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To: Judiciary A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Yates
HOUSE BILL NO. 1682
AN ACT TO AMEND SECTION 73-35-3, MISSISSIPPI CODE OF 1972, TO 1
REVISE THE DEFINITION OF REAL ESTATE BROKER TO INCLUDE PERSONS, 2
PARTNERSHIPS, ASSOCIATIONS, COMPANIES AND CORPORATIONS WHO ENGAGE 3
IN THE PRACTICE OR PROCESS OF WHOLESALING; TO DEFINE WHOLESALER; 4
TO PROVIDE THAT EXEMPTIONS FROM LICENSING REQUIREMENTS DO NOT 5
APPLY TO WHOLESALERS; TO REQUIRE WHOLESALERS TO PROVIDE CERTAIN 6
WRITTEN DISCLOSURES TO HOMEOWNERS; TO RENDER INVALID ANY CONTRACT 7
THAT DOES NOT INCLUDE THE REQUIRED DISCLOSURES; TO PROVIDE THAT 8
THE DISCLOSURE REQUIREMENTS SHALL ONLY APPLY TO TRANSACTIONS 9
INVOLVING RESIDENTIAL REAL ESTATE; TO AUTHORIZE THE MISSISSIPPI 10
REAL ESTATE COMMISSION TO PROMULGATE ANY RULES NECESSARY TO 11
IMPLEMENT THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES. 12
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 13
SECTION 1. Section 73-35-3, Mississippi Code of 1972, is 14
amended as follows: 15
73-35-3. (1) The term "real estate broker" within the 16
meaning of this chapter shall include all persons, partnerships, 17
associations, companies and corporations, foreign and domestic, 18
who for a stated salary, fee, commission or other valuable 19
consideration, or who with the intention or expectation of 20
receiving or collecting the same, perform any of the following 21
acts: 22
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(a) List * * * to sell, purchase, exchange, rent, 23
lease, manage or auction any real estate, or the improvements 24
thereon, including options; 25
(b) Sell, purchase, exchange, rent, lease, manage or 26
auction any real estate, or the improvements thereon, including 27
options; 28
(c) * * * Negotiate or attempt to negotiate any such 29
activity; * * * 30
(d) Advertise or hold themselves out as engaged in such 31
activities; * * * 32
(e) Direct or assist in the procuring of a purchaser or 33
prospect calculated or intended to result in a real estate 34
transaction * * *; 35
* * * 36
(f) Sell such real estate, or parts thereof, on behalf 37
of the owner or owners thereof, in lots or other parcels, 38
including timesharing and condominiums * * *; 39
(g) Sell, exchange or lease, or offer or attempt or 40
agree to negotiate the sale, exchange or lease of, any such lot or 41
parcel of real estate * * * on behalf of the owner or owners 42
thereof; or 43
(h) Engage in the transaction of real estate as a 44
wholesaler as defined in subsection (11) of this section. 45
(2) The term "real estate" as used in this chapter shall 46
include leaseholds as well as any and every interest or estate in 47
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land, including timesharing and condominiums, whether corporeal or 48
incorporeal, freehold or nonfreehold, and whether said property is 49
situated in this state or elsewhere; provided, however, that the 50
term "real estate" as used in this chapter shall not include oil, 51
gas or mineral leases, nor shall it include any other mineral 52
leasehold, mineral estate or mineral interest of any nature 53
whatsoever. 54
(3) One (1) act in consideration of or with the expectation 55
or intention of, or upon the promise of, receiving compensation, 56
by fee, commission or otherwise, in the performance of any act or 57
activity contained in subsection (1) of this section, shall 58
constitute such person, partnership, association or corporation a 59
real estate broker and make him, them or it subject to the 60
provisions and requirements of this chapter. 61
(4) The term "real estate salesperson" shall mean and 62
include any person employed or engaged by or on behalf of a 63
licensed real estate broker to do or deal in any activity as 64
included or comprehended by the definitions of a real estate 65
broker in subsection (1) of this section, for compensation or 66
otherwise. 67
(5) The term "residential real estate" means real property 68
located in this state that is used primarily for a dwelling and 69
contains one (1) to four (4) dwelling units. 70
( * * *6) The term "automated valuation method" means any 71
computerized model used by mortgage originators and secondary 72
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market issuers to determine the collateral worth of a mortgage 73
secured by a consumer's principal dwelling. 74
( * * *7) The term "broker price opinion" means an estimate 75
prepared by a real estate broker, agent, or salesperson that 76
details the probable selling price of a particular piece of real 77
estate property and provides a varying level of detail about the 78
property's condition, market, and neighborhood, and information on 79
comparable sales, but does not include an automated valuation 80
model. 81
(8) The term "contract" means any agreement or arrangement, 82
including power of attorney, for the purchase, sale or assignment 83
of real estate. 84
(9) The term "homeowner" means any individual, entity, trust 85
or partnership holding title to residential property. 86
(10) The term "business day" means any calendar day except 87
for Saturday, Sunday or any public holiday recognized by state or 88
federal law. 89
(11) The term "wholesaler" means any individual or entity 90
engaging in the business of securing, negotiating or facilitating 91
the sale of residential real estate for the primary purpose of 92
transferring, assigning or selling their equitable interest in the 93
property, directly or indirectly, for financial profit. This 94
includes any person or entity that: 95
(a) Enters into a contract to purchase residential real 96
estate with the intent of assigning or selling the contractual 97
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rights to another party before taking possession or legal 98
ownership of such residential real estate; and 99
(b) Transfers or intends to transfer the contractual 100
rights or interest to a third-party purchaser by any means, 101
including by use of a legal instrument or technique, such as an 102
assignment, novation or double closing. As used in this paragraph 103
(b), "double closing" means the wholesaler simultaneously closes 104
two (2) separate transactions on the same property, one (1) with 105
the original seller and one (1) with the third-party purchaser, 106
with intent to be paid from funds expended by the third-party 107
purchaser, and without the intent to reside in or otherwise 108
materially improve such residential real estate. 109
( * * *12) Exempt from the licensing requirements of this 110
chapter shall be any person, partnership, association or 111
corporation, who, as a bona fide owner, shall perform any 112
aforesaid act with reference to property owned by them, or to the 113
regular employees thereof who are on a stated salary, where such 114
acts are performed in the regular course of business; however, no 115
exemption from the licensing requirements of this chapter shall 116
apply to any person, partnership, association, company or 117
corporation engaged in the transaction of real estate as a 118
wholesaler as defined in subsection (11) of this section. 119
( * * *13) The provisions of this chapter shall not apply 120
to: 121
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(a) Attorneys at law in the performance of primary or 122
incidental duties as such attorneys at law. 123
(b) Any person holding in good faith a duly executed 124
power of attorney from the owner, authorizing the final 125
consummation and execution for the sale, purchase, leasing or 126
exchange of real estate * * *; however, this exemption for a duly 127
executed power of attorney shall not apply to any act, or 128
attempted act, as set forth in subsection (1) of this section, 129
when engaged in for compensation or the expectation of same. 130
(c) The acts of any person while acting as a receiver, 131
trustee, administrator, executor, guardian or under court order, 132
or while acting under authority of a deed of trust or will. 133
(d) Public officers while performing their duties as 134
such. 135
(e) Anyone dealing exclusively in oil and gas leases 136
and mineral rights. 137
( * * *14) Nothing in this chapter shall be construed to 138
prohibit life insurance companies and their representatives from 139
negotiating or attempting to negotiate loans secured by mortgages 140
on real estate, nor shall these companies or their representatives 141
be required to qualify as real estate brokers or agents under this 142
chapter. 143
( * * *15) The provisions of this chapter shall not apply to 144
the activities of mortgagees approved by the Federal Housing 145
Administration or the United States Department of Veterans 146
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Affairs, banks chartered under the laws of the State of 147
Mississippi or the United States, savings and loan associations 148
chartered under the laws of the State of Mississippi or the United 149
States, licensees under the Small Loan Regulatory Law, being 150
Sections 75-67-101 through 75-67-135, and under the Small Loan 151
Privilege Tax Law, being Sections 75-67-201 through 75-67-243, 152
small business investment companies licensed by the Small Business 153
Administration and chartered under the laws of the State of 154
Mississippi, or any of their affiliates and subsidiaries, related 155
to the making of a loan secured by a lien on real estate or to the 156
disposing of real estate acquired by foreclosure or in lieu of 157
foreclosure or otherwise held as security. No director, officer 158
or employee of any such financial institution shall be required to 159
qualify as a real estate broker or agent under this chapter when 160
engaged in the aforesaid activities for and on behalf of such 161
financial institution. 162
SECTION 2. (1) A wholesaler shall: 163
(a) Disclose in writing to the homeowner, before the 164
execution of any contract or written agreement, his or her intent 165
to assign or sell his or her equitable interest in the residential 166
real estate for a higher price than what is offered to the 167
homeowner; 168
(b) Disclose in writing to the homeowner the 169
wholesaler's intent to market its equitable interest before 170
commencing any marketing of the property; 171
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(c) Provide a prominent written disclosure to the 172
homeowner in all written contracts between the parties stating 173
that the homeowner should seek legal advice before signing any 174
contract concerning his or her home; 175
(d) Disclose in writing to the homeowner that the 176
homeowner has the right to cancel the contract without penalty 177
within two (2) business days after the execution of the contract; 178
(e) Disclose in writing to any potential purchaser or 179
assignee, the nature of the wholesaler's equitable interest; and 180
(f) Disclose in writing to the homeowner the effective 181
date of any assignment of the wholesaler's interest to a 182
subsequent purchaser of the property at least three (3) business 183
days before the effective date of any assignment. 184
(2) Written disclosure under subsection (1) of this section 185
shall be required for the intent to market and transfer an 186
equitable interest in residential real estate, whether by 187
assignment, novation or other similar method of transferring 188
interest in real property. 189
(3) A wholesaler shall not, directly or indirectly: 190
(a) Act as an advisor or consultant, or in any other 191
manner representing that the wholesaler is acting on behalf of the 192
homeowner; or 193
(b) Represent himself or herself as holding a 194
certification or license, or being a member of a licensed 195
profession, without possession of the certification or license. 196
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(4) The homeowner shall have the right to cancel the 197
contract without penalty within two (2) business days from the 198
date of execution of the contract. 199
(5) The wholesaler shall be prohibited from placing any lien 200
or encumbrance on or otherwise clouding title of the property. 201
(6) Any contract or agreement used by a wholesaler shall 202
contain the following: 203
(a) The name, address and telephone number of the 204
wholesaler; 205
(b) The address of the residence involved in the 206
transaction; 207
(c) The total consideration to be given by the 208
wholesaler to the homeowner; 209
(d) A complete description of the terms of payment or 210
other consideration including, but not limited to, any services of 211
any nature which the wholesaler represents that he or she will 212
perform for the seller before or after the sale; and 213
(e) The following notice shall appear on the contract 214
in immediate proximity to the space reserved for the seller's 215
signature and shall be in at least twelve-point bold type if the 216
contract is typed or in capital letters if the contract is 217
printed. The notice shall contain the name of the wholesaler, the 218
date and time by which the contract shall be canceled, and the 219
following language: 220
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"NOTICE REQUIRED BY MISSISSIPPI LAW: You may cancel this 221
contract at any time before midnight of ____________________ 222
(Date). __________________________ (Name of Wholesaler) or anyone 223
working for ______________________ (Name of Wholesaler) CANNOT ask 224
you to sign or have you sign any deed or any other document until 225
your right to cancel this contract has ended. See the attached 226
notice of cancellation form for an explanation of this right. You 227
should always consult an attorney before signing any legal 228
documents concerning your home. It is advisable that you find 229
your own attorney. The law requires this contract to contain the 230
entire agreement. You should not rely upon any other written or 231
oral agreement or promise." 232
(7) Failure to include any of the required disclosures under 233
this section shall render the contract invalid and unenforceable 234
by the wholesaler and shall entitle the homeowner to any earnest 235
money deposit involved in the transaction. Any earnest money 236
deposit or security deposit by a wholesaler shall be kept in an 237
escrow account maintained in this state with a federally insured 238
financial institution. 239
(8) The homeowner may terminate the contract at any time if 240
the wholesaler fails to comply with the provisions of this 241
section. 242
(9) In addition to any other remedy afforded the homeowner 243
under this section, the homeowner may file a petition in chancery 244
court to seek an order declaring the contract invalid and 245
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ST: Wholesalers; require certain written
disclosures for when purchasing residential real
estate for transfer to third party purchaser.
unenforceable pursuant to this section and may, in addition to 246
statutory damages allowed under this section, recover actual 247
damages, plus costs and attorney's fees as may be proven against 248
an offending wholesaler. 249
(10) This section shall only apply to transactions involving 250
residential real estate and shall not apply to any other property. 251
(11) This section shall not infringe on the right of the 252
parties to otherwise agree by contract. 253
(12) The Mississippi Real Estate Commission shall create, 254
publish and provide on its website a notice of cancellation form, 255
which shall be included by the wholesaler with any contract. This 256
form shall be provided to the homeowner at no cost. 257
(13) The Mississippi Real Estate Commission shall promulgate 258
any rules necessary to implement the provisions of this section. 259
SECTION 3. Section 2 of this act shall be codified in 260
Chapter 35, Title 73, Mississippi Code of 1972. 261
SECTION 4. This act shall take effect and be in force from 262
and after July 1, 2026. 263