Missouri State Portion Business Conduct and Practices
- Improper Use of License and Office ✔️ **All brokers including individual brokers, designated brokers,
and office managers/supervising brokers are responsible for supervising the real estate-related activities
of all licensed and unlicensed persons associated with them. This includes the protection of any
confidential information.**
- In addition to the above, 2250-8.020 (2)(A) & (B) says, "A broker shall not permit licensed and
unlicensed persons affiliated with the broker to--
(A) Establish and carry on a real estate brokerage business for their own benefit, directly or indirectly,
where the broker's primary interest is the receipt of a fee or other valuable consideration for the use of
the broker's license by others; or
(B) Where the broker has no control or only nominal control of the business affairs conducted under the
broker's license or is only nominally associated with the business."
- If a broker decides to retire or for any reason stop the real estate brokerage business, the broker must
close the existing real estate business and return all affiliated licenses to the real estate commission.
Individual brokers are responsible for supervising the activities of the licensees under them and the
affairs of their brokerage business. They cannot do this if they do not actively participate in the day-to-
day affairs of the business. This does not mean that a broker cannot list and sell or that a broker cannot
take a vacation.
- Exceptions for Responsibility ✔️ **EXCEPTIONS**
- However, a broker shall not be held responsible for inadequate supervision if:
(A) the licensed or unlicensed person violates the law in conflict with the broker's specific written
policies or instructions;
(B) reasonable procedures have been established to verify that adequate supervision was being
performed;
,(C) the broker, upon learning of the violation, attempted to prevent or mitigate the damage;
(D) the broker did not participate in the violation;
(E) the broker did not ratify the violation; and
(F) the broker did not attempt to avoid learning of the violation.
- Section 339.190 relieves licensees from liability for statements made by engineers, land surveyors,
geologists, environmental hazard experts, wood-destroying inspection and control experts, termite
inspectors, mortgage brokers, home inspectors, or other home inspection experts unless:
- The statement was made by a person employed by the licensee or the broker with whom the licensee
is associated;
- The person making the statement was selected by and engaged by the licensee; or
- The licensee knew prior to closing that the statement was false or the licensee acted in reckless
disregard as to whether the statement was true or false.
- The new statute further relieves licensees from civil action for any information contained in a seller's
disclosure unless the licensee is a signer to the disclosure or the licensee knew prior to closing that the
statement was false, or the licensee acted in reckless disregard as to whether the statement was true or
false. Also, licensees are not considered to be making the statements contained in documents they
deliver to parties merely by being the courier of the documents.
- Branch Offices ✔️ **What constitutes a branch office is best defined by addressing what is NOT
considered a branch office. The following are NOT branch offices:**
- project sales offices or on-site offices for apartment buildings, development projects, duplexes,
apartment complexes, courts, office buildings, shopping centers, or industrial developments.
- Each branch office must be operated under the same name and license as the parent office. Each
branch office must comply with the rules regarding business hours and signs.
, - Branch Manager ✔️ **A branch office must be under the direct supervision of a person holding a
broker status license including broker-salesperson, broker-partner, broker-officer, broker-associate, or
broker. The branch manager must devote full time to the management of the office but can still list and
sell properties. The designated broker will still be responsible for all brokerage activities conducted at
the branch office. (See 2250-8.030(3))**
- Notifications to the Commission ✔️ **A designated broker must notify the MREC within 10 days after
opening or making any change in the address or management of a branch office. The MREC will want to
know the address of the branch office and the name and license number of the branch manager. (See
2250-8.030(4) and 2250-8.010)**
- Clerical Personnel; Personal/Professional Assistants
Assistant (See 339.010.1 & 5(5) and 2250-8.050) ✔️ **Unlicensed clerical or office employees of a
broker may not do anything that requires a real estate license. They may, however, perform certain
property management duties as set forth in 339.010.5(5), such as delivering and receiving rental
applications, and leases, collecting rents and security deposits, etc. With regard to the real estate sales
business of the brokerage, the activities of unlicensed clerical office personnel are limited to those
duties normally attributed to those positions such as answering the telephone, taking messages, and
filing, etc. They may type real estate forms under a licensee's supervision but they may not respond to
inquiries about listings or pending contracts or do anything else for which a license is required.**
- Advertising
(See 339.010, 339.100, 2250-8.070 & 2250-8.090(1)) ✔️ **Advertising includes any communication
between a licensee and the public, including signs, business cards, stationery, and radio, television, and
Internet advertising. A licensee must not advertise a property for sale, purchase, exchange, option, rent,
or lease in any manner that would lead the public to believe that the advertisement is being made by a
private party not engaged in the real estate business.**
- The advertising must contain the broker's regular business name OR the name under which the
broker or the broker's firm is licensed. If the licensee doing the advertising has no interest in the
property being advertised, the advertisement must be done under the direct supervision and in the
name of the broker or firm holding the licensee's license.
