Free Missouri Real Estate Salesperson Exam Exam Flashcards

Look at attachment, adaptation to the property's use, the relationship and intent of the parties, and any agreement. Intent is central; an attached item treated as part of the realty normally transfers with it unless the parties agree otherwise.

Fee simple is inheritable ownership of potentially unlimited duration. A life estate lasts only for the measuring life, after which title passes to the remainderman or returns to the grantor through reversion.

Tenants in common may hold unequal shares and have no survivorship right. Joint tenants hold the interests required by state law with survivorship, so a deceased joint tenant's interest passes to the surviving joint tenant or tenants.

An easement is a nonpossessory interest that permits a defined use of another's land and can bind successors. A license is personal, generally revocable permission that does not create an interest in land.

Police power regulates use, eminent domain takes property for public use with compensation, taxation raises public revenue, and escheat transfers property to the state when an owner dies intestate and without heirs.

A variance is permission to deviate from a zoning requirement because of qualifying hardship. A legal nonconforming use lawfully existed before the current restriction and may continue subject to local limits.

A rational buyer will not pay more for a property than the cost of acquiring an equally desirable substitute, assuming no costly delay. This principle underlies the sales comparison and cost approaches.

Sales comparison fits properties with good comparable sales; cost fits newer or special-purpose improvements; income capitalization fits property purchased primarily for its income stream.

Divide annual net operating income by the capitalization rate: Value = NOI / cap rate. Use property operating income and expenses; mortgage principal and interest are financing costs, not NOI expenses.

The note is the borrower's evidence and promise of debt. The mortgage or deed of trust pledges the real estate as security for that debt.

LTV = loan amount / property value used by the lender. A $180,000 loan on a $225,000 value has an 80% LTV.

FHA insures eligible loans made by approved lenders. VA guarantees part of loans for eligible VA borrowers. Neither agency normally supplies the mortgage funds directly to the borrower.

Periodic payments do not retire the full principal during the loan term, so a large balance is due at maturity. The borrower must pay, sell, or refinance when the balloon comes due.

Competent parties, mutual agreement through offer and acceptance, lawful purpose, and consideration. The agreement must also satisfy any legally required form, such as a writing under the statute of frauds.

A void contract has no legal effect from the outset. A voidable contract is valid unless the protected party elects to rescind it, such as when consent resulted from duress or certain misrepresentations.

A bilateral contract exchanges a promise for a promise. A unilateral contract offers a promise in exchange for performance and is accepted through the required performance.

It generally requires the agreement to be in writing and signed by the party against whom enforcement is sought. An oral agreement may be unenforceable even when the parties discussed all major terms.

The counteroffer rejects the original offer and creates a new offer. The original offer cannot later be accepted unless the original offeror renews it.

It makes performance depend on a stated event or condition, such as obtaining financing or an acceptable inspection. The contract should specify the deadline, notice, and consequence if the condition is not met.

The optionor is bound to keep an offer open for the stated period, while the optionee may choose whether to exercise it. Consideration supports the option; exercise under its terms creates the purchase obligation.

Loyalty, obedience to lawful instructions, disclosure of material information, confidentiality, reasonable care and diligence, and accounting for money or property. Duties to customers are more limited but include honesty and required disclosure.

The principal's words or conduct cause a third party reasonably to believe the agent has authority. It is the principal's manifestation—not the agent's unsupported claim—that creates apparent authority.

Under an exclusive right to sell, the broker generally earns the agreed compensation regardless of who produces the buyer. Under exclusive agency, the owner may avoid a commission by personally finding the buyer, subject to the agreement.

A client is represented under an agency relationship and receives fiduciary duties. A customer is not represented by that licensee but is still owed honest dealing and legally required disclosures.

Performance, expiration, mutual agreement, revocation or renunciation subject to possible liability, death or incapacity where applicable, destruction of the property, or operation of law can terminate agency.

It is information a reasonable party would consider important to the decision or terms, such as a significant defect or title issue. Latent means hidden from ordinary observation; the defect must also be significant to be material.

It may allocate responsibility for the property's condition, but it does not permit fraud, active concealment, or omission of a fact that applicable law requires the seller or licensee to disclose.

Those funds belong to others and must be accounted for under the management agreement and applicable trust-account rules. Separation prevents commingling and permits accurate reporting and disbursement.

A valid deed must be delivered by the grantor and accepted by the grantee. Recording gives public notice and protects priority, but recording itself is not a substitute for delivery and acceptance.

A quitclaim deed transfers whatever interest the grantor has without title covenants. A warranty deed adds stated covenants about title, with the scope depending on whether the deed is general or special warranty.

Steering channels people toward or away from areas based on protected status. Blockbusting induces sales through fear of demographic change. Redlining denies or restricts services because of an area's protected-class composition.

It is horizontal price fixing: competitors are replacing independent pricing decisions with an agreement. Each brokerage must establish its fees independently.

It limits access, use, storage, and disposal of sensitive paper and electronic records so client and customer information is not exposed or used beyond legitimate transaction needs.

No. Tax or compensation status does not erase the licensing-law duties of the supervising broker. The broker must supervise affiliated licensees as the jurisdiction requires.

Multiply the transaction price by the agreed commission rate. Then apply any brokerage split to the commission—not to the sale price—unless the agreement specifies a different basis.

Convert the annual amount to the daily or monthly rate required by the problem, count the period chargeable to each party, and apply the stated ownership convention. Label each result as a debit or credit.

One. Missouri issues an active salesperson or broker-salesperson license only to a person associated with a licensed broker, and the person cannot be licensed with more than one broker during the same period.

No. An inactive salesperson is not associated with a broker and may not engage in activity requiring a real estate license until properly returned to active status.

Complete the approved 48-hour Salesperson Pre-Examination Course on or before the exam date. Complete the 24-hour MREP after that course and before applying for the license; the MREP may occur before or after the exam date.

Transaction funds belonging to others must be held in the escrow or trust account, and the broker may not mix personal or other funds into it except for the limited amount permitted by statute for account charges.

At least three years. Required records include business books, accounts, contracts, brokerage relationship agreements, closing statements, and transaction correspondence, and they must be available for Commission inspection.

A licensee needs the owner's written consent before advertising or placing a sign. To show residential property, the broker must hold a current written seller/lessor agency agreement, transaction-brokerage agreement, or other written authorization.

Disclose the controlled business arrangement on a separate signed form before or at substantially the same time as the referral, explain the possible financial benefit, and make clear that the party may choose another provider.

It must be written in clear and concise language on a Commission form and sworn to by the complainant. The Commission may also initiate a complaint on its own motion.

If investigation shows probable grounds for discipline, the matter goes to the Administrative Hearing Commission to determine whether a violation occurred. After a final violation ruling, MREC determines authorized discipline such as suspension, revocation, or probation.

No later than 10 banking days after the last contract signatures or initials are obtained, unless the contract provides otherwise. A salesperson must immediately deliver received transaction money to the affiliated broker.

It must state a definite beginning date and an expiration date, along with the price, compensation, duties, and required brokerage-relationship permissions or restrictions. It cannot be an open-ended employment agreement.

Each broker must require a complete statement, review it for accuracy, and ensure delivery to buyer and seller. When buyer and seller have different brokers, the listing broker bears the delivery responsibility stated by the rule.

Transaction broker. A licensee is treated as a transaction broker unless a designated broker has established a qualifying written agency or subagency relationship or another statutory exception applies.

All parties must consent, with consent presumed through the required written agreement. Without the affected client's consent, the dual agent may not reveal matters such as willingness to pay more or accept less, motivation, alternative financing terms, or prior offer terms.