Mississippi Real Estate Commission requires 60 hours of real estate education before you can take the exam for a license.
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If this course is part of your Mississippi Exam, when you are finished with this section you must continue to the Mississippi License Law Exam area.
If a non Mississippi applicant is using this course for the national PSI exam, this is the only section you need.
Upon purchase of this course, you have been granted access to any of our locations for classroom instruction as well as online instruction. Our current class schedule can be found on our web page here.
228-354-8585
The Real Estate Training Institute is approved by the Mississippi Real Estate Commission to provide instruction in real estate courses.
Those who choose not to register in advance should determine before attending if any changes have been made in the schedule.
PSI – MREC Exam Categories
Property ownership (Salesperson 7 items/Broker 6 items)
Classes of property
Real versus personal property
Defining fixtures
Land characteristics and legal descriptions a. Physical characteristics of land
Economic characteristics of land
Types of legal property descriptions
Usage of legal property descriptions
Physical descriptions of property and improvements
fMineral, air and water rights
Encumbrances and effects on property ownership
Liens (types and priority)
Easements and licenses
Encroachments
Types of ownership
Types of estates
Forms of ownership
Leaseholds
Common interest ownership properties
Bundle of rights
Land use controls and regulations (Salesperson 5 items/Broker 5 items)
Government rights in land
Property taxes and special assessment
Eminent domain, condemnation, escheat
Police power
Public controls based in police power
Zoning and master plans
Building codes
Environmental impact reportsd. Regulation of special land types (floodplain, coastal, etc.)
Regulation of environmental hazards
Abatement, mitigation and cleanup requirements
Restrictions on sale or development ofcontaminated property
Types of hazards and potential for agent or seller liability
Private controls
Deed conditions or restrictions
Covenants, conditions and restrictions (CC&Rs)
Homeowners association (HOA) regulations
Valuation and market analysis (Salesperson 8 items/Broker 6 items)
Market value and market price
Value
Types and characteristics of value
Principles of value
Market cycles and other factors affecting property value
Methods of estimating value/appraisal processa.
Market or sales comparison approach
Replacement cost or summation approach
Income approach
Basic appraisal terminology (e.g., replacementversus reproduction cost, reconciliation,depreciation, kinds of obsolescence
Competitive/Comparative Market Analysis (CMA)
Selecting and adjusting comparables
Contrast CMA and appraisal
Price per square foot
Gross rent and gross income multipliers
Capitalization rate
Appraisal practice; situations requiring appraisal by a certified appraiser
Financing (Salesperson 6 items/Broker 7 items)
General concepts
LTV ratios, points, origination fees, discounts, broker commissions
Mortgage insurance (PMI)
Lender requirements, equity, qualifying buyers,loan application procedures
Types of loans and sources of loan money
Term or straight loans
Amortized and partially amortized (balloon) loans and other nonconforming loan
Adjustable rate mortgage (ARM) loans
Conventional versus insured
Reverse mortgages; equity loans; subprime and other nonconforming loans
Seller/owner financing
Primary market
Secondary market
Down payment assistance programs3. Government programs
FHA
VA
Other federal programs
Mortgages/deeds of trust
Mortgage clauses (assumption, due-on-sale, alienation, acceleration, prepayment, release)
Lien theory versus title theory
Mortgage/deeds of trust and note as separate documents
Financing/credit laws
Lending and disclosures
Truth in lending
RESPA
Equal Credit Opportunity
Fraud and lending practices
Mortgage fraud
Predatory lending practices (risks to clients)
Usury lending laws
Appropriate cautions to clients seeking financing
General principles of agency (Salesperson 10 items/Broker 11 items)
Nature of agency relationships
Types of agents and agencies (special, general, designated, subagent, etc.)
Nonagents (transactional/facilitational)
Fiduciary responsibilities
Creation and disclosure of agency and agency agreements (general, not state specific)
Agency and agency agreements
Disclosure when acting as principal or other conflict of interest
Responsibilities of agent/principal
Duties to client/principal (buyer, seller, tenant or landlord)
Traditional common law agency duties; effect of dual agency on agent’s duties
Responsibilities of agent to customers and third parties, including disclosure, honesty , integrity , accounting for money
Termination of agency
Expiration
Completion/performance
Termination by force of law
Destruction of property/death of principal
Mutual agreement
Mandated disclosures (Salesperson 8 items/Broker 9 items)
Property condition disclosure
Property owner’s role regarding property condition
Licensee’s role regarding property condition
Warranties
Purpose of home or construction warranty programs
Scope of home or construction warranty programs
Need for inspection and obtaining/verifying information
Explanation of property inspection process and appropriate use
Agent responsibility to inquire about “red flag” issues
Responding to non-client inquiries
Material facts related to property condition orlocation
Land/soil conditions
Accuracy of representation of lot or improvementsize, encroachments or easements affecting use
Pest infestation, toxic mold and other interiorenvironmental hazards
Structural issues such as roof, gutters,downspouts, doors, windows, foundation
Condition of electrical and plumbing systems, andof equipment or appliances that are fixtures
Location within natural hazard or specificallyregulated area, potentially uninsurable property
Known alterations or additions
Material facts related to public controls, statutes of public utilities
Zoning and planning information
Boundaries of school/utility/taxation districts,flight paths
Local taxes and special assessments, other liens
External environmental hazards
Stigmatized/psychologically impacted property
Megan’s Law issues
Contracts (Salesperson 11 items/Broker 12 items)
General knowledge of contract law
Requirements for validity
When contract is considered performed/discharged
Assignment and novation
Breach of contract and remedies for breach
Contract clauses
Listing agreements
General requirements for valid listing
Exclusive listings
Non-exclusive listings
Buyer/tenant representation agreements, including key elements and provisions of buyer and/or tenant agreements
Offers/purchase agreements
General requirements
When offer becomes binding (notification)
Contingencies
Time is of the essence
Counteroffers/multiple counteroffers
Counteroffer cancels original offer
Priority of multiple counteroffer
Leases
Types of leases, e.g., percentage, gross, net,ground
Lease with obligation to purchase or lease withan option to purchase
Other real estate contracts
Options
Right of first refusal
Transfer of title (Salesperson 5 items/Broker 5 items)
Title insurance
What is insured against
Title searches, title abstracts, chain of title
Cloud on title, suit to quiet title
Deeds
Purpose of deed, when title passes
Types of deeds (general warranty, special warranty, quitclaim) and when used
Essential elements of deeds
Importance of recording
Escrow or closing; tax aspects of transferring title to real property
Responsibilities of escrow agent
Prorated items
Closing statements/HUD-1
Estimating closing costs
Property and income taxes
1031 exchanges
Special processes
Foreclosure/short sale b. Real estate owned (REO)
Practice of real estate (Salesperson 12 items/Broker 12 items)
Trust/escrow accounts (general, not state specific)
Purpose and definition of trust accounts,including monies held in trust accounts
Responsibility for trust monies, including commingling/conversion
Federal fair housing laws
Protected classes
Covered transactions
Specific laws and their effects
Compliance
Types of violations and enforcement
Exceptions
Advertising and technology
Incorrect “factual” statements versus “puffing”
Truth in advertising
Fair housing issues in advertising
Fraud, technology issue
Uninformed misrepresentation versus deliberate misrepresentation (fraud)
Technology issues in advertising and marketing
Agent supervision
Liability/responsibility for acts of associated licensees and employees
Responsibility to train and supervise associated licensees and employees
Commissions and fees
Procuring cause/protection clauses
Referrals and other finder fees
General ethics
Practicing within area of competence
A voiding unauthorized practice of law
Antitrust laws
Antitrust laws and purpose
Antitrust violations in real estate
Real estate calculations (Salesperson 6 items/Broker 4 items)
Basic math concepts
Area
Loan-to-value ratios
Discount points
Equity
Down payment/amount to be financed
Calculations for transactions, including mortgage calculations
Property tax calculations
Prorations (utilities, rent, property taxes, insurance, etc)
Seller’s proceeds of sale
Transfer tax/conveyance tax/revenue
Amortization tables
Interest rates
Interest amounts
Monthly installment payments
Buyer qualification ratios
Calculations for valuation
Competitive/comparative market analyses (CMA)
Net operating income
Depreciation
Capitalization rate
Gross rent and gross income multipliers (GRM,GIM)
Specialty areas (Salesperson 2 items/Broker 3 items
Subdivisions, including deed restrictions
Commercial, industrial and income property
Types of lease
Trade fixtures
Accessibility
Tax depreciation
1031 exchanges
Trust fund account
The Real Estate Training Institute is approved to supply instruction in real estate courses.
