Free Missouri Real Estate Practice Exam

Q1.At a Missouri residential closing, real estate taxes for the current year have not yet been paid. If the closing occurs on August 1 and Missouri real estate taxes are paid in arrears, how are the taxes TYPICALLY prorated on the settlement statement?

• A.The buyer pays the full year's taxes at closing because they will own the property at year-end.
• B.The seller receives a credit for the taxes already paid for the portion of the year the seller owned the property.
• C.The seller is credited for the portion of the year after closing, and the buyer is debited that same amount.
• D.The seller is debited for their share of taxes from January 1 through the day of closing, and the buyer receives a corresponding credit.

Q2.When an agreement will renew automatically, when must the firm send the owner a reminder?

• A.At least 30 days before renewal
• B.Five days after renewal
• C.Only after the owner objects
• D.At least one year before renewal

Q3.In Missouri, a buyer-agency agreement grants a real estate broker the exclusive right to represent a buyer in the purchase of real property. If a buyer wishes to terminate this agreement before its expiration date, what is generally true under Missouri contract law?

• A.The buyer may owe the broker compensation if the agreement includes an early-termination provision
• B.The buyer may terminate at any time without any financial obligation because agency relationships are always at will
• C.The Missouri Real Estate Commission must approve all early terminations of buyer-agency agreements
• D.The agreement automatically terminates if the buyer views a property with a different licensee

Q4.Under 42 U.S.C. § 3604(c), a licensee posts a listing that reads "Perfect for a young Christian family." What is the violation?

• A.No violation — preferences in advertising are protected commercial speech
• B.Steering only
• C.Discriminatory advertising — § 3604(c) prohibits any statement that indicates preference based on a protected class (here: religion AND familial status)
• D.Violation only if a complaint is filed by a member of the affected class

Q5.Under the Fair Housing Act, which of the following property types is generally EXEMPT from its provisions?

• A.A single-family home sold through a licensed real estate broker
• B.An owner-occupied building with no more than four units
• C.A large apartment complex with 20 or more units
• D.A condominium unit listed on the MLS

Q6.A licensee wants to advertise with a nickname. What is the soundest instruction?

• A.A nickname is always forbidden.
• B.Use a name carried or authorized on the license record under R4-28-301(D), while satisfying brokerage-name rules.
• C.Any nickname is allowed if popular.
• D.Only the team leader decides.

Q7.A real estate agent represents a seller and discovers that the property has a known structural defect that could affect its value. The seller instructs the agent not to disclose this information to potential buyers. What should the agent do?

• A.Disclose the material defect as required by law
• B.Follow the seller's instructions to maintain client loyalty
• C.Disclose the defect only if directly asked by a buyer
• D.Withdraw from the listing without explanation

Q8.A broker is reviewing a lender's Loan Estimate provided to a buyer under the Truth-in-Lending Act (TILA/RESPA Integrated Disclosure rules). The broker notices the Annual Percentage Rate (APR) disclosed appears significantly lower than what would be expected given the loan's interest rate and fees. What is the broker's most appropriate course of action?

• A.Advise the buyer to consult with an independent attorney or HUD-approved housing counselor about the APR discrepancy, since the broker cannot provide legal or lending advice but has a duty to recommend further inquiry
• B.Correct the APR calculation personally and provide the buyer with a revised figure, since brokers are trained in finance and have an obligation to protect their clients
• C.Ignore the discrepancy because TILA compliance is exclusively the lender's responsibility and the broker has no duty to notice or act on lending document irregularities
• D.Report the lender directly to the CFPB on the buyer's behalf without first discussing the issue with the buyer, to fulfill the broker's supervisory duty

Q9.A property's assessed value is $180,000, and the local assessment ratio is 80% of market value. The tax rate is $14 per $1,000 of assessed value. What is the annual property tax owed?

• A.$2,520
• B.$3,150
• C.$2,016
• D.$25,200

Q10.NAR Standard of Practice 10-5 applies to REALTOR® conduct in which contexts?

• A.Only in-person client meetings
• B.Professional contexts including open houses, industry events, MLS forums, and professional social media
• C.Only transactions involving the REALTOR®'s own listings
• D.Only conduct occurring at the REALTOR®'s brokerage office

Q11.Which federal law requires lenders to disclose the Annual Percentage Rate (APR) and other loan cost information to borrowers before closing on a mortgage?

• A.RESPA
• B.ECOA
• C.The Truth in Lending Act (TILA)
• D.The Fair Housing Act

Q12.A listing broker's affiliated salesperson, without the broker's knowledge, tells a prospective buyer that the seller will accept $15,000 less than the listed price. The seller had shared that information with the salesperson in confidence. The buyer submits an offer exactly $15,000 below list price, which the seller rejects. The seller sues the brokerage. Under respondeat superior and general agency law, which statement BEST describes the broker's liability?

• A.The broker has no liability because the salesperson acted outside the scope of authorized conduct by disclosing confidential information.
• B.The broker is shielded from liability because the salesperson, as an independent contractor, is solely responsible for unauthorized disclosures.
• C.The broker may be vicariously liable because the salesperson was acting within the general scope of employment — soliciting offers — even though the specific act was unauthorized.
• D.The broker is liable only if the broker had actual knowledge of the disclosure before the buyer submitted the offer.

Q13.What is the key difference between a reasonable accommodation and a reasonable modification?

• A.Accommodations are physical changes; modifications are policy changes
• B.Accommodations are policy/rule changes paid for by the housing provider; modifications are physical changes paid for by the resident
• C.Both are paid for by the housing provider
• D.Both are paid for by the resident

Q14.A lender provides a borrower with a Loan Estimate three days after receiving a completed loan application. Under the Truth in Lending Act (TILA) and the TRID rule, which of the following disclosures must the Loan Estimate include?

• A.The borrower's credit score and debt-to-income ratio
• B.The Annual Percentage Rate (APR), loan terms, and estimated closing costs
• C.A complete title search report and survey results
• D.The lender's internal underwriting guidelines and risk assessment criteria

Q15.Under Missouri law, which of the following actions requires a real estate license in Missouri?

• A.A property owner selling their own personal residence
• B.An attorney acting under a court order to sell real property
• C.A person acting as a buyer's agent for compensation on behalf of another
• D.A trustee selling property held in a trust pursuant to their duties