Bulletin: MS2024002

Dear Associates:

Mississippi enacted into law a series of statutory amendments and new Statutes through an Act known as the “Mississippi Foreign Land Ownership Act” under Chapter 1 of Title 89 of the Mississippi Code (“Statute(s)/Act”). This bulletin outlines key points and provides a brief explanation of the new law as it relates to title insurance and title agents.

What it does:

The Statutes generally prohibit two forms of real property ownership:

• Ownership or possessory interest of a majority part or majority interest in forest or agricultural land by a nonresident alien when obtained outside of inheritance, security for indebtedness, or collection of debts or by any procedure for enforcement of a lien or claim thereon.
• Retaining ownership or possessory interest for more than two (2) years of a majority part or majority interest in forest or agricultural land by a nonresident alien when obtained through collection of debts or by any procedure for enforcement of a lien or claim thereon.
• Retaining ownership or possessory interest for more than one (1) year of a majority part or majority interest in forest or agricultural land by a nonresident alien when obtained through devise or inheritance.
• Repeals Miss. Code § 29-1-75 on July 1, 2026. It applies to prior restrictions of nonresident alien ownership of public land.

Key Terms:

• Forest and agricultural land are defined as:
  • Any land in the state devoted to the growing of trees or the commercial production of agricultural products or timber, wood, or forest products, including nongaming species. Where the land is classified by the county as forest, agricultural, pasture or open land and being used as forest or agricultural land in the performance of forestry or agricultural activities is a prima facie case as to the purpose the land is devoted to, though such classification shall not be required.

• Majority part or majority interest means an interest of fifty percent (50%) or more in the aggregate, held by individuals, parties or governments that are nonresident aliens. Majority interest shall still qualify even if the nonresident alien individuals, parties, or governments are not acting in concert.
• Nonresident alien is defined to include ANY of the following:
  • An individual who is domiciled in a country whose government is designated as a foreign adversary by the United States Secretary of Commerce and is neither a citizen of the United States nor a resident of the United States within the meaning of subparagraph (A)(26) U.S. Code Section 7701;
  • A corporation, partnership, limited partnership, limited liability company, trustee or other business entity that is:

(i)  Domiciled in a country whose government is designated as a foreign adversary by the United States Secretary of Commerce; or
(ii)  Domiciled within the United States but which is wholly or in the majority part owned by any corporation, partnership, limited partnership, limited liability company, trustee or other business entity domiciled in a country whose government is designated as a foreign adversary by the United States Secretary of Commerce,
or; 

• • A foreign government designated as a foreign adversary by the United States Secretary of Commerce.
    • Currently the above referenced foreign adversaries include:
      • People’s Republic of China, the Hong Kong Special Administrative Region, Republic of Cuba, Islamic Republic of Iran, Democratic People’s Republic of Korea (North Korea), Russian Federation, and Venezuelan politician Nicolás Maduro.

• Possessory interest means all direct interest acquired, transferred, or held in forest or agricultural land for a term of one (1) year or longer.

Are there circumstances where these laws do not apply?

Yes, the Statutes do not restrict foreign ownership in the following circumstances:   

• A nonresident alien that is a corporation, partnership, limited partnership, limited liability company, trustee or other business entity leasing not more than five hundred (500) total acres of Mississippi land from its owner and using such land for agricultural research and development or experimental purposes, including testing, developing or producing crop production inputs, including, but not limited to, seeds, plants, pesticides, soil amendments, biologicals and fertilizers solely for sale or resale.
• A nonresident alien in violation of the Act terminates the nonresident alien status or disposes of a shared interest as to no longer retain the majority part of interest within one (1) year of inheritance/devise or two (2) years of obtaining an ownership or possessory interest through debt collection. One (1) year of curative action is allowed for violations due to obtaining ownership or possessory interests via other means.

Penalties for Violations

Failure to comply with the Act shall trigger the Secretary of State to issue a formal demand with notice of the violation to the nonresident alien. Failure to comply with the disposition of forest or agricultural land within the State of Mississippi after receiving notice shall trigger the Secretary of State to formally notify the Attorney General with a specific request for enforcement actions to begin. Violation will first result in fines that can be filed in the judgment rolls of the county to have the same effect as judgment liens. If unpaid within 30 days, the Attorney General is authorized to begin judicial taking by civil forfeiture action in the Chancery Court of the county in which the property is located or in Hinds County, if more convenient to the State of Mississippi. The entry of the final order of civil forfeiture shall extinguish the lien of the fine on the property, but shall not extinguish the fine on the nonresident alien. No mortgage, lien, privilege, or other security interest recognized under the laws of this state and no ownership interest in division, lease, servitude, usufruct, right to use, bond or deed or other real rights shall be affected by a forfeiture or disposition pursuant to this section.

It is important to note that the Statute does not hold title to be invalid or subject to divestiture due to a violation by a former owner or other person holding or owning a former interest in the land.

What do Title Agents Need to Know?

The Statute specifically protects title insurers, title agents, real estate licensees, and other settlement providers from any liability relating to the violation of the Statute.

At this time, Stewart Title Guaranty Company (STGC) is not requiring the inclusion of a general exception relating to the matters raised in the Statute. However, if a notice, lien, lis pendens, order, or other recorded document indicates applicability of the Statute, proper requirements need to be made to clear the item.

Given the uncertainty created by the broad provisions of the Statutes, determining whether a property, party or transaction is affected by the act is extremely difficult and given the potential for criminal/civil liability and insurability, STGC agents should continue to closely review entity organizational structure, trust documents, and individual citizenship/identification.

Outside of the changes above, the applicable Mississippi section of 1.52.3 of the Underwriting Manual is unaffected.

Attached is a copy of the new Statutes for your reference. You should reach out to your local STGC underwriter for any questions or additional guidance.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.