CHAPTER 1: MONTANA LICENSE LAW
EXAM QUESTIONS WITH CORRECT
ANSWERS
The Board Of Realty Regulation Consists of how many members and how are the
members appointed? - Correct Answers -7 members and are appointed by the governor
What are the Civil and Criminal Penalties for those engaging in real estate without a
license? - Correct Answers -Guilty of a misdemeanor
First Offense will be fined b/t $100-$500 or imprisoned for 90 days or BOTH
Subsequent Offense will be fined b/t $500-$2,000 or imprisoned for 6 months or BOTH
What is the Real Estate Recovery Account? - Correct Answers --Within the state special
revenue fund for the use of the board there is a recovery account
-Is used to pay claims against licensees that remain unsatisfied - the board maintains a
minimum blanca of $100,000 and to maintain this new licensees pay an additional fee of
$35 when obtaining initial license. If it is lower than minimum balance assessment will
take place to determine how to maintain balance (done by board)
Claims against the recovery account? - Correct Answers -Applications for claim must be
made within 2 years of final judgement, cannot be made for an amount over $25,000,
the board will conduct a hearing within 30 days of the application
To whom might the Board pass evidence for criminal proceedings against licensees
violating timeshare law or rules? - Correct Answers -To the Attorney general or the
proper prosecuting attorney, who can institute criminal proceedings
What is consideration? - Correct Answers -includes money compensation, change of
free services, or any other valuable good or service that person expects to be paid
What is a real estate commission? - Correct Answers -state license laws provide for the
establishment of a real estate regulatory entity to administer and enforce licensing
legislation
The state real estate commission has the authority to? - Correct Answers --oversee the
licensing process
,-administer all aspects of the license laws
-receive and deliberate on consumer complaints
-handle problems between licenses
What are the requirements for continuing education for new salesperson license? -
Correct Answers -they receive an interim license that terminates on Oct. 31st of the
year of the initial license date, must complete the "12-hour rookie course" within 120
days following their original licensee issue date
Continuing Real Estate Education? - Correct Answers -All active licensees must
complete board-mandated core education each year along with a 12 hour of continuing
real estate education each year.
A license may be placed on inactive status by? - Correct Answers -1. paying the
required fee
2. forwarding the license to the Board for cancellation of active status
3. Submitting a written request that the license be place inactive
4. must renew the inactive license each year to avoid lapse, expiration or termination
How do you reactivate an inactive license? - Correct Answers -1. filing a change of
address application
2. providing evidence of completing 24 hours of continuing education
3. providing evidence of completing the previous license years core course
4. paying the required fee
How many days does a Broker have to notify the department of moving addresses? -
Correct Answers -10 days
A salesperson whose license has been cancelled due to termination of association with
a supervising broker must? - Correct Answers -notify the Board of a new supervising
broker relationship or notify board to place on inactive status, pay the required fees
within 10 days
An existing supervising broker may not transfer temporary supervision of a salesperson
for more than how many days? - Correct Answers -60 days in a 12-month period
What are the disciplinary guidelines the board may impose against a licensee violating
any laws or rules? - Correct Answers -they may impose any action, the board decides
on a case-by-case basis that seems appropriate
Where must the board deposit money it receives? - Correct Answers -must be
deposited in the recovery account
What are the 6 Real Estate Activities? - Correct Answers -1. creation and improvement
2. management and maintenance
3. demolition
, 4. investment ownership
5. regulation
6. transfer
Persons requiring a Real Estate License? - Correct Answers -It is a violation of license
law for a person to act as a real estate broker or salesperson, or to advertise as a real
estate agent without a license
Predetermination for Licensing? - Correct Answers -Applicants with prior disciplinary
actions, criminal convictions, or deferred sentence may make an application for a
predetermination prior to taking the class and exam to see if they can continue.
All applicants for broker's license must: - Correct Answers -18 years of age, have
worked as al license real estate salesperson for two years, or have experience or
special education that the board considers equivalent, complete 60 hours of
coursework, pass written exam, must apply within 12 months of taking exam
All applicants for a salesperson license must: - Correct Answers -18 years of age, at
least two years of high school, file license application, complete 60 hours of coursework,
pass written exam, must apply for license within 12 months
How must the license and Pocket card be displayed? - Correct Answers -a broker must
conspicuously display his or her own license in the broker's place of business, licensees
are issued a pocket card that certifies the holder is registered, the period for which fees
have been paid, and state the name and address of the salespersons supervising
broker
What is a supervising broker endorsement? - Correct Answers -a broker must complete
four hours of continuing education in the area of supervising broker annually, this
cannot be placed on inactive status, must complete the four hours or you can not be
reinstated
Reciprocity - Correct Answers -the Board may enter into an agreement with any other
state so residents of the other state may obtain a nonresident license in Montana,
provided the other state grants Montana licensees the same privleges
When do licensees need to renew their license? - Correct Answers -must renew his or
her license on or before October 31st wether it be active or inactive
Deposited Money not otherwise provided for? - Correct Answers -when money is
received by the Board or the Department and there is no provision for the disposition of
the money, the money is deposited in the state special revenue fund for the Board's use
The agency relationship of a buyer agent, seller agent, or dual agent continues until
whichever of the following happens? - Correct Answers -Completion of performance by
EXAM QUESTIONS WITH CORRECT
ANSWERS
The Board Of Realty Regulation Consists of how many members and how are the
members appointed? - Correct Answers -7 members and are appointed by the governor
What are the Civil and Criminal Penalties for those engaging in real estate without a
license? - Correct Answers -Guilty of a misdemeanor
First Offense will be fined b/t $100-$500 or imprisoned for 90 days or BOTH
Subsequent Offense will be fined b/t $500-$2,000 or imprisoned for 6 months or BOTH
What is the Real Estate Recovery Account? - Correct Answers --Within the state special
revenue fund for the use of the board there is a recovery account
-Is used to pay claims against licensees that remain unsatisfied - the board maintains a
minimum blanca of $100,000 and to maintain this new licensees pay an additional fee of
$35 when obtaining initial license. If it is lower than minimum balance assessment will
take place to determine how to maintain balance (done by board)
Claims against the recovery account? - Correct Answers -Applications for claim must be
made within 2 years of final judgement, cannot be made for an amount over $25,000,
the board will conduct a hearing within 30 days of the application
To whom might the Board pass evidence for criminal proceedings against licensees
violating timeshare law or rules? - Correct Answers -To the Attorney general or the
proper prosecuting attorney, who can institute criminal proceedings
What is consideration? - Correct Answers -includes money compensation, change of
free services, or any other valuable good or service that person expects to be paid
What is a real estate commission? - Correct Answers -state license laws provide for the
establishment of a real estate regulatory entity to administer and enforce licensing
legislation
The state real estate commission has the authority to? - Correct Answers --oversee the
licensing process
,-administer all aspects of the license laws
-receive and deliberate on consumer complaints
-handle problems between licenses
What are the requirements for continuing education for new salesperson license? -
Correct Answers -they receive an interim license that terminates on Oct. 31st of the
year of the initial license date, must complete the "12-hour rookie course" within 120
days following their original licensee issue date
Continuing Real Estate Education? - Correct Answers -All active licensees must
complete board-mandated core education each year along with a 12 hour of continuing
real estate education each year.
A license may be placed on inactive status by? - Correct Answers -1. paying the
required fee
2. forwarding the license to the Board for cancellation of active status
3. Submitting a written request that the license be place inactive
4. must renew the inactive license each year to avoid lapse, expiration or termination
How do you reactivate an inactive license? - Correct Answers -1. filing a change of
address application
2. providing evidence of completing 24 hours of continuing education
3. providing evidence of completing the previous license years core course
4. paying the required fee
How many days does a Broker have to notify the department of moving addresses? -
Correct Answers -10 days
A salesperson whose license has been cancelled due to termination of association with
a supervising broker must? - Correct Answers -notify the Board of a new supervising
broker relationship or notify board to place on inactive status, pay the required fees
within 10 days
An existing supervising broker may not transfer temporary supervision of a salesperson
for more than how many days? - Correct Answers -60 days in a 12-month period
What are the disciplinary guidelines the board may impose against a licensee violating
any laws or rules? - Correct Answers -they may impose any action, the board decides
on a case-by-case basis that seems appropriate
Where must the board deposit money it receives? - Correct Answers -must be
deposited in the recovery account
What are the 6 Real Estate Activities? - Correct Answers -1. creation and improvement
2. management and maintenance
3. demolition
, 4. investment ownership
5. regulation
6. transfer
Persons requiring a Real Estate License? - Correct Answers -It is a violation of license
law for a person to act as a real estate broker or salesperson, or to advertise as a real
estate agent without a license
Predetermination for Licensing? - Correct Answers -Applicants with prior disciplinary
actions, criminal convictions, or deferred sentence may make an application for a
predetermination prior to taking the class and exam to see if they can continue.
All applicants for broker's license must: - Correct Answers -18 years of age, have
worked as al license real estate salesperson for two years, or have experience or
special education that the board considers equivalent, complete 60 hours of
coursework, pass written exam, must apply within 12 months of taking exam
All applicants for a salesperson license must: - Correct Answers -18 years of age, at
least two years of high school, file license application, complete 60 hours of coursework,
pass written exam, must apply for license within 12 months
How must the license and Pocket card be displayed? - Correct Answers -a broker must
conspicuously display his or her own license in the broker's place of business, licensees
are issued a pocket card that certifies the holder is registered, the period for which fees
have been paid, and state the name and address of the salespersons supervising
broker
What is a supervising broker endorsement? - Correct Answers -a broker must complete
four hours of continuing education in the area of supervising broker annually, this
cannot be placed on inactive status, must complete the four hours or you can not be
reinstated
Reciprocity - Correct Answers -the Board may enter into an agreement with any other
state so residents of the other state may obtain a nonresident license in Montana,
provided the other state grants Montana licensees the same privleges
When do licensees need to renew their license? - Correct Answers -must renew his or
her license on or before October 31st wether it be active or inactive
Deposited Money not otherwise provided for? - Correct Answers -when money is
received by the Board or the Department and there is no provision for the disposition of
the money, the money is deposited in the state special revenue fund for the Board's use
The agency relationship of a buyer agent, seller agent, or dual agent continues until
whichever of the following happens? - Correct Answers -Completion of performance by
