Summer - Mississippi Association of REALTORS

New real estate laws continued from page 7tial buyer, then the law allows a cause of action against the seller.If a licensee has actual knowledge of one of the above factors and isasked, a licensee must also answer truthfully. The law only says these disclosuresdon’t have to be made voluntarily.The new law also clarifies that property owners and real estate licenseesmay disclose information about sex offenders who live in the vicinity of aproperty, but does not impose a duty to disclose such information unless aconsumer specifically asks. It also clarifies that property owners andlicensees will not risk legal liability if they disclose such sex offender information.Because some state sex offender laws have been challenged on constitutionalprivacy grounds, this measure adds a necessary layer of protection forproperty owners and licensees at risk in cases both if they disclose and ifthey don’t. This revision also helps insure that consumers get the informationthey want, enabling them to make better purchasing inquiries and decisions.SB 2697 – Presenting proof of licensure at closingSponsored by Sen. Merle Flowers (R-Southaven), this amendment to theMississippi Real Estate License Law (MS Code §73-35-31) prohibits paymentof any disbursement or commission to a salesperson unless he/sheproduces proof of Mississippi real estate licensure or a cooperative agreementwith a Mississippi broker. This means attorneys and other professionalswho handle real estate closings may not release disbursements to salespersonsfor any fees, commissions, or other compensation due until a salespersonproduces proof of licensure.Although the law does not specify what qualifies as "proof," documentssuch as a copy of the salesperson’s real estate license or a copy of the salesperson’scooperative agreement with a Mississippi broker would be adequate.In some circumstances if such documents are unavailable for goodreason, then other "proof" may be acceptable, but the obligation of providingthat evidence still rests with the salesperson.This revision to Mississippi’s Real Estate License Law provides greaterdeterrence against unscrupulous salespersons and protects Mississippi consumersfrom unlicensed salespeople who cannot provide adequate servicewithout the expertise and knowledge of state law that comes only with properlicensing and regulatory oversight. nHattiesburg continued from page 7affect the property, and therefore, need not be voluntarily disclosed."Buyers who have a phobia about living in a house where somebody died,for example, should share that with their agents and raise the question if it’simportant to them," James says. "Otherwise, this legislation clarifies that it’snot a REALTOR ® ’s or property owner’s responsibility to volunteer that information."n12 / MISSISSIPPI REAL ESTATE LEADER / Summer 2005