Free Mississippi Contracts Practice Test — LicenseIQ

Question 1

A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

Accepted Answer

LTV is applied to the LESSER of price or appraised value: $290,000 x 0.75 = $217,500. Using the $300,000 price ($225,000) is the common mistake.

Question 2

A contract that is missing an essential element, such as consideration, is:

Accepted Answer

Missing an essential element makes a contract void from the start. A voidable contract appears valid but may be canceled by one party.

Question 3

An offer or counteroffer becomes a binding contract when:

Accepted Answer

Acceptance must be unconditional and communicated back to the offeror; any change creates a counteroffer instead.

Question 4

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 5

Which statement about a Mississippi cooperative agreement is true?

Accepted Answer

Rule 3.1 C requires a separate agreement per property, user or transaction, with compensation stated and the listing in the Mississippi broker's name.

Question 6

In advertising Mississippi property under a cooperative agreement, the Mississippi broker's name and phone number must appear:

Accepted Answer

§73-35-11 requires equal prominence.

Question 7

A Mississippi seller mails the PCDS to a buyer on Wednesday, June 3, 2026, after the buyer's offer was executed. What is the last day for the buyer to terminate?

Accepted Answer

Mailed delivery gives 5 days after deposit in the mail: June 3 + 5 = June 8. June 6 would apply to personal delivery (3 days).

Question 8

A Mississippi seller hands the buyer the PCDS in person after the buyer's offer is executed. How long does the buyer have to terminate?

Accepted Answer

§89-1-503 gives 3 days after personal delivery and 5 days after mailing.

Question 9

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 10

Which event terminates a listing agreement by operation (force) of law?

Accepted Answer

Agency ends by performance, expiration, mutual agreement, or situationally by force of law (bankruptcy, condemnation), death or incapacity, destruction of the property, or breach.

Question 11

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 12

A sales contract provides that if the buyer defaults, the seller keeps the earnest money as the full measure of damages. This is a:

Accepted Answer

Liquidated damages are a sum agreed in advance as compensation for breach - often the earnest money deposit.

Question 13

A contract that has all legal elements but where one party may cancel is:

Accepted Answer

A voidable contract is valid but one party may rescind it (e.g., a minor, or a party induced by misrepresentation or duress). A void contract lacks an essential element and has no legal effect.

Question 14

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 15

A contract signed by a 17-year-old buyer is generally:

Accepted Answer

Contracts with minors are voidable at the minor's option; the adult party remains bound. A contract with someone adjudged insane is void.

Question 16

Under a cooperative agreement, who must supervise showings of Mississippi property?

Accepted Answer

§73-35-11 requires the Mississippi broker to supervise all showings and negotiations and makes that broker liable for the nonresident's acts.

Question 17

When a seller changes a term of the buyer's offer and returns it, this creates a:

Accepted Answer

Altering any term rejects the original offer and creates a counteroffer, which the buyer may accept or reject.

Question 18

Which is NOT an essential element of a valid contract?

Accepted Answer

The essential elements are offer and acceptance (mutual consent), consideration, competent parties and legal purpose. Notarization is not required for a contract to be valid.

Question 19

A buyer offers $300,000. The seller counters at $315,000. The buyer rejects the counter and then tries to accept the original $300,000 offer terms. Is there a contract?

Accepted Answer

A counteroffer is a rejection and a new offer; the original offer cannot be revived by the buyer.

Question 20

A Mississippi licensee persuades a buyer to break a pending contract so the licensee can write a new one at a higher commission. This violates:

Accepted Answer

§73-35-21(1)(k) prohibits inducing contract breaches to benefit the licensee.

Question 21

A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

Accepted Answer

At 95% LTV the down payment is 5% of price. Price = $18,000 / 0.05 = $360,000; loan = $342,000.

Question 22

Which provision is prohibited in a Mississippi listing agreement?

Accepted Answer

Rule 3.2 B requires a definite expiration date and forbids requiring notice to cancel after expiration (an automatic renewal).

Question 23

An offer with earnest money is accepted on a Friday afternoon. The following Monday is a bank holiday. When is the Mississippi deposit deadline?

Accepted Answer

Banking days skip weekends and bank holidays, so the next banking day after Friday is Tuesday.

Question 24

For nonpayment of rent, a Mississippi landlord may give notice that the rental agreement terminates if rent is not paid within:

Accepted Answer

§89-8-13 allows a 3-day notice for nonpayment; 14 days applies to other material breaches.

Question 25

A Mississippi licensee gives a lender a sales contract showing a price $10,000 higher than the real price. This:

Accepted Answer

Rule 3.2 F prohibits representing a price higher than the true selling price, orally or by false contract.

Mississippi real estate contracts practice test

1. A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

2. A contract that is missing an essential element, such as consideration, is:

3. An offer or counteroffer becomes a binding contract when:

4. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

5. Which statement about a Mississippi cooperative agreement is true?

6. In advertising Mississippi property under a cooperative agreement, the Mississippi broker's name and phone number must appear:

7. A Mississippi seller mails the PCDS to a buyer on Wednesday, June 3, 2026, after the buyer's offer was executed. What is the last day for the buyer to terminate?

8. A Mississippi seller hands the buyer the PCDS in person after the buyer's offer is executed. How long does the buyer have to terminate?

9. Which is the most common and desirable way a real estate sales contract terminates?

10. Which event terminates a listing agreement by operation (force) of law?

11. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

12. A sales contract provides that if the buyer defaults, the seller keeps the earnest money as the full measure of damages. This is a:

13. A contract that has all legal elements but where one party may cancel is:

14. Under the statute of frauds, a real estate sales contract must be:

15. A contract signed by a 17-year-old buyer is generally:

16. Under a cooperative agreement, who must supervise showings of Mississippi property?

17. When a seller changes a term of the buyer's offer and returns it, this creates a:

18. Which is NOT an essential element of a valid contract?

19. A buyer offers $300,000. The seller counters at $315,000. The buyer rejects the counter and then tries to accept the original $300,000 offer terms. Is there a contract?

20. A Mississippi licensee persuades a buyer to break a pending contract so the licensee can write a new one at a higher commission. This violates:

21. A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

22. Which provision is prohibited in a Mississippi listing agreement?

23. An offer with earnest money is accepted on a Friday afternoon. The following Monday is a bank holiday. When is the Mississippi deposit deadline?

24. For nonpayment of rent, a Mississippi landlord may give notice that the rental agreement terminates if rent is not paid within:

25. A Mississippi licensee gives a lender a sales contract showing a price $10,000 higher than the real price. This:

Sources