Mississippi Real Estate Broker Exam — All Questions

How long after a transaction is consummated must a Mississippi broker keep complete records of it?

• a.One year
• b.Three years✓
• c.Two years
• d.Seven years

MREC Rule 3.2(G) requires a real estate broker to keep on file, for three years following its consummation, complete records relating to any real estate transaction. The rule then says what "complete" reaches, and the list is broad and expressly not exhaustive: listings, options, leases, offers to purchase, contracts of sale, escrow records, agency agreements and copies of all closing statements. Rule 4.3(H) folds completed Agency Disclosure Forms into the same obligation. The retention period matters because Rule 3.4(C) makes escrow records subject to inspection by the Commission at all times and Section 73-35-23(9) gives the Commission up to a year to dispose of a complaint — a broker who has discarded the file early has no way to answer either.

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.