Missouri Re State Glossary Definitions

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Adverse Material Fact

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A fact related to the physical condition of the property not reasonably ascertainable or known to a party which negatively affects the value of the property. Adverse material facts may include matters pertaining to: (a) Environmental hazards affecting the property; (b) Physical condition of the property which adversely affects the value of the property; (c) Material defects in the property; (d) Material defects in the title to the property; (e) Material limitation of the party's ability to perform under the terms of the contract.

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Affiliated Licensee

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Any broker or salesperson who works under the supervision of a designated broker.

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Agent

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A person or entity acting pursuant to the provisions of this chapter.

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Association

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An unincorporated body of persons united and acting together for the prosecution of some common enterprise, but not a partnership.

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Broker

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Any person, partnership, association or corporation, foreign or domestic who, for another, and for a compensation or valuable consideration, as a whole or partial vocation, does, or attempts to do, any or all of the following: (1) Sells, exchanges, purchases, rents, or leases real estate; (2) Offers to sell, exchange, purchase, rent or lease real estate; (3) Negotiates or offers or agrees to negotiate the sale, exchange, purchase, rental or leasing of real estate; (4) Lists or offers or agrees to list real estate for sale, lease, rental or exchange; (5) Buys, sells, offers to buy or sell or otherwise deals in options on real estate or improvements thereon; (6) Advertises or holds himself or herself out as a licensed real estate broker while engaged in the business of buying, selling, exchanging, renting, or leasing real estate; (7) Assists or directs in the procuring of prospects, calculated to result in the sale, exchange, leasing or rental of real estate; (8) Assists or directs in the negotiation of any transaction calculated or intended to result in the sale, exchange, leasing or rental of real estate; (9) Engages in the business of charging to an unlicensed person an advance fee in connection with any contract whereby the real estate broker undertakes to promote the sale of that person's real estate through its listing in a publication issued for such purpose intended to be circulated to the general public; (10) Performs any of the foregoing acts as an employee of, or on behalf of, the owner of real estate, or interest therein, or improvements affixed thereon, for compensation.

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Broker Disclosure Form

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The current form prescribed by the commission for presentation to a seller, landlord, buyer or tenant who has not entered into a written agreement for brokerage services.

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Brokerage Relationship

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The relationship created between a designated broker, the broker's affiliated licensees, and a client relating to the performance of services of a broker as defined in section 339.010, and sections 339.710 to 339.860. If a designated broker makes an appointment of an affiliated licensee or affiliated licensees pursuant to section 339.820, such brokerage relationships are created between the appointed licensee or licensees and the client. Nothing in this subdivision shall: (a) Alleviate the designated broker from duties of supervision of the appointed licensee or licensees; or (b) Alter the designated broker's underlying contractual agreement with the client.

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Client

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A seller, landlord, buyer, or tenant who has entered into a brokerage relationship with a licensee pursuant to sections 339.710 to 339.860.

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Commercial Real Estate

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Any real estate other than real estate containing one to four (1–4) residential units, real estate on which no buildings or structures are located, or real estate classified as agricultural and horticultural property for assessment purposes as provided by section 137.016, RSMo. Commercial real estate does not include single family residential units including, condominiums, townhouses or homes in a subdivision when that real estate is sold, leased or otherwise conveyed on a unit-by-unit basis even though the units may be part of a larger building or parcel of real estate containing more than four (4) residential units.

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Commission

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The Missouri Real Estate Commission.

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Confidential Information

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Information obtained by the licensee from the client and designated as confidential by the client, information made confidential by sections 339.710 to 339.860 or any other statute or regulation, or written instructions from the client unless the information is made public or becomes public by the words or conduct of the client to whom the information pertains or by a source other than the licensee.

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Customer

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An actual or potential seller, landlord, buyer, or tenant in a real estate transaction in which a licensee is involved but who has not entered into a brokerage relationship with a licensee.

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Designated Agent

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A licensee named by a designated broker as the limited agent of a client as provided for in section 339.820.

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Designated Broker

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Any individual licensed as a broker who is operating pursuant to the definition of "real estate broker" as defined in section 339.010, or any individual licensed as a broker who is appointed by a partnership, association, limited liability corporation, or a corporation engaged in the real estate brokerage business to be responsible for the acts of the partnership, association, limited liability corporation, or corporation. Every real estate partnership, association, or limited liability corporation, or corporation shall appoint a designated broker.

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Designated Transaction Broker

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A licensee named by a designated broker or deemed appointed by a designated broker as the transaction broker for a client pursuant to section 339.820.

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Dual Agency

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A form of agency which may result when an agent licensee or someone affiliated with the agent licensee represents another party to the same transaction.

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Dual Agent

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A limited agent who, with the written consent of all parties to a contemplated real estate transaction, has entered into an agency brokerage relationship, and not a transaction brokerage relationship, with and therefore represents both the seller and buyer or both the landlord and tenant.

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Escrow Agent

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Any person, partnership, association or corporation, foreign or domestic, who performs any of the following functions: closings or settlements or any function related thereto in sales, exchanges or other transfers of real property.

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License Law

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Chapter 339, RSMo.

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Licensee

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A real estate broker or salesperson as defined in section 339.010.

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Limited Agent

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A licensee whose duties and obligations to a client are those set forth in sections 339.730 to 339.750.

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Ministerial Acts

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Those acts that a licensee may perform for a person or entity that are informative in nature and do not rise to the level which requires the creation of a brokerage relationship. Examples of these acts include, but are not limited to: (a) Responding to telephone inquiries by consumers as to the availability and pricing of brokerage services; (b) Responding to telephone inquiries from a person concerning the price or location of property; (c) Attending an open house and responding to questions about the property from a consumer; (d) Setting an appointment to view property; (e) Responding to questions of consumers walking into a licensee's office concerning brokerage services offered on particular properties; (f) Accompanying an appraiser, inspector, contractor, or similar third party on a visit to a property; (g) Describing a property or the property's condition in response to a person's inquiry; (h) Showing a customer through a property being sold by an owner on his or her own behalf; or (i) Referral to another broker or service provider.

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Real Estate

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Leaseholds, as well as any other interest or estate in land, whether corporeal, incorporeal, freehold or nonfreehold, and whether the real estate is situated in this state or elsewhere.

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Residential Property

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All real property improved by a structure which is used or intended to be used primarily for residential living by human occupants and which contains not more than four (4) dwelling units or which contains single dwelling units owned as a condominium or in a cooperative housing association, and vacant land classified as residential property. The term cooperative housing association means an association, whether incorporated or unincorporated, organized for the purpose of owning and operating residential real property in Missouri, the shareholders or members of which, by reason of their ownership of a stock or membership certificate, a proprietary lease or other evidence of membership, are entitled to occupy a dwelling unit pursuant to the terms of a proprietary lease or occupancy agreement.

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Residential Real Estate

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All real property improved by a structure that is used or intended to be used primarily for residential living by human occupants and that contains not more than four dwelling units or that contains single dwelling units owned as a condominium or in a cooperative housing association, and vacant land classified as residential property. The term "cooperative housing association" means an association, whether incorporated or unincorporated, organized for the purpose of owning and operating residential real property in Missouri, the shareholders or members of which, by reason of their ownership of a stock or membership certificate, a proprietary lease, or other evidence of membership, are entitled to occupy a dwelling unit pursuant to the terms of a proprietary lease or occupancy agreement.

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Salesperson

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Any person, who for a compensation or valuable consideration becomes associated, either as an independent contractor or employee, either directly or indirectly, with a real estate broker to do any of the things mentioned in the definition of a broker, as a whole or partial vocation. The law shall not be construed to deny a real estate salesperson who is compensated solely by commission the right to be associated with a broker as an independent contractor.

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Single Agent

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A licensee who has entered into a brokerage relationship with and therefore represents only one party in a real estate transaction. A single agent may be one of the following: (a) "Buyer's agent", which shall mean a licensee who represents the buyer in a real estate transaction; (b) "Seller's agent", which shall mean a licensee who represents the seller in a real estate transaction; and (c) "Landlord's agent", which shall mean a licensee who represents a landlord in a leasing transaction; (d) "Tenant's agent", which shall mean a licensee who represents the tenant in a leasing transaction.

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Subagent

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A designated broker, together with the broker's affiliated licensees, engaged by another designated broker, together with the broker's affiliated or appointed affiliated licensees, to act as a limited agent for a client, or a designated broker's unappointed affiliated licensees engaged by the designated broker, together with the broker's appointed affiliated licensees, to act as a limited agent for a client. A subagent owes the same obligations and responsibilities to the client pursuant to sections 339.730 to 339.740 as does the client's designated broker.

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Transaction Broker

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Any licensee acting pursuant to sections 339.710 to 339.860, who: (a) Assists the parties to a transaction without an agency or fiduciary relationship to either party and is, therefore, neutral, serving neither as an advocate or advisor for either party to the transaction; (b) Assists one or more parties to a transaction and who has not entered into a specific written agency agreement to represent one or more of the parties; or (c) Assists another party to the same transaction either solely or through licensee affiliates. Such licensee shall be deemed to be a transaction broker and not a dual agent, provided that, notice of assumption of transaction broker status is provided to the buyer and seller immediately upon such default to transaction broker status, to be confirmed in writing prior to execution of the contract.