Free Mississippi Real Estate Salesperson Practice Exam 2025

Mississippi brokers must deposit client funds into a designated trust or escrow account in a timely manner, usually by the next banking business day, to prevent mishandling or commingling of funds.

A dual agency relationship is created in Mississippi when one broker represents both buyer and seller in the same transaction with written, informed consent from both parties.

Licensees are legally obligated to disclose all known material defects that could affect a property's value or desirability, even in “as-is” sales. Failure to disclose is a violation of license law.

Net listings are illegal in Mississippi. This type of listing encourages agents to prioritize personal gain over client interests, violating ethical obligations and fiduciary duties.

Errors and Omissions (E&O) insurance is required only for active licensees in Mississippi. Inactive licensees are not subject to this requirement until they reactivate their license (Rule 3.3.D).

After entering into a contract with a client, Mississippi brokers have three business days to furnish a signed copy to the client. This allows time for recordkeeping and compliance verification.

Real estate licensees must immediately provide a signed copy of any document (e.g., listing agreements, purchase contracts) to the person who signed it. This ensures transparency and client awareness.

The maximum fine for a license law violation in Mississippi is $5,000 per offense, in addition to potential license suspension or revocation, depending on the severity of the infraction.

Violating Mississippi real estate license law can result in up to 6 months of jail time, particularly for intentional fraud, operating without a license, or repeated non-compliance (Miss. Code §73-35-35).

Dual agency is permitted in Mississippi only when all parties provide written, informed consent. The agent must clearly explain the limited fiduciary duties and obtain signatures before proceeding.

The Mississippi Real Estate Commission must respond to a formal complaint within 90 days of receipt. Timely response ensures due process and maintains public trust in regulatory oversight.

IREBEA is a voluntary program available to real estate brokers in Mississippi. Brokers who choose to participate allow interest from escrow accounts to benefit public legal services.

Interest generated from IREBEA accounts is used to fund legal assistance for low-income individuals, supporting public interest law services such as legal aid and advocacy.

The IREBEA (Interest on Real Estate Brokers’ Escrow Accounts) program in Mississippi is administered by entities like the Mississippi Bar Association, working with approved financial institutions (Rule 8.2).

A real estate agent owes fiduciary duties solely to their client under Mississippi Agency Law. Customers and the public are owed honesty and fairness, but not fiduciary-level obligations.

Under Mississippi law, any individual engaging in activities such as listing, showing, or negotiating sales of real property must hold an active real estate license issued by the Commission.

Mississippi has reciprocity agreements with certain states. This allows licensees from those states to practice in Mississippi under mutual recognition and licensing conditions, including background checks and application approval.

The six fiduciary duties under Mississippi agency law are: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care. Transparency is important but not a legally defined fiduciary duty.

Members of the Mississippi Real Estate Commission are appointed by the Governor of Mississippi, subject to approval by the state Senate. This structure promotes executive oversight of the Commission.

Commingling, or mixing client funds with personal or business funds, is strictly prohibited under Mississippi law. This rule ensures transparency and protects clients from misuse or loss of their funds (Rule 3.2, MREC).

Mississippi follows the Lien Theory of financing. This means the borrower retains legal title to the property, and the lender only holds a lien until the loan is paid off, unlike title theory states.

Salespersons who change their responsible broker must notify the MREC within 10 days and ensure the change is documented and processed before continuing real estate activities.

To transfer a license to another broker, the licensee must submit a transfer request form, return their current license, and pay the transfer fee. The new broker must also sign the request.

Upon receiving a notice of violation, a licensee has 10 days to respond in writing to the MREC. Failure to respond may result in additional penalties or administrative action.

Continuing education in Mississippi must be completed biennially. Licensees are encouraged to complete their CE well before renewal deadlines to avoid delays or license inactivation.

Funds collected by MREC must be transferred monthly to the State Treasury, ensuring transparency and alignment with public finance procedures (Miss. Code Ann. §73-35-37).

Commission members must also have at least 5 years of active experience as licensed real estate brokers, ensuring they understand industry practices and can regulate competently.

To be appointed to the Commission, an individual must have been a Mississippi resident for at least 5 years immediately prior to appointment, ensuring familiarity with the state’s market and laws.

The Mississippi Real Estate Commission is composed of five members, appointed by the Governor, representing various geographic districts and ensuring diverse oversight across the state.

To renew a license in Mississippi, licensees must complete 12 hours of continuing education (CE) every two-year cycle. This includes mandatory core courses specified by MREC.

Mississippi brokers must retain transaction records for a minimum of three years from the date of completion. These include agency agreements, offers, closing statements, and trust account ledgers (Rule 3.6.A).

If an applicant fails the licensing exam, they have 4 months from their last exam date to reapply and retest. After this period, they must repeat the entire pre-licensing course to become eligible again.

A temporary license in Mississippi is valid for one year. During that time, the licensee must complete post-license education to qualify for a permanent license. Failure to do so results in expiration.

A provisional salesperson in Mississippi may only be paid by their sponsoring broker, not directly from buyers, sellers, or any third party. This reinforces broker supervision and prevents unauthorized activity.

Applicants must submit two fingerprint cards as part of the background check requirement for licensing. This helps MREC verify criminal history through the Mississippi Department of Public Safety and FBI databases.

All fees collected under the Mississippi Real Estate License Law are deposited into the Real Estate License Fund, which is used to operate the Mississippi Real Estate Commission (MREC), including enforcement and education.

Mississippi real estate applicants have 4 months from the date of completing the pre-license course to pass the state exam. After that, they must retake the course to requalify (MREC Rule 3.1.E).

In Mississippi, brokers must deposit earnest money into a trust account by the close of the next banking day after receiving it, per Miss. Admin. Code Title 30, Part 1601, Rule 3.2. This ensures proper trust fund handling.

First substantial contact occurs when a buyer begins sharing personal information or financial/transactional intentions with an agent—not just walking through an open house. This triggers the agent’s obligation to present an agency disclosure.

A real estate agent owes six fiduciary duties to a client: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care (commonly referred to as "OLD CAR"). These duties arise from agency law and must be honored in all client dealings.