Free Missouri Real Estate Practice Exam

Q1.Under the Truth in Lending Act (TILA), when must a lender provide the initial Truth in Lending disclosure to a mortgage applicant?

• A.Within 3 business days of receiving a completed application
• B.Within 7 business days of loan closing
• C.At the time the loan application is submitted
• D.Within 30 days of loan approval

Q2.Under the Fair Housing Act, which of the following is NOT a protected class?

• A.Race
• B.Religion
• C.Sexual orientation
• D.National origin

Q3.Under Missouri law, which of the following acts by a licensed salesperson would constitute a prohibited practice under RSMo Chapter 339?

• A.Presenting all offers to the seller, even those the salesperson believes are too low
• B.Placing a 'For Sale' sign on a property without the written consent of the owner
• C.Referring a buyer to a home inspector the salesperson has used before
• D.Disclosing to a buyer that the seller is motivated to sell quickly

Q4.A Missouri purchase contract contains a home inspection contingency. The buyer completes the inspection and submits a written repair request to the seller. The seller refuses all repairs. Under the terms of a standard Missouri purchase contract, what option is generally available to the buyer in this situation?

• A.The buyer may cancel the contract and receive a refund of the earnest money deposit
• B.The buyer must proceed to closing because the inspection was completed
• C.The Missouri Real Estate Commission will mediate the dispute and order the seller to make repairs
• D.The buyer forfeits the earnest money deposit for failing to reach agreement with the seller

Q5.Which Missouri state agency is responsible for approving pre-licensing education courses required for a salesperson's license?

• A.The Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP)
• B.The Missouri Real Estate Commission (MREC)
• C.The National Association of REALTORS® (NAR)
• D.Pearson VUE Testing Services

Q6.A real estate agent refuses to show homes in certain neighborhoods to minority clients, claiming those areas 'wouldn't be a good fit.' This practice is known as:

• A.Steering
• B.Redlining
• C.Blockbusting
• D.Price fixing

Q7.Under the post-NAR-settlement buyer-broker agreement, if a buyer's agent earns more from the seller than the amount specified in the agreement, the agent must:

• A.Keep the difference as a bonus
• B.Donate the excess to a charitable organization
• C.Notify ADRE of the overage within 30 days
• D.Refund the excess to the buyer or credit it toward costs

Q8.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.

Q9.A property owner grants a life estate to their spouse with remainder to their children. If the spouse remarries and dies, what happens to the property interest?

• A.The remainder interest vests immediately in the children as fee simple owners
• B.The new spouse inherits the life estate interest
• C.The property interest reverts to the original grantor's estate
• D.The property becomes jointly owned by the new spouse and the children

Q10.Which of the following situations would create a conflict of interest that a Missouri licensee is required to disclose under RSMo Chapter 339?

• A.The licensee is a member of the local association of REALTORS® and the buyer is not
• B.The licensee has a personal financial interest in the property being sold, such as being a part owner
• C.The licensee's brokerage firm is located in a different city from the property being listed
• D.The licensee previously sold a different property to the same seller five years ago

Q11.A broker operating as a dual agent in a residential sale represents both the buyer and the seller with written informed consent from both parties. During negotiations, the seller privately tells the broker that they will accept $15,000 below the current list price. The buyer later asks the broker, 'What is the lowest price the seller will take?' How should the broker respond under the principles governing dual agency?

• A.Disclose the seller's bottom line to the buyer because the broker's primary obligation in dual agency shifts to the buyer as the party most in need of protection.
• B.Decline to disclose the seller's confidential price motivation to the buyer, as the broker's duty of confidentiality to the seller survives the dual-agency arrangement and prohibits revealing negotiating positions without consent.
• C.Disclose the information to the buyer because dual agency eliminates all confidentiality obligations between the broker and both principals.
• D.Withdraw from the transaction immediately because the question itself creates an impermissible conflict that voids the dual-agency consent.

Q12.Under Missouri Revised Statutes § 339.040, which of the following activities REQUIRES a person to hold an active Missouri real estate salesperson or broker license?

• A.An attorney-in-fact using a power of attorney to sell property on behalf of a family member, without compensation.
• B.A property owner selling their own personally owned real estate directly to a buyer without compensation to a third party.
• C.A salaried on-site apartment manager employed by an owner to lease units within the owner's single apartment complex.
• D.A licensed Missouri auctioneer conducting real estate auctions for compensation on behalf of third-party property owners.

Q13.A broker representing a buyer negotiates a purchase contract that includes a CERCLA-related environmental contingency allowing the buyer to order a Phase I Environmental Site Assessment. The Phase I reveals a Recognized Environmental Condition (REC). Under CERCLA, which party faces potential strict liability for cleanup costs if the sale closes without further investigation and the REC is later confirmed as contamination?

• A.The buyer, as a current owner at the time of discovery, could face strict liability under CERCLA unless they qualify for the bona fide prospective purchaser (BFPP) defense by conducting all appropriate inquiries prior to closing.
• B.Only the original party who caused the contamination bears CERCLA liability; subsequent owners are fully insulated from cleanup costs.
• C.The listing broker bears joint and several CERCLA liability because the broker facilitated the transaction with knowledge of the REC.
• D.CERCLA liability attaches only to industrial operators, not to residential property owners, so the buyer faces no cleanup exposure.

Q14.Under the Truth-in-Lending Act (TILA), which of the following must be disclosed to borrowers within three business days of receiving a loan application?

• A.Closing Disclosure
• B.Loan Estimate
• C.HUD-1 Settlement Statement
• D.Property appraisal report

Q15.Under the Truth-in-Lending Act (TILA/Regulation Z), which of the following best describes the Annual Percentage Rate (APR) as it relates to the stated interest rate on a mortgage?

• A.The APR is always lower than the stated interest rate because it accounts for prepaid interest credits.
• B.The APR is typically higher than the stated interest rate because it includes certain fees and costs of obtaining the loan.
• C.The APR equals the stated interest rate whenever the loan has no prepayment penalty.
• D.The APR is a state-mandated figure that lenders may round to the nearest whole percent.