Residential Real Estate Sales Disclosure Statement
MS Code 1972 (as Amended)
89-1-501 to 89-1-525
Applicability of real estate transfer disclosure requirement provisions:
(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.
SOURCES:
Laws, 1993, ch. 407, § 1; Laws, 1997, ch. 456, § 1, eff
from and after July 1, 1997. § 89-1-501.
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 89-1-501 through 89-1-523
shall deliver to the prospective transferee the written statement required
by Sections 89-1-501 through 89-1-523, 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 this act 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 Sections 89-1-501 through
89-1-523, 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. SOURCES: Laws, 1993, ch. 407, § 2, eff from and after July
1, 1993. § 89-1-503.
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 89-1-501 through 89-1-523
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 89-1-501 through 89-1-523, and ordinary care was exercised
in obtaining and transmitting it.
(2) The delivery of any information required to be disclosed by
Sections 89-1-501 through 89-1-523 to a prospective transferee by a public
agency or other person providing information required to be disclosed pursuant
to Sections 89-1-501 through 89-1-523 shall be deemed to comply with the
requirements of Sections 89-1-501 through 89-1-523 and shall relieve the
transferor or any listing or selling agent of any further duty under Sections
89-1-501 through 89-1-523 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 89-1-509 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. SOURCES: Laws, 1993, ch. 407,
§ 3, eff from and after July 1, 1993. § 89-1-505.
Approximation of certain information required to be disclosed;
information subsequently rendered inaccurate: If
information disclosed in accordance with Sections 89-1-501 through 89-1-523
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
89-1-501 through 89-1-523. 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 89-1-501 through 89-1-523. SOURCES: Laws, 1993, ch.
407, § 4, eff from and after July 1, 1993. § 89-1-507.
Form of seller's disclosure statement. [Repealed effective from
and after July 1, 2003]: The disclosures required
by Sections 89-1-501 through 89-1-523 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. SOURCES: Laws, 1993, ch. 407,
§ 5; Laws, 1997, ch 456, § 2; Laws, 1999, ch 588, § 4, eff
from and after Jan. 1, 2000. § 89-1-509.
Disclosures to be made in good faith: Each
disclosure required by Sections 89-1-501 through 89-1-523 and each act
which may be performed in making the disclosure, shall be made in good
faith. For purposes of Sections 89-1-501 through 89-1-523, "good faith"
means honesty in fact in the conduct of the transaction. SOURCES: Laws,
1993, ch. 407, § 6, eff from and after July 1, 1993. § 89-1-511.
Provisions not exhaustive of items to be disclosed:
The specification of items for disclosure in Sections 89-1-501 through
89-1-523 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. SOURCES: Laws,
1993, ch. 407, § 7, eff from and after July 1, 1993. § 89-1-513.
Amendment of disclosure: Any disclosure
made pursuant to Sections 89-1-501 through 89-1-523 may be amended in writing
by the transferor or his agent, but the amendment shall be subject to the
provisions of Section 89-1-503. SOURCES: Laws, 1993, ch. 407, § 8,
eff from and after July 1, 1993. § 89-1-515.
Delivery of disclosure: Delivery of disclosure
required by Sections 89-1-501 through 89-1-523 shall be by personal delivery
to the transferee or by mail to the prospective transferee. For the purposes
of Sections 89-1-501 through 89-1-523, delivery to the spouse of a transferee
shall be deemed delivery to the transferee, unless provided otherwise by
contract. SOURCES: Laws, 1993, ch. 407, § 9, eff from and after July
1, 1993. § 89-1-517.
Agent; extent of agency: Any person or
entity, other than a duly licensed real estate broker or salesperson acting
in the capacity of an escrow agent for the transfer of real property subject
to Sections 89-1-501 through 89-1-523 shall not be deemed the agent of
the transferor or transferee for purposes of the disclosure requirements
of Sections 89-1-501 through 89-1-523, unless the person or entity is empowered
to so act by an express written agreement to that effect. The extent of
such an agency shall be governed by the written agreement. SOURCES: Laws,
1993, ch. 407, § 10, eff from and after July 1, 1993. § 89-1-519.
Delivery of disclosure where more than one agent; inability of
delivering broker to obtain disclosure document; notification to transferee
of right to disclosure:
(1) If more than one (1)
licensed real estate broker is acting as an agent in a transaction subject
to Sections 89-1-501 through 89-1-523, the broker who has obtained the
offer made by the transferee shall, except as otherwise provided in Sections
89-1-501 through 89-1-523, deliver the disclosure required by Sections
89-1-501 through 89-1-523 to the transferee, unless the transferor has
given other written instructions for delivery.
(2) If a licensed real estate broker responsible for delivering
the disclosures under this section cannot obtain the disclosure document
required and does not have written assurance from the transferee that the
disclosure has been received, the broker shall advise the transferee in
writing of his rights to the disclosure. A licensed real estate broker
responsible for delivering disclosures under this section shall maintain
a record of the action taken to effect compliance. SOURCES: Laws, 1993,
ch. 407, § 11, eff from and after July 1, 1993. § 89-1-521.
Noncompliance with disclosure requirements not to invalidate
transfer; liability for actual damages: No transfer
subject to Sections 89-1-501 through 89-1-523 shall be invalidated solely
because of the failure of any person to comply with any provision of Sections
89-1-501 through 89-1-523. However, any person who willfully or negligently
violates or fails to perform any duty prescribed by any provision of Sections
89-1-501 through 89-1-523 shall be liable in the amount of actual damages
suffered by a transferee. SOURCES: Laws, 1993, ch. 407, § 12, eff
from and after July 1, 1993. § 89-1-523.
Enforcement by Mississippi Real Estate Commission:
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.
SOURCES: Laws, 1997, ch. 456, § 3, eff from and after July 1, 1997. §
89-1-525.
