Free Mississippi Real Estate Practice Exam

Q1.A managing broker's affiliated salesperson is working as a designated buyer's agent for a client purchasing a home listed by a different salesperson in the same brokerage. The seller has not consented to dual agency. Which statement best describes the managing broker's supervisory obligation in this designated agency arrangement?

• A.The managing broker must ensure that the two designated agents do not share confidential client information with each other or with the broker, preserving each client's fiduciary protections.
• B.The managing broker may freely share all client information between the two designated agents because they work for the same brokerage.
• C.The managing broker should convert the transaction to dual agency without additional disclosure because the brokerage already represents both parties.
• D.The managing broker has no supervisory role once designated agency is established, as each salesperson acts independently.

Q2.A managing broker is opening a new branch office and assigns a licensed salesperson to manage day-to-day operations while the broker splits time between the main office and the branch. Under general broker supervision principles applicable nationwide, what is the most important step the broker must take to maintain proper oversight of the branch?

• A.Delegate full supervisory authority to the salesperson, who then becomes independently responsible for all licensees at the branch
• B.Ensure the branch operates under the broker's license and that the broker maintains active, documented supervision of all licensees working at that location
• C.Require each salesperson at the branch to obtain their own broker's license before conducting any transactions
• D.File a notice with HUD identifying the branch office location within 30 days of opening

Q3.An out-of-state developer registered with the MREC wants to begin selling lots in a Florida subdivision to Mississippi buyers. Before accepting any deposits or signing any purchase agreements, the developer MUST:

• A.Obtain a surety bond in an amount set by the MREC and file a disclosure statement with the Commission.
• B.Only advertise in Mississippi newspapers for at least 30 days prior to sales.
• C.Hire a Mississippi-licensed real estate attorney to review all purchase contracts.
• D.Record the subdivision plat in the county where the developer's principal office is located in Mississippi.

Q4.Under Mississippi Real Estate Commission rules, how long must a licensed broker retain transaction records such as contracts, closing statements, and related documents after the closing or termination of a transaction?

• A.One year from the date of closing or termination
• B.Three years from the date of closing or termination
• C.Five years from the date of closing or termination
• D.Seven years from the date of closing or termination

Q5.Wire fraud in real estate transactions most commonly occurs when:

• A.A seller fails to pay off an existing mortgage at closing
• B.A buyer's lender miscalculates closing costs
• C.A title company fails to record the deed within 24 hours
• D.A cybercriminal intercepts email communications and sends fraudulent wiring instructions

Q6.A Mississippi real estate firm represents both the seller and the buyer in the same transaction. Which statement correctly describes the firm's legal status and obligations under Miss. Code Ann. Title 73, Chapter 35?

• A.The firm is automatically considered a transaction broker and owes no fiduciary duties to either party
• B.The firm is a dual agent and may proceed without additional consent because dual agency is permitted by default in Mississippi
• C.The firm is a dual agent and must obtain informed written consent from both the seller and the buyer before proceeding
• D.The firm must withdraw from representing one of the parties before closing can occur

Q7.A property manager tells a Section 8 voucher holder calling about a vacant 2-bedroom: "We have a maximum of 4 occupants. You have 3 kids, so 5 people total — we can't rent to you." Is this a violation?

• A.No — occupancy limits are neutral and lawful
• B.Yes — this likely violates familial-status protection; HUD's Keating Memo guides that a two-per-bedroom standard is presumptively reasonable for adults but must be applied flexibly given bedroom size, configuration, and state/local codes
• C.Yes — but only because the tenant has a voucher
• D.Yes — but only if the children are under 5

Q8.When dual agency occurs in a real estate transaction, which fiduciary duty is most significantly modified?

• A.The duty of confidentiality
• B.The duty of loyalty
• C.The duty of reasonable care
• D.The duty of accounting

Q9.Under Mississippi law, which of the following individuals is EXEMPT from the requirement to hold a real estate license when performing real estate activities?

• A.A property manager who collects rent on behalf of multiple property owners for a fee
• B.An attorney-in-fact acting under a duly executed power of attorney on behalf of a property owner
• C.A salaried employee of a real estate brokerage who shows rental properties to prospective tenants
• D.A person who lists and sells homes for neighbors in exchange for a gift card

Q10.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.

Q11.Under the Fair Housing Act, a property manager receives a rental application from a family with young children for a ground-floor apartment in a building that also has upper-floor units available. Which action would constitute illegal discrimination?

• A.Explaining the building's noise policies to families with children
• B.Offering to show only ground-floor units because they're 'safer for kids'
• C.Requiring a larger security deposit due to potential damage from children
• D.Processing the application using the same criteria applied to all applicants

Q12.A broker's office is selected for a routine compliance review under the Equal Credit Opportunity Act (ECOA) and Regulation B. The reviewing agency requests records of all mortgage-related referrals and any monitoring data the brokerage collected on applicants. Under Regulation B (12 C.F.R. Part 1002), creditors and certain participants in credit transactions must retain records of credit applications and related actions for:

• A.25 months from the date the creditor notifies the applicant of the action taken
• B.12 months from the date of loan origination
• C.36 months from the date the creditor notifies the applicant of the action taken
• D.60 months from the date of loan origination

Q13.Which federal agency is primarily responsible for enforcing the Fair Housing Act?

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

Q14.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.

Q15.RESPA (Real Estate Settlement Procedures Act) primarily regulates which aspect of real estate transactions?

• A.Closing costs and settlement procedures
• B.Property inspections
• C.Real estate licensing requirements
• D.Property tax assessments