Mississippi Real Estate Broker Exam — All Questions

Which document does MREC Rule 3.2(G) require a Mississippi broker to keep in the transaction file?

• a.The escrow record for the earnest money✓
• b.The buyer's mortgage loan application
• c.The appraisal the lender ordered on the house
• d.The credit report the lender pulled on the buyer

Rule 3.2(G) names escrow records among the complete records a broker must keep on file for three years following consummation, alongside listings, options, leases, offers to purchase, contracts of sale, agency agreements and copies of all closing statements. The rule reaches the documents the brokerage generates or handles in the transaction. A loan application, a lender-ordered appraisal and a credit report belong to the lender's file; the broker neither creates them nor is required to hold them, and a credit report carries obligations of its own that have nothing to do with the license law. Rule 3.4(C) reinforces the escrow point separately, requiring accurate records of all monies received, disbursed or on hand, individually identified as to a particular transaction and subject to Commission inspection at all times.

Under Mississippi rules, when must a licensee give a party a copy of a document that party has just signed?

• a.Within three days of the signing
• b.At the closing of the transaction
• c.Immediately, at the time of signing✓
• d.On the party's written request only

MREC Rule 3.2(A) requires a real estate licensee to deliver immediately — the rule adds the parenthetical "(at the time of signing)" — a true and correct copy of any instrument to any party or parties executing the same. Section 73-35-21(1)(i) backs the rule with a disciplinary ground for "[f]ailing to furnish voluntarily, at the time of signing, copies of all listings, contracts and agreements to all parties executing the same." The word "voluntarily" is what rules out the request-only answer: the duty does not wait to be asked. A separate and narrower duty does turn on a request — on demand, a licensee must deliver to his or her client a copy of any document pertaining to the transaction for which the licensee is engaged — but that supplements immediate delivery rather than replacing it.

Every exclusive listing agreement taken by a Mississippi broker must contain:

• a.a cancellation notice clause
• b.the broker's commission split
• c.the seller's minimum net price
• d.a definite date of expiration✓

MREC Rule 3.2(B) requires every exclusive listing agreement to be in writing, to identify the property to be sold properly, and to contain all of the terms and conditions under which the transaction is to be consummated, including the sales price, the considerations to be paid, the signatures of all parties to the agreement and a definite date of expiration. The same rule forbids the second answer outright: no listing agreement shall contain a provision requiring the listing party to notify the broker of an intention to cancel the listing after that definite expiration date, which is how Mississippi shuts down evergreen listings. The agreement must also state clearly whether it is an "Exclusive Agency" or an "Exclusive Right to Sell" listing. Rule 3.2(C) imposes the parallel requirements on exclusive buyer representation agreements — in writing, with the price range acceptable to the buyer, the considerations to be paid, all signatures, a definite date of expiration, and a statement in the body that it is such an agreement.

Under MREC Rule 3.3(A), which of these is an advertisement subject to Mississippi's advertising rules?

• a.A licensee's post on a social media page✓
• b.A private text between two co-workers
• c.A verbal offer conveyed to the seller
• d.A market analysis prepared for a client

MREC Rule 3.3(A) defines an advertisement as any oral, written, visual, printed or electronic media advertisement, then enumerates so widely that almost nothing consumer-facing escapes: correspondence, mailings, newsletters, brochures, business cards, for-sale and for-lease signage and sign riders, promotional items, automobile signage, telephone directory listings, radio and television broadcasts, telephone solicitation, and electronic media including e-mails, text messaging, public blogs, social-media networking websites and internet displays. A licensee's social media post sits squarely on that list, which is why the published exam outline lists "Social media and internet are advertising" as part of "ALL advertising." The other three are communications inside a transaction rather than promotion to the public: a private message between colleagues, an offer communicated to a principal, and an analysis prepared for one client are governed by other rules.

A Mississippi team's yard sign carries the team name in large type. Under Rule 3.3(B) the sign must also carry:

• a.the license number the Commission issued to the team
• b.the name of the team leader and of each team member
• c.a statement that the team is not a separate brokerage
• d.the firm's name in type as large, and its phone number✓

MREC Rule 3.3(B) requires all advertising to be under the direct supervision and in the name of the Principal Broker or of the real estate Brokerage Firm, with that name prominently displayed so that it is conspicuous, discernible and easily identifiable by a member of the public, set in the same size or larger print as that of a licensee, a team member or a team, and it requires all advertising to include the telephone number of the Principal Broker or the Brokerage Firm. Rule 3.5(D) adds that the team name must be situated near the firm's name and set in the same size or smaller print, and makes both the Principal Broker and the Team Leader confirm it. Rule 3.5(E) does forbid team names that suggest an independent brokerage — no "real estate brokerage," "realty," "real estate" or "company" in the name — but it requires no disclaimer on the sign, and no rule calls for a license number or a roster of members.

A Mississippi salesperson advertises her own house for sale and has not listed it with any firm. She must:

• a.disclose her licensed status in the advertising✓
• b.advertise it in her responsible broker's name
• c.obtain the Commission's written approval first
• d.offer it first to the firm's registered buyers

MREC Rule 3.3(D) requires a licensee advertising her own property for sale, purchase or exchange, where the property is not listed with a broker, to indicate that she is licensed, and the disclosure must appear in every form of advertising enumerated in Rule 3.3(A), including the "for sale" sign. The same rule requires licensees to disclose their licensed status on all real estate contracts in which they hold an ownership interest, and forbids advertising in a way that indicates the offer is being made by a private party not engaged in the real estate business. Because the property is not listed with the firm, it is not the broker's listing to advertise in the firm's name. Rule 3.1(I) confirms that a licensee is not exempt from Commission discipline when selling property she owns, and Section 73-35-21(1)(h) makes displaying a "for sale" sign on any property without the owner's consent a disciplinary ground in its own right.