Free Missouri Real Estate Practice Exam

Q1.A seller signs an exclusive right-to-sell listing agreement with a Missouri brokerage. Two weeks later, the seller contacts a buyer directly without involving the broker and the sale closes. Under the terms of an exclusive right-to-sell agreement recognized in Missouri, the broker is entitled to:

• A.No commission, because the broker did not procure the buyer
• B.A reduced commission equal to half the agreed rate, because the seller found the buyer
• C.The full agreed commission, because the exclusive right-to-sell obligates commission payment regardless of who procures the buyer
• D.A commission only if the broker can prove the seller contacted the buyer through the broker's marketing efforts

Q2.Under the doctrine of after-acquired title, if a grantor conveys property they do not own and later acquires title to that property, what happens?

• A.The original deed becomes void
• B.Title automatically passes to the original grantee
• C.A new deed must be executed
• D.The grantor retains title permanently

Q3.What is the primary purpose of an owner's title insurance policy?

• A.To protect the lender's interest in the property
• B.To guarantee the property's market value
• C.To protect the buyer against title defects and ownership disputes
• D.To ensure compliance with zoning regulations

Q4.A property's annual real estate taxes of $3,600 are paid in advance on January 1st. If the property closes on September 15th and the buyer is responsible for taxes from the closing date forward, what amount will the seller owe the buyer at closing?

• A.$1,350
• B.$1,400
• C.$2,250
• D.$2,700

Q5.A mortgage lender requires all buyers using its loan products to purchase title insurance exclusively from a title company in which the lender holds a 20% ownership interest. The lender discloses this arrangement in writing at application. Which federal law is MOST directly violated, and what is the legal consequence?

• A.TILA, which requires the lender to recalculate the APR to include the title insurance premium as a finance charge.
• B.RESPA Section 8, which prohibits referral fee arrangements and kickbacks for settlement services, regardless of disclosure.
• C.ECOA, which prohibits conditioning credit approval on the purchase of affiliated settlement services.
• D.CERCLA, which governs financial institution liability for environmental indemnification agreements tied to real property closings.

Q6.The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) creates potential liability for property owners when:

• A.They fail to obtain proper building permits
• B.They violate local zoning ordinances
• C.They fail to pay property taxes
• D.Hazardous substances are released on their property, regardless of fault

Q7.A Missouri salesperson receives a $5,000 earnest money deposit from a buyer on a Friday afternoon. The salesperson's broker is out of town until Monday. Under Missouri law and 20 CSR 2250, what is the salesperson's proper course of action regarding these funds?

• A.Deposit the funds into the salesperson's personal checking account temporarily until the broker returns on Monday.
• B.Hold the funds personally in a secure location and deliver them to the broker or the broker's designated trust account as soon as practicable.
• C.Deposit the funds immediately into any FDIC-insured bank account to protect the buyer's money over the weekend.
• D.Return the earnest money to the buyer and collect it again once the broker is available to supervise the transaction.

Q8.A Missouri buyer signs a buyer-agency agreement with a brokerage. What is the primary legal effect of this agreement?

• A.It guarantees the buyer will purchase a property within the agreement's time period
• B.It establishes a fiduciary relationship in which the broker represents the buyer's interests
• C.It automatically entitles the broker to a commission paid directly by the seller
• D.It transfers the broker's license obligations from the supervising broker to the buyer

Q9.What is the primary purpose of the Interstate Land Sales Full Disclosure Act?

• A.To regulate mortgage lending practices across state lines
• B.To require disclosure of environmental hazards in land sales
• C.To protect consumers purchasing unimproved land in interstate commerce
• D.To establish uniform real estate licensing requirements between states

Q10.Under Missouri law, when a salesperson first meets with a prospective buyer who wants to tour listed properties, at what point must the Missouri Broker Disclosure Form be presented to the buyer?

• A.Before any substantive discussion of the buyer's specific real estate needs or financial qualifications
• B.Only after the buyer has signed a written buyer representation agreement
• C.At the time the buyer makes a written offer on a property
• D.Within three business days of the first meeting with the prospective buyer

Q11.A buyer's agent discovers that a home the buyer wants to purchase was previously used as a dry-cleaning facility and may have soil contamination from chemical solvents. Under which federal law could the current property owner potentially be held liable for cleanup costs, even if they did not cause the contamination?

• A.The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
• B.The Resource Conservation and Recovery Act (RCRA)
• C.The Clean Water Act (CWA)
• D.The Residential Lead-Based Paint Hazard Reduction Act

Q12.A seller's agent is showing a buyer a property listed by her broker. The buyer begins sharing personal financial details and says he would love to buy the home if the seller would accept a lower price. What is the agent's primary duty regarding this information?

• A.She must keep the buyer's financial motivation and price flexibility confidential and disclose it to her client, the seller.
• B.She must keep the information confidential from the seller because the buyer shared it with her directly.
• C.She has no obligation to relay the information to the seller since it was shared informally.
• D.She must disclose the information to both the seller and the buyer's lender to comply with RESPA.

Q13.When drafting a lease agreement, which federal law requires property managers to disclose known lead-based paint hazards in residential properties built before 1978?

• A.Fair Housing Act
• B.Residential Lead-Based Paint Hazard Reduction Act
• C.Americans with Disabilities Act
• D.Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)

Q14.Under Missouri law, when a broker's license is placed on inactive status, which of the following statements is most accurate regarding the broker's ability to conduct real estate activities?

• A.The broker may not engage in any real estate brokerage activities requiring a license while inactive
• B.The broker may continue to supervise affiliated salespersons but may not personally list or sell property
• C.The broker may conduct limited brokerage activities as long as no commission is accepted
• D.The broker retains full authority to practice real estate as long as the inactive license has not expired

Q15.A Missouri purchase contract includes a financing contingency stating that the sale is contingent upon the buyer obtaining a mortgage loan. If the buyer is unable to obtain financing and properly exercises this contingency, what is the typical outcome?

• A.The seller may sue the buyer for specific performance and force the purchase
• B.The buyer forfeits the earnest money deposit to the seller as liquidated damages
• C.The contract is cancelled and the buyer's earnest money is returned
• D.The contract automatically converts to a lease agreement