Mississippi Property Condition Disclosure
Mississippi law requires sellers of most residential property to complete a property condition disclosure statement. This chapter explains the statutory disclosure under Mississippi Code Section 89-1-501 and the licensee's role in the process.
The Disclosure Requirement
Under Mississippi Code Section 89-1-501 and following, a seller of residential real property of one to four dwelling units generally must deliver a written property condition disclosure statement to the buyer describing the known condition of the property. The statement covers items such as the structure, systems, water and sewer, and known defects. The obligation rests on the seller, but licensees must not help conceal known problems.
Timing and Delivery
The disclosure statement is to be provided to the prospective buyer before an offer is accepted, so the buyer can consider the condition of the property when deciding whether and at what price to buy. If the disclosure is delivered after an offer is made, the statute gives the buyer certain rights to terminate within a limited time. Brokers supervising a transaction should confirm the disclosure is properly completed and delivered.
The Licensee's Duty
A licensee must disclose known material defects to a buyer regardless of the seller's statement and may not knowingly participate in misrepresenting the condition of a property. While the disclosure form is the seller's representation, the broker's duty of honest dealing and disclosure of known material facts is independent. Careful handling of disclosures reduces liability for the firm and protects consumers.