Free Missouri Real Estate Practice Exam

Q1.A buyer's broker learns during due diligence that the seller's property is located within 500 feet of a Superfund (CERCLA) site that has been listed on the National Priorities List. The seller's disclosure form makes no mention of this. The buyer has not asked about environmental conditions. What is the broker's BEST course of action?

• A.Disclose the known proximity to the Superfund site to the buyer client, because a broker owes the client a fiduciary duty to disclose all material facts that could affect the value or desirability of the property, regardless of whether the client asked.
• B.Remain silent, because CERCLA imposes liability only on property owners and operators, not on real estate brokers or their clients.
• C.Advise only the seller to update the disclosure form and take no further action, because the broker's duty runs to the seller, not the buyer.
• D.Disclose the information only if the buyer specifically asks about environmental hazards, as voluntary disclosure may expose the broker to liability for misrepresentation.

Q2.In the income approach to valuation, what does the capitalization rate represent?

• A.The rate of return an investor expects on the investment
• B.The percentage of income retained after expenses
• C.The percentage of the property's value that is financed
• D.The annual appreciation rate of the property

Q3.Which type of ownership gives a person the most complete bundle of rights in real property?

• A.Life estate
• B.Leasehold estate
• C.Fee simple absolute
• D.Remainder interest

Q4.At closing, the seller's real estate agent receives a $500 'marketing fee' from the title company that handled the settlement. Under RESPA Section 8, this arrangement is best described as:

• A.Permissible, because marketing services have legitimate value and are explicitly excluded from RESPA's anti-kickback provisions.
• B.Permissible only if the fee is disclosed on the Closing Disclosure and all parties consent in writing.
• C.A prohibited kickback, because the fee is paid by a settlement service provider to an agent for referral of settlement service business.
• D.Permissible under an affiliated business arrangement (AfBA) exemption as long as the agent discloses the relationship.

Q5.Radon is classified by the EPA as a:

• A.Class A carcinogen and the second-leading cause of lung cancer in the U.S.
• B.Class B carcinogen requiring mandatory remediation above 2 pCi/L
• C.Nuisance pollutant with no established health threshold
• D.Regulated hazardous waste requiring state agency notification

Q6.The FinCEN Residential Real Estate Reporting rule that took effect August 1, 2024 requires reporting of non-financed residential transactions. Which buyer type triggers the reporting obligation?

• A.A natural person purchasing in their own legal name
• B.Any buyer using a conventional mortgage
• C.An LLC purchasing all-cash residential property
• D.A U.S. citizen purchasing a second home

Q7.A Missouri salesperson is accused of making a material misrepresentation to a buyer. The Missouri Real Estate Commission refers the matter for a formal contested-case hearing. Which body has exclusive authority to conduct that hearing and make findings of fact regarding whether the salesperson's license should be disciplined?

• A.The Missouri Real Estate Commission itself, sitting as both investigator and adjudicator in the same proceeding.
• B.The Missouri Administrative Hearing Commission (AHC), which conducts the evidentiary hearing and issues a decision on whether cause for discipline exists.
• C.The Missouri Circuit Court in the county where the alleged misrepresentation occurred.
• D.A three-member arbitration panel appointed by the Missouri Association of REALTORS®.

Q8.Missouri's Seller's Disclosure Statement is governed by which statute, and under what circumstance is a seller EXEMPT from providing it?

• A.RSMo §339.730; the seller is exempt when the property is a commercial building.
• B.RSMo §339.730; the seller is exempt when the transfer occurs between co-owners such as a partition sale.
• C.RSMo §442.606; the seller is exempt when the buyer waives disclosure in writing.
• D.RSMo §442.606; the seller is exempt when the buyer is a licensed real estate agent.

Q9.A real estate salesperson warns homeowners in a neighborhood that families of a certain ethnic background are moving in and that property values will decline, encouraging them to sell quickly. This practice is best described as:

• A.Steering
• B.Redlining
• C.Blockbusting
• D.Panic peddling

Q10.A real estate salesperson is working as a dual agent with written consent from both the buyer and seller. During negotiations, the seller privately tells the agent that they are going through a divorce and must sell within 30 days or lose the property to foreclosure. What should the dual agent do with this information?

• A.Immediately disclose the seller's situation to the buyer to ensure a fair transaction.
• B.Keep the seller's personal financial situation confidential and refrain from using it to advantage either party.
• C.Withdraw from dual agency and represent only the buyer, since the seller's situation creates a conflict.
• D.Report the potential foreclosure to the lender as required under RESPA.

Q11.The recommended REALTOR® Safety Network practice before a solo vacant property showing includes:

• A.Refusing the showing until a second agent can accompany you
• B.Always meeting prospects inside the property rather than outside
• C.Texting a colleague the property address, the prospect's name and phone number, and your expected return time
• D.Requiring prospects to sign a safety waiver before entering the property

Q12.A Missouri broker operates a real estate office from her home. Under 20 CSR 2250, which of the following is a requirement she must meet to lawfully conduct real estate business from this location?

• A.The home office must be located in a commercially zoned area of Missouri.
• B.The home office must be registered with the Missouri Real Estate Commission as the broker's place of business.
• C.The broker must maintain a separate street-level entrance exclusively for real estate clients.
• D.The broker must employ at least one full-time licensed salesperson at the home office.

Q13.A Missouri real estate salesperson's license expires and the salesperson fails to renew it. Under MREC rules (20 CSR 2250-8.020), if the salesperson wishes to reinstate the license within two years after expiration without retaking the licensing examination, what is generally required?

• A.The salesperson must simply pay the standard renewal fee with no additional requirements.
• B.The salesperson must retake and pass both the national and state portions of the licensing examination regardless of when the license expired.
• C.The salesperson must submit a reinstatement application, pay the applicable late renewal fees, and complete any outstanding continuing education hours required for the missed renewal period.
• D.The salesperson must obtain a court order authorizing reinstatement before submitting an application to MREC.

Q14.A Missouri salesperson places an advertisement on social media marketing a listing without including the employing broker's name. Under Missouri law and 20 CSR 2250, this advertisement is:

• A.Acceptable if the salesperson includes his or her own name and license number.
• B.Acceptable only for social media platforms, which are exempt from Missouri advertising rules.
• C.A violation, because all advertising by a salesperson must clearly identify the employing broker.
• D.A violation only if the advertisement is seen by consumers outside Missouri.

Q15.A metes and bounds legal description reads: 'Beginning at the iron pin at the southeast corner of Lot 12, thence N 45°30'15" E for 150.75 feet to an iron pin, thence N 30°15'45" W for 200.50 feet to a concrete monument...' What does the notation 'N 45°30'15" E' specifically indicate?

• A.45 degrees, 30 minutes, 15 seconds north of due east
• B.A bearing that runs northeast at exactly 45.5 degrees from north
• C.45.30 degrees northeast from the starting point
• D.45 degrees, 30 minutes, 15 seconds east of due north