COURSE OUTLINE
Lesson Outline
CITATION OF
CHAPTER
I. Introduction
A. Citation of the chapter
B. Purpose of the law
II. License Requirement
A. Prohibition on engaging in real estate activities
without a license
B. Scope of individuals and entities covered by the
law
C. Effective date of the law
III. Definitions
A. Real estate broker
B. Real estate salesperson
IV. Licensing Process
A. Requirements for obtaining a real estate broker
license
B. Requirements for obtaining a real estate
salesperson license
C. Application procedures
D. Examination requirements
V. Compliance and Enforcement
A. Penalties for non-compliance
B. Oversight and regulation of the real estate
industry
C. Enforcement mechanisms
ABOUT MREC I. Establishment of the Mississippi Real Estate
Commission
A. Appointment of Commissioners
B. Qualifications for Commissioners
C. Terms of Office
Licence Law
Outline
D. Geographic Representation
II. Organization and Powers of the Commission
A. Selection of Chairman
B. Authority to Enact Rules and Regulations
C. Compensation for Commissioners
III. Seal and Records
A. Adoption of Seal
B. Authentication of Records
C. Accessibility of Records
DEFINITIONS I. Definitions
A. Real Estate Broker
1. Activities covered
2. Inclusion of employed individuals
B. Real Estate
1. Inclusions
2. Exclusions
C. Real Estate Salesperson
1. Definition and role
II. Valuation Terms
A. Automated Valuation Method
B. Broker Price Opinion
III. Exemptions
A. Exemptions from Licensing Requirements
1. Property owners and employees
2. Other specific exemptions
B. Exclusion of Certain Financial Institutions
CONDUCTING
BUSINESS
I. Broker Supervision and Responsibility
A. Duty of responsible broker
B. Affiliated brokers’ actions
II. Cooperation with Nonresident Brokers
A. Use of cooperative agreements
B. Division of commissions
Licence Law
Outline
III. Office Maintenance and License Display
A. Responsibilities of the responsible broker
B. Display of licenses in branch offices
IV. Broker’s Responsibility for Salespersons
V. Payments and Commissions
A. Restrictions on payments
B. Prohibition on paying unlicensed persons
VI. Inactive Status and Compensation
VII. Responsiveness to MREC
VIII. Broker Price Opinions (BPOs)
A. Giving opinions on sales prices
B. Compliance requirements
IX. Acceptance or Rejection in Writing
X. Selling Own Property
A. Non-exemption from disciplinary actions
LOCATION OF
BUSINESS
I. Requirement for Real Estate Brokers:
A. Must have and maintain a definite place of
business
1. Can be a room in home or office
elsewhere
B. Display of certificates
1. Broker’s certificate of registration
2. Certificates of employed salespersons
C. Notification of office relocation
1. Application to commission
2. Issuance of new license for new location
II. Licensing of Real Estate Salespersons:
A. Designation of responsible broker in license
B. Notification requirements for changes:
1. Responsible broker
2. Employment status
C. Consequences of failure to notify:
Licence Law
Outline
1. Automatic license cancellation
D. Termination of agency:
1. Return of license to commission by
responsible broker
2. Prohibition on real estate activities
post-cancellation
ERRORS AND
OMISSIONS
INSURANCE
COVERAGE
I. Definitions
A. Aggregate limit
B. Claims-made
C. Extended reporting period
D. Licensee
E. Per-claim limit
F. Prior acts coverage
G. Proof of coverage
H. Retroactive date
II. Proof of Insurance Requirement
A. Who needs to submit proof
B. Exceptions for inactive licensees
III. Coverage Requirements for Licensees
A. Minimum requirements for group policy
B. Coverage for Mississippi licensees
IV. Contract Period and Renewal
A. Maximum contract period
B. Retroactive date for status changes
C. Notification and renewal requirements
V. Independent Coverage
A. Minimum requirements for independent
coverage
VI. Provisions for Individual Licensees
A. Proof of insurance for new licensees
B. Consequences for failure to provide proof
C. Return to active status for inactive licensees
VII. Administrative Duties
A. Authority of the commission
Licence Law
Outline
B. Handling administrative tasks related to
insurance program
LICENSE
RENEWAL
I. License Renewal and Continuing Education
Requirements
A. Submission of Proof of Completion
B. Required Hours: 16 clock hours for each
two-year renewal period
C. Course Approval and Certification
D. Subject Matter Requirement: Max 8 hours out
of 16
E. Carrying Over Excess Hours: Max 6 hours
F. Legislative Session Credit: 8 hours per year
G. Pre-License Education Exclusion
H. Exemptions:
1. Experience and Age Exemption
2. Inactive Licensees
I. Email Address Requirement
II. Expiration Date and Applicability
A. Effective Date: July 1, 1994
B. Exemption for First Renewal Within One Year
III. Regulatory Framework
A. Promulgation of Rules and Regulations
B. Compliance with Mississippi Administrative
Procedures Law
RECORDS
AND
DOCUMENTS
I. Document Delivery Requirements
A. Immediate delivery of true and correct copies
II. Record Keeping
A. Three-year retention of transaction records
III. Listing Agreements
A. Must be in writing
B. Include property details, terms, and expiration
date
IV. Buyer’s Agreements
A. Written agreements specifying terms and
expiration date
Licence Law
Outline
B. Buyer’s right to terminate with fifteen days’
notice
V. Handling Multiple Offers
A. Presentation of all offers to the owner
B. Caution against countering multiple offers
simultaneously
VI. Representation Disclosure
A. Statement of whom the broker represents in the
contract
VII. Integrity in Financial Dealings
A. Prohibition on misrepresentation of selling price
to lenders or other parties
ADVERTISING I. Introduction to Real Estate Advertising
A. Definition of Advertising
B. Importance of Regulations
II. Advertising Guidelines
A. Broker’s Name and Descriptive Terms
B. Supervision and Identification
C. Authorization for Property Advertising
D. Disclosure of Licensee Status
III. Prohibitions and Requirements
A. Restrictions on Advertising Practices
B. Requirements for Publication Advertisements
MANAGING
ESCROW
ACCOUNTS
I. Introduction
A. Overview of Earnest Money Deposits
II. Responsibilities of the Broker
A. Acceptance and Deposit of Earnest Money
B. Accounting and Remittance
III. Responsibilities of Licensees
A. Prompt Payment and Return of Earnest Money
IV. Dispute Resolution
Licence Law
Outline
A. Handling Uncertainty
B. Involvement of Court
V. Consequences of Non-compliance
A. Revocation or Suspension of License
VI. Broker as Seller’s Agent
A. Handling Failed Transactions
B. Return of Earnest Money
VII. Record Keeping
A. Escrow Account Management
B. Inspection by Commission
VIII. Escrow Account Management
A. Ownership of Funds
B. Use of Personal Funds
IX. Notification of Dishonored Checks
A. Immediate Notification Requirement
PROPERTY
CONDITION
DISCLOSURE
STATEMENT
I. Introduction
A. Purpose of Property Condition Disclosure
Statement (PCDS)
B. Overview of Legal Provisions
II. Requirements for PCDS
A. General Instructions for Sellers
B. PCDS Form and Certification
C. Delivery of Disclosure Statement
III. Exclusions and Exceptions
A. No Occupancy and No Knowledge
B. Statutory Exclusions
IV. Disclosure Obligations
A. Good Faith Disclosure
B. Approximation of Information
C. Amendments to Disclosure
D. Delivery of Disclosure
Licence Law
Outline
V. Agent’s Role and Liability
A. Extent of Agency
B. Limitation of Liability for Real Estate Licensees
VI. Consequences of Noncompliance
A. Noncompliance Does Not Invalidate Transfer
B. Liability for Actual Damages
VII. Miscellaneous Provisions
A. Applicability of Disclosure Requirements
B. Termination Rights for Buyers
C. Limitation on Duties and Liabilities
TEAMS OR
GROUPS
I. Introduction to Real Estate Teams
A. Definition and Purpose
B. Importance of Regulation
II. Requirements for Real Estate Teams in Mississippi
A. Definition of a Team
B. Registration Process
C. Appointment of Team Leader
III. Advertising Guidelines
A. Approval Process
B. Compliance Requirements
IV. Restrictions on Team Names
A. Prohibited Terms
B. Compliance with Regulations
V. Conclusion
A. Recap of Key Points
B. Importance of Adhering to Regulations
TEAMS OR
GROUPS
ADVERTISING
I. Introduction to Advertising Regulations
A. Explanation of regulatory requirements
B. Importance of compliance for real estate
professionals
II. Displaying Brokerage Firm Information
Licence Law
Outline
A. Importance of prominently featuring brokerage
firm name
B. Guidelines for displaying telephone number
C. Examples of compliant displays
III. Formatting Team Names and Contact Information
A. Definition and requirements for real estate
teams
B. Rules for naming and registering teams with the
regulatory authority
C. Comparing team and brokerage firm
information display
AGENCY
RELATIONSHIP
S AND
DISCLOSURE
I. Introduction
A. Explanation of the purpose of agency disclosure
requirements
B. Importance of compliance for brokers
C. Overview of key concepts to be covered
II. Definitions
A. Definition of “real estate broker”
B. Definition of “real estate salesperson”
C. Explanation of terms such as “automated valuation
method” and “broker price opinion”
III. Exemptions from Licensing Requirements
A. Explanation of exemptions for certain
individuals and entities
B. Discussion of exceptions to compliance
requirements
IV. Single Agency Disclosure
A. Requirements for disclosing agency relationship to
the party for whom the broker is an agent
B. Requirements for disclosing agency relationship to
the party for whom the broker is not an agent
V. Disclosed Dual Agency
A. Explanation of requirements for obtaining informed
written consent from all parties
B. Steps for confirming understanding and consent
from both buyer(s) and seller(s)
Licence Law
Outline
VI. Changes in Agency Relationship
A. Procedures for acknowledging and documenting
changes in agency relationship during a transaction
VII. Documentation and Maintenance
A. Explanation of requirements for completing and
maintaining Agency Disclosure Forms
B. Discussion of regulatory compliance regarding
documentation
POWERS AND
DUTIES OF
THE
COMMISSION
I. Introduction
A. Explanation of the appeal process
B. Importance of understanding and following
procedures
II. Overview of Appeals
A. Definition of an appeal
B. Purpose of appealing adverse rulings
C. Legal framework for appeals in Mississippi
III. Requirements for Filing an Appeal
A. Timeline: 30 days from receiving notice
B. Documentation: Written appeal and $500 bond
C. Jurisdiction: Circuit court of county of residence or
First Judicial District of Hinds County
IV. Steps in the Appeal Process
A. Preparation of written appeal
B. Submission of appeal and bond
C. Review by the circuit court
D. Possible outcomes of the appeal
PENALTIES
FOR
VIOLATIONS
I. Introduction to Real Estate Brokerage Regulations
A. Overview of the importance of regulations in real
estate brokerage
B. Introduction to § 73-35-31 and its significance
II. Understanding the Penalties for Violations
A. Explanation of penalties for first violations
1. Individuals
2. Corporations
B. Explanation of penalties for second or
subsequent violations
1. Individuals
Licence Law
Outline
2. Corporations
C. Explanation of liability for profits gained from
violations
III. Prohibition on Payment without Licensure
A. Explanation of the requirement for licensure or
cooperative agreements
B. Clarification on payments for brokerage activities
CHANGING
THE STATUS
OF A LICENSE
I. Changing License Status
A. From active to inactive
1. Notify Commission
2. Return license
3. Pay fee
4. Renewal for inactive status
5. Broker can place business license inactive
6. Return to active status with transfer
application and fee
B. Transferring between brokers
1. File transfer application signed by new
broker
2. Pay transfer fee
3. Confirm no retention of former broker’s
information without consent
C. Military Service Provision
GROUNDS
FOR
REFUSING TO
ISSUE OR
SUSPENDING
OR REVOKING
A LICENSE:
HEARING
I. Introduction
A. Explanation of the importance of real estate license
regulation
B. Overview of the lesson objectives
II. Grounds for Refusal, Suspension, or Revocation of a
License
A. Obtaining a license through false or fraudulent
representation
B. Actions leading to license suspension or revocation:
1. Misrepresentations and false promises
2. Misleading advertising
3. Acting for multiple parties without disclosure
4. Failure to account for or remit money
5. Criminal convictions
6. Unauthorized signage
7. Failure to provide agreements to all parties
Licence Law
Outline
8. Improper commission payments
9. Inducing contract breaches
10. Failure in background investigations
11. Demonstrating dishonesty or incompetence
III. Exclusions from Violations
A. Clarification of activities not constituting violations
B. Examples and explanations
IV. Handling of Earnest Money
A. Requirement to promptly deposit funds
B. Timeframe for deposit
V. Restrictions on Providing Legal Advice
A. Prohibitions on practicing law without a license
B. Limits on legal advice and document preparation
MREC
COMPLAINT
PROCESS
I. Introduction
A. Overview of the Mississippi Real Estate
Commission
B. Importance of understanding disciplinary
procedures
II. Key Terms
A. Administrative Hearing
B. Administrative Hearing Officer
C. Agreed Order
D. Allegation
E. Appellant
III. Roles and Entities
A. Commission
B. Commissioners
C. Complaint Counsel
D. Executive Director
IV. Investigation Process
A. Role of Investigator
B. Verified Complaint
C. Notice of Hearing
D. Written Response
V. Resolution Options
A. Informal Conference
B. Informal Resolution
C. Agreed Order