MS HB41

Defines a "bond for deed" as a contract to sell real property where the buyer pays the seller in installments and the seller delivers title after a stipulated sum is paid.

Requires bond for deed contracts to be recorded in mortgage and conveyance records, and grants recorded bonds priority over subsequently filed liens, mortgages, or other encumbrances on the property.

Prohibits selling encumbered property via bond for deed without first obtaining and recording a written guarantee from mortgage/lien holders to release the property upon payment of a specified mortgage release price.

Mandates that all payments on encumbered property be made to a designated bank escrow agent, which distributes funds between the seller and lienholder proportionally to ensure the buyer receives unencumbered title upon full payment.

Allows bond for deed buyers to claim homestead exemption on property they are occupying and purchasing under bond for deed if otherwise qualified, and must apply annually.