2007 Regular Session
To: Judiciary B
By: Representative Brown
AN ACT TO AMEND SECTION 89-1-501, MISSISSIPPI CODE OF 1972, TO EXCLUDE THE SALE OF NEW HOMES BY A BUILDER TO INITIAL PURCHASERS FROM MISSISSIPPI REAL ESTATE TRANSFER DISCLOSURE REQUIREMENTS; TO DEFINE CERTAIN TERMS; 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.
(i) The provisions of Section 89-1-527.
(j) The transfer of a new home to the initial purchaser by a builder. As used herein, the terms "home" and "builder" shall have meanings ascribed to such terms in the Mississippi New Home Warranty Act, Section 83-58-3. "Initial purchaser" means any person for whom a home is built or the first person to whom a new home is conveyed upon completion of construction.
SECTION 2. This act shall take effect and be in force from and after July 1, 2007.