Free Mississippi Real Estate Practice Exam

Q1.An out-of-state broker wishes to cooperate with a local listing broker on the sale of a commercial property. The out-of-state broker does not hold a license in the state where the property is located. Under generally accepted national licensing principles, how may the out-of-state broker lawfully receive a share of the commission?

• A.The out-of-state broker may receive a referral fee paid directly by the buyer, because federal law permits unlicensed referral compensation in commercial transactions.
• B.The out-of-state broker may be compensated only through the out-of-state broker's own licensed home state, by entering into a written cooperative or referral agreement with the local listing broker who performs all in-state brokerage activities.
• C.The out-of-state broker may perform all brokerage services in the state provided the local broker verbally supervises each transaction.
• D.The out-of-state broker may act under a temporary 30-day federal exemption that allows any licensed broker to operate in any state without a local license.

Q2.Under RESPA (Real Estate Settlement Procedures Act), which practice is specifically prohibited regarding escrow accounts?

• A.Requiring borrowers to deposit two months of property taxes at closing
• B.Conducting an annual escrow analysis to adjust monthly payments
• C.Maintaining a cushion of more than two months of escrow payments
• D.Requiring flood insurance premiums to be escrowed

Q3.Under Miss. Code Ann. § 73-35-21, if a Mississippi real estate salesperson wishes to change their supervising broker, what must occur before the salesperson may legally engage in real estate activities under the new broker?

• A.The new broker must submit a transfer application to the MREC and a new license must be issued reflecting the new broker affiliation
• B.The salesperson must notify the MREC in writing within 30 days of beginning work with the new broker
• C.The salesperson may begin working immediately as long as the former broker provides written release
• D.The salesperson must complete a 3-hour broker transition course approved by the MREC

Q4.Why should a broker avoid applying R4-28-503(C) and (D) to every ordinary giveaway?

• A.The subsections concern interests in a development and specified development operators.
• B.The rule was repealed.
• C.Premiums are never regulated.
• D.Only federal law applies to advertising.

Q5.A Mississippi salesperson's online bio states: 'I have never had a complaint filed against my license and hold a perfect disciplinary record with the MREC.' In fact, a complaint was filed and dismissed without action three years ago. Under the Mississippi Real Estate License Law, this statement is BEST characterized as:

• A.Permissible, because a dismissed complaint is not a disciplinary action and the statement is technically accurate
• B.Permissible, because the MREC only regulates factual misrepresentations about property, not about a licensee's personal history
• C.A prohibited misrepresentation in advertising that could subject the salesperson to disciplinary action by the MREC
• D.A violation only if a consumer relies on the statement and suffers financial harm as a result

Q6.According to the Mississippi Real Estate Brokers License Act, a real estate salesperson who wishes to transfer their license to a new sponsoring broker must notify the Mississippi Real Estate Commission (MREC) within what timeframe after the transfer takes effect?

• A.The transfer must be filed with MREC before the salesperson begins working for the new broker
• B.Within 30 days of beginning work for the new broker
• C.Within 60 days of the transfer date
• D.Within 10 business days of the transfer date

Q7.A licensee refuses to show a property to a buyer because the seller said "I don't want my home shown to families with young children." Which of the FHA's "six things you cannot do" has the licensee violated?

• A.Steering only
• B.Blockbusting
• C.Nothing — the licensee was following the seller's lawful instruction
• D.42 U.S.C. § 3604(a) — refusal to sell or rent based on familial status, AND § 3604(d) — making housing unavailable

Q8.A salesperson working for a Mississippi brokerage orally tells a buyer at an open house, 'I work for the seller, but I can help you too.' Under Mississippi real estate law, which requirement has most likely been violated?

• A.The salesperson must first obtain a separate salesperson license to represent buyers
• B.The salesperson failed to provide the written 'Working with a Real Estate Broker' disclosure at or before first substantive contact
• C.An oral agency disclosure is fully sufficient and no violation has occurred
• D.The salesperson is prohibited from speaking with buyers at an open house without the broker present

Q9.A Mississippi home seller learns that a violent murder occurred in the property two years ago. The prospective buyer does not ask about the home's history. Under Mississippi law, is the seller required to disclose this fact?

• A.Yes, because any death on the property is always a material fact requiring disclosure
• B.No, because Mississippi law classifies psychological stigmas such as murders as non-material facts that need not be disclosed
• C.Yes, but only if the murder occurred within the last 12 months
• D.No, but only if the seller has listed the property with a licensed real estate broker

Q10.What must every rental agreement executed by a property manager clearly state about tenant deposits?

• A.Their disposition
• B.The owner's credit score
• C.The broker's office lease term
• D.The bank's routing number

Q11.A brokerage buys cyber coverage and also requires independent wire verification. Which risk treatments are being used?

• A.Accept and ignore.
• B.Transfer and mitigate.
• C.Avoid and conceal.
• D.Only transfer.

Q12.A developer of an out-of-state residential subdivision is marketing homes to buyers nationwide. One of the developer's salespersons tells a Hispanic couple that certain lots in the subdivision are 'not really suited for families like yours' and steers them toward less desirable lots in a different section. Which federal law is most directly violated by this conduct?

• A.The Interstate Land Sales Full Disclosure Act, because the developer failed to provide an accurate Property Report to the couple.
• B.The Real Estate Settlement Procedures Act, because the salesperson's steering increased the cost of settlement services for the couple.
• C.The Fair Housing Act of 1968, because steering buyers to different properties based on national origin or race is a prohibited discriminatory practice.
• D.The Equal Credit Opportunity Act, because the salesperson's statements discouraged the couple from applying for mortgage financing.

Q13.Under the Mississippi Real Estate Brokers License Act of 1954, as amended (Miss. Code Ann. § 73-35-1 et seq.), how many hours of continuing education must a Mississippi real estate salesperson complete during each two-year license renewal period?

• A.16 hours
• B.12 hours
• C.8 hours
• D.24 hours

Q14.Under the Fair Housing Act, a real estate licensee who receives a written complaint from a prospective buyer alleging housing discrimination should be aware that the Department of Housing and Urban Development (HUD) generally requires that complaints be filed within how many days of the alleged discriminatory act?

• A.90 days
• B.180 days
• C.270 days
• D.365 days

Q15.When a property-management agreement terminates, which item is due within five days?

• A.A list of all tenant security obligations
• B.The final bank reconciliation only
• C.Every accounts-payable invoice for the prior five years
• D.An ADRE audit declaration