Real Estate Brokers; revise regulations.

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To: Business and Commerce
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Deweese, Nelson

HOUSE BILL NO. 1641

AN ACT TO AMEND SECTION 73-35-3, MISSISSIPPI CODE OF 1972, TO 1
REVISE THE DEFINITION OF REAL ESTATE BROKER; TO AMEND SECTION 2
73-35-15, MISSISSIPPI CODE OF 1972, TO REVISE REGULATIONS 3
GOVERNING REAL ESTATE BROKERS; TO AMEND SECTION 73-35-17, 4
MISSISSIPPI CODE OF 1972, TO REVISE HOW DELINQUENCY NOTIFICATIONS 5
FOR FAILURE TO PAY FEES ARE GOVERNED; TO AMEND SECTION 73-35-21, 6
MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF "REASONABLE 7
TIME"; AND FOR RELATED PURPOSES. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 9
SECTION 1. Section 73-35-3, Mississippi Code of 1972, is 10
amended as follows: 11
73-35-3. (1) The term "real estate broker" within the 12
meaning of this chapter shall include all persons, partnerships, 13
limited liability companies, associations and corporations, 14
foreign and domestic, who for a fee, commission or other valuable 15
consideration, or who with the intention or expectation of 16
receiving or collecting the same, perform any of the following 17
acts: 18
(a) List * * * to sell, purchase, exchange, rent, 19
lease, manage or auction any real estate, or the improvements 20
thereon, including options; 21
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(b) Sell, purchase, exchange, rent, lease, manage, or 22
auction any real estate, or the improvements thereon, including 23
options; 24
(c) * * * Negotiate or attempt to negotiate any such 25
activity; * * * 26
(d) Advertise or hold themselves out as engaged in such 27
activities; 28
(e) * * * Sell * * * real estate on behalf of the owner 29
or owners thereof, or parts thereof, in lots or other parcels, 30
including timesharing and condominiums * * *; and 31
(f) * * * Sell, exchange or lease, or offer or attempt 32
or agree to negotiate the sale, exchange or lease of, any * * * 33
lot or parcel of real estate on behalf of the owner or owners 34
thereof. 35
(2) The term "real estate" as used in this chapter shall 36
include leaseholds as well as any and every interest or estate in 37
land, including timesharing and condominiums, whether corporeal or 38
incorporeal, freehold or nonfreehold, and whether said property is 39
situated in this state or elsewhere; provided, however, that the 40
term "real estate" as used in this chapter shall not include oil, 41
gas or mineral leases, nor shall it include any other mineral 42
leasehold, mineral estate or mineral interest of any nature 43
whatsoever. 44
(3) One (1) act in consideration of or with the expectation 45
or intention of, or upon the promise of, receiving compensation, 46
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by fee, commission or otherwise, in the performance of any act or 47
activity contained in subsection (1) of this section, shall 48
constitute such person, partnership, association or corporation a 49
real estate broker and make him, them or it subject to the 50
provisions and requirements of this chapter. 51
(4) The term "brokerage agreement" shall mean a specific 52
written agreement between a real estate broker and a consumer 53
which establishes a brokerage relationship. The brokerage 54
agreement shall contain a statement of the terms and conditions of 55
the brokerage services to be provided, including any compensation 56
to be paid to or through the company. 57
( * * *5) The term "real estate salesperson" shall mean and 58
include any person employed or engaged by, or associated as an 59
independent contractor with, or on behalf of, a licensed real 60
estate broker to do or deal in any activity as included or 61
comprehended by the * * * definition of a real estate broker in 62
subsection (1) of this section, for compensation or otherwise. 63
( * * *6) The term "automated valuation method" means any 64
computerized model used by mortgage originators and secondary 65
market issuers to determine the collateral worth of a mortgage 66
secured by a consumer's principal dwelling. 67
( * * *7) The term "broker price opinion" means an estimate 68
prepared by a real estate broker, agent, or salesperson that 69
details the probable selling price of a particular piece of real 70
estate property and provides a varying level of detail about the 71
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property's condition, market, and neighborhood, and information on 72
comparable sales, but does not include an automated valuation 73
model. 74
( * * *8) Exempt from the licensing requirements of this 75
chapter shall be any person, partnership, association or 76
corporation, who, as a bona fide owner, shall perform any 77
aforesaid act with reference to property owned by them, or to the 78
regular employees thereof who are on a stated salary, where such 79
acts are performed in the regular course of business. 80
( * * *9) The provisions of this chapter shall not apply to: 81
(a) Attorneys at law in the performance of primary or 82
incidental duties as such attorneys at law. 83
(b) Any person holding in good faith a duly executed 84
power of attorney from the owner, authorizing the final 85
consummation and execution for the sale, purchase, leasing or 86
exchange of real estate. 87
(c) The acts of any person while acting as a receiver, 88
trustee, administrator, executor, guardian or under court order, 89
or while acting under authority of a deed of trust or will. 90
(d) Public officers while performing their duties as 91
such. 92
(e) Anyone dealing exclusively in oil and gas leases 93
and mineral rights. 94
( * * *10) Nothing in this chapter shall be construed to 95
prohibit life insurance companies and their representatives from 96
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negotiating or attempting to negotiate loans secured by mortgages 97
on real estate, nor shall these companies or their representatives 98
be required to qualify as real estate brokers or agents under this 99
chapter. 100
( * * *11) The provisions of this chapter shall not apply to 101
the activities of mortgagees approved by the Federal Housing 102
Administration or the United States Department of Veterans 103
Affairs, banks chartered under the laws of the State of 104
Mississippi or the United States, savings and loan associations 105
chartered under the laws of the State of Mississippi or the United 106
States, licensees under the Small Loan Regulatory Law, being 107
Sections 75-67-101 through 75-67-135, and under the Small Loan 108
Privilege Tax Law, being Sections 75-67-201 through 75-67-243, 109
small business investment companies licensed by the Small Business 110
Administration and chartered under the laws of the State of 111
Mississippi, or any of their affiliates and subsidiaries, related 112
to the making of a loan secured by a lien on real estate or to the 113
disposing of real estate acquired by foreclosure or in lieu of 114
foreclosure or otherwise held as security. No director, officer 115
or employee of any such financial institution shall be required to 116
qualify as a real estate broker or agent under this chapter when 117
engaged in the aforesaid activities for and on behalf of such 118
financial institution. 119
SECTION 2. Section 73-35-15, Mississippi Code of 1972, is 120
amended as follows: 121
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73-35-15. (1) Every person, partnership, association or 122
corporation licensed as a real estate broker shall be required to 123
have and maintain a definite place of business, which shall be a 124
room either in his home or an office elsewhere, to be used for the 125
transaction of real estate business, or such business and any 126
allied business. The certificate of registration as broker and 127
the certificate of each real estate salesperson employed by such 128
broker shall be prominently displayed in said office. The said 129
place of business shall be designated in the license. In case of 130
removal from the designated address, the licensee shall make 131
application to the commission before removal, or within ten (10) 132
days after removal, designating the new location of such office, 133
whereupon the commission shall forthwith issue a new license for 134
the new location for the unexpired period. 135
(2) All licenses issued to a real estate salesperson or 136
broker-salesperson shall designate the * * * principal broker of 137
such * * * licensee. Prompt notice in writing, within three (3) 138
days, shall be given to the commission by any real estate * * * 139
licensee of a change of * * * the principal broker, and of the 140
name of the principal broker into whose agency the salesperson is 141
about to enter; and a new license shall thereupon be issued by the 142
commission to such * * * licensee for the unexpired term of the 143
original license upon the * * * acknowledgment to the commission 144
by the current principal broker of the change in the license 145
previously issued. The change of * * * the principal broker or 146
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employment by any licensed real estate * * * licensee without 147
notice to the commission as required shall automatically cancel 148
his license. Upon termination of a * * * licensee's agency, 149
the * * * principal broker shall within three (3) days * * * 150
acknowledge the transfer of the licensee so that a new license may 151
be issued. It shall be unlawful for any real estate * * * 152
licensee to perform any of the acts contemplated by this chapter 153
either directly or indirectly after his agency has been terminated 154
and * * * until his license has been reissued by the commission. 155
SECTION 3. Section 73-35-17, Mississippi Code of 1972, is 156
amended as follows: 157
73-35-17. (1) A fee not to exceed One Hundred Dollars 158
($100.00) shall accompany an application for a real estate 159
broker's license, and in the event that the applicant successfully 160
passes the examination, no additional fee shall be required for 161
the issuance of a license for a one-year period; provided, that if 162
an applicant fails to pass the examination, he may be eligible to 163
take the next or succeeding examination without the payment of an 164
additional fee. In the event a contract testing service is 165
utilized, the fee associated with administering the test shall be 166
collected by the testing provider and the application fee for any 167
real estate license shall be collected by the commission. 168
(2) For each license as a real estate broker issued to a 169
member of a partnership, association or officer of a corporation 170
other than the member or officer named in the license issued to 171
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such partnership, association or corporation, a fee not to exceed 172
Seventy-five Dollars ($75.00) shall be charged. 173
(3) A fee not to exceed One Hundred Dollars ($100.00) shall 174
accompany an application for a real estate salesperson's license, 175
and in the event that the applicant successfully passes the 176
examination, no additional fee shall be required for the issuance 177
of a license for a one-year period; provided, that if an applicant 178
fails to pass the examination, he may be eligible to take the next 179
or succeeding examination without the payment of an additional 180
fee. In the event a contract testing service is utilized, the fee 181
associated with administering the test shall be collected by the 182
testing provider and the application fee for any real estate 183
license shall be collected by the commission. 184
(4) Except as provided in Section 33-1-39, it shall be the 185
duty of all persons, partnerships, associations, companies or 186
corporations licensed to practice as a real estate broker or 187
salesperson to register with the commission annually or 188
biennially, in the discretion of the commission, according to 189
rules promulgated by it and to pay the proper registration fee. 190
An application for renewal of license shall be made to the 191
commission annually no later than December 31 of each year, or 192
biennially on a date set by the commission. A licensee failing to 193
pay his renewal fee after the same becomes due and after two (2) 194
months' written notice of his delinquency * * * shall thereby have 195
his license automatically cancelled. For purposes of this 196
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subsection, written notice shall be delivered to the licensee and, 197
if applicable, to this responsible broker, to the email address 198
for the licensee and broker on file with the commission. Any 199
licensee renewing in this grace period shall pay a penalty in the 200
amount of one hundred percent (100%) of the renewal fee. The 201
renewal fee shall not exceed Seventy-five Dollars ($75.00) per 202
year for real estate brokers, partnerships, associations and 203
corporations. The renewal fee for a real estate salesperson's 204
license shall not exceed Sixty Dollars ($60.00) per year. 205
(5) For each additional office or place of business, an 206
annual fee not to exceed Fifty Dollars ($50.00) shall be charged. 207
(6) For each change of office or place of business, a fee 208
not to exceed Fifty Dollars ($50.00) shall be charged. 209
(7) For each duplicate or transfer of salesperson's license, 210
a fee not to exceed Fifty Dollars ($50.00) shall be charged. 211
(8) For each duplicate license, where the original license 212
is lost or destroyed, and affidavit made thereof, a fee not to 213
exceed Fifty Dollars ($50.00) shall be charged. 214
(9) To change status as a licensee from active to inactive 215
status, a fee not to exceed Twenty-five Dollars ($25.00) shall be 216
charged. To change status as a licensee from inactive to active 217
status, a fee not to exceed Fifty Dollars ($50.00) shall be 218
charged. 219
(10) For each bad check received by the commission, a fee 220
not to exceed Twenty-five Dollars ($25.00) shall be charged. 221
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(11) A fee not to exceed Five Dollars ($5.00) per hour of 222
instruction may be charged to allay costs of seminars for 223
educational purposes provided by the commission. 224
(12) A fee not to exceed Twenty-five Dollars ($25.00) may be 225
charged for furnishing any person a copy of a real estate license, 226
a notarized certificate of licensure or other official record of 227
the commission. 228
(13) A fee not to exceed One Hundred Dollars ($100.00) shall 229
be charged to review and process the application and instructional 230
materials for each curriculum seeking acceptance as a real estate 231
continuing education course developed to satisfy the mandatory 232
continuing education requirements for this chapter, with the 233
period of approval expiring after one (1) year. A fee not to 234
exceed Fifty Dollars ($50.00) shall be charged for each renewal of 235
a previously approved course, with the period of renewal expiring 236
after one (1) year. 237
(14) Fees, up to the limits specified herein, shall be 238
established by the Mississippi Real Estate Commission. 239
SECTION 4. Section 73-35-21, Mississippi Code of 1972, is 240
amended as follows: 241
73-35-21. (1) Except as otherwise provided in this section, 242
the commission may, upon its own motion and shall upon the 243
verified complaint in writing of any person, hold a hearing 244
pursuant to Section 73-35-23 for the refusal of license or for the 245
suspension or revocation of a license previously issued, or for 246
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such other action as the commission deems appropriate. The 247
commission shall have full power to refuse a license for cause or 248
to revoke or suspend a license where it has been obtained by false 249
or fraudulent representation, or where the licensee in performing 250
or attempting to perform any of the acts mentioned herein, is 251
deemed to be guilty of: 252
(a) Making any substantial misrepresentation in 253
connection with a real estate transaction; 254
(b) Making any false promises of a character likely to 255
influence, persuade or induce; 256
(c) Pursuing a continued and flagrant course of 257
misrepresentation or making false promises through agents or 258
salespersons or any medium of advertising or otherwise; 259
(d) Any misleading or untruthful advertising; 260
(e) Acting for more than one (1) party in a transaction 261
or receiving compensation from more than one (1) party in a 262
transaction, or both, without the knowledge of all parties for 263
whom he or she acts; 264
(f) Failing, within a reasonable time, to account for 265
or to remit any monies coming into his or her possession which 266
belong to others, or commingling of monies belonging to others 267
with his own funds. Every responsible broker procuring the 268
execution of an earnest money contract or option or other contract 269
who shall take or receive any cash or checks shall deposit, within 270
a reasonable period of time, the sum or sums so received in a 271
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trust or escrow account in a bank or trust company pending the 272
consummation or termination of the transaction. "Reasonable time" 273
in this context means by the close of business of the * * * second 274
banking day; 275
(g) Entering a guilty plea or conviction in a court of 276
competent jurisdiction of this state, or any other state or the 277
United States of any felony; 278
(h) Displaying a "for sale" or "for rent" sign on any 279
property without the owner's consent; 280
(i) Failing to furnish voluntarily, at the time of 281
signing, copies of all listings, contracts and agreements to all 282
parties executing the same; 283
(j) Paying any rebate, profit or commission to any 284
person other than a real estate broker or salesperson licensed 285
under the provisions of this chapter; 286
(k) Inducing any party to a contract, sale or lease to 287
break such contract for the purpose of substituting in lieu 288
thereof a new contract, where such substitution is motivated by 289
the personal gain of the licensee; 290
(l) Accepting a commission or valuable consideration as 291
a real estate salesperson for the performance of any of the acts 292
specified in this chapter from any person, except his or her 293
employer who must be a licensed real estate broker; 294
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(m) Failing to successfully pass the commission's 295
background investigation for licensure or renewal as provided in 296
Section 73-35-10; or 297
(n) Any act or conduct, whether of the same or a 298
different character than hereinabove specified, which constitutes 299
or demonstrates bad faith, incompetency or untrustworthiness, or 300
dishonest, fraudulent or improper dealing. However, simple 301
contact and/or communication with any mortgage broker or lender by 302
a real estate licensee about any professional, including, but not 303
limited to, an appraiser, home inspector, contractor, and/or 304
attorney regarding a listing and/or a prospective or pending 305
contract for the lease, sale and/or purchase of real estate shall 306
not constitute conduct in violation of this section. 307
(2) No real estate broker shall practice law or give legal 308
advice directly or indirectly unless said broker be a duly 309
licensed attorney under the laws of this state. He or she shall 310
not act as a public conveyancer nor give advice or opinions as to 311
the legal effect of instruments nor give opinions concerning the 312
validity of title to real estate; nor shall he or she prevent or 313
discourage any party to a real estate transaction from employing 314
the services of an attorney; nor shall a broker undertake to 315
prepare documents fixing and defining the legal rights of parties 316
to a transaction. However, when acting as a broker, he or she may 317
use an earnest money contract form. A real estate broker shall 318
not participate in attorney's fees, unless the broker is a duly 319
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licensed attorney under the laws of this state and performs legal 320
services in addition to brokerage services. 321
(3) It is expressly provided that it is not the intent and 322
purpose of the Mississippi Legislature to prevent a license from 323
being issued to any person who is found to be of good reputation, 324
is able to give bond, and who has lived in the State of 325
Mississippi for the required period or is otherwise qualified 326
under this chapter. 327
(4) In addition to the reasons specified in subsection (1) 328
of this section, the commission shall be authorized to suspend the 329
license of any licensee for being out of compliance with an order 330
for support, as defined in Section 93-11-153. The procedure for 331
suspension of a license for being out of compliance with an order 332
for support, and the procedure for the reissuance or reinstatement 333
of a license suspended for that purpose, and the payment of any 334
fees for the reissuance or reinstatement of a license suspended 335
for that purpose, shall be governed by Section 93-11-157 or 336
93-11-163, as the case may be. If there is any conflict between 337
any provision of Section 93-11-157 or 93-11-163 and any provision 338
of this chapter, the provisions of Section 93-11-157 or 93-11-163, 339
as the case may be, shall control. 340
(5) Nothing in this chapter shall prevent * * * a broker 341
associate * * * or salesperson from owning any lawfully 342
constituted business organization, including, but not limited to, 343
a corporation, limited liability company or limited liability 344
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ST: Real Estate Brokers; revise regulations.
partnership, for the purpose of receiving payments contemplated in 345
this chapter. The business organization shall not be required to 346
be licensed under this chapter and shall not engage in any other 347
activity requiring a real estate license. 348
(6) The Mississippi Real Estate Commission shall not 349
promulgate any rule or regulation, nor make any administrative or 350
other interpretation, whereby any real estate licensee may be held 351
responsible or subject to discipline or other actions by the 352
commission relating to the information required to be disclosed by 353
Sections 89-1-501 through 89-1-523 or delivery of information 354
required to be disclosed by Sections 89-1-501 through 89-1-523. 355
(7) The Mississippi Real Estate Commission shall not 356
promulgate nor enforce any rule or regulation, nor make any 357
administrative or other interpretation, whereby any real estate 358
licensee may be required to include in any agreement or otherwise 359
be required to agree to any requirement regarding unilateral 360
termination by a buyer-agency agreement. 361
SECTION 5. This act shall take effect and be in force from 362
and after July 1, 2026. 363