Bill Text: MS HB1682 | 2026 | Regular Session | Introduced
Bill Title: Wholesalers; require certain written disclosures for when purchasing residential real estate for transfer to third party purchaser.
Sponsorship: Partisan Bill (Independent 1)
Status: (Failed) 2026-02-03 - Died In Committee [HB1682 Detail]
Download: Mississippi-2026-HB1682-Introduced.html
MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Judiciary A
By: Representative Yates
House Bill 1682
AN ACT TO AMEND SECTION 73-35-3, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF REAL ESTATE BROKER TO INCLUDE PERSONS, PARTNERSHIPS, ASSOCIATIONS, COMPANIES AND CORPORATIONS WHO ENGAGE IN THE PRACTICE OR PROCESS OF WHOLESALING; TO DEFINE WHOLESALER; TO PROVIDE THAT EXEMPTIONS FROM LICENSING REQUIREMENTS DO NOT APPLY TO WHOLESALERS; TO REQUIRE WHOLESALERS TO PROVIDE CERTAIN WRITTEN DISCLOSURES TO HOMEOWNERS; TO RENDER INVALID ANY CONTRACT THAT DOES NOT INCLUDE THE REQUIRED DISCLOSURES; TO PROVIDE THAT THE DISCLOSURE REQUIREMENTS SHALL ONLY APPLY TO TRANSACTIONS INVOLVING RESIDENTIAL REAL ESTATE; TO AUTHORIZE THE MISSISSIPPI REAL ESTATE COMMISSION TO PROMULGATE ANY RULES NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 73-35-3, Mississippi Code of 1972, is amended as follows:
73-35-3. (1) The term "real estate broker" within the meaning of this chapter shall include all persons, partnerships, associations, companies and corporations, foreign and domestic, who for a stated salary, fee, commission or other valuable consideration, or who with the intention or expectation of receiving or collecting the same, perform any of the following acts:
(a) List * * * to sell, purchase, exchange, rent,
lease, manage or auction any real estate, or the improvements thereon,
including options;
(b) Sell, purchase, exchange, rent, lease, manage or auction any real estate, or the improvements thereon, including options;
(c) * * * Negotiate or attempt to negotiate any
such activity; * * *
(d) Advertise
or hold themselves out as engaged in such activities; * * *
(e) Direct or
assist in the procuring of a purchaser or prospect calculated or intended to
result in a real estate transaction * * *;
* * *
(f) Sell such
real estate, or parts thereof, on behalf of the owner or owners thereof,
in lots or other parcels, including timesharing and condominiums * * *;
(g) Sell, exchange
or lease, or offer or attempt or agree to negotiate the sale, exchange or lease
of, any such lot or parcel of real estate * * * on behalf of the owner or owners thereof;
or
(h) Engage in the transaction of real estate as a wholesaler as defined in subsection (11) of this section.
(2) The term "real estate" as used in this chapter shall include leaseholds as well as any and every interest or estate in land, including timesharing and condominiums, whether corporeal or incorporeal, freehold or nonfreehold, and whether said property is situated in this state or elsewhere; provided, however, that the term "real estate" as used in this chapter shall not include oil, gas or mineral leases, nor shall it include any other mineral leasehold, mineral estate or mineral interest of any nature whatsoever.
(3) One (1) act in consideration of or with the expectation or intention of, or upon the promise of, receiving compensation, by fee, commission or otherwise, in the performance of any act or activity contained in subsection (1) of this section, shall constitute such person, partnership, association or corporation a real estate broker and make him, them or it subject to the provisions and requirements of this chapter.
(4) The term "real estate salesperson" shall mean and include any person employed or engaged by or on behalf of a licensed real estate broker to do or deal in any activity as included or comprehended by the definitions of a real estate broker in subsection (1) of this section, for compensation or otherwise.
(5) The term "residential real estate" means real property located in this state that is used primarily for a dwelling and contains one (1) to four (4) dwelling units.
( * * *6) The term "automated valuation
method" means any computerized model used by mortgage originators and
secondary market issuers to determine the collateral worth of a mortgage
secured by a consumer's principal dwelling.
( * * *7) The term "broker price
opinion" means an estimate prepared by a real estate broker, agent, or
salesperson that details the probable selling price of a particular piece of
real estate property and provides a varying level of detail about the
property's condition, market, and neighborhood, and information on comparable
sales, but does not include an automated valuation model.
(8) The term "contract" means any agreement or arrangement, including power of attorney, for the purchase, sale or assignment of real estate.
(9) The term "homeowner" means any individual, entity, trust or partnership holding title to residential property.
(10) The term "business day" means any calendar day except for Saturday, Sunday or any public holiday recognized by state or federal law.
(11) The term "wholesaler" means any individual or entity engaging in the business of securing, negotiating or facilitating the sale of residential real estate for the primary purpose of transferring, assigning or selling their equitable interest in the property, directly or indirectly, for financial profit. This includes any person or entity that:
(a) Enters into a contract to purchase residential real estate with the intent of assigning or selling the contractual rights to another party before taking possession or legal ownership of such residential real estate; and
(b) Transfers or intends to transfer the contractual rights or interest to a third-party purchaser by any means, including by use of a legal instrument or technique, such as an assignment, novation or double closing. As used in this paragraph (b), "double closing" means the wholesaler simultaneously closes two (2) separate transactions on the same property, one (1) with the original seller and one (1) with the third-party purchaser, with intent to be paid from funds expended by the third-party purchaser, and without the intent to reside in or otherwise materially improve such residential real estate.
( * * *12) Exempt from the licensing
requirements of this chapter shall be any person, partnership, association or
corporation, who, as a bona fide owner, shall perform any aforesaid act with
reference to property owned by them, or to the regular employees thereof who
are on a stated salary, where such acts are performed in the regular course of
business; however, no exemption from the licensing requirements of this
chapter shall apply to any person, partnership, association, company or
corporation engaged in the transaction of real estate as a wholesaler as
defined in subsection (11) of this section.
( * * *13) The provisions of this chapter
shall not apply to:
(a) Attorneys at law in the performance of primary or incidental duties as such attorneys at law.
(b) Any person holding
in good faith a duly executed power of attorney from the owner, authorizing the
final consummation and execution for the sale, purchase, leasing or exchange of
real estate * * *;
however, this exemption for a duly executed power of attorney shall not apply
to any act, or attempted act, as set forth in subsection (1) of this section,
when engaged in for compensation or the expectation of same.
(c) The acts of any person while acting as a receiver, trustee, administrator, executor, guardian or under court order, or while acting under authority of a deed of trust or will.
(d) Public officers while performing their duties as such.
(e) Anyone dealing exclusively in oil and gas leases and mineral rights.
( * * *14) Nothing in this chapter shall be
construed to prohibit life insurance companies and their representatives from
negotiating or attempting to negotiate loans secured by mortgages on real
estate, nor shall these companies or their representatives be required to
qualify as real estate brokers or agents under this chapter.
( * * *15) The provisions of this chapter
shall not apply to the activities of mortgagees approved by the Federal Housing
Administration or the United States Department of Veterans Affairs, banks
chartered under the laws of the State of Mississippi or the United States,
savings and loan associations chartered under the laws of the State of Mississippi
or the United States, licensees under the Small Loan Regulatory Law, being
Sections 75-67-101 through 75-67-135, and under the Small Loan Privilege Tax
Law, being Sections 75-67-201 through 75-67-243, small business investment companies
licensed by the Small Business Administration and chartered under the laws of
the State of Mississippi, or any of their affiliates and subsidiaries, related
to the making of a loan secured by a lien on real estate or to the disposing of
real estate acquired by foreclosure or in lieu of foreclosure or otherwise held
as security. No director, officer or employee of any such financial
institution shall be required to qualify as a real estate broker or agent under
this chapter when engaged in the aforesaid activities for and on behalf of such
financial institution.
SECTION 2. (1) A wholesaler shall:
(a) Disclose in writing to the homeowner, before the execution of any contract or written agreement, his or her intent to assign or sell his or her equitable interest in the residential real estate for a higher price than what is offered to the homeowner;
(b) Disclose in writing to the homeowner the wholesaler's intent to market its equitable interest before commencing any marketing of the property;
(c) Provide a prominent written disclosure to the homeowner in all written contracts between the parties stating that the homeowner should seek legal advice before signing any contract concerning his or her home;
(d) Disclose in writing to the homeowner that the homeowner has the right to cancel the contract without penalty within two (2) business days after the execution of the contract;
(e) Disclose in writing to any potential purchaser or assignee, the nature of the wholesaler's equitable interest; and
(f) Disclose in writing to the homeowner the effective date of any assignment of the wholesaler's interest to a subsequent purchaser of the property at least three (3) business days before the effective date of any assignment.
(2) Written disclosure under subsection (1) of this section shall be required for the intent to market and transfer an equitable interest in residential real estate, whether by assignment, novation or other similar method of transferring interest in real property.
(3) A wholesaler shall not, directly or indirectly:
(a) Act as an advisor or consultant, or in any other manner representing that the wholesaler is acting on behalf of the homeowner; or
(b) Represent himself or herself as holding a certification or license, or being a member of a licensed profession, without possession of the certification or license.
(4) The homeowner shall have the right to cancel the contract without penalty within two (2) business days from the date of execution of the contract.
(5) The wholesaler shall be prohibited from placing any lien or encumbrance on or otherwise clouding title of the property.
(6) Any contract or agreement used by a wholesaler shall contain the following:
(a) The name, address and telephone number of the wholesaler;
(b) The address of the residence involved in the transaction;
(c) The total consideration to be given by the wholesaler to the homeowner;
(d) A complete description of the terms of payment or other consideration including, but not limited to, any services of any nature which the wholesaler represents that he or she will perform for the seller before or after the sale; and
(e) The following notice shall appear on the contract in immediate proximity to the space reserved for the seller's signature and shall be in at least twelve-point bold type if the contract is typed or in capital letters if the contract is printed. The notice shall contain the name of the wholesaler, the date and time by which the contract shall be canceled, and the following language:
"NOTICE REQUIRED BY MISSISSIPPI LAW: You may cancel this contract at any time before midnight of ____________________ (Date). __________________________ (Name of Wholesaler) or anyone working for ______________________ (Name of Wholesaler) CANNOT ask you to sign or have you sign any deed or any other document until your right to cancel this contract has ended. See the attached notice of cancellation form for an explanation of this right. You should always consult an attorney before signing any legal documents concerning your home. It is advisable that you find your own attorney. The law requires this contract to contain the entire agreement. You should not rely upon any other written or oral agreement or promise."
(7) Failure to include any of the required disclosures under this section shall render the contract invalid and unenforceable by the wholesaler and shall entitle the homeowner to any earnest money deposit involved in the transaction. Any earnest money deposit or security deposit by a wholesaler shall be kept in an escrow account maintained in this state with a federally insured financial institution.
(8) The homeowner may terminate the contract at any time if the wholesaler fails to comply with the provisions of this section.
(9) In addition to any other remedy afforded the homeowner under this section, the homeowner may file a petition in chancery court to seek an order declaring the contract invalid and unenforceable pursuant to this section and may, in addition to statutory damages allowed under this section, recover actual damages, plus costs and attorney's fees as may be proven against an offending wholesaler.
(10) This section shall only apply to transactions involving residential real estate and shall not apply to any other property.
(11) This section shall not infringe on the right of the parties to otherwise agree by contract.
(12) The Mississippi Real Estate Commission shall create, publish and provide on its website a notice of cancellation form, which shall be included by the wholesaler with any contract. This form shall be provided to the homeowner at no cost.
(13) The Mississippi Real Estate Commission shall promulgate any rules necessary to implement the provisions of this section.
SECTION 3. Section 2 of this act shall be codified in Chapter 35, Title 73, Mississippi Code of 1972.
SECTION 4. This act shall take effect and be in force from and after July 1, 2026.
