A Mississippi listing broker, Sandra, represents the seller of a five-unit residential building in Biloxi. The seller insists no disclosure statement is needed because the property has been in the family for decades and they are unaware of any defects. Sandra knows the building has had recurring roof leaks documented in maintenance records she reviewed. Which statement most accurately describes Sandra's obligations under Mississippi law?

Correct Answer

A) Sandra has no disclosure obligation because the five-unit building is outside the scope of the Mississippi Seller Disclosure Act, but she must still disclose material facts she knows as a licensee under her agency duties

The Mississippi Seller Disclosure Act (Miss. Code Ann. §89-1-501 et seq.) applies only to residential real property consisting of 1 to 4 dwelling units. A five-unit building falls outside the Act's scope, so the seller is not required to complete the statutory disclosure form. However, Sandra as a licensed broker still owes a duty under Miss. Code Ann. §73-35-21 et seq. and MREC regulations to disclose known material facts — including the documented roof leaks — to prospective buyers. Her agency duties and licensee obligations survive even when the statutory disclosure form is inapplicable. This two-layer analysis (Act inapplicable + licensee duty still applies) is the key to this question.