Effective August 28, 2026, the Missouri Real Estate Wholesaler Disclosure Act and Missouri Residential Sale Leaseback Protection Act require certain disclosures under certain conditions.
The Missouri Real Estate Wholesaler Disclosure Act is contained in Section 407.3600 and reads as follows:
407.3600. Disclosure statement, residential real property — definitions — contents of statement — cancelation of contract, when — modification or waiver prohibited — violations, enforcement.
1. For purposes of this section, the following terms mean:
(1) "Residential real property", real property that is improved by a building or other structure that has one to four dwelling units;
(2) (a) "Wholesaler", a person or entity that for a fee, commission, or other valuable consideration, or with the intention, expectation, or upon the promise of receiving or collecting a fee, commission, or other valuable consideration, enters into a purchase contract for residential real property either:
a. As the grantee, and assigns or novates the contract to another person or entity; or
b. As the grantor, and, without holding legal title to the real property, assigns or novates the contract to another person or entity.
(b) Wholesaler shall not include:
a. An individual who assigns or novates the contract to another individual who is a relative within the third degree of consanguinity or affinity; or
b. A person or entity that assigns or novates the contract to a parent, affiliate, subsidiary, or affiliated group under common control with the person or entity.
2. Not less than fourteen calendar days before entering into a contract that transfers an interest in residential real property, a wholesaler acting as a grantee or a wholesaler's representative, if applicable, shall provide to the record owner a written disclosure statement, separate from the purchase contract or agreement, printed in boldface type font size not less than twelve points, that contains the following disclosure:
Missouri law requires a wholesaler acting as a grantee, before entering into a contract or agreement that conveys an interest in residential real property, to provide certain information to the record owner in a conspicuous manner printed in boldface type font size not less than twelve points. Failure by a wholesaler to present or complete this form shall be considered an unlawful and unfair practice under the Missouri Merchandising Practices Act. Any person who enters into an agreement that conveys an interest in residential real property to a wholesaler acting as a grantee without receiving this disclosure has a cause of action against the wholesaler. A wholesaler acting as a grantee is prohibited from entering into a binding contract to acquire an interest in residential real property unless this statement is signed and dated by the record owner of the property.
The owner acknowledges that the person presenting this document is a wholesaler, as defined in section 407.3600 of the Revised Statutes of Missouri, and that the owner is advised to seek legal advice before entering into any agreement or contract with the wholesaler. A wholesaler is acting on the wholesaler's own behalf and does not represent the owner in this transaction. A wholesaler enters assignable contracts with owners and seeks to sell or assign the wholesaler's interest for a profit. The wholesaler may assign the wholesaler's interest in the purchase contract to a third party without the owner's consent before closing. The wholesaler may charge a fee to the third-party buyer separately for profit. The agreed purchase price between the owner and wholesaler may be below market value and is conveyed voluntarily.
The owner acknowledges disclosure of the information provided in this form by signing and dating below:
_________ (Property owner signature) ___ (date)
_________ (Wholesaler signature) ___ (date).
3. A wholesaler acting as the grantee shall not enter into a binding contract that transfers an interest in residential real property until both the wholesaler and the record owner of the property sign and date the disclosure statement required under subsection 2 of this section.
4. If a wholesaler acting as the grantee fails to make the disclosures pursuant to subsection 2 of this section before entering into a binding contract that transfers an interest in residential real property, the record owner of the residential real property may cancel the contract at any time prior to the close of escrow without penalty and the escrow or closing agent shall disburse any earnest money paid by the wholesaler to the record owner within thirty days after such cancellation.
5. Provisions of this section shall not be modified or waived by any oral or written agreement. Any portion of an agreement that is executed, modified, or extended after August 28, 2026, that modifies or waives any provision of this section shall be null and void.
6. Any violation of this section shall be considered an unlawful practice under the Missouri merchandising practices act under this chapter. A party that enters into an agreement without receiving the disclosures required under subsection 2 of this section may bring a private action against a wholesaler.
7. The attorney general shall have the authority to enforce the provisions of this section. If the attorney general finds that a violation occurred, the attorney general may commence a civil action in a court of competent jurisdiction. If the court finds that a violation occurred, the court may grant damages, injunctive relief, attorney fees, and any such other relief the court finds appropriate.
The Missouri Residential Sale Leaseback Protection Act is contained in Section 442.920 and reads as follows:
442.920. Citation of law — definitions — sale leaseback transactions, disclosure form, requirements.
1. This section shall be known and may be cited as the "Missouri Residential Sale Leaseback Protection Act".
2. For purposes of this section, the following terms mean:
(1) "Buyer", any person or entity that acquires an ownership interest in residential real estate in a sale leaseback transaction;
(2) "Residential real estate", real property that is improved by a building or other structure that has one to four dwelling units;
(3) "Sale leaseback", a transaction or series of transactions in which a seller sells residential real estate that is or was the seller's residence to another party and, as a condition of the sale, or as part of the same or a related transaction, enters into a lease or rental agreement to remain in or reoccupy the property;
(4) "Seller", any natural person who transfers an ownership interest in residential real estate in a sale leaseback transaction.
3. (1) In any sale leaseback transaction, the buyer shall provide the seller with the following disclosure on a single page in a clear and conspicuous manner, printed in boldface type:
If you sign a sale leaseback agreement, you are entering into a contract to sell your home. This means you will no longer own your home.
You may be subject to eviction if you do not follow the lease terms.
You may lose the right to buy back your home.
This may affect your credit, taxes, and legal rights.
You are encouraged to speak with:
(1) An attorney;
(2) A real estate agent;
(3) A housing counselor;
(4) A tax advisor; and
(5) A real estate appraiser.
No sale leaseback can be closed for at least thirty (30) days after signing an agreement.
Do not sign unless you fully understand the terms.
(2) The disclosure required by subdivision (1) of this subsection shall be provided to the seller not less than fourteen calendar days prior to execution of any sale leaseback agreement, and the disclosures shall be signed by both the seller and the buyer concurrently with the execution of the sale leaseback agreement.
(3) A copy of the signed disclosure required by subdivision (1) of this subsection shall be provided to the seller within five days of the execution of the sale leaseback agreement.
4. There shall be no delivery, recording, or other transfer of title from seller to buyer until thirty days after the execution of any sale leaseback agreement.
5. (1) Any violation of the provisions of this section shall be subject to a civil penalty not to exceed ten thousand dollars per violation.
(2) The attorney general may bring an action to enforce this section, including actions for injunctive relief, civil penalties, and restitution.
(3) Any seller harmed by a violation of this section may bring a civil action to recover:
(a) Actual damages;
(b) Statutory damages of ten thousand dollars, which shall be in addition to any actual damages proven;
(c) Attorneys' fees and costs; and
(d) Equitable or injunctive relief.
6. No provision of this section shall be modified or waived by any agreement. Any portion of an agreement that is executed, modified, or extended after August 28, 2026, that modifies or waives a duty or remedy under this section is void ab initio and unenforceable.
Important Takeaways:
- Both of these laws apply ONLY to improved residential property containing not more than 4 dwelling units.
- The disclosures must be signed NOT LESS THAN 14 calendar days prior to the signing of a contract. For your protection, the contract should not be signed and dated sooner than 15 days from the signing of the disclosure form.
- If the disclosure is not properly done and timing is not right, the party entitled to receive it may rescind the contract. Other damages are also provided for including criminal and/or civil penalties of up to $10,000 per violation!
If you have questions or are unsure as to whether the disclosure is required, seek competent legal counsel.
