Key Takeaways
- Mississippi licensees owe certain duties to ALL parties in a transaction, regardless of whom they represent
- All parties must be treated honestly and fairly with no misrepresentation
- Material facts affecting property value or desirability must be disclosed to all parties
- Licensees must present all offers in a timely manner
- Personal interests in transactions must be disclosed in writing to all parties
Duties to All Parties
Mississippi law imposes certain duties on all licensees to all parties in a real estate transaction, regardless of representation.
Universal Duties
Honesty and Fair Dealing
All licensees must:
- Not misrepresent material facts
- Not withhold known material information
- Deal honestly with all parties
- Exercise reasonable skill and care
Disclosure of Material Facts
| Must Disclose | Examples |
|---|---|
| Property defects | Foundation issues, roof problems, water damage |
| Environmental hazards | Lead paint, mold, flooding history |
| Legal issues | Zoning violations, easements, liens |
| Agency relationship | Who the licensee represents |
Important: A material fact is any information that could affect a reasonable person's decision to buy or sell.
Presentation of Offers
All licensees must:
| Duty | Description |
|---|---|
| Present all offers | Must present every written offer to client |
| Timely presentation | Present offers promptly |
| Multiple offers | Present all offers, even if one is accepted |
| Written format | Offers should be in writing |
When Presentation is Not Required
Presentation may be waived only if:
- Client has given written instructions to not present certain offers
- Offer is clearly frivolous or not bona fide
Caution: Failing to present an offer can result in disciplinary action and liability.
Personal Interest Disclosure
A licensee must provide written disclosure when:
| Situation | Requirement |
|---|---|
| Buying or selling own property | Disclose licensee status |
| Acting for family member | Disclose relationship |
| Personal financial interest | Disclose the interest |
| Ownership in entity | Disclose if entity is party |
Duties to Customers vs. Clients
Client (Represented Party)
Full fiduciary duties:
- Loyalty
- Obedience
- Disclosure
- Confidentiality
- Accounting
- Reasonable care
Customer (Non-Represented Party)
Limited duties:
- Honesty
- Disclosure of material facts
- Fair dealing
- No misrepresentation
Prohibited Conduct with All Parties
| Prohibited Action | Description |
|---|---|
| Misrepresentation | Making false statements about property |
| Concealment | Hiding known defects or problems |
| Fraud | Intentional deception for personal gain |
| Discrimination | Violating fair housing laws |
| Unauthorized practice | Providing legal or financial advice |
Compensation Disclosure
When receiving compensation from multiple sources:
| Situation | Requirement |
|---|---|
| Fee from one party | Standard—no special disclosure |
| Fee from multiple parties | Must disclose to ALL parties in writing |
| Referral fees | Must disclose if receiving referral fees |
Key Rule: Full transparency about compensation protects the licensee and builds trust with all parties.
Ministerial Acts
Certain acts are considered "ministerial" and can be performed for any party without creating an agency relationship:
- Providing property information
- Scheduling showings
- Providing forms
- Transmitting offers
Note: Ministerial acts are factual in nature and don't involve discretion or judgment.
Which duty does a Mississippi licensee owe to ALL parties in a transaction?
When must a Mississippi licensee disclose a personal interest in a transaction?
A listing agent receives an offer that seems low. What must they do?