Mississippi Real Estate Salesperson Exam — All Questions

The principle of contribution states that the value of a component or improvement is measured by:

• a.The raw number of square feet of floor area or land area that the improvement happens to occupy
• b.The owner's personal emotional attachment to and sentimental feelings about that improvement
• c.Its original construction or installation cost in every case, dollar for dollar, with no exception
• d.How much it adds to the overall value of the property, not its cost✓

Under contribution, an improvement is worth the amount it adds to the whole property's market value, which may be more or less than its cost. This principle explains why some renovations do not fully return their expense, a key point in over-improvement analysis.

Under Internal Revenue Code Section 121, a qualifying homeowner may generally EXCLUDE from taxable capital gain:

• a.Up to $250,000 of gain if single, or $500,000 if married filing jointly✓
• b.Up to a full one million dollars of gain on any property at all, at any time and any frequency
• c.All gain on any and every investment or rental property the taxpayer happens to own and sell
• d.Absolutely nothing, because gain on the sale of a home is always fully and entirely taxable

Section 121 lets homeowners who owned and used the home as their principal residence for at least two of the prior five years exclude up to $250,000 of gain (single) or $500,000 (married filing jointly). It applies to a primary residence, not to investment property.

Depreciation recapture on the sale of investment real estate means that:

• a.All of the depreciation deductions previously claimed are simply refunded to the investor in cash
• b.The investor is legally required to physically restore and rebuild the depreciated building itself
• c.Gain from prior depreciation may be taxed, often at a special rate✓
• d.No income tax is ever owed at all on the sale of a property that has previously been depreciated

When depreciated property is sold at a gain, the portion of gain due to depreciation deductions is 'recaptured' and taxed under special rules, reflecting the earlier tax benefit. It is a tax concept, not a requirement to rebuild, and it increases, not eliminates, tax on sale.

Which appraisal approach is generally MOST reliable for a special-purpose property, such as a church or public school, that rarely sells and earns no market income?

• a.The sales comparison approach, which depends on recent sales of similar comparable properties
• b.The income approach, which converts a property's market rental income into an indicated value
• c.The gross rent multiplier method, which relies on typical market rents that these lack entirely
• d.The cost approach✓

Special-purpose properties have few or no comparable sales and generate no market rent, so the cost approach (replacement cost new, less depreciation, plus land) is typically most reliable. Sales comparison lacks comparables and the income/GRM methods need market income these properties do not produce.

The four characteristics an item must have to possess value in the market, often remembered as DUST, are:

• a.Debt, Utility, Supply, and Taxes, a mix of unrelated financing and cost terms rather than value
• b.Demand, Utility, Scarcity, and Transferability✓
• c.Depreciation, Use, Sale, and Title, which describe stages of ownership rather than value itself
• d.Demand, Ownership, Scarcity, and Time, which swaps in two terms that are not part of the concept

For something to have market value it must have Demand (buyers who want it), Utility (usefulness), Scarcity (limited supply), and Transferability (the ability to convey it). The DUST acronym captures these four essentials of value.

Which agency issues and regulates real estate licenses in Mississippi?

• a.The Mississippi Secretary of State
• b.The Mississippi Association of Realtors
• c.The Mississippi Real Estate Commission✓
• d.The county chancery clerk

Real estate licensing in Mississippi is administered by the Mississippi Real Estate Commission (MREC) under the state's real estate license law, Miss. Code Title 73, Chapter 35. The Commission issues, renews, and disciplines licenses and adopts the rules that govern practice. A trade association such as the Mississippi Association of Realtors is a private group with no licensing authority.

In Mississippi, a salesperson may perform licensed real estate activity only when:

• a.Placed with and supervised by a licensed responsible broker✓
• b.Registered with the local tax assessor
• c.Approved by MREC for each individual transaction
• d.Operating independently under the salesperson's own license

A Mississippi salesperson's license is valid only while the salesperson is placed with and supervised by a licensed responsible broker. All licensed activity is conducted for the responsible broker, who supervises the salesperson and is responsible for trust funds. A salesperson may not accept compensation directly from a consumer; commissions are paid through the responsible broker.

The Mississippi Real Estate Commission may discipline a licensee for which of the following?

• a.Commingling client trust funds with the broker's own funds✓
• b.Referring a buyer to a licensed lender
• c.Advertising a listing with the seller's consent
• d.Belonging to a Realtor association

Commingling or converting client trust money is a serious violation of Mississippi license law and a common basis for discipline, along with fraud, misrepresentation, and dishonest dealing. MREC may reprimand, fine, suspend, or revoke a license after due process. Lawful referrals, association membership, and authorized advertising are not violations.

Mississippi requires a licensee to provide the agency disclosure describing who the broker represents:

• a.At the first substantive meeting concerning a specific property, before confidential information is exchanged✓
• b.Only after the closing
• c.Within 30 days after a listing expires
• d.Only when the buyer requests it

Mississippi requires the licensee to provide the agency disclosure form describing the brokerage relationship at first substantive contact concerning a specific property, before confidential information is exchanged. Early disclosure lets a buyer or seller understand whether the licensee represents a party before sharing negotiating information. The disclosure identifies whether the licensee is a seller's agent, buyer's agent, or dual agent.

Under Mississippi law, a broker may act as a disclosed dual agent representing both the seller and the buyer only if:

• a.The sale price is under a statutory ceiling
• b.Each party is represented by a different attorney
• c.The property is agricultural land
• d.Both parties give informed written consent to the dual agency✓

Mississippi permits disclosed dual agency, in which the same broker represents both the seller and the buyer, only with the informed written consent of both parties. Because a dual agent cannot fully advocate for either side, the licensee must not disclose one party's confidential information, such as the highest price a buyer will pay, to the other.

When a Mississippi salesperson receives an earnest-money deposit, the funds must be:

• a.Deposited into the salesperson's personal account
• b.Held as cash by the salesperson until closing
• c.Mailed to the Mississippi Real Estate Commission
• d.Delivered promptly to the responsible broker to be held in the broker's trust account✓

Earnest money and other client funds 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. Mishandling trust money is one of the most serious violations of Mississippi license law.

In a typical Mississippi sale of residential property, the seller is generally expected to provide the buyer with:

• a.Nothing, because Mississippi follows strict caveat emptor
• b.Only the prior year's utility bills
• c.A property condition disclosure statement describing the known condition of the property✓
• d.A completed appraisal report

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. Complete, honest disclosure protects the consumer and helps shield the licensee from later misrepresentation claims.

Which best describes the education path for a new Mississippi salesperson?

• a.Complete approved pre-license education and pass the exam to obtain the license, then complete required post-license education during the first period of licensure✓
• b.No coursework if placed with a broker
• c.A single seminar with no exam
• d.A four-year real estate degree only

Mississippi requires a candidate to complete approved pre-license education and pass the licensing examination, then complete required post-license education during the first period of licensure. New salespersons must be placed with a responsible broker for the license to be active. Ongoing continuing education is required to renew the license.

A resident applicant for a Mississippi real estate salesperson license must be at least what age and complete how many prelicense hours?

• a.21 years of age, with 90 hours of real estate courses
• b.18 years of age, with 90 hours of real estate courses
• c.18 years of age, with 60 hours of real estate courses✓
• d.21 years of age, with 60 hours of real estate courses

Every applicant for a resident salesperson license must be age eighteen (18) or over, be a bona fide resident of Mississippi before filing the application, and complete a minimum of sixty (60) hours in real estate courses before passing the salesperson examination. Cite: Miss. Code Ann. sec. 73-35-7 (MREC License Law, rev. 7-01-2026).

A resident applicant for a Mississippi real estate BROKER license must be at least what age and complete how many prelicense hours?

• a.21 years of age, with 120 hours of real estate courses✓
• b.18 years of age, with 120 hours of real estate courses
• c.21 years of age, with 180 hours of real estate courses
• d.18 years of age, with 90 hours of real estate courses

A resident broker applicant must be age twenty-one (21) or over with legal domicile in Mississippi, and must have successfully completed a minimum of one hundred twenty (120) hours of real estate courses. Cite: Miss. Code Ann. sec. 73-35-7 (MREC License Law, rev. 7-01-2026).

Before applying to sit for the Mississippi broker's examination, an applicant must have held an active real estate salesperson's license for at least:

• a.six (6) months
• b.twelve (12) months✓
• c.twenty-four (24) months
• d.forty-eight (48) months

The statute requires that the applicant have held a license as an active real estate salesperson for twelve (12) months prior to making application for the broker's examination. Cite: Miss. Code Ann. sec. 73-35-7 (MREC License Law, rev. 7-01-2026).

A Mississippi broker applicant who qualifies on twelve months of active salesperson experience must sign a form, under penalty of perjury, stating that the applicant will not:

• a.advertise the brokerage under a trade name for one year
• b.open a branch office during the first year of licensure
• c.hold earnest money in the brokerage's own escrow account
• d.hire any real estate salespersons for thirty-six (36) months✓

The applicant must sign a Commission form under penalty of perjury stating that he or she will not hire any real estate salespersons for thirty-six (36) months from the date the applicant's active salesperson license was approved; the restriction does not apply to an applicant who has held that license 36 months. Cite: Miss. Code Ann. sec. 73-35-7(h) (MREC License Law, rev. 7-01-2026).

What does Mississippi issue to an applicant who has passed the licensing examination and met the other conditions for licensure?

• a.A temporary license valid one year from the first day of the following month✓
• b.A permanent license, with post-license education due at the first renewal
• c.A provisional license valid only while the applicant is under direct supervision
• d.A conditional license that expires when the applicant changes principal brokers

On passing the Mississippi broker's or salesperson's examination and complying with all other conditions, a temporary license is issued, valid for a period of one (1) year following the first day of the month after its issuance. Cite: Miss. Code Ann. sec. 73-35-14.5(1) (MREC License Law, rev. 7-01-2026).

Before a Mississippi temporary licensee can be issued a permanent license, the licensee must complete:

• a.a 16-hour continuing education cycle approved by the Commission
• b.a 60-hour post-license course offered by any approved provider
• c.a 30-hour post-license course within 12 months of the temporary license✓
• d.a 30-hour post-license course at any time before the second renewal

The holder of a temporary license may not be issued a permanent license until completing a thirty-hour post-license course from a specifically certified provider, and must finish the entire course within twelve (12) months of issuance or the temporary license is placed on inactive status. Cite: Miss. Code Ann. sec. 73-35-14.5(3) (MREC License Law, rev. 7-01-2026).

A Mississippi temporary license reaches the end of its term without the post-license course being finished. The temporary license:

• a.may be renewed once on payment of the renewal fee and penalty
• b.expires and lapses, and is not subject to renewal at all✓
• c.converts automatically to an inactive permanent license
• d.continues in force until the Commission holds a hearing

If the holder does not complete the course and obtain the permanent license within one year following the first day of the month after issuance, the temporary license automatically expires and lapses; a temporary license is not subject to the renewal procedures and may not be renewed. Cite: Miss. Code Ann. sec. 73-35-14.5(3) (MREC License Law, rev. 7-01-2026).

How may the Mississippi 30-hour post-license course be scheduled?

• a.In any increments, so long as the full course is finished in 30 days
• b.In a single continuous session of not less than thirty classroom hours
• c.In increments of at least ten hours, with up to twelve hours in a day
• d.In increments of at least fifteen hours, with no more than eight in a day✓

The thirty-hour post-license coursework must be offered in no less than fifteen-hour increments of classroom instruction, and no more than eight (8) hours may be earned in a single day. Cite: Miss. Code Ann. sec. 73-35-14.5(4) (MREC License Law, rev. 7-01-2026).

In the Mississippi post-license course for SALESPERSON licensees, at least 24 of the 30 hours must cover:

• a.agency, contracts, earnest money, antitrust, fair housing, ethics and property condition disclosure✓
• b.managing escrow accounts, office policies and procedures, and broker agreements with licensees and assistants
• c.pricing property, environmental issues, home inspections, leases and mortgage processes
• d.recruiting, retention, budgeting, financial planning and managing agents

For salesperson licensees at least twenty-four of the thirty hours must be in agency relationships, contracts, earnest money, antitrust, fair housing, ethics and property condition disclosure; the escrow, office policy and broker responsibility topics belong to the broker version of the course. Cite: Miss. Code Ann. sec. 73-35-14.5(4) (MREC License Law, rev. 7-01-2026).

A Mississippi licensee finished the post-license course and was issued a permanent active license. For the FIRST renewal of that permanent license, the licensee:

• a.must complete 8 of the 16 continuing education hours
• b.must complete all 16 continuing education clock hours
• c.is not subject to the 16-hour continuing education requirement✓
• d.must repeat the post-license course instead of continuing education

The holder of an active license who has satisfactorily completed the post-license course and whose permanent license has been issued is not subject to the sixteen-hour continuing education requirement for the first renewal of that permanent license. Cite: Miss. Code Ann. sec. 73-35-14.5(5) (MREC License Law, rev. 7-01-2026).

Mississippi's continuing education requirement for an individual licensee is:

• a.12 clock hours for each two-year license renewal period
• b.16 clock hours for each two-year license renewal period✓
• c.24 clock hours for each two-year license renewal period
• d.16 clock hours for each year the license is held on active status

Each individual applicant for renewal must submit proof of completing not less than sixteen (16) clock hours of approved coursework, and that requirement applies to each two-year license renewal. Cite: Miss. Code Ann. sec. 73-35-18(1) (MREC License Law, rev. 7-01-2026).

A Mississippi licensee earns 24 approved continuing education hours, 8 of them in the final three months of the renewal period. How many hours may carry over?

• a.None; excess hours never carry to a later renewal period
• b.All 8, because they were earned in the final three months
• c.4 hours, one quarter of the 16-hour requirement
• d.6 hours, the maximum the statute allows to carry over✓

Approved hours earned in the final three (3) months of a renewal period, if in excess of the required minimum sixteen, may be carried over to the next renewal period, but no more than six (6) hours may be carried over in this manner. Cite: Miss. Code Ann. sec. 73-35-18(1) (MREC License Law, rev. 7-01-2026).

In a Mississippi single agency, when must the broker give the MREC Agency Disclosure Form to the party the broker WILL represent?

• a.Before the agreement for representation is entered into✓
• b.At the first substantive meeting with that party
• c.Before the party signs an offer to purchase the property
• d.Within three days after the representation agreement is signed

In a single agency the broker must disclose in writing to the party for whom the broker is an agent that the broker is that party's agent, and the written disclosure must be made before the time an agreement for representation is entered into, on an MREC Agency Disclosure Form. Cite: Miss. Admin. Code Title 30, Part 1601, Rule 4.3(A) (MREC Rules and Regulations, rev. 02-21-2025).

A Mississippi listing broker meets an unrepresented buyer at a showing. The broker must deliver the MREC Agency Disclosure Form to that buyer:

• a.before the listing agreement is signed by the seller
• b.only if the buyer later decides to write an offer
• c.at the time of the first substantive meeting with the buyer✓
• d.at closing, along with the rest of the transaction file

In a single agency the broker must disclose in writing to the party for whom the broker is not an agent that the broker represents another party, and that written disclosure is made at the time of the first substantive meeting with that party. Cite: Miss. Admin. Code Title 30, Part 1601, Rule 4.3(B) (MREC Rules and Regulations, rev. 02-21-2025).

How does a Mississippi seller give the initial written consent to disclosed dual agency?

• a.By initialing the listing agreement where dual agency is described
• b.By signing the Consent To Dual Agency portion of MREC Form A✓
• c.By signing a separate notarized consent filed with the Commission
• d.By oral consent that the broker records in the transaction file

Informed written consent is timely when the seller, at the time the representation agreement is entered into, gives written consent by signing the Consent To Dual Agency portion of MREC Form A; the buyer does the same when the buyer's representation agreement is made. Cite: Miss. Admin. Code Title 30, Part 1601, Rule 4.3(B)(1) and (2) (MREC Rules and Regulations, rev. 02-21-2025).

In a Mississippi dual agency, the MREC Dual Agency Confirmation Form signed by the buyer must be:

• a.filed with the Commission within ten days of the closing
• b.retained by the broker but not shown to the seller
• c.given to the seller only if the offer is actually accepted
• d.attached to the offer to purchase, whatever the offer's outcome✓

The broker must confirm the buyer's understanding and consent before the buyer signs an offer, and confirm the seller's before presenting it; the buyer signs the MREC Dual Agency Confirmation Form, which is attached to the offer to purchase and remains attached regardless of the outcome of the offer. Cite: Miss. Admin. Code Title 30, Part 1601, Rule 4.3(B)(3) (MREC Rules and Regulations, rev. 02-21-2025).

Midway through a Mississippi transaction the agency relationship between the parties changes. What must happen?

• a.New disclosure forms must be acknowledged by all parties involved✓
• b.The original forms must be amended in ink and initialed by the broker
• c.The broker must notify the Commission of the change within ten days
• d.Nothing; the forms given at the first substantive meeting still govern

In the event the agency relationship changes between the parties to a real estate transaction, new disclosure forms will be acknowledged by all parties involved. Cite: Miss. Admin. Code Title 30, Part 1601, Rule 4.3(C) (MREC Rules and Regulations, rev. 02-21-2025).

A Mississippi buyer receives the agency disclosure form but refuses to sign the acknowledgement. The broker must:

• a.stop working with that buyer until the form is signed
• b.have a witness sign the form in the buyer's place
• c.annotate the form with the declination statement the rule prescribes✓
• d.send the form to the buyer by certified mail and keep the receipt

Where a party receiving a disclosure form asks not to sign the acknowledgement, the broker annotates the form with the prescribed statement that a copy was delivered on a stated date and that the recipient declined to acknowledge receipt. Cite: Miss. Admin. Code Title 30, Part 1601, Rule 4.3(E) (MREC Rules and Regulations, rev. 02-21-2025).

A Mississippi brokerage wants to print the MREC agency disclosure form on its own letterhead and reorder the paragraphs. The brokerage may:

• a.do both, provided the broker keeps a signed copy in the file
• b.duplicate the form in content and size, but not alter it✓
• c.alter the form as long as the Commission approves it in advance
• d.reorder the content if the brokerage's attorney reviews the result

The Commission-mandated disclosure form may be duplicated in content and size but not altered. Cite: Miss. Admin. Code Title 30, Part 1601, Rule 4.3(G) (MREC Rules and Regulations, rev. 02-21-2025).

Mississippi's agency disclosure rule contains an exception for transactions with:

• a.any buyer who is already represented by legal counsel
• b.any seller who has held the property for more than ten years
• c.any party purchasing property for investment rather than residence
• d.corporations, partnerships, trusts and governmental entities✓

A licensee need not comply with the disclosure requirements when engaged in transactions with corporations, nonprofit or professional corporations, professional associations, limited liability companies, partnerships, real estate investment trusts, business trusts, charitable or family trusts, or governmental entities; the exception does not displace the common law of agency. Cite: Miss. Admin. Code Title 30, Part 1601, Rule 4.4 (MREC Rules and Regulations, rev. 02-21-2025).

Mississippi statute defines a "brokerage agreement" as:

• a.any oral or written understanding that a broker will show property
• b.the listing contract between a seller and a licensed broker only
• c.a specific written agreement establishing a brokerage relationship✓
• d.the cooperation agreement between the listing and selling brokers

A brokerage agreement is a specific written agreement between a real estate broker and a consumer that establishes a brokerage relationship and states the terms and conditions of the brokerage services, including any compensation to be paid to or through the company. Cite: Miss. Code Ann. sec. 73-35-3(4) (MREC License Law, rev. 7-01-2026).

Under the Mississippi brokerage agreement law effective July 1, 2026, when is a written brokerage agreement with a prospective buyer required?

• a.Before submitting an offer on a property for compensation✓
• b.Before the licensee may show the buyer any property at all
• c.Before the licensee may discuss financing options with the buyer
• d.Only after the buyer and seller have reached a written agreement

A licensee need not have a brokerage agreement with a prospective buyer merely to tour a property, but a written brokerage agreement is required before a licensee lists a property for sale or submits an offer on a property on behalf of a client or customer for compensation. Cite: 2026 Mississippi brokerage agreement act (effective July 1, 2026), printed in Miss. Code Ann. tit. 73, ch. 35 as published in MREC License Law, rev. 7-01-2026.

A Mississippi broker is the seller's agent and has earned a commission, but the seller cannot close. The earnest money the purchaser deposited must be:

• a.divided between the seller and the broker as the listing provides
• b.returned in full to the purchaser✓
• c.held in escrow until the seller pays the commission owed
• d.applied first to the broker's commission, with the balance refunded

When the broker is the seller's agent and the seller fails or is unable to consummate the transaction, the broker has no right to any portion of the earnest money even if a commission has been earned; the entire deposit must be returned to the purchaser and the broker looks to the seller for pay. Cite: Miss. Admin. Code Title 30, Part 1601, Rule 3.4(B) (MREC Rules and Regulations, rev. 02-21-2025).

A Mississippi broker learns that an earnest money check deposited to escrow was not honored by the bank. The broker must:

• a.report the dishonored check to the Commission within ten days
• b.cancel the contract and return the file to the listing agent
• c.cover the shortfall from the brokerage's operating account
• d.immediately notify all parties involved in the transaction✓

If a broker as escrow agent accepts a check and later finds that it has not been honored by the bank on which it was drawn, the broker shall immediately notify all parties involved in the transaction. Cite: Miss. Admin. Code Title 30, Part 1601, Rule 3.4(D) (MREC Rules and Regulations, rev. 02-21-2025).

May a Mississippi broker keep any of the brokerage's own money in an escrow or rental account?

• a.Yes, for the express purpose of covering service charges and bank debits✓
• b.Yes, in any amount, so long as the ledger identifies it as broker funds
• c.No, under no circumstance may broker funds sit in a trust account
• d.Yes, but only with the written consent of every client with funds there

Money received in a trust account on behalf of clients or customers is not an asset of the broker, but a broker may deposit and keep in each escrow or rental account some personal funds for the express purpose of covering service charges and other bank debits related to that account. Cite: Miss. Admin. Code Title 30, Part 1601, Rule 3.4(C) (MREC Rules and Regulations, rev. 02-21-2025).

A Mississippi salesperson closes a sale and the buyer offers to pay the salesperson a bonus directly. Accepting it is:

• a.permitted if the principal broker consents in writing beforehand
• b.permitted if the bonus is reported on the closing statement
• c.a ground for suspension or revocation of the salesperson's license✓
• d.permitted because the buyer is a party to the transaction

Accepting a commission or valuable consideration as a real estate salesperson for acts specified in the chapter from any person except the salesperson's employer, who must be a licensed real estate broker, is a statutory ground for refusing, suspending or revoking a license. Cite: Miss. Code Ann. sec. 73-35-21(1)(l) (MREC License Law, rev. 7-01-2026).

A Mississippi broker pays a $500 "thank you" to an unlicensed neighbor who introduced the buyer. This is:

• a.allowed if the payment is disclosed to both parties in writing
• b.a ground for disciplinary action against the broker's license✓
• c.allowed if the amount is under one percent of the sale price
• d.allowed because the neighbor never negotiated any of the terms

Paying any rebate, profit or commission to a person other than a real estate broker or salesperson licensed under the chapter is a ground on which the Commission may refuse, suspend or revoke a license. Cite: Miss. Code Ann. sec. 73-35-21(1)(j) (MREC License Law, rev. 7-01-2026).

When does Mississippi law require a licensee to furnish copies of listings, contracts and agreements to the parties who sign them?

• a.Within three days after the document has been signed
• b.Within a reasonable time after the transaction closes
• c.Only on written request
• d.Voluntarily, at the time of signing✓

Failing to furnish voluntarily, at the time of signing, copies of all listings, contracts and agreements to all parties executing them is a ground for refusing, suspending or revoking a license. Cite: Miss. Code Ann. sec. 73-35-21(1)(i) (MREC License Law, rev. 7-01-2026).

A Mississippi licensee places a "for sale" sign on a vacant house before the owner has signed anything. This conduct is:

• a.a ground for disciplinary action by the Commission✓
• b.permissible as ordinary prospecting for listings
• c.permissible if the sign is removed within thirty days
• d.permissible if the owner is told about the sign afterward

Displaying a "for sale" or "for rent" sign on any property without the owner's consent is a ground on which the Commission may refuse to issue, suspend or revoke a license. Cite: Miss. Code Ann. sec. 73-35-21(1)(h) (MREC License Law, rev. 7-01-2026).

A Mississippi salesperson believes a seller owes her a commission. She may:

• a.sue the seller in her own name for the commission owed
• b.file a claim with the Commission, which will order payment
• c.not sue the seller; her broker must bring that action✓
• d.sue the seller jointly with her broker as co-plaintiffs

No real estate salesperson may institute suit in her own name to recover a fee or commission for services as a salesperson; the broker employing her must bring the action, although she may sue her own employing broker for fees owed her. Cite: Miss. Code Ann. sec. 73-35-33(2) (MREC License Law, rev. 7-01-2026).

A Mississippi salesperson moves from one principal broker to another. Written notice to the Commission must be given within:

• a.ten (10) days, or the license is suspended
• b.three (3) days, or the license is automatically cancelled✓
• c.thirty (30) days, or a late transfer fee is assessed
• d.five (5) business days, or the licensee must retest

Prompt written notice within three (3) days must be given to the Commission of a change of principal broker and of the new principal broker's name; changing principal broker without the required notice automatically cancels the license, and the former principal broker must acknowledge the transfer within three days. Cite: Miss. Code Ann. sec. 73-35-15(2) (MREC License Law, rev. 7-01-2026).

A Mississippi broker is moving the brokerage office to a new address. The broker must apply to the Commission designating the new location:

• a.at the next license renewal, listing the new address
• b.within thirty (30) days after the move is completed
• c.only if the move crosses into a different county
• d.before the move, or within ten (10) days after it✓

Every licensed broker must maintain a definite place of business designated in the license, and in case of removal from the designated address the licensee must apply to the Commission before removal, or within ten (10) days after removal, designating the new office location. Cite: Miss. Code Ann. sec. 73-35-15(1) (MREC License Law, rev. 7-01-2026).

A Mississippi broker signs a cooperative agreement with an out-of-state broker who holds no Mississippi license. Unless the buyer and seller agree otherwise in writing, the earnest money must be:

• a.held in escrow by the Mississippi broker✓
• b.held by the out-of-state cooperating broker
• c.deposited with the closing attorney chosen by the buyer
• d.split between the two brokers' escrow accounts equally

All earnest money pertaining to a cooperative agreement must be held in escrow by the Mississippi broker unless both the buyer and the seller agree in writing to relieve the Mississippi broker of that responsibility; the Mississippi broker also supervises showings and is liable for the cooperating broker's acts. Cite: Miss. Code Ann. sec. 73-35-11 (MREC License Law, rev. 7-01-2026).

A Mississippi licensee gives a buyer the square footage taken from the tax assessor's public record. Under Mississippi law the licensee must:

• a.measure the dwelling personally to confirm the figure
• b.obtain a licensed appraiser's measurement before closing
• c.identify the source of the size information provided✓
• d.warrant the accuracy of the figure given to the buyer

A licensee who provides a party with third-party size or area information must identify the source of that information; the licensee has no duty to investigate size independently or verify the accuracy of third-party information, and size information so provided is not a warranty. Cite: Miss. Code Ann. sec. 73-35-4.1(1) (MREC License Law, rev. 7-01-2026).

A Mississippi buyer asks the broker whether the seller's deed conveys good title. The broker may:

• a.give an opinion on the validity of title if the broker says it is not legal advice
• b.not give an opinion on title, though an earnest money contract form may be used✓
• c.prepare a deed for the parties if neither side has hired an attorney
• d.charge a separate fee for reviewing the title work before closing

A Mississippi broker who is not a licensed attorney may not practice law, act as a public conveyancer, give opinions on the legal effect of instruments or the validity of title, or prepare documents fixing the parties' legal rights; the broker may use an earnest money contract form and may not discourage a party from hiring an attorney. Cite: Miss. Code Ann. sec. 73-35-21(2) (MREC License Law, rev. 7-01-2026).

An individual is convicted of a FIRST violation of Mississippi's real estate license law. The statutory penalty is:

• a.a fine of not more than $500, with no possibility of jail
• b.a fine of $2,000 to $5,000, or six months in jail, or both
• c.a fine of $1,000 to $2,000, or six months in jail, or both
• d.a fine of $500 to $1,000, or up to 90 days in jail, or both✓

On conviction of a first violation an individual is punished by a fine of not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000), or imprisonment not to exceed ninety (90) days, or both; the higher ranges apply to corporations and to second or subsequent violations. Cite: Miss. Code Ann. sec. 73-35-31(1) (MREC License Law, rev. 7-01-2026).

An unlicensed person in Mississippi collects a $9,000 commission in violation of the license law. In addition to criminal penalties, that person may be liable to an aggrieved party for:

• a.not less than the sum received and not more than four times it✓
• b.the sum received plus interest at the legal rate from the date paid
• c.twice the sum received, as liquidated damages fixed by statute
• d.the sum received, but only if the Commission first holds a hearing

A person who received money as commission, compensation or profit in consequence of a violation is liable to a penalty of not less than the sum received and not more than four (4) times that sum, as the court determines, recoverable by any aggrieved person for that person's own use and benefit. Cite: Miss. Code Ann. sec. 73-35-31(2) (MREC License Law, rev. 7-01-2026).