MississippiSB 27482026 Regular SessionSenateWALLET

Real estate brokers; revise various definitions and provisions related to licensees.

Sponsored By: Chris Johnson (Republican)

Signed by Governor

Business and CommerceBusiness and Financial Institutions

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 2 benefits, 2 costs, 5 mixed.

Changing brokers, offices, and pay setup

If your responsible principal broker changes, you must notify the commission in writing within three days. When your agency ends, the broker must return your license within three days; you cannot do licensed work until the commission reissues it. Brokers must keep a fixed business location, display licenses, and tell the commission before or within 10 days after moving. You may form a corporation or LLC to receive your commission payments, but that entity cannot perform licensed work.

Who is exempt from broker licensing

Starting July 1, 2026, owners and their regular salaried employees may act on the owner’s property without a license. Lawyers, people using valid powers of attorney, court‑appointed fiduciaries, and public officers are exempt when doing those duties. Banks, FHA/VA‑approved lenders, and similar institutions and staff are exempt when making loans or selling foreclosed property. Life insurance companies and their reps may negotiate mortgage loans without a broker license.

License fees, renewals, and penalties

Applications cost up to $100 for broker or salesperson; passing gets a one‑year license at no extra fee, and failing lets you retest without a new application fee. Added broker licenses for entity officers or members can cost up to $75 each. Renewal caps are $75 for brokers and $60 for salespersons; renewing during the two‑month grace period after notice adds a 100% penalty, and nonpayment after notice cancels the license. Common admin fee caps: extra office $50, office change $50, duplicate/transfer $50, active→inactive $25, inactive→active $50, bad check $25. CE course review is capped at $100 and course renewal at $50; if a testing company runs the exam, it collects the test fee and the commission collects the application fee.

License suspension for unpaid child support

If you are out of compliance with a support order, the commission can suspend your real estate license. Reinstatement and fees follow Sections 93-11-157 and 93-11-163.

Handle client money fast and lawfully

If you receive earnest money, you must deposit it in trust or escrow by close of business of the next two banking days. The commission can refuse, suspend, or revoke licenses for misrepresentation, undisclosed dual agency, mishandling or commingling money, failing background checks, and other dishonest acts. Brokers who are not attorneys cannot give legal advice or share attorneys’ fees.

Who now needs a real estate license

Starting July 1, 2026, if you do listed real estate acts for pay, you are a broker under the law. Doing just one paid act counts. People who work for or with a broker are real estate salespersons and must follow the rules. Real estate includes leaseholds, condos, and timeshares. Mineral rights and mineral leases are not covered.

Clear rules for price opinions and AVMs

A broker price opinion is a human estimate of a likely sale price. It is not an automated valuation model. An automated valuation model is a computer model lenders use to value a home for a mortgage.

Written brokerage agreements and contract limits

Starting July 1, 2026, a broker must use a written agreement with a consumer that states services and pay. The commission cannot punish licensees for the content or delivery of state home‑seller disclosure forms. The commission also cannot force a rule that lets a buyer unilaterally end a buyer‑agency agreement.

All changes start July 1, 2026

The law takes effect on July 1, 2026. All rules in this act apply starting that date.

Sponsors & Cosponsors

Sponsor

Chris Johnson
Republican • Senate

Cosponsors

Sollie B. Norwood
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 170 • No: 0

House vote • 3/4/2026

Passed

Yes: 119 • No: 0

Senate vote • 2/11/2026