MTRES Montana Real Estate Salesperson - Set 1 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: During an investigation into a Flathead Lake brokerage, the board needs sworn testimony from a former assistant and copies of transaction files the broker has not voluntarily produced. Under the investigations statute, what power lets the board compel this testimony and these records?

The power to revoke the license immediately

The power to arrest the broker

The power to subpoena witnesses and records

The power to seize the office

Question 42: A Livingston seller tells the listing agent the roof is only two years old, and the agent passes that along to a buyer without knowing it is false. Under Montana's exculpatory statute, what protects the agent from liability for that false information?

The seller signed a disclaimer

The buyer waived all inspections

A written brokerage office policy

Lack of actual knowledge of falsity

Question 43: After a transaction closes in Havre, a broker asks how long the trust-account records tied to that deal must be retained before they may lawfully be destroyed. Under Montana's administrative rule, what is the minimum retention period for those trust records?

Eight years

Three years

Five years

Ten years

Question 44: A buyer signs a buy-sell agreement to purchase a residential condominium unit at Flathead Lake and receives the declaration, bylaws, and rules from the seller. Montana law delays when that agreement becomes effective. When does the buy-sell agreement become effective?

Immediately upon signing

Three business days after signing

Seventy-two hours after delivery

Five days after delivery

Question 45: Montana's Small Tract Financing Act authorizes a specific security instrument and nonjudicial process, but only for parcels within a certain size limit. A lender wants to know the largest parcel the Act covers. What is the maximum acreage for the Act?

One hundred sixty acres

Forty acres

Six hundred forty acres

Twenty acres

Question 46: A tenant renting a downtown Butte apartment has failed to pay the monthly rent when due. The landlord wants to serve a written notice that will terminate the tenancy if the tenant does not pay. How many days must that notice give for nonpayment?

Seven days

Fourteen days

Thirty days

Three days

Question 47: A landlord in Billings preparing a residential lease asks how much she may collect as a security deposit and whether she must pay the tenant interest on it. Unlike many states, Montana law addresses both points a certain way. Which statement is correct?

Capped at two months, interest owed

No cap and no required interest

Capped at one month, no interest

No cap, but interest is owed

Question 48: A candidate trained on a national outline expects Montana to maintain a state-run real estate recovery account that reimburses consumers harmed by licensee misconduct. A local instructor corrects this assumption. What is the current status of a Montana real estate recovery account?

It remains funded by licensees

It reimburses up to fifty thousand

It applies only to brokers

It has been repealed

Question 49: When a Montana licensee submits an application to renew an active license, the board conditions issuance on documentation of a particular safeguard. A renewal will not be granted unless the licensee shows this is in force. What must the licensee demonstrate at renewal?

Proof of a surety bond

Proof of recovery-fund contribution

Proof of errors and omissions coverage

Proof of general liability insurance

Question 50: Beyond the automatic tail coverage, a departing licensee may elect to purchase a longer optional extended reporting period to protect against late-surfacing claims. Montana's mandate sets a floor on how long that optional period must run. What is the minimum optional reporting period?

Not less than three hundred sixty-five days

Not less than sixty days

Not less than ninety days

Not less than thirty days

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