Free Mississippi Real Estate Practice Exam

Q1.A property manager is preparing lease agreements for a mixed-use building that includes both residential and commercial spaces. Under federal fair housing law, which type of occupancy restriction would be legally permissible?

• A.Limiting occupancy based on maximum number of persons per bedroom according to local housing codes
• B.Restricting occupancy to married couples only
• C.Excluding tenants who receive Section 8 housing assistance
• D.Prohibiting occupancy by families with children under age 5

Q2.Under the Fair Housing Act, what is the maximum amount of punitive damages that can be awarded in a federal court action for a first-time violation?

• A.$37,500
• B.$65,000
• C.$16,000
• D.$150,000

Q3.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

Q4.Under TRID rules, how many business days before the loan closing must a borrower receive the Closing Disclosure?

• A.1 business day
• B.3 business days
• C.5 business days
• D.7 business days

Q5.In a wraparound mortgage arrangement, what happens to the original mortgage?

• A.It is paid off and discharged
• B.It remains in place with the original borrower still liable
• C.It is automatically transferred to the new buyer
• D.It is refinanced at current market rates

Q6.A Mississippi real estate salesperson was convicted of a felony involving fraud two years ago and is now applying for a license. How will the Mississippi Real Estate Commission (MREC) most likely treat this application under Miss. Code Ann. § 73-35-9?

• A.Automatically issue the license because two years have passed since the conviction
• B.Deny the application, as a felony conviction involving fraud is grounds for refusal to issue a license under Mississippi law
• C.Issue a provisional license valid for one year, subject to MREC review
• D.Require only that the applicant submit a letter of explanation and then issue the license

Q7.The Truth in Lending Act (TILA), implemented through Regulation Z, requires lenders to provide borrowers with certain disclosures before consummation of a mortgage loan. Which document delivers the key TILA disclosures to a borrower?

• A.Loan Estimate
• B.Closing Disclosure
• C.Good Faith Estimate
• D.HUD-1 Settlement Statement

Q8.An out-of-state developer is selling lots in a large subdivision and is required to provide buyers with a Property Report under the Interstate Land Sales Full Disclosure Act (ILSFDA). A buyer receives the Property Report on the same day they sign the purchase contract. Which of the following best describes the buyer's rights in this situation?

• A.The buyer has no recourse because the Property Report was delivered before the contract was executed.
• B.The buyer may revoke the contract within two years because ILSFDA requires the Property Report be delivered at least three days before the contract is signed.
• C.The buyer may revoke the contract within seven business days because the Property Report was not provided at least three calendar days before signing.
• D.The buyer must file a complaint with the FTC within 30 days to exercise any right of rescission under federal law.

Q9.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

Q10.Under the Mississippi Real Estate Brokers License Act (Miss. Code Ann. § 73-35-1 et seq.), the Mississippi Real Estate Commission (MREC) has the authority to suspend or revoke a broker's license for cause. A supervising broker is investigated after one of her affiliated licensees repeatedly solicited listings in a protected class neighborhood without the broker's knowledge. Which standard would MREC most likely apply when determining whether the broker's license is subject to disciplinary action?

• A.Whether the broker exercised reasonable supervision over the affiliated licensee's activities and maintained adequate office policies and procedures to prevent violations.
• B.Whether the broker personally participated in or directed the discriminatory solicitation activity.
• C.Whether the affiliated licensee held an active license in good standing at the time of the violations.
• D.Whether the broker's errors and omissions insurance policy covered the discriminatory acts of the affiliated licensee.

Q11.A lender tells a loan applicant that it does not offer mortgages for properties located in a predominantly minority neighborhood, even though the applicant is otherwise financially qualified. This practice is best described as which of the following?

• A.Blockbusting
• B.Steering
• C.Redlining
• D.Predatory lending

Q12.Under the Mississippi Real Estate Broker License Act and MREC rules, a licensed Mississippi broker who also holds an active law license wishes to place their real estate broker license on inactive status while continuing to practice law. Which of the following statements correctly reflects the broker's obligations regarding continuing education (CE) while on inactive status?

• A.The broker is fully exempt from all CE requirements for as long as the license remains on inactive status and owes no CE hours upon reactivation.
• B.The broker must still complete the required CE hours each renewal cycle while on inactive status in order to reactivate without retaking the licensing examination.
• C.The broker may place the license on inactive status without completing CE, but upon reactivation must demonstrate completion of all CE hours that would have been required during the inactive period, up to a maximum of two renewal cycles.
• D.Because the broker holds an active law license, MREC grants a blanket CE waiver applicable to both active and inactive license status under Miss. Code Ann. § 73-35-23.

Q13.What is the innocent landowner defense under CERCLA, and what must a property owner demonstrate to qualify for this protection?

• A.The owner must demonstrate they purchased the property at fair market value
• B.The owner must show they reported the contamination to EPA within 30 days of discovery
• C.The owner must prove they conducted all appropriate inquiry before purchase and had no knowledge of contamination
• D.The owner must prove they have adequate insurance coverage for environmental cleanup

Q14.A property is held in joint tenancy with right of survivorship. One owner dies. How does title pass?

• A.Through the probate court based on the deceased owner's will
• B.Automatically to the surviving joint tenant(s) without probate
• C.To the deceased owner's heirs equally regardless of survivorship language
• D.By court order after creditor claims are resolved

Q15.A property sold for $240,000. The listing agent received a 3% commission and the selling agent received a 2.5% commission. What was the total commission paid?

• A.$7,200
• B.$6,000
• C.$13,200
• D.$12,000