Mississippi Real Estate Law Final Review

Flashcards covering key regulations, licensing rules, disclosure mandates, and agency duties under Mississippi Real Estate Law.

What education requirement must a broker applicant meet if they have not held a salesperson license for 12 months prior to applying?

They must have successfully completed 150 classroom hours in real estate courses acceptable for credit toward a degree at a college or university as approved by the Southern Association of Colleges and Schools.

How many days does a licensee have to appeal a ruling following notification of action from a Commissioner hearing, and what bond is required?

The licensee has 30 days to appeal any ruling and must post a required $500 bond for costs.

What requirement must a Mississippi broker fulfill when entering into a cooperating agreement with a nonresident broker?

The Mississippi broker must file two copies of the cooperating agreement within 10 days with the Mississippi Real Estate Commission.

In a cooperative agreement between a Mississippi broker and a nonresident broker, who holds the earnest money deposit?

It must be held in escrow by the Mississippi broker unless both the buyer and seller agree in writing to relieve the Mississippi broker of this responsibility.

What written notification must a salesperson provide to the Commission when changing responsible brokers?

Within 3 days, the salesperson must give written notice providing the name of their responsible broker and the principal broker into whose agency the salesperson is about to enter.

What process occurs regarding a salesperson's license when changing responsible brokers?

A new license shall thereupon be issued by the Commission to such salesperson for the unexpired term of the original license upon return to the Commission of the license previously issued.

Under what circumstances are real estate brokers permitted to give legal advice?

Brokers are never permitted to give legal advice.

What action is taken if a licensee fails to show proof of Errors and Omissions (E&O) insurance within 30 days?

The licensees' licenses will be placed on inactive status.

How are the five Mississippi Real Estate Commissioners selected geographically?

They are appointed from each congressional district and one at large.

May a broker pay a referral fee to an unlicensed neighbor for recommending a prospective buyer?

No; the broker cannot pay his neighbor a fee unless the neighbor is a licensed real estate agent, and then the broker would need to pay his broker.

Under Interest on Real Estate Broker's Escrow Accounts (IREBEA), who determines if client funds are nominal in amount or to be held for a short period?

The determination rests in the sound judgment of each broker, and no charge of ethical impropriety or other breach of professional conduct shall attend a broker's exercise of judgment in that regard.

What right does a transferee have if a Real Estate Transfer Disclosure Statement is delivered after the execution of an offer to purchase?

The transferee shall have three (3) days after delivery in person or five (5) days after delivery by deposit in mail to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferor's agent.

What is the monetary liability for a person who willfully and negligently fails to deliver required real estate transfer disclosures?

They shall be liable in the amount of actual damages suffered by a transferee.

If a salesperson transfers to a new broker while having an active listing with Broker A, who retains ownership of the listing?

Broker A retains the listing.

Which responsibility is NOT classified as a duty of the responsible broker toward affiliated agents?

It is not the duty of the responsible broker to make sure each agent has completed their post licensing education and kept their license current.

Under what condition may a buyer terminate an exclusive buyer representation agreement?

The buyer may terminate the agreement upon fifteen (15) calendar days written notice to the buyer's exclusive agent.

How must a listing broker handle receiving a second written offer while the seller has not yet accepted a first offer?

Present the second offer because the seller has not accepted the first offer and any other written offer received by the broker in a sale shall be presented to the owner.

What is the consequence of unauthorized use of any copyrighted term or insignia in advertising or stationary by a licensee?

It will be considered as substantial misrepresentation and cause for refusal, suspension, or revocation of the license.

What rule governs internet and print advertising by real estate salespersons?

All advertising must be under the direct supervision and in the name of the responsible broker or in the name of the real estate firm.

When must earnest money accepted by a broker on a mutually agreeable contract be deposited into an escrow account?

Into a trust account prior to the close of business of the next banking day.

How long must a real estate broker keep complete transaction records on file following its consummation?

Complete records relating to any real estate transaction must be kept for three years.

What constitutes 'Disclosed Dual Agency' under Mississippi Real Estate Law?

An agent representing both parties to a real estate transaction with the informed consent of both parties, with written understanding of specific duties and representation to be afforded each party.

For a seller's agent, when does the 'first substantive meeting' occur?

Before or just immediately prior to showing the property, eliciting confidential information, or the execution of any agreements.

What was the primary reason for establishing the Mississippi Real Estate Commission?

To safeguard the public.

What effect does the expiration, suspension, or revocation of a responsible broker's license have on affiliated licensees?

It shall automatically suspend the license of every real estate licensee currently under the supervision of that broker.

How long does a purchaser of a timeshare plan have to cancel the contract without penalty?

Within 7 calendar days of signing the contract or 7 calendar days of receiving the public offering statement.

What are the age and residency requirements for obtaining a Mississippi resident real estate salesperson license?

The applicant must be 18 years of age or older and be a bona fide resident of the state of Mississippi prior to filing his application.