Real Estate Exam- Missouri Portion Only Graded A+
MREC Composition - The MREC consists of: ️7 members who must be U.S. citizens for at least one year. They are
appointed by the governor with the Missouri Senate's consent. Six members should have been licensed
brokers for at least 10 years, ...
- The MREC consists of: ✅️7 members who must be U.S. citizens for at least one year. They are
appointed by the governor with the Missouri Senate's consent. Six members should have been licensed
brokers for at least 10 years, with one member representing the general public.
MREC Responsibilities
- Voting and Licensing: ✅️All members have voting rights. Members may hold an inactive license while
employed and cannot engage actively in the real estate business. They receive $75 per day for meetings,
plus expenses.
- Purpose of MREC: ✔️The MREC is designed to protect the public and was established by state
legislature.
License Violations
- ✅️True. Any person, corporation, partnership, or association licensed by the MREC could face
accusations of a license law violation, classified as a class B misdemeanor. Unlicensed individuals are not
subjected to MREC regulations, except for practicing without a license.
- Final Decision Authority: ✅️The MREC makes final decisions regarding the suspension, revocation, or
probation of a license.
MAHC Structure and Function
- MAHC composition: ✅️Consists of 3 attorneys employed by the state who work under the attorney
general and are authorized to practice before the Missouri Supreme Court. Cases are sent to the MAHC
to establish whether charges against the licensee are justified. If the MAHC finds the MREC incorrect,
the case is dismissed; if they support the MREC’s stance, they return the case for license action.
- MAHC Purpose: ✅️The MAHC holds hearings when requested by the MREC to determine guilt or
innocence; cases are dismissed if the licensee is innocent. Individuals denied a license by MREC can
appeal to the MAHC.
,MAHC Limitations
- MAHC cannot: ✅️1. Impose fines on licensees.
2. Get involved in disputes among licensees or companies.
3. Address criminal acts outside of license law; such cases are referred to the attorney general's office.
Broker Responsibilities
- A broker: ✅️Performs real estate activities for others while collecting commissions, supervises
licensees, manages escrow accounts, oversees the company, and ensures all licensed individuals under
them are compensated. All arrangements belong to the broker and remain with them if the license is
transferred.
Licensing Procedures
- Notice to MREC: ✔️Brokers must notify the MREC within 10 days of changing their company office.
- License Renewal Dates:
- Broker Licenses: ✔️Renew by June 30 every two years.
- Salesperson Licenses: ✔️Renew by September 30 every two years.
Independent Contractors
- ✅️Brokers cannot direct how an independent contractor performs their tasks, but they can outline
what needs to be done. Independent contractors also receive tax Form 1099.
- Company Broker Limitation: ✔️Only one broker is allowed per company.
Broker-Salesperson Transition
- ✅️A broker can send their license to the MREC for safekeeping, then operate as a broker-salesperson,
act as a branch sales manager, and continue selling property. All licenses remain with the principal
broker.
, Corporate Requirements
- For broker officers of a corporation: ✅️The MREC requires the name, residence, and business address
of each partner (licensed or unlicensed). The corporation must maintain good standing with the
Secretary of State and report any changes. A salesperson can be an officer in a corporation but cannot
manage.
Designated Broker Protocol
- ✅️A designated broker is any individual licensed to operate as a broker, and the MREC communicates
only with this designated broker.
Salesperson Licensing Requirements
- ✅️A salesperson must pass the 48-hour course, the AMP exam, and the 24-hour Missouri Real Estate
Practices course. They must be high school graduates (or equivalent), at least 18 years old, and submit
fingerprints and undergo a background check.
License Transfer and Commission
- If licensed and transferring to another broker on an existing transaction, the written agreement with
the previous broker dictates entitlement to commission upon closing. The previous broker will pay the
salesperson directly. ✔️Another broker cannot compensate a salesperson who isn’t licensed with
them, except as specified.
Status of Inactive Licenses
- Upon returning a license to the MREC, it will be held in inactive status. An inactive licensee cannot
collect fees (even referrals) but must renew their license every two years on September 30 and pay
applicable fees. ✅️Continuing education is not required while the license is inactive.
Reinstatement Procedures
- ✔️To reactivate a license, 24 hours of Missouri practices course are needed.
Provisions for Temporary Brokers
- ✔️Temporary broker licenses are issued upon the death of a sole proprietorship broker.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CertifiedGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.49. You're not tied to anything after your purchase.
