Bulletin: MS2024001

Dear Associates:

The following is a summary of legislation that was passed during the 2023 Regular Session that may impact the title industry. 

Extinguishment of Right of First Refusal

HB 325. This bill creates a new section in Chapter 1, Title 89. It holds that a right of first refusal in real property is extinguished upon the death of the right-holder unless the instrument of conveyance or agreement specifically states that the right of first refusal is binding upon and insures to the benefit of the heirs and assigns of the right-holder at their death. 

What you should know: Review the provisions regarding any grant of a right of first refusal to determine if the right has been extinguished by the death of the right-holder or continued on to their heirs and assigns requiring a release, waiver, or termination. 

Scrivener’s Affidavits 

HB 1343. This bill amends Miss. Code Ann. § 89-5-8 to allow for retired Mississippi attorneys that retired in good standing to prepare and sign scrivener's affidavits correcting errors made while they were in practice. The affidavit should state as much to allow for recordation under Mississippi law. 

What you should know: This change is meant to correct an issue created by HB 1351 passed in 2022. The effect of the passage of that former bill was to disallow retired attorneys to prepare scrivener's affidavits correcting errors that they created while in practice. 

Industrial Development Authorities 

HB 1617. This bill creates Miss. Code Ann. § 57-31-35 and amends others to allow for industrial development authorities to be created in counties for the purpose of developing megasite industrial projects using bond financing as a vehicle for major industrial development. 

What you should know: This may lead to large scale industrial or commercial development in the state. Underwriting requirements will include review of the authority documents for the industrial development authority in each county as well as county board of supervisor approval of bond financing.

Foreign Ownership and Possession of Real Property

SB 2519. This bill creates the Mississippi Foreign Land Ownership Act, which prohibits certain foreign individuals and entities from acquiring title or possessory interests in certain types of real property. 

What you should know: Please see Bulletin MS2024002. 

Certificate of Titles Created for Mobile Homes Older than July 1, 1999 

SB 2764. This bill creates Miss. Code Ann. § 63-21-28 and amends others to allow for the creation and retirement of certificates of title for a manufactured or mobile home manufactured before July 1, 1999. An affidavit of ownership is required to be submitted to the Mississippi Department of Revenue to begin this process. 

What you should know: This should make it easier for approval of the ALTA 7 series of endorsements and title policy coverage on mobile homes older than July 1, 1999. Previously the certificate of title process was only applicable to mobile homes after the aforementioned date. The new statute also includes a form affidavit of ownership to be used.

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