Missouri State Portion: Licenses – Flashcards

To obtain a broker's license, a person must be actively licensed as a salesperson for a minimum of 24 of the immediately preceding 30 months prior to application for the broker's license. The application for broker's license must be accompanied by certification from the salesperson's broker that the salesperson has actively worked in the real estate business for at least 24 of the immediately preceding 30 months, proof of satisfactory completion of the required (48-hour) broker pre-examination course within 6 months prior to application and proof of having passed the broker prelicense examination.

In order to be approved for a real estate license in the state of Missouri, you must show yourself to be competent to transact the real estate brokerage business and be a person of honesty, integrity and good moral character. Competency is determined by verifying that the applicant is of the age of majority (18 years old), has completed the prescribed real estate pre-examination school (or is exempt from the school requirements), passed the pre-licensing examination and satisfactorily completed the required 24-hour Missouri Real Estate Practice course. Honesty, integrity and good moral character are determined by verifying the applicant's answers to certain questions on the application for license and, in some cases, completing a background check of the license applicant. The MREC may deny an application for license if the applicant has a criminal record, or if the applicant has a criminal record not disclosed on the application for licensure. The MREC must deny an application for license if the applicant has not paid or filed a state income tax return in any of the immediately preceding three years. They may also, at their discretion, review an applicant's credit history to determine honesty and integrity. The MREC cannot refuse to grant a license or suspend or revoke a license because of a bankruptcy. Further the MREC is required to revoke or to refuse to issue a broker or salesperson license if the licensee or applicant has pleaded guilty to or been found guilty of a dangerous felony or murder in the first degree, sexual offenses such as rape, sexual assault, forcible sodomy, statutory rape or sodomy, child molestation, sexual misconduct involving a child, sexual abuse, enticement of a child, incest, child abandonment, endangering the welfare of a child, child abuse, using a child in a sexual performance, promoting sexual performance by a child, trafficking in children, child pornography, promoting obscenity, promoting child pornography, possession of child pornography, furnishing child or other pornographic materials to a minor or coercing acceptance of obscene material. The MREC must also refuse to issue or revoke a license of anyone who has failed to file his/her Missouri state income tax return or pay any tax due or who has been found guilty of committing mortgage fraud as defined in section 570.310 RSMo. A person whose license was denied or revoked under this section may appeal the denial or revocation to the Administrative Hearing Commission (AHC) within 90 days of the date of notice of revocation. NOTE: The law does not require that you be a United States Citizen or a Missouri resident, nor does it require that you be a High School graduate or have a G.E.D. in order to obtain a real estate license. Licenses may be issued to individuals, partnerships, corporations, associations or limited liability companies. When a broker wishes to operate a real estate business as a partnership, corporation, association or limited liability company, the company must also obtain a broker license. When the commission receives an application for a broker license, the commission may investigate the background of all partners, members, officers, directors, and/or stockholders of the business. In the event that it is discovered that any partner, member, officer, director or stockholder of the company has a criminal record, the real estate commission may deny the application for license for the company.

Yes, because she is dealing in real estate for the owners for compensation. Since she is dealing in real estate for others and for a fee, she must have a real estate broker's license or be a salesperson licensed under and acting on behalf of a licensed broker. Notice here that Carrie is NOT an "employee" of a utility company. Employees of businesses that are buying or selling on their own behalf are exempt from the license requirement, as you will see later. But, in this case, she deals in real estate for "some of the local utility companies," and is, therefore, not an employee of a company. In the context of this question, the word "employ" means "use." To be required to hold a valid real estate license, she must be dealing in real estate for compensation AND for others.

Yes, the attorney is exempt from the license law. The attorney's client can compensate him in any way that is agreeable between the client and the attorney. However, no real estate broker can share his/her compensation in connection with a real estate transaction with an attorney unless the attorney holds a broker's license. Missouri law does not allow brokers to share compensation with anyone that does not hold a valid, active real estate broker's license. This question does not ask if the attorney can receive a commission split for his services. It merely asks if the attorney can be paid a commission, which indicates that the client would be paying the commission.

Individuals who are licensed in their home state may apply for a nonresident license in Missouri. Nonresident applicants must provide the MREC with a certification from their home state licensing authority stating that their license is in good standing. Every nonresident salesperson must be associated with a Missouri broker. When applying for a nonresident license the applicant must file with the MREC an irrevocable consent that any necessary legal actions may be commenced against the nonresident in the proper court of any county in this state, and the MREC or any other party will not have to sue the nonresident in his or her home state. An individual who holds a real estate license in another state/jurisdiction desiring to obtain a real estate license in Missouri, must fulfill the following requirements: SALESPERSON. If an individual holds a current and active salesperson license in another state/jurisdiction at the time they apply for a Missouri salesperson license, they must pass the STATE portion of the Missouri salesperson exam and take the 24-hour Missouri Real Estate Practice (MREP) Course. The MREP course can be taken before or after the exam date, but must be taken prior to applying for licensure. The 48-hour Missouri salesperson pre-examination course is not required. Application for licensure must be submitted to the MREC within six months of passing the STATE portion of the Missouri salesperson exam. A license (history) certification issued within three months from the real estate commission of the state/jurisdiction from where applying must be provided with the application for licensure. A copy of the license is not acceptable. Certifications that are more than three months old, or do not reflect that the individual holds a current and active license, will cause the application to be deemed incomplete. The MREC may waive the examination requirement for a nonresident licensed in another state who extends a similar exemption to Missouri resident licensees, provided a written agreement for reciprocity exists between that state and Missouri. If a licensing application is not provided by AMP at the test site upon passing the State portion of the exam, contact the Missouri Real Estate Commission at 573-751-2628 (option 2). Missouri resident salesperson application fees are $90.00 and non-resident salesperson application fees are $150.00. Nonresidents must also include the attached Nonresident Consent form with the application for licensure.

BROKER. If an individual holds a current and active salesperson license in another state/jurisdiction and wishes to obtain a Missouri broker's license, they will be required to have 24 of the last 30 months active salesperson experience, take the Missouri 48-hour broker pre-examination course, take BOTH portions of the Missouri broker exam and apply for licensure within six months of the 48-hour broker course completion date. If an individual holds a current and active broker license in another state/jurisdiction (other than those states/jurisdictions who have ONLY broker licenses) they must have 24 of last 30 months active license experience as a salesperson or broker, pass the STATE portion of the Missouri broker exam, and apply for licensure within six months of passing the STATE portion of the Missouri broker exam. The 48-hour broker pre-examination course is not required. If licensed in a state/jurisdiction that only issues broker licenses, Missouri will recognize the single license as a salesperson license. A license (history) certification issued within three months from the real estate commission of the state/jurisdiction from where applying must be provided with the application for licensure. A copy of the license is not acceptable. Certifications that are more than three months old, or do not reflect that the individual holds a current and active license, will cause the application to be deemed incomplete. If a licensing application is not provided by AMP at the test site upon passing the exam, contact the Missouri Real Estate Commission at 573-751-2628 (option 2). Missouri resident broker application fees are $140.00 and non-resident broker application fees are $210.00. Nonresidents must also include the attached Nonresident Consent form with the application for licensure. If planning to operate as a corporation, partnership, or LLC, the applicant will also need to obtain a real estate license for that entity. The entity application, Application for a Real Estate Corporation, Partnership or Association (LLC) License, can be located on the Missouri Real Estate Commission's web site at www.pr.mo.gov/realestate.asp under Application Forms. Fee for a Missouri entity is $80 and nonresident entity is $150.

Every Missouri real estate salesperson license shall expire at midnight on *September 30 in every even numbered year and must be renewed on or before that date. * *Broker licenses expire and must be renewed on or before midnight on June 30 in every even numbered year. (See 2250-4.020)* Renewal application must be made on forms provided by the real estate commission. The MREC may mail to each licensee at least 30 days prior to license expiration, a notice of the expiration and application for renewal. The notice will be mailed to the address on file with the real estate commission. Within 10 days following a change in name or home address, each licensee shall notify the MREC in writing of the name or address change. A change of address form is available on the MREC's Web site and may be submitted by mail, email or fax. If you do not notify them in writing of a change of address, you might not receive your renewal application. NOTE: The MREC is NOT required to mail renewal applications to licensees. They do normally mail them out to real estate licensees at least 30-45 days prior to license expiration. They are typically sent via bulk mail. Bulk mail does not get forwarded or returned. If a licensee moves and fails to notify the MREC of their new address, the renewal notice will NOT be received by that licensee. It is the responsibility of each licensee to ensure that all requirements for renewal have been met and that the application for renewal, on the proper form, properly completed and accompanied by the proper fee is made prior to license expiration. Failure to receive a renewal notice shall NOT excuse a licensee from renewing on time. Until a new license is procured, the holder of an expired license may not perform any act for which a license is required. When a broker fails to renew his or her license all brokerage activities conducted under that broker, including the activities of the salespersons licensed under that broker must cease until the broker renews his or her license and the new license is received by the broker. Before the deadline for license renewal, each licensee must complete a minimum of 12 hours of MREC approved continuing education provided by a school that has been approved by the real estate commission. Licensees must send the properly completed and signed application for renewal to the MREC, postmarked before close of business of the date of expiration (evidenced by the postmark), together with the appropriate renewal fee. Proof of completion of the required continuing education requirements must be provided upon request of the MREC. NOTE: The broker's license must be renewed before any salespersons working under that broker may renew their licenses.

A delinquent fee of $50 per month or partial month elapsed since the date of expiration must accompany delinquent renewal applications. The delinquent fee shall not, however, exceed $200. Any licensee who fails to complete the continuing education requirements before the renewal deadline will have to attend the 24-hour Missouri Real Estate Practice course. After completion of the course, the licensee will have to send in the completed and signed renewal application together with proof of having completed the required course, and the appropriate renewal fee plus the delinquent fee. The renewal application must be postmarked within 6 months from the date of completion of the required course. Any licensee who fails to renew during a subsequent renewal period is no longer licensed and in order to become licensed again will be required to successfully complete the required pre-examination course(s), pass the required exam and apply as if an original applicant. In other words, a licensee that fails to renew his/her license has two years from the date of expiration of the licensee within which to do a late renewal. If the license is not renewed during that time period, the license will lapse on the next expiration date and the licensee will be required to start all over as an original applicant if he/she wishes to be licensed again.

pay a delinquent fee of $150 plus the renewal fee and show proof of completion of an approved MREP course. The delinquent fee is $50 per month for each month or partial month elapsed up to a maximum of $200. Since it was only 3 months later when she decided to renew it, the delinquent fee is $150. She will also have to pay the renewal fee, plus show proof of having completed the required Missouri Real Estate Practice course not more than 6 months prior to license renewal or show proof of having completed the required continuing education prior to expiration of the license.

Brokers may not conduct business under any other name or at any other address than the one for which the broker's license is issued unless they have first complied with the requirements for registration of a fictitious name. In other words, if a broker's name is Susan Smith and she wishes to conduct business in the name of Susan Smith Realty, the word "Realty" is not part of her name, so she must register the fictitious name of Susan Smith Realty with the Secretary of State and then send a copy of the registration to the MREC within 10 days. If a broker changes his or her name, home or business address, the broker must notify the MREC in writing within 10 days after the date the change becomes effective. When a broker returns his or her license to the real estate commission, he or she must first comply with the requirements contained in 2250-8.155 regarding closing a real estate firm. If the broker does not change status or reinstate the license within 6 months from the date the license was returned to the MREC, the broker will be required to complete the Missouri Real Estate Practice course and show proof of completion of that course within 6 months prior to the date of application for reinstatement. If the license is not reinstated or placed on inactive status within the subsequent renewal period, the broker will be required to start all over as an original issue.

send a copy of the registration to the MREC within 10 days. Within 10 days from receipt of the file stamped copy of the fictitious firm name registration, a copy must be sent to the MREC. When a broker operates as a sole proprietor, the broker's license will be issued in the individual broker's name, but the MREC must have a copy of any fictitious firm name filing in their records so that they know what name the broker is operating under.

A broker who wishes to operate under the supervision of another broker may hold a broker-salesperson license. The broker license must be surrendered to the MREC and an application filed for a broker-salesperson license. The broker-salesperson license will be sent to the Designated Broker (the broker in charge of the company). A broker cannot hold any other type of broker license while licensed as a broker-salesperson, and no individual holding a broker-salesperson license may have a salesperson licensed under him or her. A broker license may be reinstated upon proper application to the commission accompanied by the required fee. A broker-salesperson cannot be licensed with more than one broker during the same period of time. A broker-salesperson is one who has met all the qualifications for a broker license but chooses to work under another broker. A broker-salesperson operates similar to a salesperson except that a broker-salesperson can send his/her license in and transfer it to any of the other types of broker licenses at any time without having to complete any further education or testing. Also, a broker salesperson can manage a branch office or be the sales manager of a real estate office while a salesperson cannot.

Salesperson License; Transfers When a licensee's association with a broker is terminated, the broker must notify and return the licensee's license to the M.R.E.C within 72 hours. If the licensee submits a letter of termination to the broker, the broker will be required to give the licensee a dated and timed receipt. The licensee will then have 6 months in which to transfer to another broker or change status. If the licensee does not transfer to another broker or change status within the 6-month period, the licensee will be required to satisfactorily complete an approved Missouri Real Estate Practice course not more than 6 months prior to transfer or status change. If the license is not transferred or placed on inactive status within the renewal period, the licensee will have to start all over as an original applicant by completing an approved pre-examination course, passing the required test, completing the 24-hour Missouri Real Estate Practice course and applying for a new license. When a licensee transfers to another broker, the license will be deemed transferred and the licensee may begin working under the new broker on the date the properly completed and paid application is sent by certified mail or overnight delivery, if all required materials are included under one cover. Upon termination of a licensee's association with a broker, the licensee shall return all property belonging to the broker, including, but not limited to all listing information acquired by the licensee in any manner during the licensee's association with the broker.

A salesperson whose affiliation with a broker is terminated has six months within which to transfer to another broker or put his or her license on inactive status. A license will be issued to the salesperson with the word INACTIVE clearly printed on the license. The salesperson cannot associate with a broker or do anything for which an active license is required while the license is on inactive status. Inactive licenses must be renewed before each renewal deadline, but the continuing education requirements are waived. In order to reactivate an inactive license, the licensee must complete an approved 24-hour Missouri Real Estate Practice course, but DOES NOT need to retake the pre-examination course or the prelicense examination. When dealing on his/her own behalf, an inactive licensee must disclose in writing the fact that he/she is a licensed real estate salesperson in the state of Missouri.

Only licensed salespersons and broker-salespersons may be licensed as professional corporations. A professional corporation is a legal entity under which certain properly licensed professionals may operate. It provides the owner with protection from personal liability while performing his or her duties and services of the profession for which he or she is licensed. The name of the professional corporation is the individual's name with the initials, "P. C." after the name. In order to be licensed as a professional corporation, the licensee must first submit an application to the MREC for approval of the name along with the required fee. The name must be the salesperson's name with the words "professional corporation" or the initials "P. C." after the name. Then the licensee must register with the Secretary of State as a professional corporation. After filing the registration with the Secretary of State, a copy of the filed registration must be provided to the MREC along with the proper license application form. All stock in the professional corporation must be held by the salesperson or broker-salesperson to whom the license is issued. Upon approval of the MREC, the license will be issued in the name of the licensee with the words Professional Corporation or the initials P.C. after the licensee's name.

The MREC may refuse to examine or issue a license to any person if they determine that the applicant is not of legal age, has a criminal record or has committed any act demonstrating untrustworthiness, improper or fraudulent business dealings, bad faith or gross incompetence. (The rights and duties of the MREC regarding denial of applications are found in the state law booklet under Section 339.080. *Students are also urged to read Section 339.100.)* The MREC may also refuse to grant a license to any person violating rules imposed by the administrator of a pre-license examination. Anyone denied a license or the right to be examined will be notified in writing by the MREC. The notice will include the reasons for the denial and inform the applicant of his or her right to file a complaint with the Administrative Hearing Commission. The notice will be sent by certified mail to the last known address of the applicant.

An application fee of $50 must be paid upon application for a resident or non-resident Missouri salesperson or broker license in addition to the license fee. All fees shall be paid by personal check, cashier's check or money order made payable to the Missouri Real Estate Commission. All fees are nonrefundable. License Fees: Original Issuance Renewal Resident Salesperson $40 $40 Resident Broker $80 $50 Nonresident Salesperson $100 $100 Nonresident Broker $150 $150 Therefore, the total due upon application for a resident salesperson license will be $90. The total for a resident broker will be $130.

send her license to the MREC, pay the appropriate fee and request a broker license. A broker-salesperson is a licensee who has met all the requirements to hold any type of broker license. No further education or testing is required to transfer it to any of the other types of broker licenses.

a broker who chooses to work under another licensed broker. A broker-salesperson receives compensation only from his/her broker and cannot have salespersons licensed under him/her. A broker-salesperson can manage a branch office or be the sales manager of a real estate office. To hold a broker-salesperson license, one must meet all the requirements for a broker license.

Application for a real estate license must be on the form prescribed by the Missouri Real Estate Commission (MREC), and accompanied by the appropriate fee, proof of completion of the required pre-examination course and proof of passing the required examination. *Application must be made within 6 months from the date of completion of the required pre-examination course.* To obtain a salesperson's license an applicant must: Successfully complete 48 hours of instruction in a MREC approved course known as "Salesperson Pre-Examination Course." Pass the AMP salesperson's test. Complete 24 hours of instruction in a MREC approved course called "Missouri Real Estate Practice." Submit his/her fingerprints to the MO Highway Patrol and FBI approved vendor for a fingerprint background check. Affiliated with a licensed broker and apply for a salesperson's license. To obtain a broker's license an applicant must: Be actively licensed under a broker as a salesperson for at least 24 of the immediately preceding 30 months. Complete 48 hours of instruction in a MREC approved Broker Pre-examination course. Pass the AMP broker's test. Submit his/her fingerprints to the MO Highway Patrol and FBI approved vendor, if not already submitted as a Missouri salesperson, for a fingerprint background check. Apply for a broker's license. The following pages will address the specifics of these requirements.