Free Montana Real Estate Salesperson Practice Exam 2025

Under 2025 revisions to Montana law, dual agency without written informed consent is a violation that can result in immediate license suspension by the BRR (MCA §37-51-321(1)(c)).

A 6% commission on a $420,000 sale is $25,200. If the listing agent receives 40%, the earnings would be: $25,200 × 0.40 = $10,080.

The Montana Housing Mortgage Credit Certificate (MCC) provides a federal tax credit (not a deduction) for a portion of the borrower’s annual mortgage interest—supporting first-time homebuyers.

Using the income approach, a property generating $30,000 NOI with a 6% cap rate has an indicated value of: $30,000 ÷ 0.06 = $500,000.

If a buyer fails to apply for financing by the contract deadline, the seller may cancel the agreement and pursue damages under MCA §28-2-1711, assuming breach of good faith.

The Governor of Montana appoints members to the Board of Realty Regulation, following state statutes (MCA §2-15-1757).

Unlicensed real estate assistants are prohibited from negotiating contracts, providing pricing advice, or conducting showings—they may only perform administrative duties.

All Montana real estate licenses expire on October 31 each year. Licensees must renew before that date to maintain active status.

If a license is revoked or suspended, the licensee must immediately cease all real estate activities, including marketing or client interaction.

If information on an inactive license is outdated, the licensee must notify BRR and update records, even if they are not actively practicing.

The maximum amount payable from the Real Estate Recovery Account is $50,000 per licensee, regardless of the number of claims or claimants (MCA §37-51-501).

Failure to comply with trust account maintenance rules may result in civil penalties up to $1,000 per violation, in addition to disciplinary actions.

Dual agency is legal in Montana only if all parties provide informed written consent before the relationship is established (MCA §37-51-313).

The Real Estate Recovery Account provides financial compensation to consumers who are harmed by licensee misconduct, after a valid court judgment.

The Board of Realty Regulation (BRR) is Montana’s official regulatory agency for licensing, education, and disciplinary action in the real estate industry.

Grounds for license suspension or revocation include fraud, failure to disclose material facts, or mishandling of client funds, as outlined in MCA §37-51-321.

A license suspension is temporary and may be lifted after compliance; a revocation means the license is canceled and the person must reapply from the beginning.

Brokers must retain exclusive right-to-sell agreements, disclosures, buyer representation contracts, and trust-related documents for a minimum of 5 years (ARM 24.210.426).

Montana maintains reciprocity agreements with certain states, allowing eligible licensees to transfer or obtain licensure in Montana more efficiently.

When a broker keeps sale proceeds beyond the seller’s stated amount, it is a net listing, which is discouraged or illegal due to the conflict of interest it creates.

Montana is a non-disclosure state, meaning real estate sales prices are not required to be publicly disclosed and are not part of the public record.

When changing their office address, a broker must notify the Board within 10 days, ensuring licensing records remain accurate and updated.

Continuing education (CE) is required annually for both brokers and salespersons in Montana. Course content and hours are determined by the Board of Realty Regulation.

A broker may only keep a minimal amount of personal funds in a trust account for account maintenance. If violations are suspected, the BRR may audit the account and impose penalties.

Brokers are required to retain transaction documents and trust account records for 5 years, ensuring accountability and audit compliance (ARM 24.210.426).

Members of the Montana Board of Realty Regulation (BRR) serve five-year terms, providing consistency and expertise in regulatory oversight.

Second or subsequent offenses for unlicensed real estate activity in Montana carry fines between $500 and $2,000 and/or up to 6 months imprisonment, demonstrating increased severity (MCA §37-51-301).

Engaging in real estate activity without a license for the first time in Montana is a misdemeanor, punishable by a $10–$50 fine or up to 30 days in jail (MCA §37-51-301).

Montana buyers have 7 days to cancel a timeshare contract, starting from the date the contract is signed or the date the public offering statement is received—whichever occurs later (MCA §37-53-305).

Under MCA §37-51-102, a “Statutory Broker” is a role that requires a real estate license in Montana. Other titles may describe business roles or designations but do not legally require separate licensure.