Broker Flashcards
(168 cards)
1
Q
Missouri Real Estate Commission can only _, _ or _ for committing a Class B Misdemeanor
A
suspend, revoke or place a licensee on probation
2
Q
Missouri Statute #— that requires a person be licensed to participate in the real estate profession
A
339
3
Q
The purpose of the Missouri Real Estate Commission is to
A
protect the public.
4
Q
Any person who violates Missouri License Law and is found guilty has committed a
A
CLASS B MISDEMEANOR
5
Q
Is a Real Estate License is required? Selling/assisting buyers, sellers, landlords or tenants with real estate activities
A
Yes
6
Q
Is a Real Estate License is required? Procuring prospects
A
Yes
7
Q
Is a Real Estate License is required? Offering to sell
A
Yes
8
Q
Is a Real Estate License is required? Listing for sale
A
Yes
9
Q
Is a Real Estate License is required? Negotiating - helping a consumer to buy, sell, rent or lease a property
A
Yes
10
Q
Is a Real Estate License is required? Leasing or renting
A
Yes, with some exclusions
11
Q
Is a Real Estate License is required? Exchanges- negotiates or offers or agrees to negotiate the exchange of real estate for a consumer
A
Yes
12
Q
Is a Real Estate License is required? Publishing a real estate only publication
A
Yes
13
Q
Is a Real Estate License is required? Dealing in options
A
Yes
14
Q
Is a Real Estate License is required? An owner or regular employee of a corporation who is not in the real estate business as a vocation
A
No
15
Q
Is a Real Estate License is required? An auctioneer employed by the owners to auction their property
A
No
16
Q
Is a Real Estate License is required? A court-appointed person who is chosen to be the guardian of an estate
A
No
17
Q
Is a Real Estate License is required? Any person employed to manage real property by, for, or on behalf of the agent or the owner, of any real estate IF the person is limited to delivering and receiving a lease, showing a rental unit or conveying information prepared by a broker.
A
No
18
Q
The seller (Owner) in an option is called the
A
Optionor
19
Q
The maybe buyer in an option is called the
A
Optionee
20
Q
The are how many members of the Missouri Real Estate Commission?
A
7
21
Q
Commissioners are appointed by who with the consent of the Missouri Senate
A
the governor
22
Q
The commission is made up of six (6) members who must be licensed brokers for at least 10 years.
One (1) member of the commission must be
A
from the general public.
23
Q
Terms of the commissioners are for
A
five years.
24
Q
Commissioners receive how much a day plus expenses when they are meeting.
A
$75
25
All commissioners must be Missouri residents for at least
one year.
26
Commission employees cannot be actively involved in
the real estate business.
27
Can MREC Hold hearings, pay fees and mileage of witnesses
Yes
28
Can MREC Issue subpoenas
Yes
29
Can MREC Promulgate (make known) and enforce the rules and regulations
Yes
30
Can MREC Suspend
Yes
31
Can MREC Revoke
Yes
32
Can MREC Place on probation
Yes
33
Can MREC Sue and be sued
Yes
34
Can MREC Hire employees
Yes
35
Can MREC Elect a chairman
Yes
36
Can MREC Hold regular meetings
Yes
37
Can MREC Act by mail or conference call
Yes
38
Can MREC Obtain a restraining order in a court of competent jurisdiction
Yes
39
Can MREC Order restitution to injured parties not to exceed $2,500 per day, per offense
Yes
40
Can MREC Investigate any time with or without a written complaint
Yes
41
If the commission receives a written, sworn (notarized) complaint they must
investigate.
42
Will the Missouri Real Estate Commission ever be involved in a commission (money) dispute between licensees and/or brokers
No
43
Is a person or entity that is not licensed subject to MREC rules and regulations
No
44
Who can MREC ask to make a person stop practicing without a license?
"Court of competent jurisdiction"
45
Can MREC Levy fines or award money damages
No
46
Can MREC Arbitrate commission disputes
No
47
Can MREC Discuss any case pending before the Missouri Administrative Hearing Commission
No
48
Missouri Administrative Hearing Commission (MAHC) is made up of 3
attorneys
49
If the MREC feels that a licensee has violated the license law, they must send the case to the
MAHC
50
If the MAHC feels that the MREC is not correct, then the case is
dismissed
51
If the MAHC feels the MREC is correct
the case is sent back to the MREC so that the license of the licensee can be suspended, revoked or placed on probation.
52
A person who is refused a license by the MREC appeals that decision to the
MAHC.
53
A violation of Chapter 339 is a
Class B Misdemeanor.
54
If a licensee is investigated by the MREC and the MAHC, and there has been an accusation of a felony being committed, the accused crime will be turned over to
the attorney general
55
How much can MREC fine a licensee?
Nothing, ever!
56
"The broker" cannot hold licensees licenses if the person is not going to be actively involved in the business. The license should be returned to the MREC. (How many referrals a licensing period would make a licensee "Actively involved in the business.")
One
57
If a broker changes his/her company office or branch office, the MREC must be given written notice within
10 days.
58
License renewal is always on
June 30th every two years – even years
59
Can a Broker-Salesperson act as a branch or sales manager and can continue to list and sell property
Yes
60
Can a Broker-Salesperson "hold" licenses
No
61
Can a Broker-Salesperson choose to operate as a salesperson under the direction of another broker
Yes
62
A licensee has attained broker status, and chooses to operate as an officer, partner or associate.The entity becomes "The broker" and the partners in the corporation become
broker officers.
63
A salesperson can be an officer of a corporation, but cannot be involved in
management or supervision of the business.
64
All corporate officers involved in the brokerage business must have active
broker-officer licenses or a salesperson's license.
65
The Corporation must be in good standing with the
Secretary of State
66
If a company is set up as a Corporation, Partnership or Association one of the officers, partners, or associates must serve as the ___ for the purpose of communication with the MREC.
"Designated Broker"
67
Can a salesperson manage other licensees without obtaining some type of broker license?
No
68
A Salesperson must renew license when?
September 30th - even years - every two years
69
Delinquent renewal applications must be accompanied by a delinquent fee of
fifty dollars ($50) per month or partial month elapsed since the date of license expiration, not to exceed two hundred dollars
70
Any licensee who fails to complete continuing education requirements during the renewal period must submit with their renewal proof of completion of the
Missouri Real Estate Practice Course.
71
If a salesperson who wishes to transfer to another broker has a complaint filed against him/her, the MREC
will usually disclose all information about the complaint to the new broker.
72
Once a licensee puts his/her license on inactive status, he/she cannot
collect any fees (referral or otherwise).
73
To reactivate, a licensee must take the broker or salesperson course but does not have to
take the state examination.
74
Are continuing education courses required while a licensee is on inactive status.
No
75
Does holding an active broker license require that you do any business or make any referrals to continue to hold an active license.
No
76
With a broker license, if you do not make any referrals or make any money during a licensing period, you can have an office in your home. Does it have to have a sign?
No
77
While holding an active broker license, as soon as you make money, you have to have
a sign of sufficient size to identify your office and business hours stated.
78
Upon the death or incapacity of a sole proprietary broker
A temporary license is issued
79
What dies with the broker
All listings
80
Who can be designated as a temporary broker?
Anyone, licensed or unlicensed.
81
What is the purpose of a temporary license?
The purpose is to "terminate" or finish the existing transactions.
82
What is the fee for a temporary license?
Nothing
83
Applicants have HOW LONG after completing the course (sales or broker) to pass the test and apply for a license?
six (6) months
84
A corporation was entering the real estate business. It must be registered with
MREC.
85
If an individual holds a current and active salesperson license in another state/jurisdiction at the time they apply for a Missouri salesperson license, they must
pass the state portion of the salesperson exam and take the Practices course.
86
A person owned her own company specializing in negotiating sales for buyers and sellers. She had incorporated her business but does not get listings or sell properties. Does she need a real estate license to do this?
Yes, she would need a broker-officer's license and her corporation would need a broker's license.
87
Can a broker-salesperson acting as a sales manager hold all the licenses of the salespeople working under him/her.
No
88
A branch office under a principal broker would operate under who's license.
the principal broker's
89
An active broker must maintain a place of business in this state, which shall be open to the public during regular business hours, or at regular stated intervals if he/she is holding
salespersons licenses
90
A salesperson cannot be associated with a broker who does not maintain a regularly established
place of business
91
Can the sales manager of a main or branch office continue to list and sell property
Yes
92
“The Broker” must conduct business under the same name for both the main and branch offices. T/F
True
93
Wall licenses can be kept at the main or branch office.
| T/F
True
94
Ultimate responsibility for everyone's actions lies with
"The Broker."
95
Project offices, such as a builder's trailer or a kiosk in a mall, are not considered
branch offices.
96
The broker must deposit the money within __ BANKING DAYS after acceptance of the offer to purchase.
10
97
No broker shall commingle his/her personal funds or other funds in an escrow account with the exception that a broker may deposit and keep a sum not to exceed ? in the account from his/her personal funds, which sum shall be specifically identified and deposited to cover service charges related to the account.
one-thousand dollars
98
Doing anything wrong with other people's money; depositing too late, taking out too soon, using the money without written permission is
Commingling or "conversion"
99
Disputes: If civil action is filed, give the money to
the courts to disburse
100
Disputes: If no court action, who can make a decision (15 days written notice by registered mail to all parties)
the broker can
101
Disputes: broker shall report and deliver the moneys to
the state treasurer within three hundred sixty-five days of the date of the initial projected closing date
102
Brokers must have an Escrow or Trust Account unless
exempted by the MREC.
103
Salespeople must deposit money with their broker
IMMEDIATELY.
104
Commissions must be removed from escrow at the time the transaction is completed. They are made payable to
the broker’s business account.
105
1 of 6 - Broker Mary is renewing her branch office license. What must she do?
Notify the commission of the address of the branch and who is in charge.
106
Salespersons can have their name and number in an advertisement, but they must include the equivalent information for
the brokerage
107
If a Broker owner wishes to sell his/her own property without the aid of a real estate company (Property owned by licensees), all advertising must read as follows:
"For sale by owner-broker"
108
If a Salesperson owner wishes to sell his/her own property without the aid of a real estate company (Property owned by licensees), all advertising must read as follows:
"For sale by owner-salesperson"
109
If a Broker-Salesperson wishes to sell his/her own property without the aid of a real estate company (Property owned by licensees), all advertising must read as follows:
"For sale by owner-agent"
110
Discriminatory advertising is illegal, and a violation of the Federal Fair Housing Laws, which prohibit discrimination based on
race, color, religion, national origin, sex, familial status, and handicap.
111
Definition: A licensee cannot use prizes, money, gifts, or other valuable consideration to secure customers to purchase, lease, sell, or list property when the awarding of such is conditioned upon the purchase, lease, sale or listing.
Inducement
112
Is the Missouri Broker Disclosure form required for commercial real estate
No
113
The property manager must make a written statement of property income to the owners of rental properties at least
once a year unless agreed otherwise.
114
To collect a commission for real estate, the salesperson and the broker must have
an employment contract
115
Those acts that do not rise to the level of a brokerage relationship.
Ministerial Acts
116
A contract between the listing agent and other agents who show or otherwise participate in the marketing of that listing
Subagency
117
A licensee whose duties and obligations to a client are those set forth in the license law.
Limited Agent
118
When must a licensee provide a customer with a written copy of the current Broker Disclosure Form?
a) on or before the signing of the brokerage relationship agreement, or b) upon the licensee obtaining any personal or financial information, whichever occurs first.
119
When there is a cooperative broker agreement, the selling broker is presumed to be
a transaction broker.
120
Brokers must retain true copies of all records for a minimum of
three (3) years
121
This is a clause that allows a broker to collect a commission after the listing is over if a buyer who was introduced to the property during the listing period decides to buy.
carry-over clause
122
A licensee representing a buyer or tenant as a buyer's or tenant's agent shall be a limited agent with specific duties and obligations- this is called
an Exclusive Right to Represent.
123
If the buyer and seller are represented by different brokers, it is the responsibility of ? to deliver, or cause to have delivered, the closing statements.
the listing broker
124
Missouri court decision that determined precisely what real estate licensees are or are not allowed to do in a real estate transaction. Prior to this decision, many real estate licensees were practicing law.
Hulse vs. Criger
125
Agency disclosure in Missouri must be made orally to a seller, buyer, landlord or tenant of residential property prior to obtaining
personal and/or financial information
126
Each active real estate licensee shall complete, as a condition precedent to license renewal, a minimum of ? hours of real estate instruction approved for continuing education credit by the Missouri Real Estate Commission every two years.
12
127
Which account is for long-term monies like security deposits and prepaid rents.
The Escrow or Trust Account
128
Which account is for the purpose of handling current rents, paying rents and commissions, etc.
The Property Management escrow account
129
After her employing broker had died suddenly, Penny was appointed as "temporary broker" for her firm. What can she do?
Terminate all existing transactions.
130
Broker Melanie made a change to her escrow account. How long does she have to notify MREC of the change?
15 days
131
? is to deposit clients' funds in the broker's personal or general account.
Commingling
132
? is the misappropriation of property belonging to another.
Conversion
133
A civil penalty by the commission is not to exceed $? for each offense.
$2,500, Each day of a continued violation shall constitute a separate offense. The total is not to exceed $25,000
134
In actions against unlicensed persons or disciplinary actions against licensed persons, the commission may issue an order imposing
a civil penalty
135
When must a broker provide an owner with statements showing the receipt and disbursement of funds?
At the time of settlement and disbursement of commission funds to and from other brokers and licensees
136
Within what timeframe does Broker Jake have to inform the parties to the transaction that there is an escrow problem?
15 days
137
An estate for at least a lifetime or greater because it can be willed to heirs.
Freehold estates
138
A less-than-freehold estate that a tenant possesses in real property.
Leasehold estates
139
Corporeal property
buildings, fences, fixtures, etc.
140
Incorporeal property
intangibles such as rents, easements, and goodwill
141
MREC members, 6 must have been a broker for ? years
10
142
The selling broker, as well as other agents, are presumed to be ? of the listing broker unless there is a written agreement to the contrary
Transaction Brokers
143
The MREC can require as a condition of reinstatement or probation that a licensee:
Make restitution to the injured party
144
To renew a salesperson's inactive license, how often must the licensee pay?
By Sept 30 of even years.
145
A salesperson is transferring to a new broker. What must be done before he/she can list or sell real estate?
The new broker must obtain the salesperson's work permit from the MREC.
146
A broker's branch office would operate under the same name and license as the parent office. T/F
True
147
1 Acre =
43,560 SF
148
What is the width of the lot and the expanse of road exposure that a lot offers.
Front footage
149
When a rectangular lot is described using its dimensions, such as “300 feet by 150 feet,” the first dimension is the
Width
150
The heated and cooled square footage of a structure that is measured using the outside dimensions.
Gross Living Area
151
The amount of space local zoning regulations require between the property line and any improvements.
Setbacks
152
Type of legal description that describe a parcel of land using a set of fractions and the corresponding section, township and range numbers.
Rectangular/Government Survey
153
A square tract of land used in the Rectangular/Government Survey method.
section
154
A section is how wide and how deep.
1 mile
155
A section contains how many acres
640
156
How to calculate the acres in a parcel described as S ½ of the SE ¼ of the SW ¼ of section 24, township 32 north, range 18 east?
Multiply all denominators together and divide 640 by that answer.
157
If the comparable is superior to the subject,
subtract value from the comparable.
158
If the comparable is inferior to the subject,
add value to the comparable.
159
Gross Rent Multiplier =
Sales Price divided by Monthly rental income
160
Cost Approach Formula
Value = Land value + (Improvements + Capital additions - Depreciation)
161
A decrease in value due to physical deterioration, functional or external obsolescence.
Depreciation
162
Gross Income Multiplier =
Price divided by Annual Income
163
Income Capitalization Formula: Value =
annual net operating income divided by cap rate
164
Income Capitalization Formula: Cap rate =
annual net operating income divided by value
165
The Net Operating Income is the gross income less
all operating expenses.
166
Operating Expenses do not include mortgage payments. T/F
True
167
Net Operating Income =
Potential Gross Income & Other income - Operating expenses & Vacancy loss
168
Effective Gross Income =
Potential Gross Income & Other income - Vacancy loss
