1.1 Mississippi Real Estate Commission (MREC)
Key Takeaways
- MREC is created under Mississippi Code Title 73, Chapter 35 and consists of five members appointed by the Governor with Senate consent.
- Each commissioner must have been a Mississippi resident/citizen for at least 6 years and worked as a real estate broker for at least 5 years (Miss. Code Ann. § 73-35-5); one member comes from each of the 3 Supreme Court districts plus 2 at large, serving staggered 4-year terms.
- MREC powers include approving schools and courses, investigating complaints, auditing trust accounts, and disciplining licensees (fines up to $1,000 per offense, suspension, or revocation).
- The License Law (73-35) plus the MREC Rules and Regulations (Title 30, Part 1601 of the Administrative Code) together govern all licensee conduct.
- Fees collected go into the Real Estate License Fund (73-35-19), used for MREC operations and education — Mississippi has no traditional consumer recovery/guaranty fund.
What MREC Is and Where Its Power Comes From
The Mississippi Real Estate Commission (MREC) is the state agency that licenses, regulates, and disciplines real estate brokers and salespersons. Its power is statutory: the Real Estate Brokers License Law of 1954, codified at Title 73, Chapter 35 of the Mississippi Code (cited on the exam as "73-35-..."), creates MREC and defines who must be licensed.
The exam expects you to recognize that a regulation has two layers — the statute (passed by the Legislature, changeable only by the Legislature) and the MREC Rules and Regulations (Title 30, Part 1601 of the Mississippi Administrative Code, which MREC itself adopts to implement the statute).
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Composition of the Commission
| Feature | Rule |
|---|---|
| Number of members | 5 commissioners |
| Appointed by | Governor, with advice and consent of the Senate |
| Qualification | Resident/citizen of MS for 6+ years; worked as a real estate broker for 5+ years (§ 73-35-5) |
| Geographic spread | One from each of the 3 Supreme Court districts; remaining 2 at large |
| Term | 4-year staggered terms (so the whole body never turns over at once) |
| Day-to-day operations | Run by an Administrator/Executive Director (staff, not a commissioner) |
Common trap: candidates guess the Governor alone appoints members. The Senate must confirm. Another trap is confusing the five-member board with the much larger MREC staff who actually process applications and conduct audits.
What MREC Actually Does
MREC's authority is broad but bounded by the statute. Memorize these core powers:
| Power | What it means in practice |
|---|---|
| Licensing | Reviews applications, sets exam eligibility, issues temporary and permanent licenses, denies unqualified applicants. |
| Education oversight | Approves pre-license schools, post-license and CE course providers, and individual instructors. |
| Investigation | Responds to written complaints, subpoenas records, and audits broker trust (escrow) accounts. |
| Discipline | After a hearing, may reprimand, fine, suspend, or revoke a license, and may impose administrative fines of up to $1,000 per violation. |
| Rulemaking | Adopts and amends the Rules and Regulations to fill in statutory detail. |
The Real Estate License Fund (and the recovery-fund trap)
Mississippi Code 73-35-19 directs that license, exam, and renewal fees be deposited into the Real Estate License Fund, which pays for MREC's salaries, operations, the licensee directory, and education/research.
Heavily tested distinction: Many states (Florida, California, Texas) run a consumer recovery/guaranty fund that reimburses harmed members of the public. Mississippi does NOT operate that kind of consumer recovery fund — its License Fund is operational. If a question implies a Mississippi consumer can collect a fixed dollar amount from an MREC fund after winning a fraud judgment, treat that framing with suspicion; an injured consumer's remedy here is a civil lawsuit against the licensee, plus MREC disciplinary action.
Disciplinable conduct (preview)
Grounds for discipline under 73-35-21 include misrepresentation, commingling or conversion of trust funds, acting for more than one party without consent, false advertising, and any conduct constituting fraud or dishonest dealing. Chapter coverage of agency and trust accounts builds on these grounds.
Contacting MREC
| Resource | Detail |
|---|---|
| Website | mrec.ms.gov |
| Office | LeFleur's Bluff Tower, 4780 I-55 North, Suite 300, Jackson, MS 39211 |
| Phone | (601) 321-6970 |
| Online services | MREC online licensing portal |
Who Must Be Licensed — and Who Is Exempt
The License Law (73-35-3) defines a broker as a person who, for compensation or the promise of compensation, performs real-estate acts for another — listing, selling, buying, exchanging, leasing, auctioning, or negotiating a sale or lease of real estate, or advertising/holding out as engaged in such business. A salesperson performs those same acts but only on behalf of and under the supervision of a sponsoring broker. The two memory triggers the exam tests are (1) for another person and (2) for compensation — remove either, and a license generally is not required.
Key statutory exemptions
| Exempt party | Why exempt |
|---|---|
| Property owners dealing with their own real estate | Acting for self, not "for another" |
| Attorneys-at-law performing duties as part of legal representation | Not holding out as a real-estate broker |
| Court-appointed persons (executors, administrators, trustees, receivers) | Acting under court authority |
| Resident managers of an apartment building (employed for that building) | Limited, salaried function |
| Auctioneers at a foreclosure or judicial sale under court order | Operating under court process |
Classic trap: an unlicensed assistant may perform clerical tasks (scheduling, paperwork, office support) but the moment they negotiate terms, show property to prospects, or discuss price/financing for compensation, they are performing licensed activity illegally. Likewise, a property owner selling their own home needs no license, but a person paid to sell someone else's home does.
Statute vs. Rules — Why the Two-Layer System Matters
The exam frequently asks where a particular requirement "comes from." Anchor it: fees, who must be licensed, exemptions, and grounds for discipline are set by statute (73-35); procedural detail — application forms, advertising format, trust-account mechanics, course approval — lives in the MREC Rules and Regulations. Only the Legislature can change the statute; MREC can amend its own rules through the administrative-rulemaking process. When a question contrasts "the License Law" with "Commission rules," pick the statute for structural/eligibility items and the rules for day-to-day procedure.
How many members serve on the Mississippi Real Estate Commission, and who appoints them?
A Mississippi buyer wins a court judgment against a licensee for fraud but the licensee has no assets. What is the most accurate statement about recovering from an MREC fund?