Montana Real Estate Practice Exam
(Free Questions & Answers)
The Montana real estate exam is administered by the Montana Board of Realty Regulation and covers Montana's prior appropriation water rights doctrine extensively — in Montana, water rights can be transferred separately from the land and are critical to agricultural and ranch properties. The state portion distinguishes between designated broker and associate broker responsibilities under Montana law. Environmental disclosure questions focus on Montana-specific issues including underground storage tanks, asbestos in older agricultural buildings, and wildfire interface disclosure.
Administered by: Montana Board of Realty Regulation · 113 questions · Passing score: 70%
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Updated May 2026 · Montana Board of Realty Regulation exam outline
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Free Montana Real Estate Practice Exam Questions
Test your knowledge with these Montana real estate practice questions. Each question is based on topics from the Montana Board of Realty Regulation exam and includes detailed explanations.
Q1. Which state agency regulates real estate licenses in Montana?
Explanation
The Montana Board of Realty Regulation (under the Department of Labor and Industry) is the state agency responsible for licensing and regulating real estate brokers and salespersons in Montana.
Q2. In Montana, which document must be provided to a buyer or seller at first substantive contact with a licensee?
Explanation
Montana requires licensees to provide and explain the Montana Broker Disclosure Form at the first substantive contact to inform consumers of available agency relationships.
Q3. For a real estate contract in Montana to be enforceable, it must be:
Explanation
Under Montana's Statute of Frauds, contracts for the sale of real property must be in writing and signed by the parties to be enforceable.
Q4. A buyer obtains a mortgage loan where the interest rate can change periodically based on a market index. This is known as a:
Explanation
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on changes in a specified index, which can cause the monthly payment to increase or decrease.
Q5. Water rights in Montana are governed by the doctrine of:
Explanation
Montana follows the prior appropriation doctrine for water rights, meaning water rights are granted based on first-in-time, first-in-right. The person who first put the water to beneficial use has the senior water right.
Q6. The sales comparison approach to value is MOST appropriate for appraising:
Explanation
The sales comparison approach is most commonly used for single-family homes because there are generally enough comparable sales to make meaningful value comparisons.
Q7. The federal Fair Housing Act of 1968 prohibits discrimination based on which protected classes?
Explanation
The federal Fair Housing Act prohibits discrimination based on seven protected classes: race, color, national origin, religion, sex, familial status, and disability (handicap).
Q8. A general warranty deed provides the greatest protection to the buyer because it:
Explanation
A general warranty deed contains the broadest covenants of title, with the grantor warranting and defending the title against all lawful claims from any source, including those that arose before the grantor owned the property.
Q9. A home sells for $285,000. The listing agent's brokerage charges a 6% commission, split equally between listing and selling brokerages. What does each brokerage receive?
Explanation
Total commission: $285,000 × 0.06 = $17,100. Split equally: $17,100 ÷ 2 = $8,550 per brokerage. To solve this, multiply the relevant values: $285,000 at 6%.. The correct answer is $8,550.. This is a common calculation on the Montana real estate exam.
Q10. Radon is a naturally occurring radioactive gas that enters buildings from:
Explanation
Radon is a colorless, odorless radioactive gas produced by the natural decay of uranium in soil, rock, and water. It can accumulate to dangerous levels in buildings, particularly basements.
Q11. Zoning regulations in Montana are enacted by:
Explanation
Zoning authority in Montana is vested in local governments — cities, towns, and counties — which adopt zoning ordinances to regulate land use within their jurisdictions.
Q12. A property manager's primary duty is to:
Explanation
A property manager acts as the owner's agent and owes fiduciary duties to the property owner, including managing the property to maximize the owner's return while complying with all legal requirements.
Q13. How many hours of pre-license education are required to sit for the Montana real estate salesperson exam?
Explanation
Montana requires 70 hours of pre-license education before a candidate may sit for the salesperson licensing exam.
Q14. A Montana licensee who represents both buyer and seller in the same transaction with both parties' written consent is practicing:
Explanation
Dual agency occurs when a licensee or brokerage represents both the buyer and the seller in the same transaction. In Montana, dual agency requires written informed consent from both parties.
Q15. A buyer submits an offer to purchase. The seller makes changes to the price and signs it. This creates:
Explanation
When a seller modifies any terms of an offer and signs it, this constitutes a counteroffer, which legally voids the original offer and gives the buyer the option to accept, reject, or counter again.
Q16. Under the Truth in Lending Act (TILA), what must lenders disclose to borrowers?
Explanation
TILA requires lenders to disclose the annual percentage rate (APR) and total finance charges so borrowers can compare loan costs across different lenders.
Q17. Two people own property as joint tenants. One owner dies. The surviving owner:
Explanation
Joint tenancy includes the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenant(s), bypassing probate.
Q18. When performing a comparative market analysis (CMA), an agent adjusts comparable sale prices to account for differences from the subject property. If a comparable has a feature the subject lacks, the agent should:
Explanation
If a comparable has a superior feature that the subject lacks (e.g., a garage), you subtract value from the comparable's price to make it equivalent to the subject property.
Q19. Steering is a fair housing violation that involves:
Explanation
Steering is the illegal practice of directing prospective buyers or renters toward or away from certain neighborhoods based on their race, national origin, religion, or other protected characteristics.
Q20. Title insurance protects the policyholder against:
Explanation
Title insurance protects against losses from title defects, liens, encumbrances, or other claims against the property that existed before the policy was issued but were not discovered at closing.
Q21. A rectangular lot measures 150 feet by 200 feet. What is the lot's area in acres? (1 acre = 43,560 sq ft)
Explanation
Area = 150 × 200 = 30,000 sq ft. Acres = 30,000 ÷ 43,560 ≈ 0.689 acres, which rounds to approximately 0.69 acres.
Q22. Under Montana law, disclosure of known environmental hazards such as underground storage tanks is:
Explanation
Montana's Seller's Property Disclosure Act requires disclosure of known material facts that affect the property's value or desirability, including known environmental hazards like underground storage tanks.
Q23. A nonconforming use is one that:
Explanation
A nonconforming use (or legal nonconforming use) was established legally before a zoning ordinance was enacted or changed. It is generally allowed to continue but may not be expanded.
Q24. A Montana property manager who collects rent on behalf of a property owner for a fee must hold:
Explanation
In Montana, collecting rent or otherwise managing property for others for compensation constitutes a real estate activity requiring a Montana real estate license.
Q25. The Montana real estate salesperson licensing exam consists of how many questions?
Explanation
The Montana real estate licensing exam consists of 133 questions — a national portion and a state-specific portion.
1,500+ questions · Timed mock exams · Detailed explanations
Montana Real Estate Exam — What to Expect
What Is On The Montana Real Estate Exam?
The Montana real estate salesperson exam is administered by the Montana Board of Realty Regulation and tests both national real estate principles and Montana-specific laws and regulations. The exam contains 113 multiple-choice questions, and you must score at least 70% to pass.
The national portion covers topics that apply in every state: property ownership, land use controls, valuation and market analysis, financing, agency law, contracts, leasing and property management, transfer of title, fair housing laws, and real estate calculations. The state portion tests knowledge specific to Montana — including regulations set by the Montana Board of Realty Regulation, Montana agency disclosure requirements, and state-specific contract and closing practices.
Topics covered on the Montana exam include: Property Ownership, Agency Law, Contracts, Finance, Montana License Law. Candidates who struggle on the MT exam typically underestimate the state-specific portion — the national content is well-covered by most study materials, but Montana law questions require targeted preparation.
Official Montana Exam Content Areas
Source: Montana Board of Realty Regulation · Updated June 2026
| Content Area | Questions |
|---|---|
| National Section (Pearson VUE common outline) | 80 scored |
| Montana State Section (Board of Realty Regulation, licensing, licensee activities, condominium/landlord-tenant, foreclosure/redemption) | 33 scored |
- ▸Administered by Pearson VUE (transitioned from PSI); online proctoring available as of March 2025
- ▸Must score 70% on each section — 56/80 national, 23/33 state; sections scored independently
- ▸Montana state section covers Board of Realty Regulation powers, licensing requirements, foreclosure and redemption, Statute of Frauds, and common interest ownership (condominiums)
- ▸Source: Pearson VUE Montana Candidate Handbook (January 2025, pub. #092700) and Montana Board of Realty Regulation (boards.bsd.dli.mt.gov)
Practice Montana questions by topic — start with Montana License Law, Agency, and Contracts to build your foundation, then work through remaining topics.
How Many Questions Are On The Montana Exam?
The Montana real estate salesperson exam has 113 multiple-choice questions. The exam is divided into a national section covering general real estate principles and a state section covering Montana-specific laws administered by the Montana Board of Realty Regulation. You have 4 hours to complete the exam.
Montana Real Estate Exam Passing Score
You need a 70% to pass the Montana real estate exam. The first-time pass rate in Montana is approximately 62%, which means preparation is essential — most candidates who fail do so because they focused on national content and underestimated the MT-specific portion. Our Montana practice exam is built specifically around the Montana Board of Realty Regulation exam outline.
Read our complete Montana exam study guide — state-specific topics, 5-week study plan, and what to focus on before exam day.
Most Difficult Topics On The Montana Exam
These are the areas where Montana candidates most commonly lose points — and a key reason why some states produce harder real estate exams than others.
Montana's specific licensing requirements, broker supervision rules (designated broker vs. associate broker), and continuing education mandates are tested on the state portion.
Montana uses prior appropriation for water rights, and water can be transferred separately from land. Understanding how water rights affect agricultural property transactions and title is a Montana-specific exam topic.
Montana's disclosure requirements for underground storage tanks, asbestos in agricultural buildings, and wildfire interface zones are state-specific topics that appear on the Montana state exam.
Montana's specific rules distinguishing a designated broker from an associate broker — including supervision responsibilities and license requirements — are tested on the state portion.
Montana Real Estate Math
The Montana real estate exam includes math questions covering commission calculations, loan-to-value (LTV) ratios, property tax prorations, area and volume, and appreciation/depreciation. A common example: if a property sells for $350,000 and the total commission is 6%, split equally between listing and buyer's broker, each side earns $10,500. Proration questions — such as calculating how many days of property taxes a seller owes at closing — are also common. On the MT exam, you will not need a calculator for most math questions, but you do need to understand the formulas. Practice the "T-bar" method for commission splits and the 360-day banker's year for prorations.
🧮 See all exam math formulas →How To Get Your Montana Real Estate License
- 1Complete 70 hours of state-approved pre-license education covering topics required by the Montana Board of Realty Regulation.
- 2Submit your application to the Montana Board of Realty Regulation and pay the required fees (exam fee: $85).
- 3Pass the Montana real estate salesperson exam (113 questions, 70% to pass).
- 4Complete a background check and fingerprinting as required by Montana law.
- 5Find a licensed sponsoring/employing broker to activate your license.
- 6Complete any required post-licensing education within the timeframe set by the Montana Board of Realty Regulation.
Best Study Strategy For The Montana Exam
Start with Montana license law first. State-specific regulations administered by the Montana Board of Realty Regulation make up a significant portion of the MT exam and are not covered in most national study materials.
Master the math early. The Montana real estate exam includes questions on commission calculations, prorations, loan-to-value ratios, and area calculations. Set aside dedicated math practice sessions — don't leave it until the last week.
Take timed practice exams. The Montana exam has 113 questions within a 4 hours time limit. Simulate exam conditions to build stamina and identify weak topics before exam day.
Focus heavily on agency law. Agency relationships, disclosure requirements, and fiduciary duties are consistently among the most-tested topics on the MT exam. Understand the difference between seller's agent, buyer's agent, dual agent, and transaction broker in the context of Montana law.
Review Fair Housing thoroughly. Federal Fair Housing Act protections apply in all states, but Montana may have additional protected classes. Know both federal and Montana-specific protections cold — this topic appears on virtually every exam.
Use active recall, not passive reading. Instead of re-reading notes, quiz yourself. Use flashcards or practice questions to test retention. Research shows active recall improves long-term retention significantly compared to passive review.
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