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 · 133 questions · Passing score: 70%
Start Free Practice Exam →No credit card · No signup · Instant access
Montana Exam Study Resources
Everything you need to pass — in one place.
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.
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.
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 133 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.
How Many Questions Are On The Montana Exam?
The Montana real estate salesperson exam has 133 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.
Most Difficult Topics On The Montana Exam
These are the areas where Montana candidates most commonly lose points.
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.
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 (133 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 133 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.
Montana Real Estate Exam — Frequently Asked Questions
Ready to practice? Start free.
Join thousands of Montana students who used our practice exam to pass on their first try.