Mississippi Real Estate Salesperson Exam — All Questions

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

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

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.Only the prior year's utility bills
• b.Nothing, because Mississippi follows strict caveat emptor
• 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.