Free Mississippi Real Estate Practice Exam

Q1.Under the Truth in Lending Act (TILA), the Annual Percentage Rate (APR) is designed to help consumers compare loan offers. Which of the following costs is typically INCLUDED in the calculation of the APR?

• A.Homeowner's insurance premiums
• B.Property tax escrow deposits
• C.Loan origination fees and discount points
• D.Title insurance paid to a third-party provider

Q2.A broker advertises a listed property online using the phrase 'seller financing available—no credit check required, just 10% down.' A buyer contacts the broker and, after negotiating, the seller agrees to carry the note. The ad remains posted with no additional disclosures. Under the Truth in Lending Act (TILA) and Regulation Z, which of the following statements is CORRECT regarding the broker's advertising obligations?

• A.Because the ad states a specific triggering term ('10% down'), Regulation Z requires the ad to also disclose the annual percentage rate (APR), the repayment terms, and the amount of each payment if the term of the loan is variable, and the broker's failure to include these disclosures in the ad constitutes a TILA advertising violation.
• B.TILA and Regulation Z do not apply to seller-financed transactions in which a private individual—not a bank or mortgage company—is the creditor, so the broker's ad requires no TILA credit disclosures regardless of the down-payment language used.
• C.The broker's ad is compliant because 'no credit check required' and '10% down' are general descriptors of the financing arrangement, not specific credit terms, and therefore do not trigger Regulation Z's advertising disclosure requirements.
• D.TILA advertising requirements apply only to the lender originating the loan, not to real estate brokers acting as marketing intermediaries; therefore, the broker has no obligation to include APR or payment disclosures even when advertising specific credit terms.

Q3.Under the Equal Credit Opportunity Act (ECOA), how long must a creditor retain records of a credit application after notifying an applicant of an adverse action?

• A.12 months
• B.24 months
• C.36 months
• D.60 months

Q4.Under Mississippi real estate law, which of the following actions is the Mississippi Real Estate Commission (MREC) authorized to take against a licensee found guilty of a violation of the Mississippi Real Estate Brokers License Act?

• A.Revoke or suspend the licensee's real estate license
• B.File a criminal complaint directly with a grand jury
• C.Impose a prison sentence on the licensee
• D.Seize the licensee's personal assets without a court order

Q5.The bystander intervention strategy 'Distract' involves:

• A.Addressing the harassing behavior directly and calmly to the harasser
• B.Getting someone with more authority involved to address the conduct
• C.Interrupting the situation without confronting the harasser — pulling the target away
• D.Checking in with the targeted person after the harasser has moved on

Q6.A licensed salesperson's client is purchasing a home built in 1971. The seller's agent discloses that the home has never been tested for lead-based paint. Under the Residential Lead-Based Paint Hazard Reduction Act (42 U.S.C. § 4852d) and EPA/HUD regulations, which of the following statements is MOST accurate regarding the required disclosures and buyer rights?

• A.No disclosure is required because the home was built after 1960, and lead-based paint regulations only apply to homes built before 1950.
• B.The seller must provide the buyer with any known lead-based paint information and the EPA-approved pamphlet, and the buyer must be given a 10-day opportunity to conduct a lead-based paint inspection or risk assessment before becoming obligated under the contract.
• C.The seller's sole obligation is to provide the EPA pamphlet; no opportunity for inspection is required because disclosure alone satisfies federal law.
• D.Because no lead-based paint has been found, the seller has no federal disclosure obligations, and the buyer waives all rights to inspection upon signing the purchase contract.

Q7.A metes and bounds legal description that reads 'Beginning at the iron pin at the southwest corner of the property, thence North 45° East for 200 feet...' uses which type of reference system?

• A.Government Survey System with principal meridians
• B.Bearings and distances with monuments or markers
• C.Lot and block system with recorded plat maps
• D.Township and range divisions with sections

Q8.A broker's salesperson posts a Facebook ad targeting users aged 35–55 who have household incomes above $80,000 and who live within a specific ZIP code. The broker reviews the ad and approves it before publication. Under the Fair Housing Act and the broker's supervisory obligations, which statement BEST describes the legal exposure created by this advertising strategy?

• A.The broker faces potential Fair Housing Act liability because using age, income proxies, and geographic targeting through a social media platform's audience-selection tools can constitute unlawful steering and discriminatory advertising when the combination effectively excludes protected classes, and the broker's approval makes the brokerage directly responsible.
• B.The advertising is lawful because income is not a protected class under the Fair Housing Act, and age-based targeting is permissible provided the ad does not use any of the seven protected-class keywords explicitly.
• C.Only the salesperson faces liability because the salesperson created and submitted the ad; the broker's supervisory review and approval is a good-faith defense that shields the brokerage from Fair Housing complaints.
• D.The ad is permissible under the CAN-SPAM Act safe harbor, which preempts Fair Housing Act claims arising from digital marketing on third-party platforms.

Q9.A lender charges a borrower an annual percentage rate (APR) that is 1.75 percentage points higher than the stated note rate on a fixed-rate residential mortgage. The borrower asks why the APR differs from the note rate. Which of the following MOST accurately explains this difference under the Truth in Lending Act (TILA)?

• A.The APR is higher than the note rate because it incorporates certain finance charges — such as origination fees, discount points, and mortgage broker fees — spread over the loan's term, reflecting the true cost of credit.
• B.The APR is higher because TILA requires lenders to add a 1.75% federal surcharge to all residential mortgage rates to fund consumer protection programs.
• C.The APR is higher because the lender applied compound interest to the note rate, which TILA mandates for all fixed-rate loans.
• D.The APR reflects only the projected future interest rate changes under the adjustable rate schedule attached to the loan.

Q10.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

Q11.Which federal law prohibits lenders from discriminating against loan applicants based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance?

• A.Equal Credit Opportunity Act (ECOA)
• B.Fair Housing Act
• C.Truth-in-Lending Act
• D.Real Estate Settlement Procedures Act (RESPA)

Q12.Under the Fair Housing Act, which of the following lease provisions would be considered discriminatory and therefore illegal?

• A.A clause requiring all tenants to maintain renter's insurance
• B.A clause requiring a security deposit equal to one month's rent
• C.A provision requiring 30 days written notice before lease termination
• D.A provision stating 'no children under 12 allowed in this adult community'

Q13.A real estate contract contains a clause stating that if the buyer fails to obtain financing by a specified date, the contract will automatically terminate. This type of clause is known as a:

• A.Condition subsequent
• B.Condition precedent
• C.Covenant
• D.Warranty

Q14.The Equal Credit Opportunity Act (ECOA) prohibits a lender from discriminating against a credit applicant on the basis of which of the following?

• A.The applicant's current employment status
• B.The applicant's credit score
• C.The applicant's national origin
• D.The amount of the applicant's down payment

Q15.Under the Equal Credit Opportunity Act (ECOA), a lender reviewing a purchase contract may NOT consider which of the following factors when evaluating a loan application?

• A.The borrower's employment history and income stability
• B.The borrower's credit score and payment history
• C.The borrower's plans to have children within five years
• D.The borrower's debt-to-income ratio