A Mississippi residential purchase agreement is a document in which potential buyers make formal offers for a residential property. It details the purchase price, financing, and a deadline for the offer and becomes legally binding once both parties sign.
It includes payment terms and earnest money requirements and mandates a property condition statement from the seller before title transfer. If this statement is delayed, buyers may have an option to cancel the purchase. Once signed, the agreement cannot be terminated unless both parties agree.
Required Seller Disclosures
Lead-Based Paint Disclosure
Federal law (42 U.S. Code § 4852d) requires sellers to disclose any known lead hazards for homes built before 1978.
Property Disclosure Statement
The seller is required to inform the buyer about the property's utilities and condition as per § 89-1-503 . Upon receiving the disclosure statement, the buyer has three days to withdraw their offer, or five days if it's received via mail.
Other Disclosures
Flood Zone Disclosure: Sellers are typically expected to inform buyers if a property is in a designated flood zone. While this requirement is not specified by a distinct Mississippi statute, it is usually covered under wider real estate disclosure laws and influenced by federal mandates like the National Flood Insurance Program (NFIP).
Termite Inspection: Although not directly required by Mississippi law, termite inspections are commonly included in purchase agreements. This practice is encouraged by lenders and falls under broader statutes concerning property sales and disclosure of known defects that could impact a property’s value or safety.
Do Sellers in Mississippi Have to Disclose Property Defects?
In Mississippi, sellers must disclose material defects in real estate. Unlike in caveat emptor states, where buyers need to find defects themselves, failing which they may not undo the transaction.
