Trust Accounts
Three state items. PSI lists four subtopics: handling of earnest money; general accounting practices and no commingling; the broker as account holder, with a salesperson barred from establishing a property-management escrow account independently; and disbursement issues including interpleader.
The deposit deadline, and the rule that has not caught up
Section 73-35-21(1)(f) makes it a disciplinary ground to fail, within a reasonable time, to account for or remit money belonging to others, or to commingle it with the licensee's own funds, and requires the responsible broker who takes cash or checks on an earnest money contract, option or other contract to deposit them in a trust or escrow account in a bank or trust company pending consummation or termination. 'Reasonable time' now means 'by the close of business of two (2) banking days immediately following the date on which a licensee comes into possession of monies belonging to others or on which a responsible broker takes or receives any cash or checks.' SB 2748 (2026 Reg. Sess.), ch. 350, eff. 2026-07-01, changed it from 'the next banking day.' MREC Rule 3.4(A) still reads 'prior to the close of business of the next banking day.' The Commission's own August 2026 regulations preview resolves the conflict: 'Statute trumps the rule. Will be fixed in the Rules on the next pass.' Answer the statute.
Who holds it, and how it is recorded
Rule 3.4(A) makes the responsible broker responsible at all times for earnest money deposits and requires a licensee to pay over all deposits and earnest money to the responsible broker immediately on receipt. The broker is the account holder; a salesperson may not establish a property-management escrow account independent of the broker. Rule 3.4(C) requires accurate records of all monies received, disbursed or on hand, each individually identified as to a particular transaction, kept to standard accounting practices and subject to Commission inspection at all times. Money in a trust account is not an asset of the broker, with one narrow exception: the broker may deposit and keep some personal funds in each escrow or rental account for the express purpose of covering service charges and other bank debits. Rule 3.4(D) requires the broker to notify all parties immediately if an escrow check is dishonoured. Sections 73-35-101 to 73-35-105 add the Interest on Real Estate Brokers' Escrow Accounts (IREBEA) program on top.
Getting money back out
Earnest money must be returned promptly when the purchaser is rightfully entitled to it, allowing reasonable time for the check to clear. Where there is uncertainty or a dispute about the proper disposition, Rule 3.4(A) lets the broker turn the money over to a court of law for disposition — an interpleader into chancery court — rather than picking a winner, and failure to comply with the rule is a ground for revocation or suspension. Rule 3.4(B) decides one recurring case in advance: where the broker is the seller's agent and the seller fails or is unable to consummate the transaction, the broker has no right to any portion of the earnest money even if a commission has been earned; the whole deposit goes back to the purchaser and the broker looks to the seller for compensation.
Keep going: the full Mississippi Real Estate Broker guide covers every section of the exam. Mississippi Real Estate Broker Exam Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
State-specific details
State exam facts
- State regulator
- Mississippi Real Estate Commission (MREC)
- Exam vendor
- PSI
- Prelicensing education
- 120 classroom hours (150 without 36 months of active salesperson experience)
- Passing score
- 75% national (60 of 80 points) and 80% state (32 of 40 points)
- Scored questions
- 115
- Time limit
- 240 minutes
Who regulates real estate brokers in Mississippi?
The Mississippi Real Estate Commission (MREC) licenses brokers and salespersons under the Real Estate Brokers License Law, Miss. Code Title 73, Chapter 35. MREC contracts with PSI to deliver the licensing exams.
What experience do I need before the Mississippi broker exam?
Miss. Code § 73-35-7 requires a resident broker applicant to be at least 21, legally domiciled in Mississippi, to have held an active salesperson license for the 12 months immediately preceding application, and to have completed 120 classroom hours of real estate courses. An applicant who has not held an active salesperson license for at least 36 months must instead complete 150 classroom hours in courses acceptable for degree credit at a college approved by the Southern Association of Colleges and Schools. MREC also requires a letter of reference from the applicant's bank.
How is the Mississippi broker exam structured?
PSI delivers 115 scored questions in two separately timed and separately scored portions: a 75-question national/general portion scored to 80 points in 2.5 hours, and a 40-question Mississippi state portion worth 40 points in 1.5 hours, 4 hours in total. You must pass each portion on its own — 75% (60 of 80 points) on the national and 80% (32 of 40 points) on the state. That 80% state cut is the strictest of any state we have measured.
What is on the Mississippi state portion?
PSI Candidate Information Bulletin 2348 publishes nine areas with their broker item counts: Powers and Duties of the Real Estate Commission (4), Licensing Requirements and License Maintenance (4), Property Condition Disclosures (6), Agency Disclosure and Duties to Parties (8), Out-of-State Brokers and Developers (3), Trust Accounts (3), Broker Responsibilities Including Supervision of Sales Associates (5), Records and Documents (4), and Advertising/Marketing/Internet (3).
Sources: https://test-takers.psiexams.com/api/content/bulletin/2348, https://www.mrec.ms.gov/wp-content/uploads/2026/07/MREC_LICENSE_LAW_2026_REVISED-7-01-2026.pdf, https://www.mrec.ms.gov/wp-content/uploads/2025/02/MREC_RULES_AND_REGULATIONS_REV_02-21-2025.pdf
In the Mississippi Real Estate Broker guide: A 60-question national practice exam, with a key that explains all four options and not just the right one. Practice here stays free.