HB 962 – Clarifications Made to Miss. Code Ann. § 89-1-69
In the 2010 Regular Session, Mississippi enacted HB 886, which prohibited the payment of “private transfer fees” for the future conveyance of real residential properties. See HB 886, 2010 Leg., Reg. Sess. (Miss. 2010) (enacted) (codified at Miss. CODE ANN. § 89-1-69 (2011)) (enacting statute to prevent “certain covenants on future conveyances of real property”). HB 886 prohibits a deed restriction or covenant that requires the “transferee of residential real property” to pay a fee to a third party in connection with a future transfer of the real property. HB 886 specifically states that it does not apply to fees payable to HOAs, governmental organizations, or 501(c)(3) organizations.
In 2018, Miss. Code Ann. 89-1-69 was again amended. This time, the exception allowing property owner’s associations that manage a subdivision to collect “transfer fees” upon a future conveyance was amended to clarify that the “right to collect a fee in connection with a future transfer of the property” must be evidenced by a deed restriction or covenant running with the land filed in the public records. A similar clarification was made to the exception for an entity organized under Section 501(c)(3), Internal Revenue Code of 1986.
Want to learn more? Read the bill: http://billstatus.ls.state.ms.us/2019/pdf/history/HB/HB0962.xml