MO Real Estate key terms

The state agency that licenses Missouri brokers and salespersons, adopts rules under Chapter 339, investigates complaints, and imposes discipline on licensees.

A Missouri fund supported by licensee fees that can pay consumers who win a court judgment against a licensee for fraud but cannot collect from the licensee.

A Missouri credential that allows a person to provide brokerage services only under a sponsoring broker's supervision; a salesperson cannot accept compensation directly from clients.

A Missouri credential that lets a person run a brokerage, sponsor salespersons and broker-salespersons, and collect compensation directly for brokerage work.

The licensed broker Missouri holds responsible for supervising an office and its licensees, making sure they follow license law and commission rules.

Mixing client or transaction funds with a licensee's own money; Missouri rules require trust funds to be held in a separate escrow account and accounted for.

A Missouri brokerage relationship where the licensee helps both buyer and seller without representing either as a fiduciary, providing limited services while treating both honestly and fairly.

One licensee representing both buyer and seller in the same deal; Missouri requires written consent from both and limits advocacy because the licensee cannot favor either side.

A brokerage arrangement where separate licensees in the same firm represent the buyer and seller, giving each party full representation while the broker supervises both sides.

The legal obligations a representative owes a client, commonly summarized as obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care, plus duties Missouri law adds.

The buyer or seller who has a written brokerage agreement with a licensee and therefore receives fiduciary duties and advocacy in the transaction.

A person who receives services from a licensee but has no written representation agreement, so the licensee owes honesty, fairness, and disclosure rather than full fiduciary loyalty.

A written notice Missouri licensees must give at the start of a brokerage relationship, explaining which party they represent and the services and duties that apply.

The broker whose efforts started an unbroken chain of events that led to a sale; it decides who earns the commission when competing brokers claim credit.

A buyer's deposit that shows good faith and is held in escrow; it is credited to the purchase price or released according to the contract if the deal falls through.

A neutral third party holds money or documents until agreed conditions are met, such as a deposit during the contract period or funds at closing.

A contract condition that must be met before a party must close, such as financing, inspection, or appraisal; if it is not met, that party may cancel.

A legal rule that real estate sales contracts, deeds, and leases longer than one year must be in writing and signed to be enforceable in court.

A clause fixing an amount a breaching party must pay or forfeit; in Missouri purchase contracts it often allows the seller to keep the earnest money as agreed damages.

A court order requiring a breaching party to complete the contract; buyers often seek it for land because each parcel is unique and money damages may not be enough.

Dividing ongoing costs such as taxes, rent, or association dues at closing according to how much of the billing period each party owned the property.

A Missouri security instrument that gives a trustee legal title to secure a loan; after default, the trustee may sell the property through nonjudicial foreclosure.

The borrower's written promise to repay a loan, stating the principal, interest rate, payment schedule, and maturity date; the mortgage or deed of trust secures it.

A foreclosure conducted under a deed of trust's power-of-sale clause without court involvement, following Missouri's notice, publication, and sale requirements.

The loan amount divided by the property's value or purchase price, shown as a percentage; lenders use it to measure risk and set mortgage insurance requirements.

A federal law requiring settlement cost disclosures, limiting escrow account practices, and banning fees or kickbacks for referrals of real estate settlement business.

The annual percentage rate, which combines a loan's interest rate with certain fees to show its yearly cost as a percentage, making loan offers easier to compare.

The fullest ownership interest in land, giving the owner broad rights to use, sell, lease, or leave the property to heirs, subject to government powers like taxation and eminent domain.

A right to use another's land for a limited purpose, such as access or utilities, without owning it; the burden generally passes with the land to later owners.

Any right, lien, easement, or restriction that burdens a property and may limit its use or reduce its value, such as a mortgage or recorded covenant.

A deed that transfers only whatever interest the grantor holds and makes no promises about title quality, often used to clear defects or transfer between relatives.

A policy protecting an owner or lender against loss from title problems that existed before the policy date, such as unknown liens or forged documents.

The use that is legally allowed, physically possible, financially feasible, and gives a property its greatest value; appraisers use it to choose comparables and value land.

A Missouri form on which a residential seller reports known defects and material conditions; some transfers, such as foreclosure or court-ordered sales, are exempt.

The federal law banning discrimination in housing sales, rentals, advertising, and financing based on race, color, religion, sex, national origin, familial status, or disability.

Guiding buyers or renters toward or away from areas because of a protected characteristic; it violates fair housing even when no one is openly refused housing.

Pressuring owners to sell by warning that people of a protected class are moving nearby and will harm property values; it is illegal under fair housing law.

A change in rules, policies, or practices, or permission for a structural modification, that lets a person with a disability use and enjoy housing; each request is assessed individually.

A federal rule that sellers and landlords of pre-1978 housing disclose known lead hazards and give buyers or tenants the EPA pamphlet and a chance to inspect.

Laws that forbid price fixing, group boycotts, and other agreements that stifle competition; licensees may not agree with competitors on commissions or split markets.