Real Estate Practice in Mississippi
Mississippi practice is shaped by trust-account rules and the property disclosures expected in a residential sale. This chapter covers handling client money and seller disclosure obligations.
Trust Accounts and Earnest Money
Client funds such as earnest money must be handled through the responsible broker's trust (escrow) account. A salesperson who receives funds must deliver them promptly to the responsible broker, who must keep trust money separate from personal and business funds. Commingling or converting trust money is among the most serious violations of Mississippi license law.
Property Condition Disclosure
Mississippi generally requires a seller of residential property to give the buyer a property condition disclosure statement describing the known condition of the home and its systems. Licensees must not help conceal known defects and should encourage complete, honest disclosure. Accurate disclosure protects the consumer and helps shield the licensee from later misrepresentation claims.
Advertising and Supervision
Advertising must be truthful and must properly identify the broker so the public is not misled about who is offering the property. The responsible broker is accountable for the advertising and conduct of placed salespersons. Following the license law, rules, and disclosure requirements is an ongoing condition of practice in Mississippi.