Bill > SB973

This bill establishes new disclosure requirements for "wholesalers" in Missouri real estate transactions involving residential properties, which are defined as properties with one to four dwelling units. A wholesaler is defined as someone who enters into a contract to buy residential real estate and then assigns or novates that contract to another party for a fee, without necessarily taking legal title themselves. This definition excludes individuals related by blood or entities assigning contracts to their parent companies, subsidiaries, or affiliates under common control. Specifically, the bill mandates that a wholesaler, acting as the buyer, must provide a written disclosure statement to the property owner at least fourteen calendar days before signing a purchase contract. This disclosure, which must be in boldface type of at least twelve-point font and separate from the purchase contract, must clearly state that the person is a wholesaler, that the owner is advised to seek legal counsel, and that the wholesaler is not representing the owner but rather intends to profit by assigning the contract to a third party, potentially at a price below market value. The owner must sign and date this disclosure, acknowledging its contents, and the wholesaler must also sign and date it. If this disclosure is not provided and signed before a binding contract is made, the owner has the right to cancel the contract without penalty before closing, and any earnest money paid by the wholesaler must be returned to the owner within thirty days of cancellation. Any attempt to waive or modify these provisions through any agreement will be considered null and void. Violations of this section are considered unlawful and unfair practices under the Missouri Merchandising Practices Act, allowing affected parties to sue the wholesaler for damages, attorney fees, and other relief, and the Attorney General is also empowered to enforce these provisions.

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https://www.senate.mo.gov/26info/BTS_Web/Bill.aspx?SessionType=R&BillID=321