Mississippi Real Estate Broker Exam — All Questions

Under MREC Rule 3.1(A) the responsible broker's duty toward the licensees under that broker is to:

• a.review every contract before it is presented
• b.guarantee their compliance with federal fair housing
• c.carry errors-and-omissions coverage on their behalf
• d.instruct them and supervise their licensed activity✓

MREC Rule 3.1(A) states the duty plainly: it is the duty of the responsible broker to instruct the licensees licensed under that broker in the fundamentals of real estate practice, the ethics of the profession and the Mississippi Real Estate License Law, and to exercise supervision of their real estate activities for which a license is required. Rule 3.1(D) adds that the broker is responsible for the real estate practices of those licensees, and Rule 3.1(B) extends the same accountability to an affiliated broker working under the responsible broker's supervision, who must not at any time act independently as a broker; if the responsible broker does agree to let an affiliated broker work outside that supervision, the responsible broker must notify the Commission in writing of the exact nature of the arrangement and of the brokers involved. The duty is instruction and supervision, not a guarantee of outcomes and not a line-by-line pre-approval of every document. Errors-and-omissions coverage is each active licensee's own obligation under Section 73-35-16(2).

When a Mississippi licensee's agency with a firm is terminated, the principal broker must, within three days:

• a.mail the licensee a final commission statement
• b.notify each client the licensee was working with
• c.acknowledge the transfer so a new license may issue✓
• d.report the departure to the local board of Realtors

Section 73-35-15(2), as amended by SB 2748 (2026 Regular Session), ch. 350, effective July 1, 2026, now reads: "Upon termination of a licensee's agency, the principal broker shall within three (3) days acknowledge the transfer of the licensee so that a new license may be issued." Before the amendment the broker returned the salesperson's license to the Commission for cancellation, which is the answer any study guide printed before mid-2026 will give. The licensee carries a matching three-day duty: prompt written notice to the Commission of a change of principal broker and of the name of the broker into whose agency the licensee is about to enter. A change made without that notice automatically cancels the license, and until the license has been reissued it is unlawful for the licensee to perform any act contemplated by the chapter, directly or indirectly. A private trade association's records form no part of the statutory sequence.

A Mississippi responsible broker operates two additional branch offices. Under MREC rules each branch office must be:

• a.located in a different county from the firm's main office
• b.licensed, with its branch office license displayed there✓
• c.closed whenever the responsible broker is away from it
• d.owned by a broker other than the responsible broker

MREC Rule 3.1(D) is concrete: a responsible broker must maintain an office and display the license there, and if the broker has more than one office, the broker "shall display a branch office license in each branch office." A branch is separately licensed and separately fee-bearing — Rule 2.1 sets both a branch office application fee and a branch office renewal fee — so a consumer who walks into a branch sees the same evidence of licensure as one who walks into the main office. Section 73-35-15(1) supplies the underlying requirement of a definite place of business designated in the license, with the certificate of registration as broker and the certificate of each salesperson employed by the broker prominently displayed in that office, and requires application to the Commission before a move or within ten (10) days after it. Ownership is beside the point, because a branch is another location of the same firm. So is geography, since nothing turns on the county. And supervision runs through the responsible broker's continuing legal responsibility for the office rather than through physical presence.

A Mississippi broker prepares a broker's price opinion for a lender weighing a refinance. The opinion must:

• a.carry a disclaimer that it is not an appraisal✓
• b.be reviewed by a certified appraiser beforehand
• c.state a value rather than a probable selling price
• d.be filed with the Commission within ten days

Section 73-35-4 lets a licensee whose license is active and in good standing prepare a broker's price opinion and charge a fee for it, but subsection (4) fixes the contents: the intended purpose, a description of the property and interest priced, the basis of reasoning including market data or capitalization computation, any assumptions or limiting conditions, disclosure of any interest the licensee has in the property, the effective date, name and signature, the firm's name, the signature date, a certification of errors-and-omissions coverage, and a disclaimer stating that the opinion is not an appraisal of market value, may not be used in lieu of one, and may not be used by any party as the primary basis to determine value for a mortgage loan origination. Subsection (6) draws the line the wrong answers cross: an opinion that estimates the value or worth of a parcel rather than its sales price is deemed an appraisal, may not be prepared under a real estate license, and may never be referred to as a valuation or appraisal. MREC Rule 3.1(G) requires conformity with the standards of the National Association of Broker Price Opinion Professionals. Nothing requires appraiser review or a Commission filing.

A Mississippi salesperson closes a sale with a cooperating firm's buyer. The salesperson may accept the commission from:

• a.the responsible broker the salesperson works under✓
• b.the buyer, provided the buyer agrees in writing
• c.the closing attorney at the settlement table
• d.the cooperating firm's own responsible broker

Section 73-35-21(1)(l) makes it a ground for discipline for a salesperson to accept a commission or valuable consideration for a licensed act "from any person, except his or her employer who must be a licensed real estate broker," and MREC Rule 3.1(E) states the same rule from the paying side: no licensee shall pay any part of a fee, commission or other compensation to anyone except to another licensee through that licensee's responsible broker. The money therefore moves broker to broker and then broker to salesperson — never buyer to salesperson, closing agent to salesperson, or another firm's broker straight to a salesperson. Rule 3.1(E) allows one sensible exception: a licensee who has gone inactive or transferred to another responsible broker may still be paid by the previous responsible broker where the commission was generated during the time the licensee was under that broker's supervision. Section 73-35-21(5) separately permits a licensee to own a business entity for the purpose of receiving these payments, and that entity need not itself be licensed so long as it does nothing else requiring a license.