Contracts

A Mississippi real estate broker who is a party to a contract for the purchase of investment property must disclose their licensed status in the contract. This disclosure is required because:

ABrokers receive special tax treatment on investment properties
BThe other party deserves to know they are dealing with a real estate professional who has specialized knowledge and market access✓ Correct
CBrokers must pay a higher purchase price than unlicensed buyers
DMREC requires brokers to register all personal real estate purchases

Explanation

Mississippi licensees purchasing property must disclose their licensed status to the seller. This is required because a real estate professional has significantly more market knowledge, access to data, and negotiating skill than typical buyers — information asymmetry that the seller has a right to know about.

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