty of loyalty✓
• c.A statutory broker may never be paid a commission
• d.A statutory broker can only handle commercial leases

A seller agent or buyer agent represents a client with full agency duties, including loyalty and confidentiality. A statutory broker assists a party in the transaction without becoming that party's agent and owes no duty of loyalty, though the statutory broker must still be honest, exercise reasonable care, and disclose known adverse material facts about the property.

When must a Montana licensee provide a buyer or seller with the required disclosure describing the available brokerage relationships?

• a.Only after a buy-sell agreement is signed
• b.Only at closing
• c.At the first substantial contact, before the party discloses confidential information✓
• d.Only when the party asks for it in writing

Montana requires the licensee to provide the relationships-in-real-estate disclosure to a party at the first substantial contact, before the party shares confidential information. Early disclosure lets a buyer or seller understand whether the licensee is acting as a statutory broker or as an agent for a party before negotiating information is revealed.