Qualifications

Every person who applies for a Mississippi real estate broker license as a real estate broker shall be age twenty‐one (21) years or over and have his legal domicile in the State of Mississippi at the time he applies.

To become a Mississippi Real Estate Broker, an applicant:

  1. shall be subject to the jurisdiction of this state,
  2. subject to the income tax laws and other excise laws, subject to the road and bridge privilege tax laws.
  3. Shall not be an elector in any other state.
  4. Shall have held a license as an active real estate salesperson for twelve (12) months immediately before making an application for the broker’s examination.
  5. Shall have completed a minimum of one hundred twenty (120) hours of courses in real estate.
  6. Shall have completed the real estate broker’s examination as hereafter specified.

 

⚡️ An applicant for a Mississippi real estate broker’s license must pass the broker’s examination with a grade of at least 80%.

NOTICE

APPLICANTS FOR REAL ESTATE BROKER’S LICENSE

Miss. Code Ann. §73-5-7 (Amended, Effective July 1, 2020)

In its 2020 Regular Session, the Mississippi Legislature enacted an amendment to Miss. Code Ann. §73-5-7 which made changes to the experience requirements for persons seeking to be licensed as a real estate broker in Mississippi, including certain restrictions on new broker licensee employment of real estate salespersons.

The legislation was approved by Governor Tate Reeves and became effective July 1, 2020.

As amended, the relevant statutory provisions for obtaining a real estate broker’s license now include: 12 months licensure as Salesperson prior to application for Broker’s license and 36 month restriction on employment of Salespersons

An applicant for a broker’s license must have held an active license as a real estate salesperson for a minimum of twelve (12) months prior to making application.

The required period of active licensure as a real estate salesperson may be satisfied by evidence of cumulative period(s) of active licensure as a real estate salesperson totaling a minimum of twelve (12) months prior to application for licensure as a real estate broker.

 Broker Certification Form Applicant must execute the Broker Certification Form (available on Commission website) and swear/affirm, under penalty of perjury, the broker will not hire any real estate salespersons for a period of thirty-six (36) months following the date of approval of the broker’s original (active) salesperson’s license.

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Exclusions

• The thirty-six (36) month restriction on employment of real estate salespersons shall not apply to brokers who have held a license as an active real estate salesperson for a cumulative period of thirty-six (36) months prior to making application for the broker’s license examination.

• The thirty-six (36) month restriction on employment of real estate salespersons shall not apply to brokers who have completed a minimum of one hundred fifty (150) classroom hours of real estate courses, which courses are acceptable for credit toward a degree at a college or university as approved by the Southern Association of Colleges and Schools.

Access Passes

  • Classroom Access
  • Online Access – Salesperson Pre License Course Online Support
  • ZOOM Live Stream Access 
  • Purchase one course and get all three access passes.

    Included in the Course

    • Sixty (60) hours of classroom courses
    • Unlimited Access for six (6) months
    • Access to Recorded Live Videos
    • Workbook for Primary Portion
    • Instructor PowerPoint Videos
    • Over 1500 Exam Questions
    • Mississippi Specific Book with Quizzes
    • Electronic Cue Cards
    • Electronic Glossary

    Day Courses

    Nine (9) Days

    The license course begins on Monday (unless there is a holiday) and continues to the Friday of that week.

    It picks up the following Monday with the final being on Thursday.

    8:30 or 9:00 am to 4:30 pm

    Night Courses

    Fifteen (15) Days

    The license course begins on Monday (unless there is a holiday) and continues to the Friday of that week.

    It picks up the following Monday.

    5:30 pm to 9:30 pm

    Livestream is available for both day and night courses.

    Course Outline

    SALESPERSON/BROKER GENERAL PORTION

    I. Property ownership (Salesperson 8%; Broker 10%)

    A. Real versus personal property; conveyances

    B. Land characteristics and legal descriptions

    Types of legal descriptions; Metes and bounds, Lot and block, a government survey

    2. Measuring structures

    3. Livable, rentable, and usable area

    4. Land Measurement

    5. Mineral, air, and water rights

    C. Encumbrances and effects on property ownership

    1. Liens

    2. Easements and licenses

    3. Encroachments

    4. Other potential encumbrances of title

    D. Types of ownership

    1. Tenants in common

    2. Joint tenancy

    3. Common- interest ownership

    a) Timeshares

    b) Condominiums

    c) Co-ops

    4. Ownership in severalty/sole ownership

    5. Life Estate ownership

    6. Property ownership held in trust (BROKER ONLY)

    II. Land use controls and regulations (Salesperson 5%; Broker 5%)

    A. Government rights in land

    1. Property taxes and special assessments

    2. Eminent domain, condemnation, escheat

    B. Government controls

    1. Zoning and master plans

    2. Building codes

    3. Regulation of special land types

    a) Flood zones

    b) Wetlands

    4. Regulation of environmental hazards

    a) Types of hazards

    b) Abatement and mitigation

    c) Restrictions on contaminated property

    C. Private controls

    1. Deed conditions or restrictions

    2. Covenants, conditions, and restrictions (CC&Rs)

    3. Homeowners association regulations

    III. Valuation and market analysis (Salesperson 7%; Broker 7%)

    A. Appraisals

    1. Purpose and use of appraisals for valuation

    2. General steps in the appraisal process

    3. Situations requiring an appraisal by a certified appraiser

    B. Estimating Value

    1. Effect of economic principles and property characteristics

    2. Sales or market comparison approach

    3. Cost approach

    4. Income analysis approach

    C. Competitive/Comparative Market Analysis

    1. Selecting comparables

    2. Adjusting comparables

    IV. Financing (Salesperson 10%; Broker 8%)

    A. Basic concepts and terminology

    1. Points

    2. LTV

    3. PMI

    4. Interest

    5. PITI

    6. Financing instruments (mortgage, promissory note, etc.)

    B. Types of loans

    1. Conventional loans

    2. FHA Insured loans

    3. VA guaranteed loans

    4. USDA/rural loan programs

    5. Amortized loans

    6. Adjustable-rate mortgage loans

    7. Bridge loans

    8. Owner financing (installment and land contract/contract for deed)

    C. Financing and lending

    1. Lending process application through closing

    2. Financing and credit laws and rules

    a) Truth in lending

    b) RESPA

    c) Equal Credit Opportunity

    d) CFPB/TRID rules on financing and risky loan features

    3. Underwriting

    a) Debt ratios

    b) Credit scoring

    c) Credit history

    V. General principles of agency (Salesperson 13%; Broker 11%)

    A. Agency and non-agency relationships

    1. Types of agents and agencies

    2. Other brokerage relationships (non-agents)

    a) Transactional

    b) Facilitators

    B. Agent’s duties to clients

    1. Fiduciary responsibilities

    2. Traditional agency duties (COALD)

    3. Powers of attorney and other delegation of authority

    C. Creation of agency and non-agency agreements; disclosure of conflict of interest

    1. Agency and agency agreements

    a) Key elements of different types of listing contracts

    b) Key elements of buyer brokerage/tenant representation contracts

    2. Disclosure when acting as principal or other conflicts of interest

    D. Responsibilities of an agent to customers and third parties, including disclosure, honesty, integrity, accounting for money

    E. Termination of agency

    1. Expiration

    2. Completion/performance

    3. Termination by force of law

    4. Destruction of property/death of principal

    5. Mutual agreement

    VI. Property disclosures (Salesperson 6%; Broker 7%)

    A. Property condition

    1. Property condition that may warrant inspections and surveys

    2. Proposed uses or changes in uses that should trigger inquiry about public or private land use controls

    B. Environmental issues requiring disclosure

    C. Government disclosure requirements (LEAD)

    D. Material facts and defect disclosure

    VII. Contracts (Salesperson 17%; Broker 18%)

    A. General knowledge of contract law

    1. Requirements for validity

    2. Factors affecting the enforceability of contracts

    3. Void, voidable, unenforceable contracts

    4. Rights and obligations of parties to a contract

    5. Executory and executed contracts

    6. Notice, delivery and acceptance of contracts

    7. Breach of contract and remedies for breach

    8. Termination, rescission, and cancellation of contracts

    9. Electronic signature and paperless transactions

    10. Bilateral vs. unilateral contracts (option agreements)

    B. Contract Clauses, including amendments and addenda

    C. Offers/purchase agreements

    1. General requirements

    2. When an offer becomes binding

    3. Contingencies

    4. Time is of the essence

    D. Counteroffers/multiple offers

    1. Counteroffers

    2. Multiple offers

    VIII. Leasing and Property Management (Salesperson 3%; Broker 5%)

    A. Basic concepts/duties of property management

    B. Lease Agreements

    1. Types of leases, e.g., percentage, gross, net, ground

    2. Key elements and provisions of lease agreements

    C. Landlord and tenant rights and obligations

    D. Property manager’s fiduciary responsibilities

    E. ADA and Fair Housing compliance in property management

    F. Setting rents and lease rates (BROKER ONLY)

    IX. Transfer of Title (Salesperson 8%; Broker 7%)

    A. Title Insurance

    1. What is insured against

    2. Title searches, title abstracts, chain of title

    3. Marketable vs insurable title

    4. Potential title problems and resolution

    5. Cloud on the title, suit to quiet title (BROKER ONLY)

    B. Deeds 1. Purpose of the deed, when title passes

    2. Types of deeds and when used

    3. Essential elements of deeds

    4. Importance of recording

    C. Escrow or closing; tax aspects of transferring title to real property

    1. Responsibilities of escrow agent

    2. Prorated items

    3. Closing statements/TRID disclosures

    4. Estimating closing costs

    5. Property and income taxes

    D. Special processes

    1. Foreclosure

    2. Short sale

    E. Warranties

    1. Purpose of home or construction warranty programs

    2. Scope of home or construction warranty programs

    X. Practice of real estate (Salesperson 13%; Broker 14%)

    A. Trust/escrow accounts

    1. Purpose and definition of trust accounts, including monies held in trust, accounts

    2. Responsibility for trust monies, including commingling/conversion

    B. Federal fair housing laws and the ADA

    1. Protected classes

    2. Prohibited conduct (red-lining, blockbusting, steering)

    3. Americans with Disabilities (ADA)

    4. Exemptions

    C. Advertising and technology

    1. Advertising practices a) Truth in advertising

    b) Fair housing issues in advertising

    2. Use of technology

    a) Requirements for confidential information

    b) Do-Not-Call List

    D. Licensee and responsibilities

    1. Employee

    2. Independent Contractor

    3. Due diligence for real estate transactions

    4. Supervisory responsibilities (BROKER ONLY)

    a) Licensees b) Unlicensed personnel

    E. Antitrust laws

    1. Antitrust laws and purpose 2. Antitrust violations in real estate

    XI. Real estate calculations (Salesperson 10%; Broker 8%)

    A. Basic math concepts

    1. Loan-to-value ratios

    2. Discount points

    3. Equity

    4. Down payment/amount to be financed

    B. Calculations for transactions

    1. Property tax calculations

    2. Prorations

    3. Commission and commission splits

    4. Seller’s proceeds of sale

    5. Buyer funds needed at closing

    6. Transfer fee/conveyance tax/revenue stamps

    7. PITI (Principal, Interest, Taxes and Insurance) payments

    C. Calculations for valuation, rate of return (BROKER ONLY)

    1. Net operating income

    2. Depreciation

    3. Capitalization rate

    4. Gross Rent and gross income multipliers

    SALESPERSON/BROKER STATE PORTION

    Powers and Duties of the Real Estate Commission (Salesperson 4 Items, Broker 4 Items)

    1. Hearings, including subpoena power

    2. Purpose and jurisdiction

    3. Violations

    4. Penalties MREC can impose

    Licensing Requirements and License Maintenance (Salesperson 4 Items, Broker 4 Items)

    1. General licensing requirements

    2. Continuing and Post-licensing ed req

    3. E & O insurance

    4. Disqualifying issues

    5. Activities Requiring License (incl. timeshares, auctions, prop mgmnt)

    6. Exemptions from licensure

    7. Inactive license 8. Rules about receiving and Sharing Commissions.

    Property Condition Disclosures (Salesperson 4 Items, Broker 6 Items)

    1. Disclosure form (delivery, who completes)

    2. Stigmatizing factors

    3. Licensee responsibility to advise client, ensure completeness

    4. Exemptions from Disclosure – no exemption for new construction

    5. Disclosure form is not part of contract (see form) but is attached to listing

    6. Material changes allow buyer to void contract

    Agency Disclosure and Duties to Parties (Salesperson 8 Items, Broker 8 Items)

    1. Dual Agency Disclosure

    2. Working with a Real Estate Broker

    3. Disclosure of licensed status if a principal

    4. Timing of disclosure, Rules about parties to whom disclosure must be made

    5. Buyer may withdraw from Buyer-Broker agreement w 15 days’ notice

    6. General Duties to all Parties

    Out-of-State Brokers and Developers (Salesperson 4 Items, Broker 3 Items)

    1. Cooperative agreements

    2. Reciprocal licenses Trust Accounts (Salesperson 4 Items, Broker 3 Items)

    1. Handling of earnest money

    2. General acctg practices; no commingling

    3. The broker is account holder; Salesperson may not establish prop mgt escrow acct independent of the broker

    4. Disbursement issues (interpleader) Broker Responsibilities, Including

    Supervision of Sales Associates (Salesperson 6 Items, Broker 5 Items)

    1. Supervision of associated licensees

    2. Inform MREC of change in associate status/termination

    3. Responsibility for acts of associates

    4. License display; place of business

    5. Broker Price Opinion

    6. Associates’ Compensation

    Records and Documents (Salesperson 3 Items, Broker 4 Items)

    1. Length of time to keep (Routine, if litigation)

    2. Records that are included in this requirement

    3. Disposition of records after close of a business

    4. Electronic records OK

    Advertising/Marketing/Internet (Salesperson 3 Items, Broker 3 Items)

    1. Social media and the internet are advertising (part of “ALL advertising”)

    2. Must advertise in broker’s name

    3. The broker must permit/approve advertising

    4. Private controls