Shown verbatim: the complete text as captured from the official page posted by the Mississippi Legislature, fetched 2026-08-29. This is the enrolled version. The official bill page.
MISSISSIPPI LEGISLATURE 2026 Regular Session To: Business and Financial Institutions By: Senator(s) Johnson, Norwood Senate Bill 2748 (As Sent to Governor) AN ACT TO AMEND SECTION 73-35-3, MISSISSIPPI CODE OF 1972, TO DEFINE THE TERM "BROKERAGE AGREEMENT" AND REVISE ADDITIONAL DEFINITIONS RELATED TO REAL ESTATE BROKERS; TO AMEND SECTION 73-35-15, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT UPON TERMINATION OF A LICENSEE'S AGENCY, THE PRINCIPAL BROKER SHALL WITHIN THREE DAYS ACKNOWLEDGE THE TRANSFER OF THE LICENSEE SO THAT A NEW LICENSE MAY BE ISSUED; TO AMEND SECTION 73-35-17, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT WRITTEN NOTICE FOR THE PURPOSE OF NOTIFYING A LICENSEE OF FAILURE TO PAY HIS OR HER RENEWAL FEE SHALL BE DELIVERED TO THE LICENSEE AND, IF APPLICABLE, TO HIS OR HER RESPONSIBLE BROKER, TO THE EMAIL ADDRESS FOR THE LICENSEE AND BROKER ON FILE WITH THE MISSISSIPPI REAL ESTATE COMMISSION; TO AMEND SECTION 73-35-21, MISSISSIPPI CODE OF 1972, TO CHANGE THE MEANING OF "REASONABLE TIME" FROM THE NEXT BANKING DAY TO TWO BANKING DAYS IMMEDIATELY FOLLOWING THE DATE ON WHICH A LICENSEE COMES INTO POSSESSION OF MONIES BELONGING TO OTHERS OR ON WHICH A RESPONSIBLE BROKER TAKES OR RECEIVES ANY CASH OR CHECKS FROM PROCURING THE EXECUTION OF AN EARNEST MONEY CONTRACT OR OPTION OR OTHER CONTRACT; AND FOR RELATED PURPOSES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: SECTION 1. Section 73-35-3, Mississippi Code of 1972, is amended as follows: 73-35-3. (1) The term "real estate broker" within the meaning of this chapter * * * shall includes all persons, partnerships, limited liability companies, associations and corporations, foreign and domestic, who for a fee, commission or other valuable consideration, or who with the intention or expectation of receiving or collecting the same, perform any of the following activities: (a) List * * *, to sell, purchase, exchange, rent, lease, manage or auction any real estate, or the improvements thereon, including options; * * * or who (b) Sell, purchase, exchange, rent, lease, manage or auction any real estate, or the improvements thereon, including options; (c) Negotiate or attempt to negotiate any * * * such activity described in this subsection (1); * * * or who (d) Advertise or hold themselves out as engaged in * * * such activities any activity described in this subsection (1); * * * or who direct or assist in the procuring of a purchaser or prospect calculated or intended to result in a real estate transaction. The term "real estate broker" shall also include any person, partnership, association or corporation employed by or on behalf of the owner or owners of lots or other parcels of real estate, at a stated salary or upon fee, commission or otherwise, to (e) Sell * * * such real estate on behalf of the owner or owners thereof, or parts thereof, in lots or other parcels, including timesharing and condominiums * * *, and who shall; or (f) Sell, exchange or lease, or offer or attempt or agree to negotiate the sale, exchange or lease of, any * * * such lot or parcel of real estate on behalf of the owner or owners thereof. (2) The term "real estate" as used in this chapter * * * shall includes leaseholds as well as any and every interest or estate in land, including timesharing and condominiums, whether corporeal or incorporeal, freehold or nonfreehold, and whether said property is situated in this state or elsewhere; provided, however, that the term "real estate" as used in this chapter shall not include oil, gas or mineral leases, nor shall it include any other mineral leasehold, mineral estate or mineral interest of any nature whatsoever. (3) One (1) act in consideration of or with the expectation or intention of, or upon the promise of, receiving compensation, by fee, commission or otherwise, in the performance of any act or activity contained in subsection (1) of this section, shall constitute such person, partnership, association or corporation a real estate broker and make him, them or it subject to the provisions and requirements of this chapter. (4) The term "brokerage agreement" means a specific written agreement between a real estate broker and a consumer which establishes a brokerage relationship. The brokerage agreement shall contain a statement of the terms and conditions of the brokerage services to be provided, including any compensation to be paid to or through the company. ( * * *45) The term "real estate salesperson" * * * shall means and includes any person employed or engaged by, or associated as an independent contractor with, or on behalf of, a licensed real estate broker to do or deal in any activity as included or comprehended by the * * * definitions definition of a real estate broker in subsection (1) of this section, for compensation or otherwise. ( * * *56) The term "automated valuation method" means any computerized model used by mortgage originators and secondary market issuers to determine the collateral worth of a mortgage secured by a consumer's principal dwelling. ( * * *67) The term "broker price opinion" means an estimate prepared by a real estate broker, agent, or salesperson that details the probable selling price of a particular piece of real estate property and provides a varying level of detail about the property's condition, market, and neighborhood, and information on comparable sales, but does not include an automated valuation model. ( * * *78) Exempt from the licensing requirements of this chapter shall be any person, partnership, association or corporation, who, as a bona fide owner, shall perform any aforesaid act with reference to property owned by them, or to the regular employees thereof who are on a stated salary, where such acts are performed in the regular course of business. ( * * *89) The provisions of this chapter shall not apply to: (a) Attorneys at law in the performance of primary or incidental duties as such attorneys at law. (b) Any person holding in good faith a duly executed power of attorney from the owner, authorizing the final consummation and execution for the sale, purchase, leasing or exchange of real estate. (c) The acts of any person while acting as a receiver, trustee, administrator, executor, guardian or under court order, or while acting under authority of a deed of trust or will. (d) Public officers while performing their duties as such. (e) Anyone dealing exclusively in oil and gas leases and mineral rights. ( * * *910) Nothing in this chapter shall be construed to prohibit life insurance companies and their representatives from negotiating or attempting to negotiate loans secured by mortgages on real estate, nor shall these companies or their representatives be required to qualify as real estate brokers or agents under this chapter. ( * * *1011) The provisions of this chapter shall not apply to the activities of mortgagees approved by the Federal Housing Administration or the United States Department of Veterans Affairs, banks chartered under the laws of the State of Mississippi or the United States, savings and loan associations chartered under the laws of the State of Mississippi or the United States, licensees under the Small Loan Regulatory Law, being Sections 75-67-101 through * * * 75‑67‑135 75-67-139, and under the Small Loan Privilege Tax Law, being Sections 75-67-201 through * * * 75‑67‑243 75-67-247, small business investment companies licensed by the Small Business Administration and chartered under the laws of the State of Mississippi, or any of their affiliates and subsidiaries, related to the making of a loan secured by a lien on real estate or to the disposing of real estate acquired by foreclosure or in lieu of foreclosure or otherwise held as security. No director, officer or employee of any such financial institution shall be required to qualify as a real estate broker or agent under this chapter when engaged in the aforesaid activities for and on behalf of such financial institution. SECTION 2. Section 73-35-15, Mississippi Code of 1972, is amended as follows: 73-35-15. (1) Every person, partnership, association or corporation licensed as a real estate broker shall be required to have and maintain a definite place of business, which shall be a room either in his or her home or an office elsewhere, to be used for the transaction of real estate business, or such business and any allied business. The certificate of registration as broker and the certificate of each real estate salesperson employed by such broker shall be prominently displayed in said office. The said place of business shall be designated in the license. In case of removal from the designated address, the licensee shall make application to the commission before removal, or within ten (10) days after removal, designating the new location of such office, whereupon the commission shall forthwith issue a new license for the new location for the unexpired period. (2) All licenses issued to a real estate salesperson or broker-salesperson shall designate the * * * responsible principal broker of such salesperson or broker-salesperson. Prompt notice in writing, within three (3) days, shall be given to the commission by any real estate * * * salesperson licensee of a change of * * * responsible principal broker, and of the name of the principal broker into whose agency the salesperson is about to enter; and a new license shall thereupon be issued by the commission to such * * * salesperson licensee for the unexpired term of the original license upon the * * * return acknowledgment to the commission by the current principal broker of the change in the license previously issued. The change of * * * responsible principal broker or employment by any licensed real estate * * * salesperson licensee without notice to the commission as required shall automatically cancel his or her license. Upon termination of a * * * salesperson's licensee's agency, the * * * responsible principal broker shall within three (3) days * * * return the salesperson's license to the commission for cancellation acknowledge the transfer of the licensee so that a new license may be issued. It shall be unlawful for any real estate * * * salesperson licensee to perform any of the acts contemplated by this chapter either directly or indirectly after his or her agency has been terminated and * * * his license has been returned for cancellation until his or her license has been reissued by the commission. SECTION 3. Section 73-35-17, Mississippi Code of 1972, is amended as follows: 73-35-17. (1) A fee not to exceed One Hundred Dollars ($100.00) shall accompany an application for a real estate broker's license, and in the event that the applicant successfully passes the examination, no additional fee shall be required for the issuance of a license for a one-year period; provided, that if an applicant fails to pass the examination, he or she may be eligible to take the next or succeeding examination without the payment of an additional fee. In the event a contract testing service is utilized, the fee associated with administering the test shall be collected by the testing provider and the application fee for any real estate license shall be collected by the commission. (2) For each license as a real estate broker issued to a member of a partnership, association or officer of a corporation other than the member or officer named in the license issued to such partnership, association or corporation, a fee not to exceed Seventy-five Dollars ($75.00) shall be charged. (3) A fee not to exceed One Hundred Dollars ($100.00) shall accompany an application for a real estate salesperson's license, and in the event that the applicant successfully passes the examination, no additional fee shall be required for the issuance of a license for a one-year period; provided, that if an applicant fails to pass the examination, he or she may be eligible to take the next or succeeding examination without the payment of an additional fee. In the event a contract testing service is utilized, the fee associated with administering the test shall be collected by the testing provider and the application fee for any real estate license shall be collected by the commission. (4) Except as provided in Section 33-1-39, it shall be the duty of all persons, partnerships, associations, companies or corporations licensed to practice as a real estate broker or salesperson to register with the commission annually or biennially, in the discretion of the commission, according to rules promulgated by it and to pay the proper registration fee. An application for renewal of license shall be made to the commission annually no later than December 31 of each year, or biennially on a date set by the commission. A licensee failing to pay his or her renewal fee after the same becomes due and after two (2) months' written notice of his or her delinquency * * * mailed to him by United States certified mail addressed to his address of record with the commission shall thereby have his or her license automatically cancelled. For purposes of this subsection (4), written notice shall be delivered to the licensee and, if applicable, to his or her responsible broker, to the email address for the licensee and broker on file with the commission. Any licensee renewing in this grace period shall pay a penalty in the amount of one hundred percent (100%) of the renewal fee. The renewal fee shall not exceed Seventy-five Dollars ($75.00) per year for real estate brokers, partnerships, associations and corporations. The renewal fee for a real estate salesperson's license shall not exceed Sixty Dollars ($60.00) per year. (5) For each additional office or place of business, an annual fee not to exceed Fifty Dollars ($50.00) shall be charged. (6) For each change of office or place of business, a fee not to exceed Fifty Dollars ($50.00) shall be charged. (7) For each duplicate or transfer of salesperson's license, a fee not to exceed Fifty Dollars ($50.00) shall be charged. (8) For each duplicate license, where the original license is lost or destroyed, and affidavit made thereof, a fee not to exceed Fifty Dollars ($50.00) shall be charged. (9) To change status as a licensee from active to inactive status, a fee not to exceed Twenty-five Dollars ($25.00) shall be charged. To change status as a licensee from inactive to active status, a fee not to exceed Fifty Dollars ($50.00) shall be charged. (10) For each bad check received by the commission, a fee not to exceed Twenty-five Dollars ($25.00) shall be charged. (11) A fee not to exceed Five Dollars ($5.00) per hour of instruction may be charged to allay costs of seminars for educational purposes provided by the commission. (12) A fee not to exceed Twenty-five Dollars ($25.00) may be charged for furnishing any person a copy of a real estate license, a notarized certificate of licensure or other official record of the commission. (13) A fee not to exceed One Hundred Dollars ($100.00) shall be charged to review and process the application and instructional materials for each curriculum seeking acceptance as a real estate continuing education course developed to satisfy the mandatory continuing education requirements for this chapter, with the period of approval expiring after one (1) year. A fee not to exceed Fifty Dollars ($50.00) shall be charged for each renewal of a previously approved course, with the period of renewal expiring after one (1) year. (14) Fees, up to the limits specified herein, shall be established by the Mississippi Real Estate Commission. SECTION 4. Section 73-35-21, Mississippi Code of 1972, is amended as follows: 73-35-21. (1) Except as otherwise provided in this section, the commission may, upon its own motion and shall upon the verified complaint in writing of any person, hold a hearing pursuant to Section 73-35-23 for the refusal of license or for the suspension or revocation of a license previously issued, or for such other action as the commission deems appropriate. The commission shall have full power to refuse a license for cause or to revoke or suspend a license where it has been obtained by false or fraudulent representation, or where the licensee in performing or attempting to perform any of the acts mentioned herein, is deemed to be guilty of: (a) Making any substantial misrepresentation in connection with a real estate transaction; (b) Making any false promises of a character likely to influence, persuade or induce; (c) Pursuing a continued and flagrant course of misrepresentation or making false promises through agents or salespersons or any medium of advertising or otherwise; (d) Any misleading or untruthful advertising; (e) Acting for more than one (1) party in a transaction or receiving compensation from more than one (1) party in a transaction, or both, without the knowledge of all parties for whom he or she acts; (f) Failing, within a reasonable time, to account for or to remit any monies coming into his or her possession which belong to others, or commingling of monies belonging to others with his or her own funds. Every responsible broker procuring the execution of an earnest money contract or option or other contract who shall take or receive any cash or checks shall deposit, within a reasonable period of time, the sum or sums so received in a trust or escrow account in a bank or trust company pending the consummation or termination of the transaction. "Reasonable time" in this context means by the close of business of * * * the next two (2) banking days immediately following the date on which a licensee comes into possession of monies belonging to others or on which a responsible broker takes or receives any cash or checks from procuring the execution of an earnest money contract or option or other contract; (g) Entering a guilty plea or conviction in a court of competent jurisdiction of this state, or any other state or the United States of any felony; (h) Displaying a "for sale" or "for rent" sign on any property without the owner's consent; (i) Failing to furnish voluntarily, at the time of signing, copies of all listings, contracts and agreements to all parties executing the same; (j) Paying any rebate, profit or commission to any person other than a real estate broker or salesperson licensed under the provisions of this chapter; (k) Inducing any party to a contract, sale or lease to break such contract for the purpose of substituting in lieu thereof a new contract, where such substitution is motivated by the personal gain of the licensee; (l) Accepting a commission or valuable consideration as a real estate salesperson for the performance of any of the acts specified in this chapter from any person, except his or her employer who must be a licensed real estate broker; (m) Failing to successfully pass the commission's background investigation for licensure or renewal as provided in Section 73-35-10; or (n) Any act or conduct, whether of the same or a different character than hereinabove specified, which constitutes or demonstrates bad faith, incompetency or untrustworthiness, or dishonest, fraudulent or improper dealing. However, simple contact and/or communication with any mortgage broker or lender by a real estate licensee about any professional, including, but not limited to, an appraiser, home inspector, contractor, and/or attorney regarding a listing and/or a prospective or pending contract for the lease, sale and/or purchase of real estate shall not constitute conduct in violation of this section. (2) No real estate broker shall practice law or give legal advice directly or indirectly unless said broker be a duly licensed attorney under the laws of this state. He or she shall not act as a public conveyancer nor give advice or opinions as to the legal effect of instruments nor give opinions concerning the validity of title to real estate; nor shall he or she prevent or discourage any party to a real estate transaction from employing the services of an attorney; nor shall a broker undertake to prepare documents fixing and defining the legal rights of parties to a transaction. However, when acting as a broker, he or she may use an earnest money contract form. A real estate broker shall not participate in attorney's fees, unless the broker is a duly licensed attorney under the laws of this state and performs legal services in addition to brokerage services. (3) It is expressly provided that it is not the intent and purpose of the Mississippi Legislature to prevent a license from being issued to any person who is found to be of good reputation, is able to give bond, and who has lived in the State of Mississippi for the required period or is otherwise qualified under this chapter. (4) In addition to the reasons specified in subsection (1) of this section, the commission shall be authorized to suspend the license of any licensee for being out of compliance with an order for support, as defined in Section 93-11-153. The procedure for suspension of a license for being out of compliance with an order for support, and the procedure for the reissuance or reinstatement of a license suspended for that purpose, and the payment of any fees for the reissuance or reinstatement of a license suspended for that purpose, shall be governed by Section 93-11-157 or 93-11-163, as the case may be. If there is any conflict between any provision of Section 93-11-157 or 93-11-163 and any provision of this chapter, the provisions of Section 93-11-157 or 93-11-163, as the case may be, shall control. (5) Nothing in this chapter shall prevent * * * an a broker, associate * * * broker or salesperson from owning any lawfully constituted business organization, including, but not limited to, a corporation, limited liability company or limited liability partnership, for the purpose of receiving payments contemplated in this chapter. The business organization shall not be required to be licensed under this chapter and shall not engage in any other activity requiring a real estate license. (6) The Mississippi Real Estate Commission shall not promulgate any rule or regulation, nor make any administrative or other interpretation, whereby any real estate licensee may be held responsible or subject to discipline or other actions by the commission relating to the information required to be disclosed by Sections 89-1-501 through 89-1-523 or delivery of information required to be disclosed by Sections 89-1-501 through 89-1-523. (7) The Mississippi Real Estate Commission shall not promulgate nor enforce any rule or regulation, nor make any administrative or other interpretation, whereby any real estate licensee may be required to include in any agreement or otherwise be required to agree to any requirement regarding unilateral termination by a buyer-agency agreement. SECTION 5. This act shall take effect and be in force from and after July 1, 2026.
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