Real estate brokers; revise various definitions and provisions related to licensees.

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To: Business and Financial
Institutions
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Johnson, Norwood

COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 2748

AN ACT TO AMEND SECTION 73-35-3, MISSISSIPPI CODE OF 1972, TO 1
DEFINE THE TERM "BROKERAGE AGREEMENT" AND REVISE ADDITIONAL 2
DEFINITIONS RELATED TO REAL ESTATE BROKERS; TO AMEND SECTION 3
73-35-15, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT UPON 4
TERMINATION OF A LICENSEE'S AGENCY, THE PRINCIPAL BROKER SHALL 5
WITHIN THREE DAYS ACKNOWLEDGE THE TRANSFER OF THE LICENSEE SO THAT 6
A NEW LICENSE MAY BE ISSUED; TO AMEND SECTION 73-35-17, 7
MISSISSIPPI CODE OF 1972, TO PROVIDE THAT WRITTEN NOTICE FOR THE 8
PURPOSE OF NOTIFYING A LICENSEE OF FAILURE TO PAY HIS OR HER 9
RENEWAL FEE SHALL BE DELIVERED TO THE LICENSEE AND, IF APPLICABLE, 10
TO HIS OR HER RESPONSIBLE BROKER, TO THE EMAIL ADDRESS FOR THE 11
LICENSEE AND BROKER ON FILE WITH THE MISSISSIPPI REAL ESTATE 12
COMMISSION; TO AMEND SECTION 73-35-21, MISSISSIPPI CODE OF 1972, 13
TO CHANGE THE MEANING OF "REASONABLE TIME" FROM THE NEXT BANKING 14
DAY TO TWO BANKING DAYS IMMEDIATELY FOLLOWING THE DATE ON WHICH A 15
LICENSEE COMES INTO POSSESSION OF MONIES BELONGING TO OTHERS OR ON 16
WHICH A RESPONSIBLE BROKER TAKES OR RECEIVES ANY CASH OR CHECKS 17
FROM PROCURING THE EXECUTION OF AN EARNEST MONEY CONTRACT OR 18
OPTION OR OTHER CONTRACT; AND FOR RELATED PURPOSES. 19
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 20
SECTION 1. Section 73-35-3, Mississippi Code of 1972, is 21
amended as follows: 22
73-35-3. (1) The term "real estate broker" within the 23
meaning of this chapter * * * includes all persons, partnerships, 24
limited liability companies, associations and corporations, 25
foreign and domestic, who for a fee, commission or other valuable 26
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consideration, or who with the intention or expectation of 27
receiving or collecting the same, perform any of the following 28
activities: 29
(a) List * * * to sell, purchase, exchange, rent, 30
lease, manage or auction any real estate, or the improvements 31
thereon, including options; * * * 32
(b) Sell, purchase, exchange, rent, lease, manage or 33
auction any real estate, or the improvements thereon, including 34
options; 35
(c) Negotiate or attempt to negotiate any * * * 36
activity described in this subsection (1); * * * 37
(d) Advertise or hold themselves out as engaged 38
in * * * any activity described in this subsection (1); * * * 39
(e) Sell * * * real estate on behalf of the owner or 40
owners thereof, or parts thereof, in lots or other parcels, 41
including timesharing and condominiums * * *; or 42
(f) Sell, exchange or lease, or offer or attempt or 43
agree to negotiate the sale, exchange or lease of, any * * * lot 44
or parcel of real estate on behalf of the owner or owners thereof. 45
(2) The term "real estate" as used in this chapter * * * 46
includes leaseholds as well as any and every interest or estate in 47
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
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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 "brokerage agreement" means a specific written 62
agreement between a real estate broker and a consumer which 63
establishes a brokerage relationship. The brokerage agreement 64
shall contain a statement of the terms and conditions of the 65
brokerage services to be provided, including any compensation to 66
be paid to or through the company. 67
( * * *5) The term "real estate salesperson" * * * means and 68
includes any person employed or engaged by, or associated as an 69
independent contractor with, or on behalf of, a licensed real 70
estate broker to do or deal in any activity as included or 71
comprehended by the * * * definition of a real estate broker in 72
subsection (1) of this section, for compensation or otherwise. 73
( * * *6) The term "automated valuation method" means any 74
computerized model used by mortgage originators and secondary 75
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market issuers to determine the collateral worth of a mortgage 76
secured by a consumer's principal dwelling. 77
( * * *7) The term "broker price opinion" means an estimate 78
prepared by a real estate broker, agent, or salesperson that 79
details the probable selling price of a particular piece of real 80
estate property and provides a varying level of detail about the 81
property's condition, market, and neighborhood, and information on 82
comparable sales, but does not include an automated valuation 83
model. 84
( * * *8) Exempt from the licensing requirements of this 85
chapter shall be any person, partnership, association or 86
corporation, who, as a bona fide owner, shall perform any 87
aforesaid act with reference to property owned by them, or to the 88
regular employees thereof who are on a stated salary, where such 89
acts are performed in the regular course of business. 90
( * * *9) The provisions of this chapter shall not apply to: 91
(a) Attorneys at law in the performance of primary or 92
incidental duties as such attorneys at law. 93
(b) Any person holding in good faith a duly executed 94
power of attorney from the owner, authorizing the final 95
consummation and execution for the sale, purchase, leasing or 96
exchange of real estate. 97
(c) The acts of any person while acting as a receiver, 98
trustee, administrator, executor, guardian or under court order, 99
or while acting under authority of a deed of trust or will. 100
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(d) Public officers while performing their duties as 101
such. 102
(e) Anyone dealing exclusively in oil and gas leases 103
and mineral rights. 104
( * * *10) Nothing in this chapter shall be construed to 105
prohibit life insurance companies and their representatives from 106
negotiating or attempting to negotiate loans secured by mortgages 107
on real estate, nor shall these companies or their representatives 108
be required to qualify as real estate brokers or agents under this 109
chapter. 110
( * * *11) The provisions of this chapter shall not apply to 111
the activities of mortgagees approved by the Federal Housing 112
Administration or the United States Department of Veterans 113
Affairs, banks chartered under the laws of the State of 114
Mississippi or the United States, savings and loan associations 115
chartered under the laws of the State of Mississippi or the United 116
States, licensees under the Small Loan Regulatory Law, being 117
Sections 75-67-101 through * * * 75-67-139, and under the Small 118
Loan Privilege Tax Law, being Sections 75-67-201 through * * * 119
75-67-247, small business investment companies licensed by the 120
Small Business Administration and chartered under the laws of the 121
State of Mississippi, or any of their affiliates and subsidiaries, 122
related to the making of a loan secured by a lien on real estate 123
or to the disposing of real estate acquired by foreclosure or in 124
lieu of foreclosure or otherwise held as security. No director, 125
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officer or employee of any such financial institution shall be 126
required to qualify as a real estate broker or agent under this 127
chapter when engaged in the aforesaid activities for and on behalf 128
of such financial institution. 129
SECTION 2. Section 73-35-15, Mississippi Code of 1972, is 130
amended as follows: 131
73-35-15. (1) Every person, partnership, association or 132
corporation licensed as a real estate broker shall be required to 133
have and maintain a definite place of business, which shall be a 134
room either in his or her home or an office elsewhere, to be used 135
for the transaction of real estate business, or such business and 136
any allied business. The certificate of registration as broker 137
and the certificate of each real estate salesperson employed by 138
such broker shall be prominently displayed in said office. The 139
said place of business shall be designated in the license. In 140
case of removal from the designated address, the licensee shall 141
make application to the commission before removal, or within ten 142
(10) days after removal, designating the new location of such 143
office, whereupon the commission shall forthwith issue a new 144
license for the new location for the unexpired period. 145
(2) All licenses issued to a real estate salesperson or 146
broker-salesperson shall designate the * * * principal broker of 147
such salesperson or broker-salesperson. Prompt notice in writing, 148
within three (3) days, shall be given to the commission by any 149
real estate * * * licensee of a change of * * * principal broker, 150
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and of the name of the principal broker into whose agency the 151
salesperson is about to enter; and a new license shall thereupon 152
be issued by the commission to such * * * licensee for the 153
unexpired term of the original license upon the * * * 154
acknowledgment to the commission by the current principal broker 155
of the change in the license previously issued. The change 156
of * * * principal broker or employment by any licensed real 157
estate * * * licensee without notice to the commission as required 158
shall automatically cancel his or her license. Upon termination 159
of a * * * licensee's agency, the * * * principal broker shall 160
within three (3) days * * * acknowledge the transfer of the 161
licensee so that a new license may be issued. It shall be 162
unlawful for any real estate * * * licensee to perform any of the 163
acts contemplated by this chapter either directly or indirectly 164
after his or her agency has been terminated and * * * until his or 165
her license has been reissued by the commission. 166
SECTION 3. Section 73-35-17, Mississippi Code of 1972, is 167
amended as follows: 168
73-35-17. (1) A fee not to exceed One Hundred Dollars 169
($100.00) shall accompany an application for a real estate 170
broker's license, and in the event that the applicant successfully 171
passes the examination, no additional fee shall be required for 172
the issuance of a license for a one-year period; provided, that if 173
an applicant fails to pass the examination, he or she may be 174
eligible to take the next or succeeding examination without the 175
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payment of an additional fee. In the event a contract testing 176
service is utilized, the fee associated with administering the 177
test shall be collected by the testing provider and the 178
application fee for any real estate license shall be collected by 179
the commission. 180
(2) For each license as a real estate broker issued to a 181
member of a partnership, association or officer of a corporation 182
other than the member or officer named in the license issued to 183
such partnership, association or corporation, a fee not to exceed 184
Seventy-five Dollars ($75.00) shall be charged. 185
(3) A fee not to exceed One Hundred Dollars ($100.00) shall 186
accompany an application for a real estate salesperson's license, 187
and in the event that the applicant successfully passes the 188
examination, no additional fee shall be required for the issuance 189
of a license for a one-year period; provided, that if an applicant 190
fails to pass the examination, he or she may be eligible to take 191
the next or succeeding examination without the payment of an 192
additional fee. In the event a contract testing service is 193
utilized, the fee associated with administering the test shall be 194
collected by the testing provider and the application fee for any 195
real estate license shall be collected by the commission. 196
(4) Except as provided in Section 33-1-39, it shall be the 197
duty of all persons, partnerships, associations, companies or 198
corporations licensed to practice as a real estate broker or 199
salesperson to register with the commission annually or 200
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biennially, in the discretion of the commission, according to 201
rules promulgated by it and to pay the proper registration fee. 202
An application for renewal of license shall be made to the 203
commission annually no later than December 31 of each year, or 204
biennially on a date set by the commission. A licensee failing to 205
pay his or her renewal fee after the same becomes due and after 206
two (2) months' written notice of his or her delinquency * * * 207
shall thereby have his or her license automatically cancelled. 208
For purposes of this subsection (4), written notice shall be 209
delivered to the licensee and, if applicable, to his or her 210
responsible broker, to the email address for the licensee and 211
broker on file with the commission. Any licensee renewing in this 212
grace period shall pay a penalty in the amount of one hundred 213
percent (100%) of the renewal fee. The renewal fee shall not 214
exceed Seventy-five Dollars ($75.00) per year for real estate 215
brokers, partnerships, associations and corporations. The renewal 216
fee for a real estate salesperson's license shall not exceed Sixty 217
Dollars ($60.00) per year. 218
(5) For each additional office or place of business, an 219
annual fee not to exceed Fifty Dollars ($50.00) shall be charged. 220
(6) For each change of office or place of business, a fee 221
not to exceed Fifty Dollars ($50.00) shall be charged. 222
(7) For each duplicate or transfer of salesperson's license, 223
a fee not to exceed Fifty Dollars ($50.00) shall be charged. 224
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(8) For each duplicate license, where the original license 225
is lost or destroyed, and affidavit made thereof, a fee not to 226
exceed Fifty Dollars ($50.00) shall be charged. 227
(9) To change status as a licensee from active to inactive 228
status, a fee not to exceed Twenty-five Dollars ($25.00) shall be 229
charged. To change status as a licensee from inactive to active 230
status, a fee not to exceed Fifty Dollars ($50.00) shall be 231
charged. 232
(10) For each bad check received by the commission, a fee 233
not to exceed Twenty-five Dollars ($25.00) shall be charged. 234
(11) A fee not to exceed Five Dollars ($5.00) per hour of 235
instruction may be charged to allay costs of seminars for 236
educational purposes provided by the commission. 237
(12) A fee not to exceed Twenty-five Dollars ($25.00) may be 238
charged for furnishing any person a copy of a real estate license, 239
a notarized certificate of licensure or other official record of 240
the commission. 241
(13) A fee not to exceed One Hundred Dollars ($100.00) shall 242
be charged to review and process the application and instructional 243
materials for each curriculum seeking acceptance as a real estate 244
continuing education course developed to satisfy the mandatory 245
continuing education requirements for this chapter, with the 246
period of approval expiring after one (1) year. A fee not to 247
exceed Fifty Dollars ($50.00) shall be charged for each renewal of 248
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a previously approved course, with the period of renewal expiring 249
after one (1) year. 250
(14) Fees, up to the limits specified herein, shall be 251
established by the Mississippi Real Estate Commission. 252
SECTION 4. Section 73-35-21, Mississippi Code of 1972, is 253
amended as follows: 254
73-35-21. (1) Except as otherwise provided in this section, 255
the commission may, upon its own motion and shall upon the 256
verified complaint in writing of any person, hold a hearing 257
pursuant to Section 73-35-23 for the refusal of license or for the 258
suspension or revocation of a license previously issued, or for 259
such other action as the commission deems appropriate. The 260
commission shall have full power to refuse a license for cause or 261
to revoke or suspend a license where it has been obtained by false 262
or fraudulent representation, or where the licensee in performing 263
or attempting to perform any of the acts mentioned herein, is 264
deemed to be guilty of: 265
(a) Making any substantial misrepresentation in 266
connection with a real estate transaction; 267
(b) Making any false promises of a character likely to 268
influence, persuade or induce; 269
(c) Pursuing a continued and flagrant course of 270
misrepresentation or making false promises through agents or 271
salespersons or any medium of advertising or otherwise; 272
(d) Any misleading or untruthful advertising; 273
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(e) Acting for more than one (1) party in a transaction 274
or receiving compensation from more than one (1) party in a 275
transaction, or both, without the knowledge of all parties for 276
whom he or she acts; 277
(f) Failing, within a reasonable time, to account for 278
or to remit any monies coming into his or her possession which 279
belong to others, or commingling of monies belonging to others 280
with his or her own funds. Every responsible broker procuring the 281
execution of an earnest money contract or option or other contract 282
who shall take or receive any cash or checks shall deposit, within 283
a reasonable period of time, the sum or sums so received in a 284
trust or escrow account in a bank or trust company pending the 285
consummation or termination of the transaction. "Reasonable time" 286
in this context means by the close of business of * * * two (2) 287
banking days immediately following the date on which a licensee 288
comes into possession of monies belonging to others or on which a 289
responsible broker takes or receives any cash or checks from 290
procuring the execution of an earnest money contract or option or 291
other contract; 292
(g) Entering a guilty plea or conviction in a court of 293
competent jurisdiction of this state, or any other state or the 294
United States of any felony; 295
(h) Displaying a "for sale" or "for rent" sign on any 296
property without the owner's consent; 297
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(i) Failing to furnish voluntarily, at the time of 298
signing, copies of all listings, contracts and agreements to all 299
parties executing the same; 300
(j) Paying any rebate, profit or commission to any 301
person other than a real estate broker or salesperson licensed 302
under the provisions of this chapter; 303
(k) Inducing any party to a contract, sale or lease to 304
break such contract for the purpose of substituting in lieu 305
thereof a new contract, where such substitution is motivated by 306
the personal gain of the licensee; 307
(l) Accepting a commission or valuable consideration as 308
a real estate salesperson for the performance of any of the acts 309
specified in this chapter from any person, except his or her 310
employer who must be a licensed real estate broker; 311
(m) Failing to successfully pass the commission's 312
background investigation for licensure or renewal as provided in 313
Section 73-35-10; or 314
(n) Any act or conduct, whether of the same or a 315
different character than hereinabove specified, which constitutes 316
or demonstrates bad faith, incompetency or untrustworthiness, or 317
dishonest, fraudulent or improper dealing. However, simple 318
contact and/or communication with any mortgage broker or lender by 319
a real estate licensee about any professional, including, but not 320
limited to, an appraiser, home inspector, contractor, and/or 321
attorney regarding a listing and/or a prospective or pending 322
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contract for the lease, sale and/or purchase of real estate shall 323
not constitute conduct in violation of this section. 324
(2) No real estate broker shall practice law or give legal 325
advice directly or indirectly unless said broker be a duly 326
licensed attorney under the laws of this state. He or she shall 327
not act as a public conveyancer nor give advice or opinions as to 328
the legal effect of instruments nor give opinions concerning the 329
validity of title to real estate; nor shall he or she prevent or 330
discourage any party to a real estate transaction from employing 331
the services of an attorney; nor shall a broker undertake to 332
prepare documents fixing and defining the legal rights of parties 333
to a transaction. However, when acting as a broker, he or she may 334
use an earnest money contract form. A real estate broker shall 335
not participate in attorney's fees, unless the broker is a duly 336
licensed attorney under the laws of this state and performs legal 337
services in addition to brokerage services. 338
(3) It is expressly provided that it is not the intent and 339
purpose of the Mississippi Legislature to prevent a license from 340
being issued to any person who is found to be of good reputation, 341
is able to give bond, and who has lived in the State of 342
Mississippi for the required period or is otherwise qualified 343
under this chapter. 344
(4) In addition to the reasons specified in subsection (1) 345
of this section, the commission shall be authorized to suspend the 346
license of any licensee for being out of compliance with an order 347
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for support, as defined in Section 93-11-153. The procedure for 348
suspension of a license for being out of compliance with an order 349
for support, and the procedure for the reissuance or reinstatement 350
of a license suspended for that purpose, and the payment of any 351
fees for the reissuance or reinstatement of a license suspended 352
for that purpose, shall be governed by Section 93-11-157 or 353
93-11-163, as the case may be. If there is any conflict between 354
any provision of Section 93-11-157 or 93-11-163 and any provision 355
of this chapter, the provisions of Section 93-11-157 or 93-11-163, 356
as the case may be, shall control. 357
(5) Nothing in this chapter shall prevent * * * a broker, 358
associate * * * or salesperson from owning any lawfully 359
constituted business organization, including, but not limited to, 360
a corporation, limited liability company or limited liability 361
partnership, for the purpose of receiving payments contemplated in 362
this chapter. The business organization shall not be required to 363
be licensed under this chapter and shall not engage in any other 364
activity requiring a real estate license. 365
(6) The Mississippi Real Estate Commission shall not 366
promulgate any rule or regulation, nor make any administrative or 367
other interpretation, whereby any real estate licensee may be held 368
responsible or subject to discipline or other actions by the 369
commission relating to the information required to be disclosed by 370
Sections 89-1-501 through 89-1-523 or delivery of information 371
required to be disclosed by Sections 89-1-501 through 89-1-523. 372
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ST: Real estate brokers; revise various
definitions and provisions related to licensees.
(7) The Mississippi Real Estate Commission shall not 373
promulgate nor enforce any rule or regulation, nor make any 374
administrative or other interpretation, whereby any real estate 375
licensee may be required to include in any agreement or otherwise 376
be required to agree to any requirement regarding unilateral 377
termination by a buyer-agency agreement. 378
SECTION 5. This act shall take effect and be in force from 379
and after July 1, 2026. 380