Free Mississippi State Law Practice Test — LicenseIQ

Question 1

A Mississippi salesperson switches to a new broker and does not notify MREC. What is the result?

Accepted Answer

§73-35-15 provides that changing brokers without the required notice automatically cancels the license.

Question 2

When a salesperson leaves a Mississippi brokerage, the broker must return the salesperson's license to MREC within:

Accepted Answer

§73-35-15 requires return within 3 days. Ten days is the office-move notice period.

Question 3

A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

Accepted Answer

Money belonging to others goes into a trust account; depositing it in an operating account is commingling.

Question 4

A Mississippi seller refuses to pay a commission earned by a salesperson. Who may sue the seller?

Accepted Answer

§73-35-33 bars a salesperson from suing in his or her own name; the employing broker must sue.

Question 5

A licensee may manage property for an owner for a fee only if there is:

Accepted Answer

Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.

Question 6

By when must a Mississippi broker deposit earnest money into a trust account?

Accepted Answer

Rule 3.4 and §73-35-21(1)(f) both use the next-banking-day standard.

Question 7

How many members serve on the Mississippi Real Estate Commission under current law?

Accepted Answer

§73-35-5 provides for five members: one from each of the three Supreme Court Districts and two at large. Seven or nine are tempting because many other states use larger boards.

Question 8

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 9

What is the effect of a licensee's appeal of an MREC disciplinary order?

Accepted Answer

§73-35-25 provides an automatic supersedeas; MREC may move within 10 days to lift it on a showing of irreparable harm. Appeals are decided without a jury.

Question 10

A home sells for $400,000 with a 5% total commission. What is the total commission?

Accepted Answer

$400,000 x 0.05 = $20,000.

Question 11

Under §73-35-8, when may a default judgment be entered against a nonresident licensee served through the Commission?

Accepted Answer

The statute bars default judgment until 30 days after the certified mailing, supported by an affidavit.

Question 12

What happens if a temporary licensee does not complete the 30-hour post-license course within 12 months of issuance?

Accepted Answer

§73-35-14.5 provides automatic inactive status and states that temporary licenses cannot be renewed. Revocation requires disciplinary grounds.

Question 13

For a Mississippi corporation to receive a brokerage license, who must hold individual broker licenses?

Accepted Answer

§73-35-6 requires broker licenses for those who actively participate in the entity's brokerage business.

Question 14

A Mississippi salesperson's temporary license is valid for one year counted from:

Accepted Answer

§73-35-14.5 counts the one year from the first day of the month after the temporary license is issued.

Question 15

A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

Accepted Answer

Specific performance compels the breaching party to perform; it is available because land is unique. The buyer could alternatively seek monetary damages.

Question 16

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 17

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 18

A real estate licensee who is not an attorney may:

Accepted Answer

Licensees may complete attorney-prepared forms but may not draft contracts, amendments or addenda or give legal advice - that is the unauthorized practice of law.

Question 19

A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

Accepted Answer

First $100,000 x 0.005 = $500; remaining $220,000 x 0.015 = $3,300; total = $3,800.

Question 20

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 21

A salesperson receives an earnest money check from a buyer. The salesperson should:

Accepted Answer

The broker manages the trust account; licensees must promptly deliver trust funds to the broker.

Question 22

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 23

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 24

A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

Accepted Answer

Commission = $389,000 x 0.05 = $19,450. Total costs = $19,450 + $212,600 + $1,200 + $1,950 + $600 = $235,800. Net = $389,000 - $235,800 = $153,200.

Question 25

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.

Mississippi real estate state law practice test

1. A Mississippi salesperson switches to a new broker and does not notify MREC. What is the result?

2. When a salesperson leaves a Mississippi brokerage, the broker must return the salesperson's license to MREC within:

3. A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

4. A Mississippi seller refuses to pay a commission earned by a salesperson. Who may sue the seller?

5. A licensee may manage property for an owner for a fee only if there is:

6. By when must a Mississippi broker deposit earnest money into a trust account?

7. How many members serve on the Mississippi Real Estate Commission under current law?

8. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

9. What is the effect of a licensee's appeal of an MREC disciplinary order?

10. A home sells for $400,000 with a 5% total commission. What is the total commission?

11. Under §73-35-8, when may a default judgment be entered against a nonresident licensee served through the Commission?

12. What happens if a temporary licensee does not complete the 30-hour post-license course within 12 months of issuance?

13. For a Mississippi corporation to receive a brokerage license, who must hold individual broker licenses?

14. A Mississippi salesperson's temporary license is valid for one year counted from:

15. A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

16. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

17. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

18. A real estate licensee who is not an attorney may:

19. A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

20. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

21. A salesperson receives an earnest money check from a buyer. The salesperson should:

22. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

23. Which statement about dual agency is correct?

24. A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

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

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