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Mississippi Legislature· SB 2748Approved by Governor (Chapter 350)

Real estate brokers; revise various definitions and provisions related to licensees., the official text

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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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