Agency
A Mississippi seller's agent who holds an earnest money deposit in trust is obligated to:
AUse the funds to cover their commission if the deal falls through
BHold the funds in a separate trust account, account for them properly, and disburse only with proper authorization✓ Correct
CInvest the funds in a money market account for the seller's benefit
DTransfer the funds to the seller immediately
Explanation
Trust funds (earnest money deposits) must be held in a designated trust account separate from the agent's/broker's personal and business funds. The broker must account for all trust funds and may only disburse them with proper authorization from all parties or pursuant to a court order or mutual release.
Related Mississippi Agency Questions
- In Mississippi, a 'ministerial act' performed by a licensee for a non-client:
- A Mississippi real estate agent who represents the buyer discovers the property has significant foundation issues not disclosed by the seller. The agent's duty to the buyer requires:
- A 'protection clause' (safety clause) in a Mississippi listing agreement protects the broker by providing:
- An undisclosed dual agency in Mississippi is:
- Mississippi's agency disclosure law requires that written agency disclosure be provided:
- An agent who represents neither the buyer nor the seller but helps both parties complete a transaction is called a:
- Mississippi MREC's agency disclosure requirements are designed primarily to:
- A Mississippi real estate team that markets itself as 'The Smith Team' must still comply with which advertising rule?
Practice More Mississippi Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Mississippi Quiz →