Senate Concurrent Resolution 564

A CONCURRENT RESOLUTION SUSPENDING THE DEADLINES FOR THE PURPOSE OF REQUESTING THE DRAFTING, INTRODUCTION, CONSIDERATION AND PASSAGE OF A BILL ENTITLED "AN ACT TO CREATE CODE SECTIONS 89-9-39, 89-39-41 AND 89-9-43, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF A DEVELOPER CONTRACTS TO SELL A CONDOMINIUM PARCEL AND THE CONSTRUCTION, FURNISHING AND LANDSCAPING OF THE PROPERTY SUBMITTED OR PROPOSED TO BE SUBMITTED TO CONDOMINIUM OWNERSHIP HAS NOT BEEN SUBSTANTIALLY COMPLETED, THE DEVELOPER SHALL BE REQUIRED TO PAY INTO A SPECIAL ESCROW ACCOUNT PAYMENTS NOT TO EXCEED 10% OF THE SALE PRICE THAT ARE RECEIVED BY THE DEVELOPER FROM THE BUYER TOWARDS THE SALE PRICE; TO PROVIDE FOR THE RELEASE OF SUCH FUNDS FROM ESCROW; TO PROVIDE THAT ALL PAYMENTS WHICH ARE IN EXCESS OF 10% OF THE SALE PRICE AND WHICH HAVE BEEN RECEIVED PRIOR TO COMPLETION OF CONSTRUCTION BY THE DEVELOPER FROM THE BUYER ON A CONTRACT FOR PURCHASE OF A CONDOMINIUM PARCEL SHALL BE HELD IN THE SPECIAL ESCROW ACCOUNT; TO PROVIDE THAT THE DEVELOPER MAY WITHDRAW ESCROW FUNDS IN EXCESS OF 10% OF THE PURCHASE PRICE FROM THE SPECIAL ACCOUNT WHEN THE CONSTRUCTION OF IMPROVEMENTS HAS BEGUN, AND HE MAY USE THE FUNDS IN THE ACTUAL CONSTRUCTION AND DEVELOPMENT OF THE CONDOMINIUM PROPERTY IN WHICH THE UNIT TO BE SOLD IS LOCATED; TO PROVIDE THAT NO PART OF SUCH FUNDS MAY BE USED FOR SALARIES, COMMISSIONS, EXPENSES OF SALESPERSONS OR FOR ADVERTISING PURPOSES; TO PROVIDE THAT CONTRACTS WHICH PERMIT USE OF THE ADVANCE PAYMENTS FOR THE ACTUAL CONSTRUCTION AND DEVELOPMENT OF THE CONDOMINIUM PROPERTY MUST INCLUDE A LEGEND TO THAT EFFECT; TO PROVIDE THAT THE FAILURE OF THE DEVELOPER TO COMPLY WITH SUCH PROVISIONS SHALL RENDER THE CONTRACT VOIDABLE BY THE BUYER; TO PROVIDE THAT IF A DEVELOPER ENTERS INTO A RESERVATION AGREEMENT, THE DEVELOPER SHALL PAY INTO AN ESCROW ACCOUNT ALL RESERVATION DEPOSIT PAYMENTS; TO PROVIDE THAT A RESERVATION DEPOSIT SHALL NOT BE RELEASED DIRECTLY TO THE DEVELOPER EXCEPT AS A DOWN PAYMENT ON THE PURCHASE PRICE SIMULTANEOUSLY WITH OR SUBSEQUENT TO THE EXECUTION OF A CONTRACT; TO PROVIDE THAT THE WILLFUL FAILURE OF A DEVELOPER TO FOLLOW SUCH REQUIREMENTS SHALL BE A FELONY; TO PROVIDE THE ENTITIES WITH WHOM AN ESCROW ACCOUNT MAY BE ESTABLISHED; TO PROVIDE THAT THE DEVELOPER SHALL BE DEEMED TO HAVE GRANTED TO THE PURCHASER OF EACH UNIT CERTAIN IMPLIED WARRANTIES OF FITNESS AND MERCHANTABILITY FOR THE PURPOSES OR USES INTENDED; TO PROVIDE THAT THE CONTRACTOR AND ALL SUBCONTRACTORS AND SUPPLIERS SHALL BE REQUIRED TO GRANT TO THE DEVELOPER AND TO THE PURCHASER OF EACH UNIT CERTAIN IMPLIED WARRANTIES OF FITNESS AS TO THE WORK PERFORMED OR MATERIALS SUPPLIED BY THEM; TO PROVIDE THAT ANY CONTRACT FOR THE SALE OF A RESIDENTIAL CONDOMINIUM UNIT SHALL CONTAIN CERTAIN DISCLOSURES; TO PROVIDE THAT UNTIL SUCH TIME AS THE DEVELOPER HAS FURNISHED CERTAIN DOCUMENTS TO A PERSON WHO HAS ENTERED INTO A CONTRACT TO PURCHASE A RESIDENTIAL UNIT, THE CONTRACT MAY BE VOIDED BY THAT PERSON, ENTITLING THE PERSON TO A REFUND OF ANY DEPOSIT TOGETHER WITH INTEREST; TO PROVIDE THAT IF RESIDENTIAL CONDOMINIUM PARCELS ARE OFFERED FOR SALE PRIOR TO COMPLETION OF CONSTRUCTION OF THE UNITS AND OF IMPROVEMENTS TO THE COMMON ELEMENTS, OR PRIOR TO COMPLETION OF REMODELING OF PREVIOUSLY OCCUPIED BUILDINGS, THE DEVELOPER SHALL MAKE AVAILABLE TO EACH PROSPECTIVE PURCHASER, FOR HIS OR HER INSPECTION AT A PLACE CONVENIENT TO THE SITE, A COPY OF THE COMPLETE PLANS AND SPECIFICATIONS FOR THE CONSTRUCTION OR REMODELING OF THE UNIT OFFERED TO HIM AND OF THE IMPROVEMENTS TO THE COMMON ELEMENTS APPURTENANT TO THE UNIT; TO PROVIDE THAT SALES BROCHURES, IF ANY, SHALL BE PROVIDED TO EACH PURCHASER AND SHALL CONTAIN CERTAIN CAVEATS; AND FOR RELATED PURPOSES."

BE IT RESOLVED BY THE SENATE OF THE STATE OF MISSISSIPPI, THE HOUSE OF REPRESENTATIVES CONCURRING THEREIN, That the Joint Rules of the Senate and the House are hereby suspended for the purpose of requesting the drafting, introduction, consideration and passage, regardless of any deadlines imposed by said rules, of a bill entitled "AN ACT TO CREATE CODE SECTIONS 89-9-39, 89-39-41 AND 89-9-43, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF A DEVELOPER CONTRACTS TO SELL A CONDOMINIUM PARCEL AND THE CONSTRUCTION, FURNISHING AND LANDSCAPING OF THE PROPERTY SUBMITTED OR PROPOSED TO BE SUBMITTED TO CONDOMINIUM OWNERSHIP HAS NOT BEEN SUBSTANTIALLY COMPLETED, THE DEVELOPER SHALL BE REQUIRED TO PAY INTO A SPECIAL ESCROW ACCOUNT PAYMENTS NOT TO EXCEED 10% OF THE SALE PRICE THAT ARE RECEIVED BY THE DEVELOPER FROM THE BUYER TOWARDS THE SALE PRICE; TO PROVIDE FOR THE RELEASE OF SUCH FUNDS FROM ESCROW; TO PROVIDE THAT ALL PAYMENTS WHICH ARE IN EXCESS OF 10% OF THE SALE PRICE AND WHICH HAVE BEEN RECEIVED PRIOR TO COMPLETION OF CONSTRUCTION BY THE DEVELOPER FROM THE BUYER ON A CONTRACT FOR PURCHASE OF A CONDOMINIUM PARCEL SHALL BE HELD IN THE SPECIAL ESCROW ACCOUNT; TO PROVIDE THAT THE DEVELOPER MAY WITHDRAW ESCROW FUNDS IN EXCESS OF 10% OF THE PURCHASE PRICE FROM THE SPECIAL ACCOUNT WHEN THE CONSTRUCTION OF IMPROVEMENTS HAS BEGUN, AND HE MAY USE THE FUNDS IN THE ACTUAL CONSTRUCTION AND DEVELOPMENT OF THE CONDOMINIUM PROPERTY IN WHICH THE UNIT TO BE SOLD IS LOCATED; TO PROVIDE THAT NO PART OF SUCH FUNDS MAY BE USED FOR SALARIES, COMMISSIONS, EXPENSES OF SALESPERSONS OR FOR ADVERTISING PURPOSES; TO PROVIDE THAT CONTRACTS WHICH PERMIT USE OF THE ADVANCE PAYMENTS FOR THE ACTUAL CONSTRUCTION AND DEVELOPMENT OF THE CONDOMINIUM PROPERTY MUST INCLUDE A LEGEND TO THAT EFFECT; TO PROVIDE THAT THE FAILURE OF THE DEVELOPER TO COMPLY WITH SUCH PROVISIONS SHALL RENDER THE CONTRACT VOIDABLE BY THE BUYER; TO PROVIDE THAT IF A DEVELOPER ENTERS INTO A RESERVATION AGREEMENT, THE DEVELOPER SHALL PAY INTO AN ESCROW ACCOUNT ALL RESERVATION DEPOSIT PAYMENTS; TO PROVIDE THAT A RESERVATION DEPOSIT SHALL NOT BE RELEASED DIRECTLY TO THE DEVELOPER EXCEPT AS A DOWN PAYMENT ON THE PURCHASE PRICE SIMULTANEOUSLY WITH OR SUBSEQUENT TO THE EXECUTION OF A CONTRACT; TO PROVIDE THAT THE WILLFUL FAILURE OF A DEVELOPER TO FOLLOW SUCH REQUIREMENTS SHALL BE A FELONY; TO PROVIDE THE ENTITIES WITH WHOM AN ESCROW ACCOUNT MAY BE ESTABLISHED; TO PROVIDE THAT THE DEVELOPER SHALL BE DEEMED TO HAVE GRANTED TO THE PURCHASER OF EACH UNIT CERTAIN IMPLIED WARRANTIES OF FITNESS AND MERCHANTABILITY FOR THE PURPOSES OR USES INTENDED; TO PROVIDE THAT THE CONTRACTOR AND ALL SUBCONTRACTORS AND SUPPLIERS SHALL BE REQUIRED TO GRANT TO THE DEVELOPER AND TO THE PURCHASER OF EACH UNIT CERTAIN IMPLIED WARRANTIES OF FITNESS AS TO THE WORK PERFORMED OR MATERIALS SUPPLIED BY THEM; TO PROVIDE THAT ANY CONTRACT FOR THE SALE OF A RESIDENTIAL CONDOMINIUM UNIT SHALL CONTAIN CERTAIN DISCLOSURES; TO PROVIDE THAT UNTIL SUCH TIME AS THE DEVELOPER HAS FURNISHED CERTAIN DOCUMENTS TO A PERSON WHO HAS ENTERED INTO A CONTRACT TO PURCHASE A RESIDENTIAL UNIT, THE CONTRACT MAY BE VOIDED BY THAT PERSON, ENTITLING THE PERSON TO A REFUND OF ANY DEPOSIT TOGETHER WITH INTEREST; TO PROVIDE THAT IF RESIDENTIAL CONDOMINIUM PARCELS ARE OFFERED FOR SALE PRIOR TO COMPLETION OF CONSTRUCTION OF THE UNITS AND OF IMPROVEMENTS TO THE COMMON ELEMENTS, OR PRIOR TO COMPLETION OF REMODELING OF PREVIOUSLY OCCUPIED BUILDINGS, THE DEVELOPER SHALL MAKE AVAILABLE TO EACH PROSPECTIVE PURCHASER, FOR HIS OR HER INSPECTION AT A PLACE CONVENIENT TO THE SITE, A COPY OF THE COMPLETE PLANS AND SPECIFICATIONS FOR THE CONSTRUCTION OR REMODELING OF THE UNIT OFFERED TO HIM AND OF THE IMPROVEMENTS TO THE COMMON ELEMENTS APPURTENANT TO THE UNIT; TO PROVIDE THAT SALES BROCHURES, IF ANY, SHALL BE PROVIDED TO EACH PURCHASER AND SHALL CONTAIN CERTAIN CAVEATS; AND FOR RELATED PURPOSES."