Mississippi Real Estate Commission requires 60 hours of real estate education before you can take the exam for a license.

The Real Estate Training Institute is approved by the Mississippi Real Estate Commission to provide instruction in real estate courses.

PSI – MREC Exam Categories

Property ownership (Salesperson 7 items/Broker 6 items)

  • Classes of property
  • Real versus personal property
  • Defining fixtures
  • Land characteristics and legal descriptions
  • Physical characteristics of land
  • Economic characteristics of land
  • Types of legal property descriptions
  • Usage of legal property descriptions
  • Physical descriptions of property and improvements
  • fMineral, air and water rights
  • Encumbrances and effects on property ownership
  • Liens (types and priority)
  • Easements and licenses
  • Encroachments
  • Types of ownership
  • Types of estates
  • Forms of ownership
  • Leaseholds
  • Common interest ownership properties
  • Bundle of rights

Land use controls and regulations (Salesperson 5 items/Broker 5 items)

  • Government rights in land
  • Property taxes and special assessment
  • Eminent domain, condemnation, escheat
  • Police power
  • Public controls based in police power
  • Zoning and master plans
  • Building codes
  • Environmental impact reportsd. Regulation of special land types (floodplain, coastal, etc.)
  • Regulation of environmental hazards
  • Abatement, mitigation and cleanup requirements
  • Restrictions on sale or development ofcontaminated property
  • Types of hazards and potential for agent or seller liability
  • Private controls
  • Deed conditions or restrictions
  • Covenants, conditions and restrictions (CC&Rs)
  • Homeowners association (HOA) regulations

Valuation and market analysis (Salesperson 8 items/Broker 6 items)

  • Market value and market price
  • Value
  • Types and characteristics of value
  • Principles of value
  • Market cycles and other factors affecting property value
  • Methods of estimating value/appraisal processa.
  • Market or sales comparison approach
  • Replacement cost or summation approach
  • Income approach
  • Basic appraisal terminology (e.g., replacementversus reproduction cost, reconciliation,depreciation, kinds of obsolescence
  • Competitive/Comparative Market Analysis (CMA)
  • Selecting and adjusting comparables
  • Contrast CMA and appraisal
  • Price per square foot
  • Gross rent and gross income multipliers
  • Capitalization rate
  • Appraisal practice; situations requiring appraisal by a certified appraiser

Financing (Salesperson 6 items/Broker 7 items)

  • General concepts
  • LTV ratios, points, origination fees, discounts, broker commissions
  • Mortgage insurance (PMI)
  • Lender requirements, equity, qualifying buyers,loan application procedures
  • Types of loans and sources of loan money
  • Term or straight loans
  • Amortized and partially amortized (balloon) loans and other nonconforming loan
  • Adjustable rate mortgage (ARM) loans
  • Conventional versus insured
  • Reverse mortgages; equity loans; subprime and other nonconforming loans
  • Seller/owner financing
  • Primary market
  • Secondary market
  • Down payment assistance programs3. Government programs
    FHA
    VA
  • Other federal programs
  • Mortgages/deeds of trust
  • Mortgage clauses (assumption, due-on-sale, alienation, acceleration, prepayment, release)
  • Lien theory versus title theory
  • Mortgage/deeds of trust and note as separate documents
  • Financing/credit laws
  • Lending and disclosures
  • Truth in lending
  • RESPA
  • Equal Credit Opportunity
  • Fraud and lending practices
  • Mortgage fraud
  • Predatory lending practices (risks to clients)
  • Usury lending laws
  • Appropriate cautions to clients seeking financing

General principles of agency (Salesperson 10 items/Broker 11 items)

  • Nature of agency relationships
  • Types of agents and agencies (special, general, designated, subagent, etc.)
  • Nonagents (transactional/facilitational)
  • Fiduciary responsibilities
  • Creation and disclosure of agency and agency agreements (general, not state specific)
    Agency and agency agreements
  • Disclosure when acting as principal or other conflict of interest
  • Responsibilities of agent/principal
  • Duties to client/principal (buyer, seller, tenant or landlord)
  • Traditional common law agency duties; effect of dual agency on agent’s duties
  • Responsibilities of agent to customers and third parties, including disclosure, honesty , integrity , accounting for money
  • Termination of agency
  • Expiration
  • Completion/performance
  • Termination by force of law
  • Destruction of property/death of principal
  • Mutual agreement

Mandated disclosures (Salesperson 8 items/Broker 9 items)

  • Property condition disclosure
  • Property owner’s role regarding property condition
  • Licensee’s role regarding property condition
  • Warranties
  • Purpose of home or construction warranty programs
  • Scope of home or construction warranty programs
  • Need for inspection and obtaining/verifying information
  • Explanation of property inspection process and appropriate use
  • Agent responsibility to inquire about “red flag” issues
  • Responding to non-client inquiries
  • Material facts related to property condition orlocation
  • Land/soil conditions
  • Accuracy of representation of lot or improvementsize, encroachments or easements affecting use
  • Pest infestation, toxic mold and other interiorenvironmental hazards
  • Structural issues such as roof, gutters,downspouts, doors, windows, foundation
  • Condition of electrical and plumbing systems, andof equipment or appliances that are fixtures
  • Location within natural hazard or specificallyregulated area, potentially uninsurable property
  • Known alterations or additions
  • Material facts related to public controls, statutes of public utilities
  • Zoning and planning information
  • Boundaries of school/utility/taxation districts,flight paths
  • Local taxes and special assessments, other liens
  • External environmental hazards
  • Stigmatized/psychologically impacted property
  • Megan’s Law issues

Contracts (Salesperson 11 items/Broker 12 items)

  • General knowledge of contract law
  • Requirements for validity
  • When contract is considered performed/discharged
  • Assignment and novation
  • Breach of contract and remedies for breach
  • Contract clauses
  • Listing agreements
  • General requirements for valid listing
  • Exclusive listings
  • Non-exclusive listings
  • Buyer/tenant representation agreements, including key elements and provisions of buyer and/or tenant agreements
  • Offers/purchase agreements
  • General requirements
  • When offer becomes binding (notification)
  • Contingencies
  • Time is of the essence
  • Counteroffers/multiple counteroffers
  • Counteroffer cancels original offer
  • Priority of multiple counteroffer
  • Leases
  • Types of leases, e.g., percentage, gross, net,ground
  • Lease with obligation to purchase or lease withan option to purchase
  • Other real estate contracts
  • Options
  • Right of first refusal

Transfer of title (Salesperson 5 items/Broker 5 items)

  • Title insurance
  • What is insured against
  • Title searches, title abstracts, chain of title
  • Cloud on title, suit to quiet title
  • Deeds
  • Purpose of deed, when title passes
  • Types of deeds (general warranty, special warranty, quitclaim) and when used
  • Essential elements of deeds
  • Importance of recording
  • Escrow or closing; tax aspects of transferring title to real property
  • Responsibilities of escrow agent
  • Prorated items
  • Closing statements/HUD-1
  • Estimating closing costs
  • Property and income taxes
  • 1031 exchanges
  • Special processes
  • Foreclosure/short sale b. Real estate owned (REO)

Practice of real estate (Salesperson 12 items/Broker 12 items)

  • Trust/escrow accounts (general, not state specific)
  • Purpose and definition of trust accounts,including monies held in trust accounts
  • Responsibility for trust monies, including commingling/conversion
  • Federal fair housing laws
  • Protected classes
  • Covered transactions
  • Specific laws and their effects
  • Compliance
  • Types of violations and enforcement
  • Exceptions
  • Advertising and technology
  • Incorrect “factual” statements versus “puffing”
  • Truth in advertising
  • Fair housing issues in advertising
  • Fraud, technology issue
  • Uninformed misrepresentation versus deliberate misrepresentation (fraud)
  • Technology issues in advertising and marketing
  • Agent supervision
  • Liability/responsibility for acts of associated licensees and employees
  • Responsibility to train and supervise associated licensees and employees
  • Commissions and fees
  • Procuring cause/protection clauses
  • Referrals and other finder fees
  • General ethics
  • Practicing within area of competence
  • A voiding unauthorized practice of law
  • Antitrust laws
  • Antitrust laws and purpose
  • Antitrust violations in real estate

Real estate calculations (Salesperson 6 items/Broker 4 items)

  • Basic math concepts
  • Area
  • Loan-to-value ratios
  • Discount points
  • Equity
  • Down payment/amount to be financed
  • Calculations for transactions, including mortgage calculations
  • Property tax calculations
  • Prorations (utilities, rent, property taxes, insurance, etc)
  • Seller’s proceeds of sale
  • Transfer tax/conveyance tax/revenue
  • Amortization tables
  • Interest rates
  • Interest amounts
  • Monthly installment payments
  • Buyer qualification ratios
  • Calculations for valuation
  • Competitive/comparative market analyses (CMA)
  • Net operating income
  • Depreciation
  • Capitalization rate
  • Gross rent and gross income multipliers (GRM,GIM)

Specialty areas (Salesperson 2 items/Broker 3 items

  • Subdivisions, including deed restrictions
  • Commercial, industrial and income property
  • Types of lease
  • Trade fixtures
  • Accessibility
  • Tax depreciation
  • 1031 exchanges
  • Trust fund account