Key Takeaways
- Missouri license law prohibits misrepresentation, fraud, and failure to disclose material facts
- Acting outside the scope of licensure or practicing without a license is a violation
- Violations of fair housing laws can result in license disciplinary action
- MREC can impose sanctions including suspension, revocation, censure, and probation
- Criminal convictions can result in license denial or revocation
Last updated: January 2026
License Law Violations
Missouri license law defines prohibited conduct that can result in disciplinary action against licensees.
Categories of Violations
Misrepresentation and Fraud
| Violation | Example |
|---|---|
| False statements | Lying about property condition |
| Material misrepresentation | Misrepresenting square footage |
| Fraud | Deceiving clients for personal gain |
| Concealment | Hiding known defects |
Failure to Disclose
| Required Disclosure | Consequence of Failure |
|---|---|
| Material defects | Disciplinary action |
| Agency relationship | Violation of law |
| Conflicts of interest | License sanctions |
| Required disclosures | MREC penalties |
Trust Account Violations
| Violation | Description |
|---|---|
| Commingling | Mixing client and broker funds |
| Conversion | Using client funds for personal use |
| Failure to deposit | Not depositing promptly |
| Poor record keeping | Inadequate documentation |
Unlicensed Activity
What Requires a License
| Activity | License Required? |
|---|---|
| Listing property for others | Yes |
| Negotiating sales | Yes |
| Collecting rent for others | Yes |
| Showing properties for compensation | Yes |
Unlicensed Practice
| Violation | Penalty |
|---|---|
| Practicing without license | Criminal prosecution |
| Aiding unlicensed activity | License sanctions |
| Employing unlicensed persons | Broker liability |
Fair Housing Violations
Protected Classes
Violations involving discrimination against:
| Federal Protected Classes | Missouri Protected Classes |
|---|---|
| Race | Same as federal |
| Color | Same as federal |
| Religion | Same as federal |
| National origin | Same as federal |
| Sex | Same as federal |
| Familial status | Same as federal |
| Disability | Same as federal |
| Ancestry |
Fair Housing Violations
| Violation | Example |
|---|---|
| Refusing to sell/rent | Based on protected class |
| Discriminatory terms | Different prices/conditions |
| Discriminatory advertising | "No children" ads |
| Steering | Directing to certain areas |
| Blockbusting | Inducing panic selling |
| Redlining | Denying services to areas |
Other Violations
Professional Conduct
| Violation | Description |
|---|---|
| Unauthorized practice of law | Drafting legal documents |
| Advertising violations | Misleading ads |
| Breach of fiduciary duty | Violating client trust |
| Failure to supervise | Broker not supervising agents |
Criminal Conduct
| Conduct | Consequence |
|---|---|
| Felony conviction | May result in denial/revocation |
| Crimes of moral turpitude | License implications |
| Real estate-related crimes | Grounds for discipline |
MREC Disciplinary Actions
Available Sanctions
| Sanction | Description |
|---|---|
| Censure | Formal reprimand |
| Probation | Conditional license |
| Suspension | Temporary loss of license |
| Revocation | Permanent loss of license |
| Denial | Refuse to issue license |
| Civil penalty | Monetary fine |
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Test Your Knowledge
Which of the following is a violation of Missouri real estate license law?
A
B
C
D
Test Your Knowledge
What sanction results in the permanent loss of a real estate license in Missouri?
A
B
C
D