Mississippi Agency
Practice Questions & Answers (2026)

Agency law is one of the most tested subjects on the Mississippi real estate exam, and it's also one of the most misunderstood. The Mississippi Real Estate Commission (MREC) expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Mississippi law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for MS-specific rules are among the most common failures on the state portion.

Practice Questions

Mississippi Agency — Practice Questions & Answers

109 questions on Agency from the Mississippi real estate question bank. First 10 are free — sign up to unlock all 109.

Q1. Mississippi law requires real estate licensees to provide an agency disclosure:

A.Only at closing
B.At the first substantive contact with a prospective client
C.Only in transactions involving more than $500,000
D.Only when representing buyers

Explanation

Mississippi requires licensees to disclose their agency relationship at the first substantive contact with a prospective buyer or seller so consumers understand who represents their interests.

Q2. A Mississippi seller's agent must disclose to a buyer any:

A.Confidential information provided by the seller
B.Known material defects in the property
C.The seller's minimum acceptable price
D.The seller's motivation for selling

Explanation

Even while representing the seller, a Mississippi licensee must disclose known material defects in the property to prospective buyers. This is a non-waivable duty owed to all parties.

Q3. Dual agency in Mississippi requires all of the following EXCEPT:

A.Written consent of both parties
B.Disclosure that both parties are being represented
C.Approval from the MREC for each transaction
D.Explanation of the limitations dual agency creates

Explanation

Mississippi requires written consent and proper disclosure for dual agency but does not require transaction-by-transaction MREC approval. Dual agency is permitted with informed written consent of both parties.

Q4. An agent who represents neither the buyer nor the seller but helps both parties complete a transaction is called a:

A.Dual agent
B.Transaction broker or intermediary
C.Sub-agent
D.Cooperating agent

Explanation

A transaction broker or intermediary assists both parties in completing the transaction without acting as a fiduciary for either. This role is permissible in Mississippi with proper disclosure.

Q5. A buyer's agent in Mississippi may NOT:

A.Show the buyer properties listed by other brokerages
B.Disclose the seller's known financial distress to the buyer
C.Disclose the buyer's confidential negotiating strategy to the seller
D.Negotiate on the buyer's behalf

Explanation

A buyer's agent owes the duty of confidentiality to the buyer. Disclosing the buyer's negotiating strategy or maximum price to the seller would be a breach of the agent's fiduciary duty.

Q6. Agency by ratification occurs when:

A.A principal expressly authorizes an agent in writing
B.A principal approves and accepts an unauthorized act of an agent after the fact
C.An agent is hired by a third party
D.Both parties agree to a transaction verbally

Explanation

Agency by ratification is created when a principal accepts or approves an agent's unauthorized act after it has occurred, thereby creating a valid agency relationship retroactively.

Q7. In Mississippi, when a licensee acts as a seller's agent, the licensee owes the seller which duties?

A.Obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care (OLDCAR)
B.Only honesty and fair dealing
C.The same duties owed to the buyer
D.Only duties specified in the listing agreement

Explanation

A seller's agent owes full fiduciary duties to the seller, commonly remembered as OLDCAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care.

Q8. A Mississippi agent who works for a buyer under a written buyer representation agreement is known as a:

A.Sub-agent
B.Seller's agent
C.Buyer's agent
D.Transaction broker

Explanation

A buyer's agent has a written agency agreement with the buyer and owes full fiduciary duties to the buyer throughout the transaction.

Q9. Apparent authority in agency law refers to authority that:

A.Is expressly granted in a written contract
B.A third party reasonably believes an agent has based on the principal's words or actions
C.An agent assumes without any principal authorization
D.Is granted by the MREC to a supervising broker

Explanation

Apparent authority arises when a principal's conduct leads a third party to reasonably believe an agent has authority to act, even if no such authority was actually granted.

Q10. An undisclosed dual agency in Mississippi is:

A.Permissible if both parties eventually find out
B.A violation of license law and fiduciary duty
C.Only prohibited in commercial transactions
D.Permitted if the broker has 10+ years of experience

Explanation

Undisclosed dual agency is a serious violation of Mississippi license law and fiduciary duties. Written disclosure and consent of both parties is required for dual agency.

Q11. When does an agency relationship typically terminate in Mississippi real estate?

A.Only when the property is sold
B.Upon completion of the transaction, expiration of the agreement, mutual agreement, or by operation of law
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