Free State Broker Practice Questions

Sample Practice Questions

Try these 10 sample questions from the State Broker practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1A written complaint against a Montana broker reaches the Department without stating any grounds. Which feature prevents it from satisfying the statutory complaint requirement?

   1. A. It does not specify the grounds for the complaint
   2. B. It identifies a license applicant as the respondent
   3. C. It was filed by a private entity
   4. D. It was submitted to the Department

   Answer: A

   Explanation: MCA 37-1-308(1) requires a written complaint to be filed while "specifying the grounds for the complaint." The missing grounds are the defect.

   Reference: 37-1-308. Unprofessional conduct -- complaint -- investigation -- immunity -- exceptions, MCA — MCA 37-1-308(1)

2. 2An unlicensed person performs a single act included in Montana's statutory definition of broker and is not exempt. How is that single act treated?

   1. A. It establishes a statutory-broker relationship
   2. B. It is sufficient to constitute engaging in the broker business
   3. C. It places an existing license on inactive status
   4. D. It constitutes unprofessional conduct

   Answer: B

   Explanation: MCA 37-51-301(4)(b) provides that "any single act" in the broker or salesperson definitions is sufficient.

   Reference: 37-51-301. License required -- limited to persons, MCA — MCA 37-51-301(4)(b)

3. 3A franchise broker advertises only under the franchise logo. What must the broker add to avoid Montana's franchise-name advertising violation?

   1. A. The property's tax identification number
   2. B. The broker's own name or the office trade name
   3. C. The seller's full legal name
   4. D. The Board's license-verification URL

   Answer: B

   Explanation: MCA 37-51-321(1)(a) requires the franchise name or logo to incorporate "the broker's own name or the trade name."

   Reference: 37-51-321. Unprofessional conduct -- sanction of license, MCA — MCA 37-51-321(1)(a)

4. 4What is the minimum per-claim limit for an independently issued Montana real estate professional-liability policy?

   1. A. $100,000
   2. B. $250,000
   3. C. $300,000
   4. D. $1,000,000

   Answer: A

   Explanation: MCA 37-51-325(6)(a) requires "a minimum per-claim limit of $100,000."

   Reference: 37-51-325. Professional liability insurance required -- errors and omissions insurance coverage -- policy requirements, MCA — MCA 37-51-325(6)(a)

5. 5A salesperson sells personally owned property without involving the brokerage. What supervisory duty does Montana impose on the supervising broker for that personal transaction?

   1. A. No supervision or training for the transaction
   2. B. Reasonable supervision of the transaction
   3. C. High-level supervision of the transaction
   4. D. Ongoing training during the transaction

   Answer: A

   Explanation: MCA 37-51-309(6)(a) says the chapter does not require supervision or training for a salesperson's "for-sale-by-owner personal transactions."

   Reference: Montana Code Annotated 2025 — MCA 37-51-309(6)(a)

6. 6A Montana broker receives a disciplinary notice and wants a contested hearing. By when must the Department receive the broker's written request?

   1. A. Within 10 days after service
   2. B. Within 21 days after the broker receives the notice
   3. C. Within 30 days after issuance
   4. D. Within 60 days after the investigation closes

   Answer: B

   Explanation: MCA 37-1-309(2) says the request must be received "within 21 days after the licensee's receipt of the notice."

   Reference: 37-1-309. Notice -- request for hearing -- method of communication and service -- fee, MCA — MCA 37-1-309(2)

7. 7A corporation wants a Montana real estate license in its own name. Which statutory rule controls?

   1. A. A corporation may hold a broker license through any shareholder
   2. B. A corporation may hold a license after naming a registered agent
   3. C. Corporations may not be licensed under this chapter
   4. D. Corporations may hold inactive licenses only

   Answer: C

   Explanation: MCA 37-51-301(3) states, "Corporations, partnerships, and associations may not be licensed under this chapter."

   Reference: 37-51-301. License required -- limited to persons, MCA — MCA 37-51-301(3)

8. 8Before openly advertising an owner's Montana property, what document must the broker have from that owner?

   1. A. A signed listing agreement
   2. B. A preliminary title report
   3. C. A property tax certificate
   4. D. A lender preapproval

   Answer: A

   Explanation: MCA 37-51-321(2)(a) requires "a signed listing agreement from the owner of the property."

   Reference: 37-51-321. Unprofessional conduct -- sanction of license, MCA — MCA 37-51-321(2)(a)

9. 9An independently insured broker reviews the most the carrier must pay across all covered losses during one policy year. Which minimum aggregate applies in Montana?

   1. A. $100,000
   2. B. $300,000
   3. C. $500,000
   4. D. $1,000,000

   Answer: B

   Explanation: MCA 37-51-325(6)(b) requires "a minimum annual aggregate limit of $300,000."

   Reference: 37-51-325. Professional liability insurance required -- errors and omissions insurance coverage -- policy requirements, MCA — MCA 37-51-325(6)(b)

10. 10If a broker sends transaction funds to a third-party holder, which trust-account record must the licensee obtain?

    1. A. Documentation of the third party's receipt
    2. B. A monthly bank statement
    3. C. A monthly reconciliation report
    4. D. A transaction ledger

    Answer: A

    Explanation: ARM 24.210.426(2) says, "If funds are delivered to a third party, the licensee must obtain documentation of receipt by the third party."

    Reference: Arm Ch 210 as of (2022) — ARM 24.210.426(2), PDF p. 38