Bulletin: MS2022001

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Bulletin: MS2022001

Bulletin Document
Date: August 05, 2022
To: All Mississippi Issuing Offices
RE: LEGISLATIVE UPDATE - Mississippi 2022 Legislation

Dear Associates:

The following is a summary of legislation that was passed during the 2022 Regular Session that may impact the title industry.

Carbon Sequestration

HB 1214. This bill makes changes to the Mississippi Geologic Sequestration of Carbon Dioxide Act in Miss. Code Ann. §§ 53-11-1 thru -33 to promote carbon sequestration in Mississippi. In essence, the bill allows for the Mississippi Oil and Gas Board to enter a preliminary technical order even if a majority of the ownership interests of an underground storage facility have not consented as long as the operator has made a good-faith effort to obtain consent of a majority of the surface and mineral owners, and the operator obtains majority consent within twenty-four months from the date of the preliminary technical order.

What you should know/do: The intent of this change is to encourage certain industries to locate in Mississippi and use an existing pipeline and storage facility to store carbon dioxide rather than emit the carbon dioxide in the atmosphere. It will be interesting to see if this leads to requests for coverage as to subsurface interests. Such coverage is considered an extra hazardous risk requiring special underwriting approval. (Effective July 1, 2022).

Homeowners’ Associations

HB 933. This bill made changes to the 2021 enacted Regulation of Homeowners Associations Management Agents and the Management of Association Assets in Miss. Code Ann. §§ 79-11-751 thru -759. Specific changes were to delete the requirement that approval of transfers of funds by boards be in writing, require boards to review only the most recent reconciliations of its operating and reserve accounts, allow a board to get insurance rather than a fidelity bond, and allow a board rather than the members of the association to vote not to require a fidelity bond.

What you should know/do: For those agents that assist in the setup and management of homeowner associations, this bill eased restrictions in the 2021 law that were considered too harsh and detrimental to routine business of the association. (Effective July 1, 2022).

Letters of Administration

SB 2034. This bill amends the Miss. Code Ann. § 91-7-63 to provide that Letters of Administration shall be granted by the Chancery Court of the County in which the intestate owned land in the event that the intestate had no fixed place of residence. It also removed references to personal property.

What you should know/do: An administration of an intestate estate is appropriate in a Mississippi county in which the decedent owned real property, if they did not have a fixed place of residence in the state. (Effective July 1, 2022).

Scrivener’s Affidavits

HB 1351. This bill amends Miss. Code Ann. § 89-5-8 to require that a scrivener’s affidavit contain the Mississippi bar number of the affiant attorney, along with a statement that the attorney is in good standing with the Mississippi Bar, is licensed to practice law in the State of Mississippi, and that the attorney’s license is active at the time of making the affidavit. Any affidavit lacking this information shall be void.
What you should know/do: This change continues the trend of defining document preparation as it relates to land title transactions and recordings as the practice of law in Mississippi. This will impact recorded scrivener’s affidavits that appear to have been prepared by out-of-state attorneys. (Effective July 1, 2022).

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.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.


References

Bulletins Replaced:
  • None
Related Bulletins:
  • None
Underwriting Manual:
  • None
Exceptions Manual:
  • None
Forms:
  • None