Free Montana Real Estate Practice Exam

Q1.Under ECOA, how long must a creditor retain records of credit applications?

• A.12 months for approved applications, 25 months for denied applications
• B.25 months for all applications
• C.36 months for all applications
• D.60 months for all applications

Q2.A Montana broker must maintain transaction records for how many years after the closing of a real estate transaction?

• A.2 years
• B.3 years
• C.4 years
• D.5 years

Q3.A Montana broker receives earnest money on Friday evening after banks are closed. The purchase agreement is accepted the following Monday. When must the earnest money be deposited?

• A.By Tuesday (1 business day after acceptance)
• B.By Wednesday (2 business days after acceptance)
• C.By Thursday (3 business days after acceptance)
• D.By Friday (4 business days after acceptance)

Q4.A property is discovered to have environmental contamination. Which federal law would most likely apply to address cleanup responsibilities?

• A.Clean Water Act
• B.Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
• C.Resource Conservation and Recovery Act
• D.Toxic Substances Control Act

Q5.Under Montana law, if a listing agreement contains an automatic renewal clause, what makes such a clause valid?

• A.The clause is automatically valid if included in the original agreement
• B.The seller must provide written consent to the renewal
• C.Automatic renewal clauses are prohibited in Montana
• D.The clause is valid only if the Commission approves it

Q6.In Montana, when a broker receives multiple offers on a listed property, the broker's duty is to:

• A.Present only the highest offer to protect the seller's interests
• B.Present all offers received prior to acceptance of any offer
• C.Present offers in the order received until one is accepted
• D.Combine the best terms from multiple offers into one proposal

Q7.A Montana salesperson working under statutory brokerage has been helping a buyer for several months. The buyer asks the salesperson to recommend an offer strategy that would be most likely to get the seller to accept below asking price. How should the salesperson respond?

• A.Provide detailed strategy advice since they have an established relationship
• B.Explain they cannot advocate for the buyer's interests under statutory brokerage
• C.Offer to switch to buyer agency to provide the requested advice
• D.Suggest the buyer consult with an attorney instead

Q8.The fiduciary duty of accounting requires an agent to:

• A.Maintain accurate records of all funds handled for the principal
• B.Provide annual financial statements to all clients
• C.Invest client funds in interest-bearing accounts
• D.Share commission information with other agents

Q9.A broker shows properties in integrated neighborhoods to minority clients while steering white clients to predominantly white areas. This practice violates fair housing laws through:

• A.Blockbusting
• B.Redlining
• C.Steering
• D.Discriminatory advertising

Q10.Under the Fair Housing Act, which of the following protected classes was added by the 1988 amendments?

• A.Race and color
• B.Religion and national origin
• C.Familial status and disability
• D.Sex and age

Q11.Under Montana Real Estate Commission rules, which of the following records must a broker maintain for completed real estate transactions?

• A.3 years from the date of closing
• B.5 years from the date of closing
• C.7 years from the date of closing
• D.10 years from the date of closing

Q12.A Montana apartment complex advertises 'Christian community living.' This advertisement would most likely be considered:

• A.Legal religious expression
• B.Illegal religious discrimination
• C.Legal if the complex is church-owned
• D.Legal if disclosed in lease agreements

Q13.Under Montana license law, if a supervising broker discovers that a salesperson has been practicing real estate without proper supervision, what disciplinary action may the Real Estate Commission take against the broker?

• A.Issue a warning letter only
• B.Require additional education for the broker
• C.Impose fines, suspend, or revoke the broker's license
• D.Transfer the salesperson to another broker

Q14.A broker is reviewing an appraisal report for a refinancing transaction subject to RESPA requirements. The appraisal shows a property value of $480,000, but recent comparable sales in the neighborhood suggest values around $520,000. What is the broker's most appropriate course of action?

• A.Accept the appraisal as final since it was prepared by a licensed appraiser
• B.Request a second appraisal to verify the property value
• C.Discuss the discrepancy with the lender and suggest reviewing the comparable sales data
• D.Advise the client to find a different lender who might accept a higher appraisal

Q15.A Montana broker has an exclusive listing that expires on June 30th. On July 5th, the broker procures a buyer who makes an offer that is accepted by the seller. What is the broker's commission status?

• A.Entitled to full commission as originally agreed
• B.Entitled to reduced commission based on post-expiration work
• C.Not entitled to any commission due to expired listing
• D.Commission depends on whether broker continued marketing after expiration