Free Mississippi Real Estate Practice Exam Questions (November 2024) 40+

“The licensee or any other person charged with a violation of this chapter shall be given fifteen (15) days' notice of the hearing upon the charges filed.” Per 73-35-23. Powers of commission as to violations; hearings upon revocation; subpoena

"Association" means the organized body consisting of the owners of timeshare interests in a timeshare plan. Per Miss. Code Ann. §73-35-3 Rule 8.2 Definitions

First substantial contact never occurred and no further agency disclosure was required. First substantial contact occurs with sellers in a pre-listing meeting, with buyers in a meeting to where they define the parameters of a home search, and with owners marketing their own property. Disclosure should be made during these occasions.

“Each appointee shall have been a resident and citizen of this state for at least six (6) years prior to his appointment, and his vocation for at least five (5) years shall have been that of a real estate broker.” Per MS Code § 73-35-5

Errors and omissions insurance is a type of professional liability insurance that protects agents against claims of inadequate work or negligent actions. Mississippi Real Estate Law mandates agents have errors and omissions insurance. Per MS Code § 73-35-16

In Mississippi, all of the following are legal except a Net listing. Net listings create a potential conflict of interest for the broker and is prohibited in Mississippi.

“Any person violating a provision of this chapter shall, upon conviction of a first violation… by imprisonment for a term not to exceed ninety (90) days, or both.” Per 73-35-31 - Penalties for violations of chapter

“Prompt notice in writing, within three (3) days, shall be given to the commission by any real estate salesperson of a change of responsible broker, and of the name of the principal broker into whose agency the salesperson is about to enter.” Per 73-35-15. Location of business and responsible broker to be designated

Transparency is good, and important but not a specifically defined fiduciary responsibility per Mississippi law. Mississippi agents owe their clients six fiduciary responsibilities: Loyalty (1), Obedience (2), Disclosure (3), Confidentiality (4), Reasonable skill care and diligence (5), and Full accounting(6). Per Miss. Code Ann. §73-35-3 Rule 4.2 Definitions

"Developer" means and includes any person who creates a timeshare plan or is in the business of selling timeshare interests, or employs agents to do the same or any person who succeeds in the interest of a developer by sale, lease, assignment, mortgage, or other transfer, but the term includes only those persons who offer timeshare interests for disposition in the ordinary course of business and does not include those sellers who sell timeshare interests on the developer's behalf. Per Miss. Code Ann. §73-35-3 Rule 8.2 Definitions

"Assessment" means the share of funds required for the payment of common expenses that are assessed from time to time against each timeshare interest owner by the managing entity. Per Miss. Code Ann. §73-35-3 Rule 8.2 Definitions

Technically, the seller pays the listing broker (their sponsoring broker) who then pays the listing agent or salesperson.

Active Real Estate Professionals must complete 16 hours of approved CE during each full licensure renewal period.

Mississippi is NOT a Community Property state. The states that have community property laws are: Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin. Community property is property acquired that is considered to be obtained by mutual effort.

“In the event of uncertainty as to the proper disposition of earnest money, the broker may turn earnest money over to a court of law for disposition.” Per Miss. Code Ann. §73-35-35 Rule 3.4 Earnest Money

“The commission shall require a receipt of proof of errors and omissions insurance from new licensees within thirty (30) days of licensure.” Per 73-35-16 - Real estate licensees required to obtain errors and omissions insurance coverage

“A real estate licensee shall immediately (at the time of signing) deliver a true and correct
copy of any instrument to any party or parties executing the same.” Per Miss. Code Ann. §73-35-35 Rule 3.2 Documents

No, it is not. Commingling is a breach of trust in which a fiduciary mixes funds held in care for a client with their own funds. “commingling of monies belonging to others with his own funds.” Per Miss. Code Ann. 73-35-21. Grounds for refusing to issue or suspending or revoking license; hearing

Mississippi agents owe their clients six fiduciary responsibilities: Loyalty, Obedience, Disclosure, Confidentiality, Reasonable skill, care and diligence, and Full accounting. Per Miss. Code Ann. §73-35-3 Rule 4.2 Definitions

Mississippi is a title theory state. In title theory states the lender holds title to the property in the name of the borrower through a Deed of Trust. When the loan is paid in full, the lender issues and records a Deed of Reconveyance, which clears the title of the property.

In Mississippi, licensed activity is defined as anyone who lists, sells, leases, or deals in real estate transactions. If someone does any of those activities without a license it is considered unlicensed activity. In order to do prior tasks, they must hold an active real estate license.

“Any person violating a provision of this chapter shall, upon conviction of a first violation…..if a corporation, be punished by a fine of not more than Two Thousand Dollars.” Per 73-35-31 - Penalties for violations of chapter

Inactive licensees are NOT required to maintain Errors and Omissions Insurance. “Inactive licensees will not be required to pay the premium until changing to active status and the premium will be assessed on a pro-rata basis. However, inactive licensees will be invoiced at the beginning of the policy period. They may pay the full premium at that time if they desire.” Miss. Code Ann. 73-35-35 Rule 30-1601-9.2

3 months. An applicant who has failed the Mississippi salesperson's exam twice must three months to re-take the exam.

“The IREBEA program shall be a voluntary program based upon willing participation by real estate brokers, whether proprietorships, partnerships or professional corporations.” Per 73-35-105. Interest on Real Estate Brokers' Escrow Accounts (IREBEA) program.

Every quarter. “All funds received from the IREBEA program shall be deposited with the Mississippi Housing Opportunity Foundation Fund quarterly. A separate accounting shall be made annually for all funds received.” Per 73-35-105. Interest on Real Estate Brokers' Escrow Accounts (IREBEA) program.

“Upon conviction of a second or subsequent violation if a person, be punished by a fine of not less than One Thousand Dollars ($ 1,000.00) nor more than Two Thousand Dollars ($ 2,000.00).” Per 73-35-31 - Penalties for violations of chapter

Client. Mississippi agents owe their CLIENTS fiduciary responsibilities or duties.

Five members. “There is hereby created the Mississippi Real Estate Commission. The commission shall consist of five (5) persons, to be appointed by the Governor with the advice and consent of the Senate.” Per MS Code § 73-35-5

All fees charged and collected under this chapter shall be paid by the administrator at least once a week, accompanied by a detailed statement thereof, into the treasury of the state to the credit of a fund to be known as the "Real Estate License Fund," Per § 73-35-19 - Real estate license fund

“Upon conviction of a second or subsequent violation if a corporation, be punished by a fine of not less than Two Thousand Dollars ($ 2,000.00) nor more than Five Thousand Dollars ($ 5,000.00).” Per 73-35-31 - Penalties for violations of chapter

Mississippi has a two-month testing eligibility window. So you must take the exam within two months.

The Mississippi Real Estate Commission is composed of five members, all of which are appointed by the Governor. Per MS Code § 73-35-5

“Any person violating a provision of this chapter shall, upon conviction of a first violation…..if a person, be punished by a fine of not more than One Thousand Dollars.” Per 73-35-31 - Penalties for violations of chapter

Active Mississippi Real Estate Professionals must complete approved CE during each two-year licensure renewal period.

“To change a license from active to inactive status, the licensee shall notify the Commission in writing, shall ensure that the license is returned to the Commission, and shall pay the appropriate fee.” Per Miss. Code Ann. §73-35-35 Rule 1.2 Changing the Status of a License

“A temporary license shall be valid for a period of one (1) year following the first day of the month after its issuance.” Per 73-35-14.5. Temporary licenses;

“Every licensee shall, within ten days, notify the Real Estate Commission of any adverse court decisions in which the licensee appeared as a defendant.” Per Miss. Code Ann. §73-35-35 Rule 5.1 Notifications of Complaints to the Commission

A real estate broker must keep on file for three years following its consummation, complete records relating to any real estate transaction. This includes, but is not limited to: listings, options, leases, offers to purchase, contracts of sale, escrow records, agency agreements, and copies of all closing statements. Per Miss. Code Ann. §73-35-35 Rule 3.2 Documents

“Prior to the close of business of the next banking day.” Earnest money accepted by the broker or any licensee for which the broker is responsible and upon acceptance of a mutually agreeable contract is required to deposit the money into a trust account prior to the close of business of the next banking day. Per Miss. Code Ann. 73-35-35 Rule 3.4 Earnest Money