Mississippi Real Estate Broker Exam — All Questions

A Mississippi broker signs a cooperative agreement with a Tennessee broker who holds no Mississippi license. The Mississippi broker must:

• a.post a bond equal to the expected commission
• b.obtain a Tennessee license before the closing
• c.file a copy with the Commission within ten days✓
• d.split the commission with the other broker evenly

Section 73-35-11 lets a licensed broker of another state who holds no Mississippi license cooperate with a Mississippi broker, but every obligation falls on the Mississippi side. The Mississippi broker must file a copy of each written cooperative agreement with the Commission within ten (10) days, must require a listing or joint listing of the property, must supervise the showing of the Mississippi property and the negotiations, and is liable for the cooperating broker's acts as well as his own. All earnest money on a cooperative agreement must be held in escrow by the Mississippi broker unless both buyer and seller agree in writing to relieve him of it. In all advertising of the Mississippi property, the Mississippi broker's name and telephone number must appear with equal prominence to the nonresident broker's. There is no bond, no requirement that the Mississippi broker be licensed in the other state, and MREC Rule 3.1(C) makes the split negotiable between the two brokers rather than fixing it at half.

A broker licensed in Alabama obtains a Mississippi nonresident broker's license. That broker:

• a.is exempt from Mississippi continuing education
• b.may not hold earnest money on Mississippi property
• c.need not maintain a place of business in Mississippi✓
• d.must place every listing under a resident broker

Section 73-35-8(1) says the nonresident broker need not maintain a place of business within Mississippi provided he is regularly and actively engaged in the real estate business and maintains a place of business in the other state. Everything else tracks the resident rules. Subsection (5) requires the applicant to qualify in all respects — education, background investigation, examination and fees — with the residency requirement and approved equivalent pre-licensing education the only exceptions, and subsection (8) requires a nonresident broker, broker-salesperson or salesperson to meet Mississippi continuing education just as a resident does. Subsection (2) adds a filing a resident never makes: an irrevocable consent that legal actions may be commenced against the licensee in a Mississippi court by service on the Secretary of State or a member of the Commission. A nonresident licensee is a Mississippi licensee and holds trust money under the same rules; it is the unlicensed out-of-state broker cooperating under Section 73-35-11 who must let the Mississippi broker hold the escrow.

An Arizona developer wants to advertise Arizona lots to Mississippi consumers. Before advertising, the developer must:

• a.have the property approved by the Commission✓
• b.register the lots with the Secretary of State
• c.license its own staff as Mississippi salespersons
• d.record a copy of the plat where the buyer lives

MREC Rule 7.1 requires out-of-state land developers who wish to advertise out-of-state property in Mississippi — national publications excepted — first to contact the Commission and have the property approved for advertising. The Commission may in its discretion conduct an on-site inspection of the property at the developer's cost, and on request the developer must provide documentation establishing the truth and accuracy of the proposed advertisements. The rule then puts the continuing risk on the Mississippi side: a Mississippi broker who becomes the agent or representative of the out-of-state developer is responsible for the truth and accuracy of the representations, offerings and advertising of those properties in Mississippi. Registration with the Secretary of State and recording a plat are corporate and land-records steps with no bearing on advertising approval.