What is the maximum fine MREC can impose per violation?

\$5,000. MREC can impose fines up to \$5,000 per violation. This is in addition to other disciplinary actions such as suspension, revocation, or required education.

Which action is a criminal offense in Mississippi?

Practicing real estate without a license. Practicing real estate without a license is a criminal misdemeanor in Mississippi, not just an administrative violation. Other options may result in administrative penalties but are not criminal offenses.

What rights does a Mississippi licensee have before MREC takes disciplinary action?

Due process rights including notice and hearing. Mississippi licensees have due process rights before disciplinary action, including the right to notice of charges, a formal hearing, representation by an attorney, presenting evidence and witnesses, and appealing unfavorable decisions.

Which of the following is NOT a disciplinary action MREC can impose?

Imprisonment. MREC can impose administrative penalties including denial, suspension, revocation, reprimand, fines, probation, and required education. MREC cannot impose imprisonment—that requires criminal prosecution through the court system.

Key Takeaways

MREC can investigate complaints, conduct hearings, and impose disciplinary actions
Violations can result in license denial, suspension, revocation, or fines up to \$5,000 per violation
Common violations include misrepresentation, commingling, unlicensed activity, and disclosure violations
Practicing without a license is a criminal misdemeanor in Mississippi
Licensees have due process rights including notice and hearing before disciplinary action

License Law Violations & Discipline

MREC has authority to investigate complaints and take disciplinary action against licensees who violate Mississippi real estate license law.

Common Violations

Misrepresentation and Fraud

Violation	Description
Material misrepresentation	False statements about important facts
Omission	Failing to disclose known material defects
Fraud	Intentional deception for personal gain
False advertising	Misleading marketing or claims

Trust Account Violations

Violation	Description
Commingling	Mixing client and broker funds
Conversion	Using client funds without authorization
Failure to deposit	Not depositing funds timely
Poor records	Inadequate documentation

Agency and Disclosure Violations

Violation	Description
Agency disclosure failure	Failing to provide required disclosures
Undisclosed dual agency	Acting for both parties without consent
Breach of fiduciary duty	Violating duties to clients
Undisclosed interest	Failing to disclose personal interest

Unlicensed Activity

Violation	Description
Practicing without license	Performing activities requiring a license
Practicing on expired license	Continuing to work after expiration
Paying unlicensed persons	Compensating unlicensed individuals for licensed activities

Warning: Practicing real estate without a license is a criminal misdemeanor in Mississippi.

Disciplinary Process

Investigation

Complaint filed with MREC (or MREC initiates investigation)
Investigation conducted by MREC staff
Evidence gathered (documents, interviews, audits)
Determination made whether to proceed

Hearing Process

If MREC proceeds with disciplinary action:

Step	Description
Notice	Licensee notified of charges
Hearing	Formal hearing before Commission
Evidence	Both sides present evidence
Decision	Commission issues written decision
Appeal	Licensee may appeal to court

Due Process Rights

Licensees have the right to:

Notice of charges
Hearing before adverse action
Representation by attorney
Present evidence and witnesses
Appeal unfavorable decisions

Disciplinary Actions

MREC may impose various sanctions:

Action	Description
Denial	Refuse to issue license
Suspension	Temporary loss of license
Revocation	Permanent loss of license
Reprimand	Formal warning
Fine	Up to $5,000 per violation
Probation	Conditional license with restrictions
Education	Required additional training

Factors Considered

Factor	Impact
Severity of violation	More serious = harsher penalty
Prior disciplinary history	Repeat violations = stricter
Harm to consumers	Consumer damage = more serious
Cooperation	Cooperation may reduce penalty
Rehabilitation	Remedial steps may help

Grounds for Discipline

MREC may take action against a licensee for:

Obtaining license through fraud or misrepresentation
Conviction of a felony or crime of moral turpitude
Violating the Mississippi Real Estate License Law
Violating MREC rules and regulations
Incompetence or untrustworthiness
Making false statements or promises
Acting in a discriminatory manner
Failing to complete continuing education

Mississippi Real Estate Salesperson

1Chapter 1: Mississippi Real Estate Commission & Licensing

2Chapter 2: Agency & Disclosure

3Chapter 3: Contracts & Property

4Chapter 4: Trust Accounts & Violations