Free Mississippi Real Estate Practice Exam

Q1.How does an owner's title insurance policy differ from a lender's title insurance policy?

• A.They offer identical protection — the only difference is who pays the premium
• B.An owner's policy covers only defects that arise after closing; a lender's policy covers pre-closing defects
• C.Only an owner's policy requires a title search; a lender's policy does not
• D.An owner's policy protects the buyer's equity interest against title defects; a lender's policy protects only the lender's loan balance

Q2.Under Mississippi law, when must a seller of residential property provide the buyer with a completed Mississippi Residential Property Disclosure Statement?

• A.Before or at the time the buyer makes a written offer to purchase the property
• B.Within three days after the purchase contract is signed by both parties
• C.At the closing table before the deed is transferred
• D.Only if the buyer submits a written request for disclosure

Q3.Which of the following best describes the primary purpose of the Mississippi Real Estate Commission (MREC)?

• A.To protect the public interest by licensing and regulating real estate brokers and salespersons
• B.To represent the financial interests of licensed real estate professionals
• C.To set property values and appraisal standards across Mississippi
• D.To administer property tax assessments for the state of Mississippi

Q4.Under MREC rules, a Mississippi responsible broker's office must display which of the following at the principal place of business?

• A.The responsible broker's license only, since salesperson licenses are stored electronically with the MREC.
• B.The responsible broker's license along with the licenses of all affiliated salespersons and associate brokers who operate from that office.
• C.A current E&O insurance certificate, but individual licenses need not be displayed if they are available for inspection upon request.
• D.Only a notice stating that all licenses are on file with the MREC, along with the MREC's contact information.

Q5.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

Q6.Which federal statute governs the HUD investigation and complaint process for fair housing violations?

• A.42 U.S.C. § 3604
• B.42 U.S.C. § 3610
• C.24 C.F.R. § 100.600
• D.A.R.S. § 41-1463

Q7.Under Mississippi law, a real estate salesperson working with a potential buyer at an open house must provide the 'Working with a Real Estate Broker' disclosure form at which point in the transaction?

• A.Only after the buyer submits a written offer to purchase
• B.At the first substantive discussion about a specific property
• C.Only when the buyer signs a buyer representation agreement
• D.At the time of closing

Q8.A managing broker supervises a team of licensed salespersons. One salesperson completes a residential transaction in which the buyer applied for a federally related mortgage loan. Under RESPA's implementing regulation (Regulation X), the lender is required to provide the buyer with a Loan Estimate within three business days of receiving a loan application. If the broker later discovers that the lender provided this disclosure only two days before closing, what is the broker's PRIMARY recordkeeping and supervisory obligation?

• A.Document the RESPA violation in the transaction file and report the lender's conduct to the Consumer Financial Protection Bureau (CFPB) if the broker has credible evidence of a pattern of violations
• B.Void the transaction immediately and return all escrowed funds to the buyer
• C.Retain the transaction file for the standard brokerage period but take no further action because RESPA violations are solely the lender's liability
• D.Require the salesperson to personally reimburse the buyer for any settlement costs that exceeded the Loan Estimate tolerances

Q9.A Mississippi salesperson advertises a listed property using only the salesperson's personal name and phone number, with no mention of the affiliated brokerage. This practice is:

• A.Permitted, provided the salesperson includes their license number
• B.Permitted only for social media advertising, not print advertising
• C.A violation of Mississippi Real Estate Commission rules requiring that advertising identify the responsible broker or firm
• D.Permitted as long as the property seller has given written consent

Q10.A Mississippi listing broker is holding $10,000 in earnest money. The transaction falls through and the seller demands the earnest money, but the buyer also claims entitlement to the funds, submitting a written demand to the broker. Under Mississippi law, what must the broker do with the disputed funds?

• A.Release the funds to the seller immediately, because the seller's claim as the listing client takes priority under Miss. Code Ann. § 73-35-21.
• B.Continue to hold the disputed funds in the trust account and may seek a written agreement between the parties, file an interpleader action, or submit the dispute to MREC for guidance, but must not unilaterally release funds to either party.
• C.Split the disputed funds equally between the buyer and seller within five business days of receiving the conflicting demands.
• D.Return the funds to the buyer immediately because the buyer provided the original consideration and has a superior legal claim by default.

Q11.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

Q12.A real estate licensing board discovers that a broker failed to provide required RESPA disclosures to buyers. Which federal agency should the board notify of this potential violation?

• A.Department of Housing and Urban Development (HUD)
• B.Federal Trade Commission (FTC)
• C.Consumer Financial Protection Bureau (CFPB)
• D.Environmental Protection Agency (EPA)

Q13.Before the Mississippi Real Estate Commission can revoke or suspend a salesperson's license, what must the Commission provide to the licensee under Mississippi law?

• A.Notice and an opportunity for a hearing
• B.A written apology from the complainant
• C.A majority vote from all active Mississippi licensees
• D.Approval from the Mississippi Supreme Court

Q14.A mortgage company consistently charges African American borrowers higher interest rates than similarly qualified white borrowers, even when they have identical credit profiles and loan applications. This practice primarily violates which federal law?

• A.Fair Housing Act Section 3605
• B.RESPA Section 5 (Good Faith Estimate)
• C.Truth-in-Lending Act Section 226.23
• D.Equal Credit Opportunity Act Section 701

Q15.The maximum civil penalty for a third or subsequent FHA violation within 7 years is approximately:

• A.$21,663
• B.$54,157
• C.$108,315
• D.$250,000