MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Business and Financial Institutions

By: Senator(s) Hewes

AN ACT TO AMEND SECTION 89-1-501, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE REAL ESTATE TRANSFER DISCLOSURE REQUIREMENTS LAW APPLIES ONLY TO REAL PROPERTY ON WHICH A DWELLING UNIT IS LOCATED; TO AMEND SECTION 89-1-509, MISSISSIPPI CODE OF 1972, TO MAKE TECHNICAL CHANGES TO THE REQUIRED SELLER'S DISCLOSURE FORM; TO CODIFY SECTION 89-1-525, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE MISSISSIPPI REAL ESTATE COMMISSION IS AUTHORIZED TO ENFORCE THE PROVISIONS OF THE REAL ESTATE TRANSFER DISCLOSURE REQUIREMENTS LAW, AND ANY VIOLATION OF SUCH PROVISIONS SHALL BE TREATED IN THE SAME MANNER AS A VIOLATION OF THE REAL ESTATE BROKER LICENSE LAW OF 1954; AND FOR RELATED PURPOSES.  

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

SECTION 1. Section 89-1-501, Mississippi Code of 1972, is amended as follows:

89-1-501. (1) The provisions of Sections 89-1-501 through 89-1-523 apply only with respect to transfers by sale, exchange, installment land sale contract, lease with an option to purchase, any other option to purchase or ground lease coupled with improvements, of real property on which a dwelling unit is located, or residential stock cooperative improved with or consisting of not less than one (1) nor more than four (4) dwelling units, when the execution of such transfers is by, or with the aid of, a duly licensed real estate broker or salesperson.

(2) There are specifically excluded from the provisions of Sections 89-1-501 through 89-1-523:

(a) Transfers pursuant to court order, including, but not limited to, transfers ordered by a probate court in administration of an estate, transfers pursuant to a writ of execution, transfers by any foreclosure sale, transfers by a trustee in bankruptcy, transfers by eminent domain, and transfers resulting from a decree for specific performance.

(b) Transfers to a mortgagee by a mortgagor or successor in interest who is in default, transfers to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, transfers by any foreclosure sale after default, in an obligation secured by a mortgage, transfers by a sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, or transfers by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure.

(c) Transfers by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship or trust.

(d) Transfers from one co-owner to one or more other co-owners.

(e) Transfers made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferors.

(f) Transfers between spouses resulting from a decree of dissolution of marriage or a decree of legal separation or from a property settlement agreement incidental to such a decree.

(g) Transfers or exchanges to or from any governmental entity.

(h) Transfers of real property on which no dwelling is located.

SECTION 2. Section 89-1-509, Mississippi Code of 1972, is amended as follows:

89-1-509. The disclosures required by this act pertaining to the property proposed to be transferred are set forth in, and shall be made on a copy of, the following disclosure form:

"SELLER'S DISCLOSURE STATEMENT

The following is a Disclosure Statement, made by the Seller, concerning the condition of the property located at: ___________ _____________________________________. This Disclosure is not a warranty of any kind by the Seller or any Agent of the Seller in this transaction and is not a substitute for any inspections or warranties the Purchaser may wish to obtain. This statement may be made available to other parties and is to be attached to the Listing Agreements (signed by Owner).

TO THE SELLER: Please complete the following form, including any past history of problems if known. If the condition or question does not apply to your property, mark "N/A." DO NOT LEAVE ANY BLANK SPACES. Attach additional pages if necessary.

APPLIANCES/SYSTEMS

ITEM YES NO GAS/ELEC APPROX AGE REPAIRS LAST 2 YRS

Single Oven ___ ___ ________ __________ __________________

Double Oven ___ ___ ________ __________ __________________

Cook Top ___ ___ ________ __________ __________________

Microwave ___ ___ ________ __________ __________________

Dishwasher ___ ___ ________ __________ __________________

Disposal ___ ___ ________ __________ __________________

Trash Compactor___ ___ ________ __________ __________________

Ice Maker ___ ___ ________ __________ __________________

Hot Water Htrs ___ ___ ________ __________ __________________

Refrigerator ___ ___ ________ __________ __________________

Washer/Dryer ___ ___ ________ __________ __________________

Central Air ___ ___ ________ __________ __________________

Central Heat ___ ___ ________ __________ __________________

Fireplace ___ ___ ________ __________ __________________

Chimney ___ ___ ________ __________ __________________

ment plant ___ ___ ________ __________ __________________

Other ___ ___ ________ __________ __________________

POOL AND POOL EQUIPMENT (Gunite or Vinyl Liner) _________________

BURGLAR ALARM YES ___ NO ___ FEE $_____________________

APPROXIMATE AGE OF HOUSE:_____ HOMEOWNER'S ASSOCIATION FEE $_____

IF CONDO, MAINTENANCE FEE: $_____ PER _________________________

TOTAL TAXES: $_____________ HOMESTEAD FILED FOR 19___

AVERAGE ELECTRIC BILL (12 Months) $_______________

AVERAGE GAS BILL (12 Months) $_______________

Is there anything normally considered a part of the real estate that you do not plan to leave with the property? (i.e., chandeliers, ceiling fans, bathroom mirrors, etc.) _______________

Are there any needed repairs of which you are aware? ________ __________________________________________________________________

Are you aware of any problems which may exist on the property by virtue of prior uses such as, but not limited to, hazardous or toxic waste, asbestos components, lead-based paint, urea-formaldehyde insulation, radon gas, underground tanks, naturally occurring radiation or any past industrial uses of the premises? YES _____ NO _____

What is the approximate Square Footage of the Heated and Cooled Living Area in House? ____________________________________

Where did you get this figure? _____________________________

Are there any finished wood floors under any carpets? YES _____ NO _____

Has property previously flooded? YES _____ NO _____ Is Flood Insurance required? YES _____ NO _____

Are you aware of any foundation repairs made in the past? YES _____ NO _____ If yes, when were they made and who was the contractor? _____________________________________________________

ROOF: AGE: _____ Are there any leaks? YES _____ NO _____ Repairs? ________________________________________________________

History of infestation, if any: (termites, carpenter ants, etc.): __________________________________________________________

Any treatments for infestation? YES _____ NO _____ Any repaired damage? YES _____ NO _____

Are there any rights of way, easements, or similar matters that may affect your interest in the property? YES _____ NO _____ UNKNOWN _____

Has there been major damage to the property or any of the structures from fire, wind, floods or any other disaster?

YES _____ NO _____ Please describe: _____________________ _______________________________________________________________

Please state any other facts, information or problems (i.e., heating, cooling, electrical, plumbing, mechanical) relating to this property that would be of concern to a buyer: ____________ ________________________________________________________________

To the extent of the Seller's knowledge as a property owner, the Seller acknowledges that the information contained above is true and accurate for those areas of the property listed. Owner agrees to save and hold Broker harmless from all claims, disputes, litigations, and/or judgments arising from any incorrect information supplied by Owner, or from any material fact known by Owner which Owner fails to disclose, except that Broker is not held harmless to Owner in claims, disputes, litigations or judgments, arising from conditions of which Broker had actual knowledge. It is acknowledged and understood by the Owner that this information may be made available to other parties.

______________________________ ______________________________

SELLER DATE SELLER DATE"

SECTION 3. The following provision shall be codified as Section 89-1-525, Mississippi Code of 1972:

89-1-525. The Mississippi Real Estate Commission is authorized to enforce the provisions of Sections 89-1-501 through 89-1-523. Any violation of the provisions of Sections 89-1-501 through 89-1-523 shall be treated in the same manner as a violation of the Real Estate Broker License Law of 1954, Section 73-35-1 et seq., and shall be subject to same penalties as provided in that chapter.

SECTION 4. This act shall take effect and be in force from and after July 1, 1997.