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OT: 16th Section Land

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DawgInTheCold

Redshirt
Dec 7, 2010
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Considering leasing some property in Mississippi that has utilities currently, and building a house. It is 16th section land.
Anyone have experience on leasing and building on this type of property? What is the typical price per acre w/ utilities?
This is currently leased by another individual.
 
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M R DAWGS

M R DAWGS

All-Conference
Apr 13, 2018
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Can you ever really own 16th section land? I thought you just leased it.
 
Shmuley

Shmuley

Heisman
Mar 6, 2008
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Call the school district office for the county where the land is located and pose your questions to the leasing coordinator. The school district is required by state law to realize fair market value on the leasehold. Lease is adjusted at a minimum every 5 years. You will also be required to pay city/county ad valorem on the improvements (depending on whether land is inside corporate boundaries).
 
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natchezdawg

Redshirt
Oct 4, 2009
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I could be mistaken, but I can’t imagine

that building anything significant on a piece land that you don’t own free and clear would be a good idea. Seems like any potential lender would have an issue with it too.
 
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Eleven Bravo

Junior
Aug 31, 2018
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I have had a 16th Section lease for over 30 years. It goes up for bid every 10 years-as long as I am the highest bidder, I get to re-lease it. You are not allowed to build a permanent dwelling on 16th Section land. Not sure why anyone would even want to build on property that you will never own. Years ago, 16th Section leases were for up to 99 years in length and some people actually did build on them, but that practice has been over for many years.
 
Mobile Bay

Mobile Bay

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Jul 26, 2020
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No, it can be done. I have a cousin who bought a house on a 99 year lease on Lake Martin. The land is owned by Alabama Power. He has a mortgage on it.
 
GloryDawg

GloryDawg

Heisman
Mar 3, 2005
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At one time if you got it you could pass it on to children and they could pass it on to thier children. The lease price would never go up. When I was young I know a family who had 16 sanction land for three generations. They were paying like 2.00 acre. It was all hunting land. I believe they have changed the rules.
 
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ronpolk

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May 6, 2009
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Mobile Bay said:
No, it can be done. I have a cousin who bought a house on a 99 year lease on Lake Martin. The land is owned by Alabama Power. He has a mortgage on it.
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Yeah, that’s different than the 16th section land. Most of those leaseholds that people build houses on are 99 year leases with renewal rights. Tons of people in the Jackson area have houses like this around the Rez where the land is technically owned by pear river water.
 
Jeffreauxdawg

Jeffreauxdawg

All-American
Dec 15, 2017
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Did all of the other states with 16th section land rights just sell it all off 100 years ago? I have never seen it anywhere else and the google search of 16th section land only talks about Mississippi issues.

My experience is limited, but I remember there being a 16th Section Rd off of Old West Point Rd on the way to Tibbee to get cold beer. I remember it being less than desirable real estate. Pretty much every other 16th section I saw on a map was full of timber.
 
dorndawg

dorndawg

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Sep 10, 2012
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JoeLee'sSocks said:
Did all of the other states with 16th section land rights just sell it all off 100 years ago? I have never seen it anywhere else and the google search of 16th section land only talks about Mississippi issues.

My experience is limited, but I remember there being a 16th Section Rd off of Old West Point Rd on the way to Tibbee to get cold beer. I remember it being less than desirable real estate. Pretty much every other 16th section I saw on a map was full of timber.
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I've always wondered this as well. And also agree, seems like in many places it's kinda out in the middle of nowhere where a school clearly won't be built. I assume counties/school districts can't just sell it or they would in many cases?
 
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40 acres and a mule

Senior
Dec 9, 2018
765
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JoeLee'sSocks said:
Did all of the other states with 16th section land rights just sell it all off 100 years ago? I have never seen it anywhere else and the google search of 16th section land only talks about Mississippi issues.

My experience is limited, but I remember there being a 16th Section Rd off of Old West Point Rd on the way to Tibbee to get cold beer. I remember it being less than desirable real estate. Pretty much every other 16th section I saw on a map was full of timber.
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My Mississippi History is shaky, but I think this is peculiar to our State. The 16th section of every township was to be set aside and its revenue used for education, per the original Mississippi Constitution. Some 16th sections are desirable, others are not. Local politics got involved, and it became a mess. The Laws were rewritten about 30 years ago, if my memory serves. It was a big deal in the Legislature at the time. Some families that had had such land for generations for a nominal fee had to pay a fair market value and were forced off. The present rules seem to work better. And many 16th sections are just growing timber, because no one wants to deal with them. If I wasn't leasing it for crop land or hunting land, I see no reason to have it.
 
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msubrave

Redshirt
Nov 17, 2015
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All land is leased. Try not paying your property taxes(lease $) on the land you own "free and clear".
 
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DogTalk

Redshirt
Jun 6, 2019
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What are people paying per acre for the transfer of a lease of 16th section land?
 
J-Dawg

J-Dawg

Junior
Mar 4, 2009
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Power company or water district lease land (i.e. the Rez) is a bit different that 16th section. I would imagine building a permanent dwelling on 16th section in MS varies by jurisdiction (school district). I know in Madison County, there is a residential development on 16th section out by Mannsdale Elementary that has many very nice homes all on leased land (Livingston Subdivision). So, I guess it can be done, but probably varies by school district as well as each individual 16th section.
 
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fairweatherfan

Redshirt
Nov 24, 2007
172
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Lots of good answers here, but there are exceptions to every rule. For example, alot of downtown Columbus, including many of the older, historical homes, is on 16th Section Land, as noted above. Some years ago, there was a judgement that actually (and I'm paraphrasing here, may not be 100% dead nuts accurate) confirmed that those Columbus leases are renewable in perpetuity, and for the original lease payment amount. Most 16th Sections across the state are now set to re-bid every few years, and the SOS (I think it was Delbert) a few years ago made a big push for getting FMV for all of those leases, including hunting leases. Do your homework. If it is not a super long term lease, I wouldn't even consider making a significant investment, but that is just me. Your opinion may be different.
 
greenbean.sixpack

greenbean.sixpack

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Oct 6, 2012
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The homes around the Rez are called "leasehold," you don't actually own the land, but lease it from the PRVWSD. This in no way, shape or form hinders people from buying or selling these residential houses. Obviously this may be different than 16th section land.
 
PhredPhantom

PhredPhantom

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Mar 3, 2008
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You cannot sell timber growing on 16th Section Land in Mississippi for which you hold the lease. It’s illegal; you could wind up in jail plus big fines.
 
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bddawg

Redshirt
Feb 21, 2018
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Eleven Bravo said:
I have had a 16th Section lease for over 30 years. It goes up for bid every 10 years-as long as I am the highest bidder, I get to re-lease it. You are not allowed to build a permanent dwelling on 16th Section land. Not sure why anyone would even want to build on property that you will never own. Years ago, 16th Section leases were for up to 99 years in length and some people actually did build on them, but that practice has been over for many years.
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I know of a place in noxubee county close to the Alabama line where a permanent structure was built. That was about 20 years ago or less. So while I can't say it's still legal I can say it's been done. And I will also say it's completely stupid. They have to win the bid every time it comes up. Luckily, they haven't been ripped a new one during that time w someone jacking up the lease by a ton.
 
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