Free Missouri Real Estate Practice Exam

Q1.Under Missouri law, a listing agreement between a seller and a licensed real estate brokerage is legally a contract between which two parties?

• A.The seller and the individual salesperson who obtained the listing
• B.The seller and the licensed real estate broker (brokerage)
• C.The seller and the Missouri Real Estate Commission
• D.The seller and the Multiple Listing Service

Q2.A managing broker's firm uses designated agency, assigning one affiliated salesperson to represent the seller and a different affiliated salesperson to represent the buyer in the same in-house transaction. Under the designated agency model, which statement BEST describes the managing broker's role and liability exposure?

• A.The managing broker acts as a neutral facilitator and assumes no fiduciary duties to either party once designations are made.
• B.The managing broker typically retains a dual-agent or supervisory role and may remain vicariously liable for the conduct of both designated agents.
• C.The managing broker becomes a single agent for the seller only, because the seller's listing agreement predates the buyer's representation agreement.
• D.The managing broker is relieved of all supervisory obligations because each designated agent independently owes fiduciary duties to their respective client.

Q3.The federal Fair Housing Act of 1968 prohibits discrimination in the sale or rental of housing based on which of the following protected classes?

• A.Race, color, national origin, religion, sex, familial status, and disability
• B.Race, color, national origin, religion, sex, age, and disability
• C.Race, color, national origin, religion, marital status, familial status, and disability
• D.Race, color, national origin, religion, sex, familial status, and sexual orientation

Q4.Under the Equal Credit Opportunity Act (ECOA), which of the following actions by a lender would be considered illegal discrimination?

• A.Requiring higher down payments for investment properties
• B.Charging higher interest rates based on credit score
• C.Asking about marital status on a joint application
• D.Requiring income verification for all applicants

Q5.Which 1968 federal law is the foundational statute prohibiting housing discrimination based on race, color, religion, sex, national origin, familial status, and disability?

• A.The Civil Rights Act of 1964
• B.The Fair Housing Act (Title VIII of the Civil Rights Act of 1968)
• C.The Housing and Community Development Act of 1974
• D.The Americans with Disabilities Act of 1990

Q6.A property manager collects security deposits from tenants and places them in an interest-bearing account. Which federal consumer protection principle would be most relevant if the manager fails to properly account for these funds?

• A.Fiduciary duty and trust fund handling principles
• B.Truth in Lending Act disclosure requirements
• C.RESPA anti-kickback provisions
• D.Equal Credit Opportunity Act protections

Q7.In Missouri, a single broker represents both the seller and the buyer in the same transaction. The broker has received written informed consent from both parties. Which type of agency relationship has been created under RSMo Chapter 339?

• A.Designated agency
• B.Transaction brokerage
• C.Dual agency
• D.Subagency

Q8.A real estate salesperson is working with a buyer and has a written agreement establishing that relationship. Which of the following best describes the salesperson's primary fiduciary duty to that buyer-client?

• A.Loyalty, meaning the salesperson must act in the buyer's best interest above all others, including the salesperson's own interests
• B.Disclosure, meaning the salesperson must share all known information about every property on the market
• C.Obedience, meaning the salesperson must follow every instruction given by the buyer without exception
• D.Confidentiality, meaning the salesperson must withhold all information about the buyer from any third party, including the seller's material defects

Q9.Under Missouri law, a listing agreement between a seller and a licensed real estate broker must include which of the following to be enforceable?

• A.A definite expiration date
• B.A minimum commission rate established by the Missouri Real Estate Commission
• C.A clause requiring the seller to pay commission even if the broker produces no buyer
• D.The broker's personal financial statement

Q10.A broker who supervises affiliated salespersons must ensure they complete federally mandated continuing education on fair housing. Under the Fair Housing Act, which broker-level action best demonstrates the broker's duty to prevent discriminatory practices by supervised licensees?

• A.Requiring salespersons to complete fair housing training and maintaining documented records of that training as part of the brokerage's supervision protocol
• B.Posting a fair housing poster in the office lobby, which satisfies the broker's full supervisory obligation under federal law
• C.Delegating all fair housing compliance solely to the salesperson, since each licensee is individually responsible under the Fair Housing Act
• D.Providing verbal reminders about fair housing at monthly meetings, which constitutes sufficient documentation of supervisory efforts

Q11.Under CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act), which party would most likely be held liable for environmental cleanup costs at a contaminated commercial property that changed hands multiple times?

• A.All current and past owners, operators, and transporters of hazardous substances
• B.Only the party that originally caused the contamination
• C.Only the current owner at the time contamination was discovered
• D.Only parties who had actual knowledge of the contamination

Q12.How long must a Missouri real estate broker retain transaction records, such as contracts and closing documents, according to Missouri law?

• A.One year from the date of the transaction
• B.Ten years from the date of the transaction
• C.Three years from the date of the transaction
• D.Records need only be kept until the transaction closes

Q13.After the Missouri Administrative Hearing Commission issues a decision finding that a salesperson violated RSMo Chapter 339, which of the following correctly describes the MREC's role in the disciplinary process?

• A.The MREC must automatically adopt the AHC's recommended penalty without modification
• B.The MREC reviews the AHC's findings and independently determines what discipline, if any, to impose
• C.The MREC must remand the case back to the AHC for a second evidentiary hearing before imposing discipline
• D.The MREC's only option is to revoke the license if the AHC finds a violation

Q14.Under federal fair housing law, which enforcement action can a state real estate licensing board take against a licensee who violates the Fair Housing Act?

• A.Impose criminal penalties including imprisonment
• B.Suspend or revoke the licensee's real estate license
• C.Order monetary damages to be paid to the complainant
• D.Issue federal civil rights injunctions

Q15.A designated agent representing a seller discovers that the buyer's Truth-in-Lending disclosure shows an APR significantly higher than what was initially quoted. Under federal law and fiduciary duty principles, what action should the agent take?

• A.Inform only the seller since the agent represents the seller's interests
• B.Suggest the buyer review the disclosure carefully as the APR appears inconsistent with initial quotes
• C.Remain silent as loan terms are between buyer and lender
• D.Advise the buyer to accept the terms to avoid delaying closing