§73-35-21. Grounds for refusing to issue or suspending or revoking license; hearing

(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 or receiving
compensation from more than one (1) party in a transaction, or
both, without the knowledge of all parties for whom he acts;

(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 provisionsof 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; or

(m) Failing to successfully pass the commission’s background
investigation for licensure or renewal as provided in Section 73-
35-10; or

(n) 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. However, simple contact and/or
communication with any mortgage broker or lender by a real
estate licensee about any professional, including, but not limited
to, an appraiser, home inspector, contractor, and/or attorney
regarding a listing and/or a prospective or pending contract for
the lease, sale and/or purchase of real estate shall not constitute
conduct in violation of this section.

(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.

(5) Nothing in this chapter shall prevent an associate broker or salesperson
from owning any lawfully constituted business organization, including,
but not limited to, a corporation, limited liability company or limited
liability partnership, for the purpose of receiving payments
contemplated in this chapter. The business organization shall not be
required to be licensed under this chapter and shall not engage in any
other activity requiring a real estate license.