MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Judiciary B

By: Representative Frierson

AN ACT TO CREATE THE MISSISSIPPI REAL ESTATE CONSUMER'S AGENCY AND DISCLOSURE ACT; TO PRESCRIBE THE DIFFERENT DUTIES OF REAL ESTATE BROKERS WHEN ENGAGED BY SELLERS, LANDLORDS, BUYERS OR TENANTS; TO REQUIRE BROKERAGE RELATIONSHIP DISCLOSURE AND PRESCRIBE A FORM TO BE USED FOR DISCLOSURE OF LIMITED AGENCY RELATIONSHIPS; TO PROVIDE THAT A BROKER MAY ACT AS A DUAL AGENT ONLY WITH A WRITTEN CONSENT OF ALL CLIENTS; TO AMEND SECTION 73-35-21, MISSISSIPPI CODE OF 1972, TO ADD NEW GROUNDS FOR REFUSING TO ISSUE OR SUSPENDING OR REVOKING A REAL ESTATE BROKER'S LICENSE; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. This chapter shall be known as and may be cited as the "Mississippi Real Estate Consumer's Agency and Disclosure Act."

SECTION 2. (1) The Legislature finds, determines and declares that application of the common law of agency to the relationships between real estate brokers and persons who are sellers, buyers, landlords and tenants of rights and interests in real property has resulted in misunderstandings and consequences that have been contrary to the best interests of the public; the Legislature further finds, determines and declares that the real estate brokerage industry has a significant impact upon the economy of the State of Mississippi and that it is in the best interests of the public to provide codification of the relationships between real estate brokers and consumers of brokerage services in order to prevent detrimental misunderstandings and misinterpretations of such relationships by both consumers and real estate brokers and thus promote and provide stability in the real estate market. The provisions of this act are enacted to govern the relationships between sellers, landlords, buyers, tenants and real estate brokers to the extent not governed by individual written agreements.

(2) This act shall supersede the common law of agency in real estate transactions.

(3) The Legislature further finds, determines and declares that the provisions of this act are not intended to prescribe or affect the contractual relationships as between real estate brokers and the broker's affiliated licensees.

(4) The provisions of this act may serve as a basis for private rights of action and defenses by sellers, buyers, landlords, tenants and real estate brokers.

SECTION 3. As used in this act, the term:

(a) "Agency" means every relationship in which a real estate broker acts for or represents another by the latter's express authority in a real property transaction.

(b) "Broker" means any individual or entity issued a broker's real estate license by the Mississippi Real Estate Commission pursuant to Chapter 35 of Title 73, Mississippi Code of 1972. The term "broker" includes the broker's affiliated licensees except where the context would otherwise indicate.

(c) "Brokerage" means the business or occupation of a real estate broker.

(d) "Brokerage engagement" means an express written or oral contract wherein the client promises to pay the real estate broker a valuable consideration or agrees that the real estate broker may receive a valuable consideration from another in consideration of the broker producing a seller, buyer, landlord or tenant ready, able and willing to sell, or rent the property.

(e) "Brokerage relationship" means the resulting limited agency formed between the broker and the broker's client as a result of the brokerage engagement.

(f) "Client" means a person who has entered into a brokerage engagement with a real estate broker.

(g) "Common source information companies" means any person, firm or corporation that is a source compiler or supplier of information regarding real estate for sale or lease and other data and includes but is not limited to multiple listing services.

(h) "Customer" means a person who has not entered into a brokerage engagement with a broker but whom a broker may perform ministerial acts in a real estate transaction.

(i) "Dual agent" means a broker who has a brokerage relationship with both seller and buyer or both landlord and tenant in the same transaction.

(j) "Limited agent" means a broker who, acting under the authority of a brokerage engagement, solicits offers to purchase, sell, lease or exchange real property without being subject to the control of the client except as to the result of the work.

(k) "Ministerial acts" means those acts which a broker or affiliated licensee performs for a person which do not require discretion or the exercise of the broker or affiliate licensee's own judgement.

(l) "Timely" means reasonable; a reasonable time under the particular circumstances.

(m) "Real estate transaction" means any transaction covered by Section 73-35-3.

SECTION 4. (1) A broker who performs services under a brokerage engagement for another is a limited agent, unless a different legal relationship between the broker and the person for whom the broker performs the service is intended and is reduced to writing and signed by the parties. If a broker is not a limited agent, then notice of said different relationship shall be timely furnished to all parties to the proposed real estate transaction. Except as set out in this chapter, a limited agent shall not be deemed to have a fiduciary relationship with any party or fiduciary obligations to any party but shall only be responsible for exercising ordinary care in the discharge of its specified duties under the brokerage engagement. Unless a broker enters into a brokerage engagement with a person, it shall be presumed that the person is a customer of the broker rather than a client.

(2) Whenever a broker's relationship to customers or clients changes, the broker shall disclose that fact to all brokers, customers, or clients involved in the contemplated transaction and set out the nature of the new relationship to the customers or clients and the broker's duties under this chapter.

SECTION 5. (1) A broker engaged by a seller shall:

(a) Perform the terms of the brokerage engagement made with the seller;

(b) Promote the interests of the seller by:

(i) Seeking a sale at the price and terms stated in the brokerage engagement or at a price and terms acceptable to the seller; provided, however, the broker shall not be obligated to seek additional offers to purchase the property while the property is subject to a contract of sale, unless the brokerage engagement so provides;

(ii) Timely presenting all offers to and from the seller, even when the property is subject to a contract of sale;

(iii) Disclosing to the seller material facts which the broker has actual knowledge concerning the transaction;

(iv) Advising the seller to obtain expert advice as to material matters which are beyond the experience of the broker;

(v) Timely accounting for all money and property received in which the seller has or may have an interest;

(c) Exercise reasonable skill and care; and

(d) Comply with all requirements of this act and all applicable statutes and regulations, including but not limited to fair housing and civil rights statutes.

(2) Brokers shall treat all prospective buyers honestly and shall not knowingly give them false information. A broker engaged by a seller shall timely disclose to prospective buyers with whom the broker is working all material adverse facts as required by state and federal statutes which are actually known by the broker which could not be discovered by a reasonably diligent inspection of the property by the buyer. A broker shall not be liable to a buyer for providing false information to the buyer if the false information was provided to the broker by the broker's seller-client and the broker did not have actual knowledge that the information was false. Nothing in this subsection (2) shall limit any obligation of a seller under any applicable law to disclose to prospective buyers all material adverse facts actually known by the seller pertaining to the physical condition of the property nor shall it limit the obligation of prospective buyers to inspect the physical condition of the property. No cause of action shall arise on behalf of any person against a broker for revealing information in compliance with this subsection (2).

(3) A broker engaged by a seller in a real estate transaction may provide assistance to the buyer by performing such ministerial acts as preparing offers and conveying them to the seller; locating lenders, inspectors, attorneys, insurance agents, surveyors, schools, shopping facilities, places of worship, and all such other like or similar services; and performing such ministerial acts shall not be construed in such a manner as to violate the broker's brokerage engagement with the seller nor shall performing such ministerial acts for the buyer be construed in such a manner as to form a brokerage engagement with the buyer or to impose liability on the broker for negligent or intentional acts of such third parties.

(4) A broker engaged by a seller does not breach any duty or obligation by showing alternative properties to prospective buyers.

SECTION 6. (1) A broker engaged by a landlord shall:

(a) Perform the terms of the brokerage engagement made with the landlord;

(b) Promote the interest of the landlord by:

(i) Seeking a tenant at the price and terms stated in the brokerage engagement or at a price and terms acceptable to the landlord; provided, however, the broker shall not be obligated to see additional offers to lease the property while the property is subject to the lease or a letter of intent to lease, unless the brokerage engagement so provides;

(ii) Timely presenting all offers to and from the landlord, even when the property is subject to a lease or a letter of intent to lease;

(iii) Disclosing to the landlord material facts which the broker has actual knowledge concerning the transaction;

(iv) Advising the landlord to obtain expert advice as to material matters which are beyond the expertise of the broker;

(v) Timely accounting for all money and property received in which the landlord has or may have an interest;

(c) Exercise reasonable skill and care; and

(d) Comply with all requirements of this act and all applicable statutes and regulations, including but not limited to fair housing and civil rights statutes.

(2) Brokers shall treat all prospective tenants honestly and shall not knowingly give them false information. A broker engaged by a landlord shall timely disclose to prospective tenants with whom the broker is working all material adverse facts as required by state and federal statutes which are actually known by the broker which could not be discovered by a reasonably diligent inspection of the property by the tenant. A broker shall not be liable to a tenant for providing false information to the tenant if the false information was provided to the broker by the broker's landlord-client and the broker did not have actual knowledge that the information was false. Nothing in this subsection (2) shall limit any obligation of the landlord under any applicable law to disclose to prospective tenants all material adverse facts actually known by the landlord pertaining to the physical condition of the property nor shall it limit the obligation of prospective tenants to inspect the physical condition of the property. No cause of action by any person shall arise on behalf of any person against a broker for revealing in compliance with this subsection (2).

(3) A broker engaged by a landlord in a real estate transaction may provide assistance to the tenant by performing such ministerial acts as preparing offers and conveying them to the landlord; locating inspectors, attorneys, insurance agents, schools, shipping facilities, places of worship, and all other such like or similar services; and performing such ministerial acts shall not be construed in such a manner as to violate the broker's brokerage engagement with the landlord nor shall performing such ministerial acts for the tenant be construed in such a manner as to form a brokerage engagement with the tenant or to impose liability on the broker for negligent or intentional acts of such third parties.

(4) A broker engaged by a landlord in a real estate transaction may provide assistance to the tenant by performing such ministerial acts as preparing offers and conveying them to the landlord; locating inspectors, attorneys, insurance agents, schools, shipping facilities, places of worship, and all other such like or similar services; and performing such ministerial acts shall not be construed in such a manner as to violate the broker's brokerage engagement with the landlord nor shall performing such ministerial acts for the tenant be construed in such a manner as to form a brokerage engagement with the tenant or to impose liability on the broker for negligent or intentional acts of such third parties.

(5) A broker engaged by a landlord does not breach any duty or obligation by showing alternative properties to prospective tenants.

SECTION 7. (1) A broker engaged by a buyer shall:

(a) Perform the terms of the brokerage engagement made with the buyer;

(b) Promote the interests of the buyer by:

(i) Seeking a property at a price and terms acceptable to the buyer; provided, however, the broker shall not be obligated to seek other properties for the buyer while the buyer is a party to a contract to purchase property, unless the brokerage engagement so provides;

(ii) Timely presenting all offers to and from the buyer, even when the buyer is a party to a contract to purchase property;

(iii) Disclosing to the buyer material facts which the broker has actual knowledge concerning the transaction;

(iv) Advising the buyer to obtain expert advice as to material matters which are beyond the expertise of the broker;

(v) Timely accounting for all money and property received in which the buyer has or may have an interest;

(c) Exercise reasonable skill and care; and

(d) Comply with all requirements of this act and all applicable statutes and regulations, including but not limited to fair housing and civil rights statutes.

(2) Brokers shall treat all prospective sellers honestly and shall not knowingly give them false information. A broker engaged by a buyer shall timely disclose to a prospective seller with whom the broker is working as a customer and who is selling property which will be financed either by a loan assumption or by the seller's providing a part or all of the financing all material adverse facts actually known by the broker concerning the buyer's financial ability to perform the terms of the sale, and in the case of a residential transaction, the buyer's intent to occupy the property as a principal residence. A broker shall not be liable to a seller for providing false information to the seller if the false information was provided to the broker by the broker's buyer-client and the broker did not have actual knowledge that the information was false. Nothing in this subsection (2) shall limit the obligation of the prospective buyer under any applicable law to disclose to the prospective seller all material adverse facts actually known by the buyer concerning the buyer's financial ability to perform the terms of the sale, and in the case of a residential transaction, the buyer's intent to occupy the property as a principal residence. No cause of action shall arise on behalf of any person against a broker for revealing information in compliance with this subsection (2).

(3) A broker engaged by a buyer does not breach any duty or obligation by showing properties in which the buyer is interested to other prospective buyers.

SECTION 8. (1) A broker engaged by tenant shall:

(a) Perform the terms of the brokerage engagement made with the tenant;

(b) Promote the interests of the tenant by:

(i) Seeking a lease at a price and terms acceptable to the tenant; provided, however, the broker shall not be obligated to seek other properties for the tenant while the tenant is a party to a lease or a letter of intent to lease unless the brokerage engagement so provides;

(ii) Timely presenting all offers to and from the tenant, even when the tenant is a party to a lease or a letter of intent to lease;

(iii) Disclosing to the tenant material facts which the broker has actual knowledge concerning the transaction;

(iv) Advising the tenant to obtain expert advice as to material matters which are beyond the expertise of the broker;

(v) Timely accounting for all money and property received in which the tenant has or may have an interest;

(c) Exercise reasonable skill and care; and

(d) Comply with all requirements of this act and all applicable statutes and regulations, including but not limited to fair housing and civil statutes.

(2) Brokers shall treat all prospective landlords honestly and shall not knowingly give them false information. A broker engaged by a tenant shall timely disclose to a prospective landlord with whom the broker is working all material adverse facts actually known by the broker concerning the tenant's financial ability to perform the terms of the lease or letter of intent to lease or intent to occupy the property. A broker shall not be liable to a landlord for providing false information to the landlord if the false information was provided to the broker by the broker's tenant-client and the broker did not have actual knowledge that the information was false. Nothing in this subsection (2) shall limit any obligation of the prospective tenant under any applicable law to disclose to a prospective landlord all material adverse facts actually known by the tenant concerning the tenant's financial ability to perform the terms of the lease or letter of intent to lease or intent to occupy the property. No cause of action shall arise on behalf of any person against a broker for revealing information in compliance with this subsection (2).

(3) A broker engaged by a tenant in a real estate transaction may provide assistance to the landlord by performing such ministerial acts as preparing and conveying offers to the tenant; locating draftsmen or architects, attorneys, surveyors, and all such other like or similar services; and performing such ministerial acts shall not be construed in such a manner as to violate the broker's brokerage engagement with the tenant nor shall performing such ministerial acts for the landlord be construed in such a manner as to form a brokerage engagement with the landlord or to impose liability on the broker for negligent or intentional acts of such third parties.

(4) A broker engaged by a tenant does not breach any duty or obligation by showing properties in which the tenant is interested to other prospective tenants.

SECTION 9. (1) The relationships set forth in Sections 5 through 8 of this act shall commence at the time that the client engages the broker, and shall continue until:

(a) Completion of performance of the engagement; or

(b) If paragraph (a) of this subsection is not applicable, then the earlier of:

(i) Any date of expiration agreed upon by the parties in the brokerage agreement or in any amendments thereto;

(ii) Any authorized termination of the relationship; or

(iii) If no expiration is provided and no termination has occurred, then one (1) year after initiation of the engagement.

(2) Except as otherwise agreed in writing and as provided in subsection (1) of this section, a broker owes no further duties to the client after termination, expiration, or completion of performance of the engagement, except:

(a) To account for all monies and property relating to the engagement; and

(b) To keep confidential all information received during the course of the engagement which was made confidential by request or instructions from the client, unless:

(i) The client permits the disclosure by subsequent word or conduct;

(ii) Such disclosure is required by law; or

(iii) The information becomes public from a source other than the broker.

SECTION 10. (1) Prior to entering into any of the brokerage engagement relationships enumerated in Sections 5 through 8 of this act, a broker shall:

(a) Advise the prospective client of the types of brokerage relationships available through the broker;

(b) Advise such prospective client of any other brokerage relationships held by such broker which would conflict with any interests of the prospective client actually known to the broker; and

(c) Advise such prospective client as to the broker's compensation and whether the broker will share that compensation with other brokers who may represent other parties to the transaction.

(2) An offer of cooperating with another broker or to compensate another broker shall not be made to other brokers without timely disclosure to the party engaging the broker.

(3) The following form shall be used for disclosure of limited agency relationships:

Seller and buyer each have an independent duty to protect their own interests and should read this agreement carefully to insure that it accurately sets forth the terms which they want included in this transaction. Seller and buyer understand that they may seek independent legal counsel in order to assist them with any matter relating to this agreement or to this transaction which is the subject matter of this agreement.

For the purpose of this disclosure, the term seller and/or buyer will also include those other acts specified in Section 73-35-3 (1), Mississippi Code of 1972, ". . . list, sell, purchase, exchange, rent, lease, manage, or auction any real estate, or the improvements thereon including options;"

A seller/landlord can enter into a listing/management agreement with a real estate firm authorizing the firm and its agent(s) to represent the seller/landlord in finding a buyer/tenant for his property. A licensee who is engaged by and acts as the agent of the seller/landlord only is known as a seller's/landlord's agent. A seller's/landlord's agent has the following duties and obligations:

To the seller/landlord:

--A duty of honesty;

--A duty to perform the terms of the brokerage engagement made with the seller;

--A duty to promote the interests of the seller/landlord;

--A duty to exercise reasonable skill and care;

--A duty to comply with all requirements of state and federal statutes.

To the buyer/tenant:

--A duty of honesty;

--A duty to disclose all facts known to the seller's/landlord's agent materially affecting the value of the property which are not known to, or readily observable by, the parties in a transaction.

A buyer/tenant may contract with an agent or firm to represent him. A licensee who is engaged by and acts as the agent of the buyer/tenant only is known as the buyer's/tenant's agent.

A buyer's/tenant's agent has the following duties and obligations:

To the buyer/tenant:

--A duty of honesty;

--A duty to perform the terms of the brokerage agreement made with the buyer/tenant;

--A duty to promote the interests of the buyer/tenant;

--A duty to exercise reasonable skill and care; and

--A duty to comply with all requirements of state and federal statutes.

To the seller/landlord:

--A duty of honesty;

--A duty to disclose all facts known to the buyer's/tenant's financial ability to perform the terms of the contract.

A real estate broker may represent more than one (1) party in the same transaction with the written consent of all clients. In working as a disclosed dual agent, the broker represents two or more clients whose interests are or at times could be different or even adverse.

A disclosed dual agent has the following duties and obligations:

To the seller/landlord and buyer/tenant:

--A duty of honesty;

--A duty to perform the terms of the brokerage engagement made with the seller/landlord and buyer/tenant;

--A duty to promote the interests of the clients;

--A duty to exercise reasonable skill and care;

--A duty to disclose all material, adverse facts actually known by the broker concerning the property;

--A duty to comply with all requirements of state and federal statutes.

A disclosed dual agent may not disclose:

--Information made confidential by request or instructions from another client, except information allowed to be disclosed by his code section or required to be disclosed by this code section or required to be disclosed by this chapter.

DESCRIPTION OF THE TRANSACTION OR TYPES OF TRANSACTIONS IN WHICH THE BROKER WILL SERVE AS A DUAL AGENT: _________________________

________________________________________________________________.

MATERIAL RELATIONSHIP: Neither the broker nor affiliated licensees has any known material relationship with either client other than that described herein: ______________________________

________________________________________________________________.

AFFILIATED LICENSEE ASSIGNMENT: In this transaction, broker has assigned different licensees as follows: The broker has assigned _________________________________ (listing licensee) to work with seller, _________________________________ (selling licensee) to work with buyer, and for the purposes of this agreement each shall be deemed to act for and to represent exclusively the party to whom each has been assigned.

Broker may provide assistance to a customer by performing ministerial acts such as preparing offers and conveying them to the client; locating lenders, inspectors, attorneys, insurance agents, surveyors, schools, shopping facilities, places of worship and all other such like or similar services.

_______________________________, _______________________________

Name of Licensee Name of Company

has informed me that brokerage services are being provided me as a client and is acting as a:

__ Seller's Agent __ Landlord's Agent

__ Buyer's Agent __ Tenant's Agent

__ Disclosed Dual Agent

OR IN:

__ Other lawful relationships defined by

separate agreement

has informed me that brokerage services are being provided me as a customer and

__ I do not desire an agency relationship.

By signing below, I acknowledge that I have received, read and understand the information contained in the brochure "Information and Disclosure Regarding Real Estate Agency Relationships" and that this was given to me at the time the real estate licensee began providing specific assistance in a real estate transaction.

______________________________ OR _______________________________ Client (Date) Customer (Date)

______________________________ OR _______________________________ Client (Date) Customer (Date)

______________________________ OR _______________________________ Licensee (Date) Licensee (Date)

SECTION 11. The payment or promise of payment of compensation to a broker does not determine whether a brokerage engagement relationship has been created between any broker and a seller, landlord, buyer or tenant.

SECTION 12. (1) A broker may act as a dual agent only with a written consent of all clients. Such written consent shall be presumed to have been given and to be informed as against any client who signs a writing or writings which contains the following:

(a) A description of the transactions or types of transactions in which the broker will serve as a dual agent;

(b) A statement that, in serving as a dual agent, the broker represents two (2) clients whose interests are or at times could be different or even adverse;

(c) A statement that a dual agent may not disclose to any client information made confidential by request or instructions from another client, except information allowed to be disclosed by this section or required to be disclosed by this section or required to be disclosed by this act;

(d) A statement that the broker or the broker's affiliated licensees have no material relationship with either client other than that incidental to the transactions, or if the broker or the broker's affiliated licensees have such a relationship, a disclosure of the nature of such a relationship. For the purpose of this section, a material relationship shall mean any actual known personal, familiar, or business relationship between the broker or the broker's affiliated licensees and a client which would impair the ability of the broker or affiliated licensees to exercise fair and independent judgement relative to another client;

(e) A statement that the client does not have to consent to the dual agency; and

(f) A statement that the consent of the client has been given voluntarily and that the engagement has been read and understood.

(2) No cause of action shall arise on behalf of any person against a dual agent for making disclosure allowed or required by this chapter and the dual agent does not terminate any agency by making such allowed or required disclosures.

(3) A broker may assign different licensees affiliated with the broker to represent exclusively different clients in the same transaction. The licensees may not disclose, except to the licensee's broker, information made confidential by request or instructions of the client the licensee is representing, except information allowed to be disclosed by this section or required to be disclosed by this act.

(4) In the case of dual agency, each client and broker and their respective licensees possess only actual knowledge and information. There shall be no imputation of knowledge or information among or between the clients, brokers or their affiliated licensees.

(5) In any transaction, a broker may without liability withdraw from representing a client who has not consented to a disclosed dual agency at any time prior to the existence of the dual agency. Such withdrawal shall not prejudice the ability of the broker to continue to represent the other client in the transaction, nor limit the broker from representing the client in other transactions not involving a dual agency. When such withdrawal as contemplated in this subsection occurs, the broker shall not receive a referral fee for referring a client to a broker employed by a different real estate brokerage firm.

(6) Every broker shall develop and enforce an office brokerage relationship policy among affiliated licensees which either specifically permits or rejects the practice of disclosed dual agency, which office brokerage relationship policy shall be disclosed pursuant to Section 10 of this act and paragraph (a) of subsection (1) of this section.

SECTION 13. Except as may be provided in a written agreement between the parties, a broker shall not be deemed to have an agency relationship with a common source information company. No broker shall be deemed to be a subagent of any client of another broker solely by reason of membership or other affiliation by such brokers in a common source information company, including but not limited to multiple listing services.

SECTION 14. A client or other party to whom a real estate licensee provides services shall not be liable for damages for the misrepresentations of the licensee arising out of such licensee's services unless the client or party knew, or had reason to know, of the misrepresentation. This section shall not limit the liability of a licensee's managing broker for the misrepresentation of the managing broker's licensees.

SECTION 15. Section 73-35-21, Mississippi Code of 1972, is amended as follows:

73-35-21. (1) The commission may, upon its own motion and shall upon the verified complaint in writing of any person, hold a hearing for the refusal of license or for the suspension or revocation of a license previously issued, or for such other action as the commission deems appropriate. The commission shall have full power to refuse a license for cause or to revoke or suspend a license where it has been obtained by false or fraudulent representation, or where the licensee in performing or attempting to perform any of the acts mentioned herein, is deemed to be guilty of:

(a) Making any substantial misrepresentation in connection with a real estate transaction;

(b) Making any false promises of a character likely to influence, persuade or induce;

(c) Pursuing a continued and flagrant course of misrepresentation or making false promises through agents or salespersons or any medium of advertising or otherwise;

(d) Any misleading or untruthful advertising;

(e) Acting for more than one (1) party in a transaction * * * without the express written consent of all parties to the transaction;

(f) Failing, within a reasonable time, to account for or to remit any monies coming into his possession which belong to others, or commingling of monies belonging to others with his own funds. Every responsible broker procuring the execution of an earnest money contract or option or other contract who shall take or receive any cash or checks shall deposit, within a reasonable period of time, the sum or sums so received in a trust or escrow account in a bank or trust company pending the consummation or termination of the transaction. "Reasonable time" in this context means by the close of business of the next banking day;

(g) Entering a guilty plea or conviction in a court of competent jurisdiction of this state, or any other state or the United States of any felony;

(h) Displaying a "for sale" or "for rent" sign on any property without the owner's consent;

(i) Failing to furnish voluntarily, at the time of signing, copies of all listings, contracts and agreements to all parties executing the same;

(j) Paying any rebate, profit or commission to any person other than a real estate broker or salesperson licensed under the provisions of this chapter;

(k) Inducing any party to a contract, sale or lease to break such contract for the purpose of substituting in lieu thereof a new contract, where such substitution is motivated by the personal gain of the licensee;

(l) Accepting a commission or valuable consideration as a real estate salesperson for the performance of any of the acts specified in this chapter from any person, except his employer who must be a licensed real estate broker; * * *

(m) Any act or conduct, whether of the same or a different character than hereinabove specified, which constitutes or demonstrates bad faith, incompetency or untrustworthiness, or dishonest, fraudulent or improper dealing;

(n) Accepting, giving or charging any undisclosed commission, rebate or direct profit on expenditures made for a principal or any undisclosed commission, rebate or direct profit for procuring a loan or insurance or for conducting a property inspection related to a real estate transaction; or

(o) Failing to disclose in a timely manner to all parties in a real estate transaction any agency relationship that the licensee may have with any of the parties.

(2) No real estate broker shall practice law or give legal advice directly or indirectly unless said broker be a duly licensed attorney under the laws of this state. He shall not act as a public conveyancer nor give advice or opinions as to the legal effect of instruments nor give opinions concerning the validity of title to real estate; nor shall he prevent or discourage any party to a real estate transaction from employing the services of an attorney; nor shall a broker undertake to prepare documents fixing and defining the legal rights of parties to a transaction. However, when acting as a broker, he may use an earnest money contract form. A real estate broker shall not participate in attorney's fees, unless the broker is a duly licensed attorney under the laws of this state and performs legal services in addition to brokerage services.

(3) It is expressly provided that it is not the intent and purpose of the Mississippi Legislature to prevent a license from being issued to any person who is found to be of good reputation, is able to give bond, and who has lived in the State of Mississippi for the required period or is otherwise qualified under this chapter.

(4) In addition to the reasons specified in subsection (1) of this section, the commission shall be authorized to suspend the license of any licensee for being out of compliance with an order for support, as defined in Section 93-11-153. The procedure for suspension of a license for being out of compliance with an order for support, and the procedure for the reissuance or reinstatement of a license suspended for that purpose, and the payment of any fees for the reissuance or reinstatement of a license suspended for that purpose, shall be governed by Section 93-11-157 or 93-11-163, as the case may be. If there is any conflict between any provision of Section 93-11-157 or 93-11-163 and any provision of this chapter, the provisions of Section 93-11-157 or 93-11-163, as the case may be, shall control.

SECTION 16. This act shall take effect and be in force from and after July 1, 1997.