Mississippi Real Estate Practice Exam.
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1. While drafting the transfer of a 200-acre farm outside Starkville, the seller's attorney grants the adjoining farmer a permanent right to cross the property to reach a county road. This right is best described as which type of interest?

• A. An easement appurtenant that runs with the land to benefit the adjoining parcel
• B. A leasehold interest limited to agricultural use
• C. A license that can be revoked by either party at will
• D. An easement in gross that terminates upon sale of either parcel

2. "Can I keep fishing off my dock even after the water level drops?" a buyer near a Delta river asks. The salesperson's best answer addresses which category of ownership right?

• A. Riparian rights, which are tied to reasonable use of water bordering the land
• B. Littoral rights, which apply only to oceanfront property
• C. Mineral rights, which are severed from the surface estate by default
• D. Avulsion rights, which apply only after a sudden channel change

3. A landowner near Hattiesburg wants to convert a former single-family lot into a small retail shop, but current zoning designates the area strictly residential. To legally proceed, the owner should most likely pursue which action?

• A. Recording a restrictive covenant releasing the residential limitation
• B. Filing for a nonconforming use designation since the lot predates the zoning ordinance
• C. Simply obtaining a building permit, since permits override zoning classifications
• D. Applying to the zoning board for a variance or rezoning to permit the commercial use

4. A family transferring a 400-acre row-crop farm near Greenville to the next generation wants to keep the oil and gas rights for the grantor while conveying full surface ownership to the heir. This arrangement is accomplished through which method?

• A. Executing a deed that severs the mineral estate from the surface estate, reserving minerals to the grantor
• B. Establishing a joint tenancy between grantor and heir over the minerals
• C. Recording a life estate reservation on the surface only
• D. Placing the mineral rights into a leasehold estate held by the grantor

5. "If I have written consent from both my buyer client and my seller client, can I represent them both on this same deal?" a newly licensed agent in Clarksdale asks her supervising broker during a mentorship session. What is this arrangement called?

• A. Designated agency
• B. Single agency
• C. Dual agency
• D. Subagency

6. A buyer's agent in Biloxi discovers that the seller they are negotiating against is willing to accept far less than the listing price, information learned through the seller's agent's careless comment. What duty governs how the buyer's agent may use this information?

• A. The buyer's agent owes no duty to the seller and may use the information to benefit the buyer client
• B. The buyer's agent must refuse to negotiate further until the seller's agent corrects the disclosure
• C. The buyer's agent must disclose the information to the seller out of general fairness
• D. The buyer's agent must report the seller's agent to the brokerage before continuing

7. For a listing agreement to create a valid agency relationship between a Jackson homeowner and a salesperson, which element must be present?

• A. Mutual consent between the principal and agent regarding the scope of representation
• B. The seller must pay a nonrefundable deposit to the brokerage
• C. The agreement must be witnessed by a notary public
• D. The property must already have an accepted offer

8. A salesperson tells a buyer, "I represent the seller, not you, in this transaction." This statement is an example of which practice?

• A. Breach of fiduciary duty to the buyer
• B. Agency disclosure informing the buyer of the salesperson's representation
• C. Dual agency consent
• D. Transaction brokerage

9. In a market that permits designated agency, a broker appoints one affiliated salesperson to represent the seller and a different affiliated salesperson to represent the buyer in the same in-house transaction. What is the primary advantage of this structure over traditional dual agency?

• A. It allows each party to have an individual advocate rather than one licensee trying to remain neutral toward both
• B. It removes the broker's supervisory responsibility over either salesperson
• C. It guarantees a higher commission split for the brokerage
• D. It eliminates the need for any written agency disclosure

10. During an estate auction near Belzoni, the gavel falls on a winning bid for a small parcel submitted by a 17-year-old bidder with no parent or guardian present. What is the legal status of the resulting purchase contract?

• A. Enforceable only if a court appoints a guardian to ratify it within 30 days
• B. Voidable at the minor's option because minors generally lack full contractual capacity
• C. Fully enforceable once the minor turns 18, but not before
• D. Void from the outset because minors cannot own real property

11. "We had a handshake deal on the farmland," a seller near Louisville, Mississippi claims after refusing to sign any paperwork. Why would this oral agreement most likely be unenforceable in court?

• A. Only contracts over a certain acreage require a written agreement
• B. Real estate contracts fall under the statute of frauds and generally must be in writing to be enforceable
• C. Oral contracts are always unenforceable under all circumstances
• D. The seller can be forced to perform regardless, since real estate deals are exempt from writing requirements

12. Siblings inheriting a family farm near Louisville decide one sibling will convey her interest to the other using a deed that carries no warranties or guarantees about the title's history. Which type of deed did she most likely use?

• A. Bargain and sale deed
• B. General warranty deed
• C. Quitclaim deed
• D. Special warranty deed

13. A homebuyer near Batesville finances a purchase through a lender that requires the buyer to execute a deed of trust rather than a traditional mortgage document. What is a key practical difference this creates if the buyer later defaults?

• A. A deed of trust requires the lender to obtain a court judgment before any foreclosure can proceed
• B. A deed of trust prevents the lender from ever foreclosing on the property
• C. A deed of trust automatically forgives the debt if the buyer defaults within the first year
• D. A deed of trust involves a third-party trustee who can conduct a non-judicial foreclosure sale without going through court

14. A buyer purchasing a home near Ocean Springs for $380,000 makes a down payment of $57,000, financing the remainder with a conventional loan. What is the resulting loan-to-value (LTV) ratio?

• A. 90%
• B. 80%
• C. 85%
• D. 15%

15. At closing on a home sale near Pascagoula, the title company holds the buyer's earnest money deposit until all contract conditions are satisfied. What is the purpose of this arrangement?

• A. To satisfy the buyer's down payment requirement in full
• B. To hold funds neutrally on behalf of both parties until the transaction closes or a contingency fails
• C. To cover the cost of the buyer's home inspection
• D. To pay the seller's agent commission in advance of closing

16. A property manager reviewing acquisition targets for a client finds a triplex near Kosciusko listed at $410,000, generating $3,280 in monthly gross rent. What is the property's gross rent multiplier (GRM)?

• A. 10
• B. 130
• C. 125
• D. 120

17. To value a one-of-a-kind, architect-designed home near Water Valley that lacks any closely comparable recent sales, an appraiser calculates the cost to rebuild the structure, subtracts depreciation, and adds the estimated land value. Which valuation approach does this reflect?

• A. Gross rent multiplier method
• B. Income capitalization approach
• C. Sales comparison approach
• D. Cost approach

18. While representing a seller near Petal, an agent receives multiple offers on the same day. How should the agent ethically handle presenting these offers to the seller?

• A. Present only the highest offer and discard the others without the seller's knowledge
• B. Automatically reject any offer below the asking price without seller input
• C. Combine the best financial terms from each offer into a single counteroffer without disclosing the source
• D. Present all offers received to the seller and let the seller decide how to proceed

19. Weighing a small medical office, a fast-casual restaurant pad, and continued surface parking as options for a vacant infill lot near Canton, an appraiser concludes the restaurant pad produces the greatest supportable value among all legally permissible, physically possible, and financially feasible uses. Which appraisal principle does this conclusion reflect?

• A. Principle of progression
• B. Principle of substitution
• C. Principle of highest and best use
• D. Principle of contribution

20. A homeowner near Brandon asks their listing agent for a formal appraisal of the property's market value. How should the agent respond regarding a comparative market analysis (CMA) versus a formal appraisal?

• A. The agent should perform the appraisal personally since licensees are qualified to issue one
• B. A CMA is legally identical to a certified appraisal and can be used interchangeably for lending purposes
• C. The agent should explain that a CMA is an informal pricing opinion, while a certified appraisal must be performed by a licensed appraiser
• D. The agent should decline to provide any pricing guidance at all

21. A seller in Gulfport knows the home's foundation has a significant crack that was patched but not properly repaired, yet says nothing to a prospective buyer. What is the seller's disclosure obligation regarding this defect?

• A. The seller has no duty to disclose since the defect was cosmetically patched
• B. The seller generally must disclose known material defects that affect the property's value or safety
• C. Only the buyer's home inspector is responsible for finding such defects
• D. Disclosure is only required if the buyer specifically asks about the foundation

22. After a listing near Waveland expires without a sale, the former seller asks the agent to share the confidential financial information the seller had disclosed during the listing period with a new potential buyer. What is the agent's obligation?

• A. The agent may disclose the information only to other licensees within the same firm
• B. The agent may freely disclose any information now that the listing has expired
• C. The agent generally must continue to protect confidential client information even after the agency relationship ends
• D. The agent must disclose the information only if a new listing agreement is signed

23. An agent near Picayune places a large sign advertising a listing but omits the name of the brokerage firm entirely, listing only a personal cell phone number. What is the primary concern with this practice?

• A. It is acceptable as long as the agent's license number appears somewhere on the sign
• B. It may violate advertising rules requiring the brokerage's identity to be disclosed in real estate advertisements
• C. It is a purely aesthetic issue with no regulatory concern
• D. It is only a problem if the sign is placed on a public roadway

24. During a property management walkthrough of a vacant rental unit near Brookhaven, the owner instructs the leasing agent to reject any applicant whose household includes children under 12, citing wear-and-tear concerns. Under federal fair housing law, this instruction most likely violates protections based on which characteristic?

• A. Sex
• B. Familial status
• C. National origin
• D. Religion

25. A prospective tenant near Ocean Springs who uses a wheelchair asks the landlord to install a permanent ramp at the entrance and requests a reserved parking space near the door because of a mobility disability. How should the landlord evaluate these requests under fair housing law?

• A. Require the tenant to pay double the standard security deposit before allowing either request
• B. Deny both requests, since disability accommodations are optional for private landlords
• C. Grant the reasonable accommodation for a reserved parking space, but the tenant is typically responsible for the reasonable modification costs of a permanent structural ramp
• D. Approve only the ramp request and deny the parking request as unrelated to the disability

26. "Most of their monthly income comes from a public assistance program, so let's deny this one even though their credit otherwise checks out," an underwriter tells a loan processor reviewing a mortgage file near Philadelphia, Mississippi. Which federal law is most directly implicated by factoring in this income source to deny credit?

• A. The Community Reinvestment Act
• B. The Fair Housing Act
• C. The Servicemembers Civil Relief Act
• D. The Equal Credit Opportunity Act (ECOA)

27. Scrolling through an apartment ad near Starkville, a fair housing advocate flags this line: "ideal for a young bachelor, absolutely no children." What is the primary fair housing concern with this wording?

• A. It is problematic only if a family actually applies and is rejected
• B. It expresses a discriminatory preference based on familial status, which is prohibited in housing advertisements
• C. It fails to mention the exact square footage of the unit
• D. It violates truth-in-advertising rules regarding rental pricing

28. An enthusiastic 17-year-old Mississippi resident who has completed the required pre-license coursework wants to apply immediately for a salesperson license. What issue prevents the application from being approved right now?

• A. The applicant must first work as an unlicensed assistant for one year
• B. The applicant must complete an additional 60 hours of coursework beyond what is typical
• C. The applicant must obtain a broker's license before a salesperson license
• D. The applicant must be at least 18 years of age to apply for a Mississippi salesperson license

29. An applicant near Tupelo has their Mississippi salesperson license application notarized but then delays mailing it to the Commission for several months. What problem does this delay create?

• A. The application must be received by the Commission within 60 days of the notary date or it becomes invalid
• B. Notarized applications never expire and can be submitted at any time
• C. The delay only matters if the applicant has changed addresses
• D. The applicant must have the application re-signed but not re-notarized

30. While completing the Mississippi salesperson license application, an applicant near Corinth needs to secure signed recommendations from other individuals attesting to their character. What does Mississippi require regarding these references?

• A. They must be signed by a single character reference of any relation to the applicant
• B. They must be signed by three citizens who are real estate owners and not related to the applicant
• C. They must be notarized by a judge rather than a standard notary public
• D. They must be signed by two licensed brokers who currently employ the applicant

31. A newly licensed salesperson near Vicksburg begins independently negotiating and closing transactions without any involvement or knowledge of their supervising broker. What is the primary regulatory problem with this practice under Mississippi license law?

• A. The issue only arises if a client formally complains about the transaction
• B. A salesperson must operate under the active supervision of a licensed broker and cannot conduct real estate business independently of that broker
• C. There is no problem, since salespersons are independently licensed to transact business
• D. Supervision only applies to a salesperson's first six months of licensure

32. A salesperson near Columbus personally accepts an earnest money check from a buyer and deposits it into their own personal bank account for safekeeping until closing. What is wrong with this handling of the funds?

• A. The funds should have been given directly to the seller for safekeeping instead
• B. Earnest money may only be deposited by the buyer's own bank, never by any agent
• C. Nothing is wrong as long as the salesperson returns the funds at closing
• D. The salesperson should have delivered the funds to their supervising broker for proper handling in the brokerage's trust account

33. A Mississippi brokerage near Meridian closes a transaction and a salesperson wants to keep the client's file at home rather than in the brokerage's records. Under Mississippi license law, who bears responsibility for maintaining proper transaction records?

• A. Only the closing attorney is responsible for retaining transaction records
• B. No party is required to retain any records once a transaction closes
• C. The buyer's lender is solely responsible for record retention
• D. The supervising broker bears responsibility for maintaining the brokerage's transaction records and documents

34. A salesperson near Natchez begins working with a buyer who has not signed any representation agreement and is simply touring homes at open houses. At what general point should the salesperson clarify which party they represent?

• A. Only after a written offer has been submitted
• B. Disclosure is optional if the salesperson only represents the seller
• C. Only if the buyer directly asks who the agent represents
• D. At or before the point of substantive contact with the buyer regarding the transaction

35. A licensee near Greenville is accused of mishandling client funds, and a formal complaint is filed with the state regulator. Which entity has the authority to investigate the complaint and potentially discipline the licensee's Mississippi real estate license?

• A. The local county sheriff's office
• B. The Mississippi Real Estate Commission
• C. The National Association of Realtors
• D. The buyer's title insurance company

36. A broker licensed only in Louisiana refers a buyer to purchase a home near Natchez and expects to receive a referral fee once the Mississippi transaction closes. What must generally occur for the Louisiana broker to lawfully receive that fee?

• A. No referral fee may ever be paid to an out-of-state broker under any circumstance
• B. The referral fee must be paid directly to the buyer instead of the broker
• C. The Louisiana broker must cooperate through a Mississippi-licensed broker to lawfully receive compensation for activity involving Mississippi property
• D. The Louisiana broker must personally attend the closing in Mississippi

37. A seller near Hernando is preparing to list a home and asks the agent what Mississippi requires regarding disclosing the property's physical condition to buyers. What should the agent explain?

• A. Mississippi law exempts all residential sellers from any written disclosure obligation
• B. Only commercial property sellers are required to provide written disclosures
• C. Disclosure obligations apply exclusively to the listing brokerage, never the seller personally
• D. Mississippi requires the seller to complete a written property condition disclosure statement addressing known material defects

38. A team of salespersons near Oxford brands all of their yard signs and online listings under a catchy team name without referencing their sponsoring brokerage anywhere in the advertisement. What is the concern under Mississippi advertising rules?

• A. Mississippi advertising rules generally require the sponsoring brokerage's name to appear in advertisements, even when a team name is also used
• B. Only print advertising, not internet advertising, is subject to any disclosure rules
• C. The requirement applies only if the team name includes the word "realty"
• D. Team names are entirely prohibited in Mississippi real estate advertising

39. A licensed salesperson near Biloxi moves to a new address but never updates this information with the Mississippi Real Estate Commission. Why does this create a licensing maintenance problem?

• A. Licensees generally must keep their contact information current with the Commission as part of maintaining an active license in good standing
• B. The requirement only applies if the salesperson changes brokerages at the same time
• C. Address changes have no bearing on license status under Mississippi law
• D. Only brokers, not salespersons, are required to report address changes

40. To give the public constructive notice of a farm's new ownership after closing near Grenada, the buyer's attorney takes which action with the deed?

• A. Files the deed with the state real estate commission
• B. Records the deed in the appropriate county land records
• C. Mails a copy of the deed to the county tax assessor only
• D. Publishes the deed in a local newspaper

41. A life tenant in a historic Natchez home wants to sell the property outright to a buyer who will take a fee simple title. What is the legal effect of this attempted sale on the remainder interest held by the tenant's niece?

• A. The sale automatically converts the niece's remainder interest into a life estate of her own.
• B. The niece must consent in writing before the deed can be recorded, or the sale is void.
• C. The buyer can only receive the life tenant's interest, and the niece's remainder interest survives unaffected.
• D. The sale extinguishes the remainder interest because a life tenant may convey a fee simple title.

42. To determine whether a homeowners association in a Ridgeland subdivision can prevent a buyer from parking a commercial trailer in the driveway, the agent should first review which document?

• A. The county's comprehensive land use plan
• B. The property's title insurance policy
• C. The recorded deed restrictions or restrictive covenants for the subdivision
• D. The property's most recent appraisal report

43. Two unmarried co-investors buying a duplex near Southaven want the surviving owner to automatically receive the deceased owner's share without going through probate. Which form of co-ownership accomplishes this?

• A. Severalty ownership shared between the two buyers
• B. Tenancy in common
• C. Joint tenancy with right of survivorship
• D. A partnership interest recorded as a general lien

44. "I never signed anything with that agent, so I don't owe them a commission," a seller tells a new listing agent about a prior expired listing. What agency concept determines whether the seller's statement is accurate?

• A. Ratification, which requires the seller to approve the agent's actions after the fact
• B. Termination of agency, since an expired listing agreement ends the agent's authority to act for the seller
• C. Estoppel, which creates agency automatically once a house is shown
• D. Vicarious liability, which binds the seller regardless of any agreement

45. A broker in Meridian is legally responsible for supervising the daily activities of the salespeople affiliated with the firm. If a salesperson makes a misrepresentation to a buyer during a showing, which principle most directly exposes the broker to liability?

• A. Comparative negligence
• B. Strict liability regardless of any connection to the transaction
• C. Vicarious liability for acts within the scope of the salesperson's employment
• D. Res ipsa loquitur

46. Two cooperating salespersons from different firms both claim to be the procuring cause of a sale near Clinton after the buyer viewed the home with one agent but wrote the offer through another. How is a procuring cause dispute typically resolved?

• A. Whichever agent physically wrote the final contract is automatically the procuring cause
• B. The buyer decides which agent is paid, regardless of either agent's involvement
• C. The listing broker automatically keeps the full commission in any dispute
• D. By examining which agent's efforts were the direct and continuous cause leading to the completed transaction

47. "Financing fell through and we notified the seller in writing—what happens now?" a buyer near Tupelo asks after failing to get mortgage approval within the 30-day contingency window in the sale agreement for an estate property. What is the typical result under a standard financing contingency provision?

• A. The contract terminates and the earnest money is typically returned to the buyer
• B. The contract remains binding until the buyer finds an alternative lender
• C. The buyer forfeits the earnest money regardless of the contingency
• D. The seller may sue for specific performance despite the failed contingency

48. A buyer under contract to purchase a duplex near Laurel wants to transfer their rights and obligations under the purchase agreement to a business partner before closing, with the seller's consent releasing the original buyer entirely. This is best described as:

• A. An assignment, since only rights transfer without releasing the original party
• B. A unilateral modification requiring no seller involvement
• C. A novation, since a new party is substituted and the original buyer is released from the obligation
• D. An anticipatory breach of the purchase agreement

49. A buyer under contract for a commercial lot near Columbus defaults without a valid excuse just days before closing. The purchase agreement includes a liquidated damages clause allowing the seller to retain the earnest money as full compensation. What is the primary legal purpose of this type of clause?

• A. To guarantee the seller can still force the sale through specific performance
• B. To automatically void the entire contract without any remedy to either party
• C. To pre-establish a reasonable estimate of damages when actual damages would be difficult to calculate at the time of breach
• D. To punish the defaulting buyer beyond the seller's actual loss

50. A commercial property owner near Meridian refinances with a new loan balance of $296,000, and the lender charges 3.5 points as an origination fee for the transaction. What is the dollar cost of these points?

• A. $11,840
• B. $8,880
• C. $10,360
• D. $2,960

51. "Since you're only putting 12% down on this duplex, the lender is going to add an extra monthly premium to protect itself against default," a property manager explains to a first-time investor closing near Corinth. What is this required insurance called?

• A. Hazard insurance
• B. Homeowners insurance
• C. Private mortgage insurance (PMI)
• D. Title insurance

52. Comparing a fixed-rate mortgage to an adjustable-rate mortgage for a buyer near Southaven who plans to stay in the home for at least 15 years, which factor most favors the fixed-rate option?

• A. The fixed-rate loan automatically qualifies the buyer for a lower loan amount
• B. The fixed-rate loan requires no down payment
• C. The fixed-rate loan guarantees a lower initial interest rate than any adjustable-rate loan
• D. The fixed-rate loan provides predictable payments unaffected by future interest rate increases over a long holding period

53. An elderly farmer near Yazoo City wants to sell 150 acres directly to a young buyer who cannot qualify for a conventional bank loan, while the farmer continues to hold legal title until the full purchase price is paid over time. This arrangement is best described as:

• A. A subordinate second mortgage
• B. A deed of trust with a third-party trustee
• C. A leasehold estate with an option to purchase
• D. A land contract (contract for deed) with seller financing

54. During settlement on a farm sale near Louisville, the closing agent divides the year's property tax bill between the buyer and seller based on how long each will have owned the property during the tax year. This process is called:

• A. Subordination
• B. Amortization
• C. Proration
• D. Capitalization

55. An investor evaluating a small commercial strip center near Meridian finds it generates a net operating income (NOI) of $66,000 per year, and comparable commercial cap rates in the area run at 5.75%. Using the income capitalization approach, what is the indicated value of the property?

• A. $1,200,000
• B. $1,147,826
• C. $1,100,000
• D. $942,857

56. In preparing a comparative market analysis for a listing near Starkville, an agent adjusts a comparable sale's price upward because that comparable lacks a feature the subject property has. What does this adjustment reflect?

• A. The subject property's value should be reduced to match the comparable
• B. The adjustment corrects for a difference in financing terms only
• C. The comparable would have sold for more if it had that feature, so its price is adjusted to be more comparable to the subject
• D. The comparable is worth more than the subject property overall

57. "Just don't mention the water stains in the closet ceiling," a seller near Diamondhead tells the listing agent before a showing. How should the agent respond to this instruction?

• A. Refuse to represent the seller in the sale going forward, effective immediately
• B. Explain to the seller that known material defects generally must be disclosed and that helping conceal them could expose both the seller and the agent to liability
• C. Follow the instruction only if no buyer specifically asks about water damage
• D. Comply, since the agent's duty of confidentiality to the seller outweighs any disclosure concern

58. A house near Pass Christian dates back to 1972, and federal law requires prospective buyers to receive a specific disclosure because of the property's age. What must the seller and agent provide?

• A. An asbestos abatement certificate
• B. A flood zone elevation certificate
• C. A radon gas disclosure pamphlet
• D. A lead-based paint disclosure, since the home predates the 1978 federal ban on lead-based residential paint

59. An agent near Bay St. Louis learns during a listing that the seller has a pending lawsuit affecting the property's boundary line with a neighbor. The seller insists this is a private legal matter unrelated to the sale. How should the agent evaluate this situation?

• A. Recognize that a pending boundary dispute is likely a material fact that could affect a buyer's decision and generally should be disclosed
• B. Agree with the seller since boundary lawsuits are always confidential attorney-client matters
• C. Report the lawsuit to the county clerk instead of disclosing it to the buyer
• D. Ignore the lawsuit unless the buyer's attorney specifically requests litigation records

60. A salesperson near Southaven consistently shows homes in majority-white neighborhoods only to white buyers and homes in majority-Black neighborhoods only to Black buyers, regardless of each buyer's stated preferences. This practice is best described as:

• A. Redlining
• B. Steering
• C. Blockbusting
• D. Puffing

61. A title company near Laurel offers a real estate agent a monthly cash payment in exchange for referring the agent's clients exclusively to that title company. What federal law most directly prohibits this type of arrangement?

• A. The Real Estate Settlement Procedures Act (RESPA)
• B. The Equal Credit Opportunity Act
• C. The Fair Credit Reporting Act
• D. The Truth in Lending Act