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MS Real Estate License Law

 

¬ß 89‚Äź1‚Äź501.

Applicability of real estate transfer disclosure requirement provisions.

(1) The provisions of¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 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‚Äź1‚Äź501 through 89‚Äź1‚Äź523:

(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‚Äźowner to one or more other co‚Äźowners.

(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‚Äź1‚Äź527.

 

¬ß 89‚Äź1‚Äź503. Delivery of written statement required; indication of compliance; right of¬†transferee to terminate for late delivery.

The transferor of any real property subject to¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 shall deliver¬†to the prospective transferee the written property condition disclosure statement required by¬†Sections 89 ‚Äź1‚Äź501 through 89‚Äź1‚Äź523, as follows:

(a) In the case of a sale, as soon as practicable before transfer of title.

(b) In the case of transfer by a real property sales contract, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before execution of the contract. For the purpose of this paragraph, execution means the making or acceptance of an offer.

With respect to any transfer subject to paragraph (a) or (b), the transferor shall indicate¬†compliance with¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 either on the receipt for deposit, the real¬†property sales contract, the lease, or any addendum attached thereto or on a separate¬†document.

If any disclosure, or any material amendment of any disclosure, required to be made by¬†Section89‚Äź1‚Äź501 through 89‚Äź1‚Äź523, is delivered after the execution of an offer to purchase, the¬†transferee shall have three (3) days after delivery in person or five (5) days after delivery by¬†deposit in the mail, to terminate his or her offer by delivery of a written notice of termination¬†to the transferor or the transferor’s agent.

 

¬ß 89‚Äź1‚Äź505. Limit on duties and liabilities with respect to information required or delivered.

(1) Neither the transferor nor any listing or selling agent shall be liable for any error, inaccuracy or omission of any information delivered pursuant to

Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 if¬†the error, inaccuracy or omission was not within the personal knowledge of the transferor¬†or that listing or selling agent, was based on information timely provided by public agencies¬†or by other persons providing information as specified in subsection (2) that is required to¬†be disclosed pursuant to¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523, and ordinary care was¬†exercised in obtaining and transmitting it.

 

¬ß 89‚Äź1‚Äź505. Limit on duties and liabilities with respect to information required or delivered.

(1) Neither the transferor nor any listing or selling agent shall be liable for any error, inaccuracy¬†or omission of any information delivered pursuant to¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 if¬†the error, inaccuracy or omission was not within the personal knowledge of the transferor¬†or that listing or selling agent, was based on information timely provided by public agencies¬†or by other persons providing information as specified in subsection (2) that is required to¬†be disclosed pursuant to Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523, and ordinary care was¬†exercised in obtaining and transmitting it.

(2) The delivery of any information required to be disclosed by¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 to a prospective transferee by a public agency or other person providing information¬†required to be disclosed pursuant to¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 shall be deemed¬†to comply with the requirements of¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 and shall relieve¬†the transferor or any listing or selling agent of any further duty under¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 with respect to that item of information.

(3) The delivery of a report or opinion prepared by a licensed engineer, land surveyor,¬†geologist, structural pest control operator, contractor or other expert, dealing with matters¬†within the scope of the professional’s license or expertise, shall be sufficient compliance for¬†application of the exemption provided by subsection (1) if the information is provided to¬†the prospective transferee pursuant to a request therefor, whether written or oral. In¬†responding to such a request, an expert may indicate, in writing, an understanding that the¬†information provided will be used in fulfilling the requirements of¬†Section 89‚Äź1‚Äź509 and, if¬†so, shall indicate the required disclosures, or parts thereof, to which the information being¬†furnished is applicable. Where such a statement is furnished, the expert shall not be¬†responsible for any items of information, or parts thereof, other than those expressly set¬†forth in the statement.

 

¬ß 89‚Äź1‚Äź507. Approximation of certain information required to be disclosed; information¬†subsequently rendered inaccurate.¬†If information disclosed in accordance with¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 is subsequently¬†rendered inaccurate as a result of any act, occurrence or agreement subsequent to the delivery¬†of the required disclosures, the inaccuracy resulting therefrom does not constitute a violation¬†of Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523. If at the time the disclosures are required to be made,¬†an item of information required to be disclosed is unknown or not available to the transferor,¬†and the transferor or his agent has made a reasonable effort to ascertain it, the transferor may¬†use an approximation of the information, provided the approximation is clearly identified as¬†such, is reasonable, is based on the best information available to the transferor or his agent,¬†and is not used for the purpose of circumventing or evading¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523.

¬ß 89‚Äź1‚Äź509. Form of seller’s disclosure statement.

The disclosures required by¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 pertaining to the property¬†proposed to be transferred shall be set forth in, and shall be made on a copy of a disclosure¬†form, the structure and composition of which shall be determined by the Mississippi Real¬†Estate Commission.

 

¬ß 89‚Äź1‚Äź511. Disclosures to be made in good faith.

Each disclosure required by¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 and each act which may be¬†performed in making the disclosure, shall be made in good faith. For purposes of¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523, “good faith” means honesty in fact in the conduct of the transaction.¬†¬ß 89‚Äź1‚Äź513. Provisions not exhaustive of items to be disclosed.¬†The specification of items for disclosure in¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 does not limit or¬†abridge any obligation for disclosure created by any other provision of law or which may exist¬†in order to avoid fraud, misrepresentation or deceit in the transfer transaction.

 

¬ß 89‚Äź1‚Äź515. Amendment of disclosure.

Any disclosure made pursuant to¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 may be amended in

writing by the transferor or his agent, but the amendment shall be subject to the provisions of¬†Section 89‚Äź1‚Äź503.

 

¬ß 89‚Äź1‚Äź517. Delivery of disclosure.

Delivery of disclosure required by¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 shall be by personal¬†delivery to the transferee or by mail to the prospective transferee. For the purposes of¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523, delivery to the spouse of a transferee shall be deemed delivery to the transferee, unless provided otherwise by contra¬†¬ß 89‚Äź1‚Äź523. Noncompliance with disclosure requirements not to invalidate transfer; liability¬†for actual damages.

No transfer subject to¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 shall be invalidated solely because¬†of the failure of any person to comply with any provision of¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523.

However, any person who willfully or negligently violates or fails to perform any duty¬†prescribed by any provision of¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523 shall be liable in the amount¬†of actual damages suffered by a transferee.

 

¬ß 89‚Äź1‚Äź525. Enforcement by Mississippi Real Estate Commission.

The Mississippi Real Estate Commission is authorized to enforce the provisions of¬†Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523. Any violation of the provisions of Sections 89‚Äź1‚Äź501 through 89‚Äź1‚Äź523¬†shall be treated in the same manner as a violation of the Real Estate Broker License Law of¬†1954¬†Section 73‚Äź35‚Äź1 et seq., and shall be subject to same penalties as provided in that¬†chapter.

 

¬ß 89‚Äź1‚Äź527. Failure to disclose nonmaterial fact regarding property as site of death or felony¬†crime, as site of act or occurrence having no effect on physical condition of property, or as¬†being owned or occupied by persons affected or exposed to certain diseases; failure to¬†disclose information provided or maintained on registration of sex offenders.

(1) The fact or suspicion that real property is or was:

(a) The site of a natural death, suicide, homicide or felony crime (except for illegal drug activity that affects the physical condition of the property, its physical environment or the improvements located thereon);

(b) The site of an act or occurrence that had no effect on the physical condition of the property, its physical environment or the improvements located thereon;

(c) Owned or occupied by a person affected or exposed to any disease not known to be transmitted through common occupancy of real estate including, but not limited to, the human immunodeficiency virus (HIV) and the acquired immune deficiency syndrome (AIDS); does not constitute a material fact that must be disclosed in a real estate transaction. A failure to disclose such nonmaterial facts or suspicions shall not give rise to a criminal, civil or administrative action against the owner of such real property, a licensed real estate broker or any affiliated licensee of the broker.

(2) A failure to disclose in any real estate transaction any information that is provided or¬†maintained, or is required to be provided or maintained, in accordance with¬†Section 45‚Äź33‚Äź21 through Section 45‚Äź33‚Äź57, shall not give rise to a cause of action against an owner of real property, a licensed real estate broker or any affiliated licensee of the broker. Likewise, no¬†cause of action shall arise against any licensed real estate broker or affiliated licensee of the¬†broker for revealing information to a seller or buyer of real estate in accordance with¬†Section 45‚Äź33‚Äź21 through Section 45‚Äź33‚Äź57. Any factors related to this paragraph, if known¬†to a property owner or licensee shall be disclosed if requested by a consumer.

(3) Failure to disclose any of the facts or suspicions of facts described in subsections (1) and (2)shall not be grounds for the termination or rescission of any transaction in which real property has been or will be transferred or leased. This provision does not preclude an action against an owner of real estate who makes intentional or fraudulent misrepresentations in response to a direct inquiry from a purchaser or prospective purchaser regarding facts or suspicions that are not material to the physical condition of the property including, but not limited to, those factors listed in subsections (1) and (2).

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