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INFORMATIONAL STATEMENT FOR MISSISSIPPI PROPERTY CONDITION

DISCLOSURE STATEMENT (EFFECTIVE JULY 1, 2008)

In accordance with Sections 89-1-501 through 89-1-527 of the Mississippi Code of 1954, as amended, effective July 1, 2005, a TRANSFEROR of real property consisting of not less than one (1) nor more than four (4) dwelling units shall provide a Property Condition Disclosure Statement when the transfer is by, or with the aid of, a duly licensed real estate broker or salesperson. The required Property Condition Disclosure Statement shall be in the form promulgated by the Mississippi RealEstate Commission (MREC) or on another form that contains the identical information. The MREC Form may be found at  www.mrec.ms.gov

 RIGHTS OF PURCHASER AND CONSEQUENCES FOR FAILURE TO DISCLOSE

If the Property Condition Disclosure Statement is delivered after the Transferee has made an offer, the transferee may terminate any resulting real estate contract or withdraw any offer for a time period of three (3) days after the delivery in person or five (5) days after the delivery by deposit in mail. This termination or withdrawal will always be without penalty to the Transferee and any deposit or earnest money must be promptly returned to the prospective purchaser (despite any agreement to the contrary).

DUTY OF LICENSEE AND CONSEQUENCES OF FAILURE TO FULFILL SUCH DUTIES

The Mississippi Statute requires real estate licensees to inform their clients of those clients’ duties and rights in connection with the Property Condition Disclosure Statement. The failure of any licensee to inform their client of the clients’ responsibilities could subject the licensee (salesperson and broker) to censure, suspension, or revocation of their respective real estate licenses. The licensee is not liable for any error, inaccuracy or omission in a Property Condition Disclosure Statement unless the licensee has actual knowledge of the error, inaccuracy or omission by the Transferor.

IMPORTANT PROVISIONS OF THE LAW

**The Property Condition Disclosure Statement should not be considered a warranty by the Transferor. **The Property Condition Disclosure Statement is  NOT intended to become a part of any contract between the Transferor(s) and the Transferee(s) and it is for “disclosure” purposes only. **The Property Condition Disclosure Statement may not be used as a substitute for an inspection by a licensed home inspector or for other home warranties that the Transferor or Transferee may obtain. **Any Appliances or Items deemed to be Personal Property should be negotiated by the Seller and the Buyer in the Contract for the Purchase and Sale of Real Estate and all ownership rights should be transferred by a Bill of Sale or other appropriate contractual instrument. This Property Condition Disclosure Statement is not part of the Contract of Sale.

**Nothing in this law precludes the rights and duties of the Transferee to inspect the property.

EXEMPTIONS

Section 89-1-501 (2) <a through i> stipulates specific exemptions from the requirement of providing a Property Condition Disclosure Statement by the Transferor of residential property. They include:

**Transfers pursuant to a court order, a writ of execution, a foreclosure sale, a bankruptcy, an eminent domain proceeding, transfers from a decree for specific performance, transfers by a mortgagor who is in default, any sale pursuant to a decree of foreclosure or by means of a deed in lieu of foreclosure, transfer by the administration of a decedent’s estate, a guardianship, a conservatorship or a trust.

**Transfers from one co-owner to another, transfers from one spouse to another, transfers to a person in the lineal line of consanguinity, transfers to or from governmental entities or transfers on which no dwelling is located.

If the Transferor has NOT OCCUPIED the dwelling but, during the period of ownership, the Transferor has requested or authorized any repairs, replaced any of the mechanical equipment, has initiated any action or activity which could be documented on the Disclosure Statement or has actual knowledge of information which might impact a transferee’s decision to purchase the residence, Transferors are obligated to complete those specific portions of the Disclosure Statement which are applicable to that information.

The Transferor is

 REQUIRED to sign the Disclosure Statement when the transaction is finalized to confirm that there have been no material changes to the property.

CONFIRMATION OF UNDERSTANDING

_________________________________________ _________________________________________

SELLER (UPON LISTING) DATE BUYER (BEFORE OFFER) DATE

_________________________________________ __________________________________________

SELLER (UPON LISTING) DATE BUYER (BEFORE OFFER) DATE

___________________________________________ _______________________________________

REPRESENTING THE SELLER(S) REPRESENTING THE BUYER(S)

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