Missouri Real Estate Review Guaranteed Success
Who has to have a real estate license? ✔️ Any person, co-partnership, or corporation who attempts or
offers to sell, buy, rent, list, negotiate, exchange, option, advertise as a broker, refer, or charge a fee for
advertising real estate.
What title could a real estate salesperson hold? ✔️ Employee or Independent Contractor.
Freehold Estate: ✔️ An estate for at least a lifetime or greater because it can be willed to heirs.
Leasehold Estate: ✔️ A less-than-freehold estate that a tenant possesses in real property.
Corporeal Property: ✔️ Buildings, fences, fixtures, etc.
Incorporeal Property: ✔️ Intangibles such as rents, easements, and goodwill.
Who is excluded from needing a license? ✔️ 1) Owner selling or leasing their own property.
2) Regular employees selling or leasing for their employer who is not licensed.
3) Licensed attorney at law.
4) Auctioneer employed by owner.
5) Anyone performing under court order.
6) Property managers performing specific functions under the direction of a broker or owner.
7) Rent collectors or clerks in a broker's office.
8) Government employees performing their duties.
9) Regular employees of railroads/public utilities.
10) Banks, loan companies, insurance companies.
11) Newspapers or magazines.
12) Developers registered with HUD under the Land Sales Act.
13) Employees acting on behalf of a nonprofit or economic development association.
,How many brokers can be in a company? ✔️ One designated broker, "The Broker."
If there are other brokers' licenses in the company, who holds them? ✔️ "The Broker" holds all licenses.
Who is responsible for all licensees, and where are the licenses kept? ✔️ "The Broker" is responsible for
them, and the licenses are held at the office (or at the branch office).
"The Broker" is responsible for: ✔️ The overall management of the company, escrow accounts, and
supervision of all licensees (salespersons, broker-salespersons).
Can a branch office operate under a different name? ✔️ No, all offices must operate under the name of
the main office.
If an unlicensed person refers business to a broker, can they be paid a referral fee? ✔️ No, an
unlicensed person cannot be paid for an act that requires a real estate license. A broker can pay another
broker in Missouri or another state.
Compensation for a sale by a salesperson will come from: ✔️ Their broker. They can never be paid by
another office's broker.
All commissions to individuals licensed in the company and commission-sharing between salespersons
must be handled by: ✔️ "The Broker."
"The Broker" must maintain an _______ account unless exempted by the MREC. ✔️ Escrow.
Salespersons' duties include performing activities under: ✔️ Direct supervision of "The Broker."
Only receives compensation from "The Broker" holding their license: ✔️ Salesperson.
A salesperson may not supervise: ✔️ Other licensees.
, A salesperson may form a: ✔️ Professional Corporation (PC).
A salesperson can be an officer of a corporation but cannot be involved in: ✔️ Management.
To become a Broker-Salesperson, one must: ✔️ 1. Pass the broker's exam.
2. Return the broker license to MREC.
3. Perform as a salesperson.
4. May act as a sales manager or office manager.
5. Can list and sell while acting as a sales manager.
Sales managers are responsible for: ✔️ The daily activities of salespersons working under their
direction; however, "The Broker" has ultimate responsibility.
The Corporation, the Partnership, and the Association must: ✔️ Have a broker's license.
Each Officer, Partner, or Associate needs an appropriate license; examples include: ✔️ Broker-officer,
broker-partner, broker-associate.
Broker-officer, broker-partner, broker-associate may act as: ✔️ A branch manager, sales manager,
salesperson, and may also be the designated broker for communication with the MREC.
The following information must be sent to the MREC: ✔️ a. Company name & address, name of all
officers or partners.
b. The "designated" officer or partner to report to the MREC.
c. Address of all branch offices and name of branch manager.
d. Name and address of any controlling stockholder.
e. Corporations or partnerships must be registered with the Secretary of State, and the MREC should
receive a copy of the registration.
