2.1 Mississippi Agency Relationships
Key Takeaways
- Mississippi recognizes single agency (seller/buyer/landlord/tenant agent) and disclosed dual agency; it does NOT use a 'transaction broker' label like Florida or Colorado
- The MREC Agency Disclosure Form A ('Working With a Real Estate Broker') must be presented at the FIRST SUBSTANTIVE MEETING with a party the broker does not represent
- Disclosed dual agency requires informed WRITTEN consent from both buyer and seller before or at formalization, using Form A plus the MREC Dual Agency Confirmation Form attached to the offer
- A disclosed dual agent owes all fiduciary duties to both parties EXCEPT full disclosure and undivided loyalty
- Fiduciary duties to a represented client are memorized as OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care
How Mississippi Defines Agency
An agency relationship exists when a licensee (the agent) acts on behalf of a principal (the client) and owes that principal fiduciary duties. Mississippi agency rules live in the Mississippi Real Estate Commission (MREC) Rules and Regulations, Title 30, Part 1601, Chapter 4, and in the Mississippi Real Estate License Law (Miss. Code Ann. § 73-35). The state portion of your exam, administered by PSI, leans heavily on knowing exactly which relationships exist and when the disclosure form is delivered.
Mississippi recognizes only two formal brokerage relationships. This is a frequent trap because national exam content (and the old version of this guide) describes a "transaction broker" or "facilitator" model used in states like Florida and Colorado. Mississippi does not use that label. A licensee either represents a party (single agency or dual agency) or works with a party as a customer in a no-brokerage / non-agency capacity.
The Two Recognized Relationships
| Relationship | Who is represented | Key requirement |
|---|---|---|
| Single agency | One party only (seller, buyer, landlord, or tenant) | Written disclosure on Form A to the non-represented party at first substantive meeting |
| Disclosed dual agency | Both buyer and seller, by the same broker | Informed written consent of BOTH parties (Form A + Dual Agency Confirmation Form) |
Exam trap: Mississippi has NO statutory "transaction broker." If an answer choice describes a neutral "facilitator who represents neither party" as a recognized Mississippi agency type, it is wrong. The correct neutral arrangement is simply a customer/non-agency relationship.
Single Agency in Detail
In single agency, the broker represents exactly one side. The same brokerage may have a seller's agent (listing agent) for the seller and, separately, a buyer's agent for the buyer — but if they are different licensees within firms with proper firewalls, this can be designated agency, not dual agency. A single agent owes the full bundle of fiduciary duties to the client and only the honesty / material-fact duties to the other side.
| Agency type | Represents | Owes full fiduciary duties to |
|---|---|---|
| Seller's (listing) agent | Seller | Seller |
| Buyer's agent | Buyer | Buyer |
| Landlord's agent | Lessor | Lessor |
| Tenant's agent | Lessee | Lessee |
Fiduciary Duties — OLD CAR
Every represented client is owed six fiduciary duties. Memorize them as OLD CAR:
| Letter | Duty | What it means in practice |
|---|---|---|
| O | Obedience | Follow the client's lawful instructions (decline unlawful ones) |
| L | Loyalty | Put the client's interests above your own and above the other party's |
| D | Disclosure | Reveal all known material facts and anything benefiting the client |
| C | Confidentiality | Protect the client's negotiating position and personal information (survives closing) |
| A | Accounting | Account for all funds and documents; never commingle earnest money |
| R | Reasonable care | Act with the competence and diligence of a prudent licensee |
Worked scenario: A buyer tells her agent, "I'll pay up to $240,000 but list me at $225,000." The agent later represents only this buyer. Under Confidentiality and Loyalty, the agent may NOT reveal the $240,000 ceiling to the listing side. Doing so is a breach exposing the licensee to MREC discipline and civil liability — even if the agent thinks it helps close the deal.
Disclosed Dual Agency — The Heavily Tested Topic
Disclosed dual agency occurs when one broker (or one brokerage) represents both the buyer and the seller in the same transaction. Mississippi permits it ONLY with informed written consent from both parties. The critical, frequently tested fact:
A disclosed dual agent has all the fiduciary duties of a seller's or buyer's agent EXCEPT the duties of full disclosure and undivided loyalty.
That exception is logical — an agent cannot be fully loyal to two opposing parties at once, and cannot fully disclose one party's confidential position to the other. The dual agent still owes obedience, confidentiality, accounting, and reasonable care to both sides.
What a Dual Agent Must NOT Do
- Disclose the buyer's maximum price or the seller's minimum acceptable price
- Reveal either party's motivation (divorce, relocation deadline, financial distress)
- Advocate one party's interests over the other
- Offer opinion advice that favors one side (e.g., "offer less, they're desperate")
The Two-Step Consent Process
Mississippi requires consent at two points, and missing the second step is a common disciplinary issue:
| Step | When | Document |
|---|---|---|
| 1. Initial consent | At the time each representation agreement is signed | Consent to Dual Agency portion of MREC Form A |
| 2. Confirmation | Before the buyer signs the offer / before the offer is presented to the seller | MREC Dual Agency Confirmation Form, attached to the offer |
Worked scenario: A broker lists the Smiths' home, then a buyer-client wants to make an offer on it. The broker becomes a dual agent. Both the Smiths and the buyer signed the dual-agency consent on Form A weeks earlier. Before the buyer signs the purchase offer, the broker must still have the buyer sign the Dual Agency Confirmation Form and confirm the sellers' consent before presenting it. Skipping the confirmation step violates Rule 1601-4.3.
The Agency Disclosure Form (Form A) and Timing
The MREC Agency Disclosure Form A, titled "Working With a Real Estate Broker," is the document used to disclose representation. Timing rules differ by audience:
| Situation | When disclosure must occur |
|---|---|
| To your own client | Before an agreement for representation is entered into |
| To a party you do NOT represent | At the first substantive meeting (first time you discuss the buyer/seller's specific needs or property) |
| Dual agency consent | Prior to or at the time of formalization of the dual agency |
Key distinction: "First substantive meeting" does NOT mean the first phone call or a casual open-house greeting. It means the first contact where confidential or property-specific information is exchanged. Disclosing too late — after receiving confidential information — is the classic violation.
Common trap: Some answer choices say disclosure is due "at closing" or "within 3 days." Both are wrong for Mississippi. Disclosure to the non-represented party is due at the first substantive meeting, well before any offer.
When must a Mississippi licensee provide the MREC Agency Disclosure Form A to a party the licensee does NOT represent?
Which fiduciary duties does a Mississippi disclosed dual agent NOT owe to the parties?
Which agency relationship is NOT formally recognized under Mississippi license law?
A broker becomes a dual agent. Both parties signed the dual-agency consent on Form A when they hired the broker. What additional step is required before the buyer signs the offer?