REMINDER: You must take this course after taking the Missouri Salesperson Pre-Examination.
The purpose of this mandatory 24-hour Missouri Real Estate Practice course is to prepare students to begin a career in real estate with knowledge of the day-to-day activities of a real estate licensee. This course begins with an exploration of agency, including an agent's duties to clients, the creation and termination of agency relationships, broker disclosure forms and requirements, agency misrepresentation issues, and relevant Missouri statutes and Commission rules. The student moves on to topics, practices, laws, and forms associated with seller and buyer representation. Dual agency, transaction brokers, compensation issues, cooperation with other licensees, and antitrust laws are also discussed in this section. The next portion of the course addresses appraisals and pricing property, starting with a look at the role of the appraiser and Missouri laws regulating appraisers before examining the appraisal process and the principles and methods used by appraisers. This section ends with a lesson detailing the major components of a competitive market analysis and the steps in completing a CMA. This course features valuable information on home construction and inspection, including an overview of the parts and potential problems relating to house foundations, roofs, walls, floors, heating and cooling systems, and electrical and plumbing systems. Students will then explore home financing, from the mortgage markets and major lenders to various types of financial instruments, the loan process, and alternative financing such as adjustable rate mortgages. The course will also discuss subprime loans and the effects of predatory lending and the subprime market. Earnest money, escrow accounts, and applicable Missouri laws are examined. The contracts section contains practical information about the paragraphs of Missouri real estate sales contracts, the essential legal elements of a contract, contract interpretation and modification, and breach of contracts. This extensive course ends with lessons exploring the closing process, the role of an escrow agent, title insurance, settlement statements, and the estimation and proration of closing costs.