Key Takeaways
- Mississippi requires written disclosure of agency relationships to all parties in real estate transactions
- Licensees must provide the Agency Disclosure form before providing services or receiving confidential information
- Mississippi recognizes seller agency, buyer agency, disclosed dual agency, and transaction brokerage
- Dual agency requires written informed consent from both buyer and seller
- Licensees owe fiduciary duties to their clients including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care
Mississippi Agency Relationships
Mississippi requires real estate licensees to clearly disclose their agency relationships and the duties they owe to each party in a transaction.
Agency Disclosure Requirements
When to Disclose
The agency disclosure must be provided:
- Before providing brokerage services
- Before receiving confidential information
- At the first substantive contact with a consumer
Key Point: Early disclosure protects both the licensee and the consumer by establishing expectations from the start.
Who Must Receive Disclosure
| Party Type | Required? |
|---|---|
| Sellers | Yes |
| Buyers | Yes |
| Lessors (landlords) | Yes |
| Lessees (tenants) | Yes |
Types of Agency Relationships in Mississippi
1. Seller Agency (Listing Agent)
A seller's agent represents only the seller:
| Duty | Description |
|---|---|
| Loyalty | Put seller's interests first |
| Confidentiality | Protect seller's private information |
| Disclosure | Inform seller of all material facts |
| Obedience | Follow seller's lawful instructions |
| Accounting | Account for all funds |
| Reasonable care | Exercise competence and diligence |
2. Buyer Agency
A buyer's agent represents only the buyer:
| Duty | Description |
|---|---|
| Loyalty | Put buyer's interests first |
| Confidentiality | Protect buyer's private information |
| Disclosure | Inform buyer of all material facts |
| Obedience | Follow buyer's lawful instructions |
| Accounting | Account for all funds |
| Reasonable care | Exercise competence and diligence |
3. Disclosed Dual Agency
Disclosed dual agency occurs when one licensee or brokerage represents both buyer and seller in the same transaction.
Requirements for Dual Agency
| Requirement | Description |
|---|---|
| Written consent | Both parties must consent in writing |
| Disclosure | Full explanation of dual agency implications |
| Neutral representation | Agent must remain impartial |
| Limited confidentiality | Cannot share one party's negotiating position |
Limitations in Dual Agency
In dual agency, the agent CANNOT:
- Disclose the buyer's maximum price
- Disclose the seller's minimum acceptable price
- Advocate strongly for either party
- Provide advice that benefits one party over another
Warning: Dual agency significantly limits what an agent can do for either party. Many experienced agents avoid dual agency when possible.
4. Transaction Brokerage
A transaction broker (also called facilitator) helps both parties but represents neither:
| Aspect | Description |
|---|---|
| Representation | Neither party |
| Confidentiality | Maintains confidential information |
| Services | Provides ministerial services |
| Advice | Limited—cannot advocate for either party |
Fiduciary Duties (OLD CAR)
Remember fiduciary duties using OLD CAR:
| Letter | Duty | Description |
|---|---|---|
| O | Obedience | Follow lawful instructions |
| L | Loyalty | Put client's interests first |
| D | Disclosure | Reveal all material facts |
| C | Confidentiality | Protect private information |
| A | Accounting | Track all funds and property |
| R | Reasonable Care | Act competently and diligently |
When must a Mississippi licensee provide agency disclosure to a consumer?
What is required for dual agency to be legal in Mississippi?
Which mnemonic helps remember fiduciary duties?