Mississippi Real Estate Salesperson Exam — All Questions

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.

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).