Bill > SB973

This bill introduces new regulations for "wholesalers" in real estate transactions, defined as individuals or entities who enter into purchase contracts for residential properties (defined as properties with one to four dwelling units) and then assign or novate those contracts to others for a profit, with certain exceptions for family members or affiliated companies. Specifically, a wholesaler acting as the buyer must provide a written disclosure statement to the property owner at least fourteen days before signing a contract, clearly explaining their role as a wholesaler, that they do not represent the owner, and that the owner is advised to seek legal counsel. This disclosure must be signed by both parties before a binding contract can be formed, and failure to comply allows the owner to cancel the contract without penalty. The bill also establishes the "Missouri Residential Sale Leaseback Protection Act," requiring buyers in sale leaseback transactions (where a seller sells their residence and then leases it back) to provide a separate disclosure to the seller at least fourteen days before signing, warning them of the implications of selling their home and encouraging them to seek professional advice. In sale leaseback transactions, no title transfer can occur for thirty days after the agreement is signed. Violations of these disclosure requirements can result in civil penalties, and both wholesalers and sale leaseback buyers can face legal action from affected parties, including claims for damages and attorney fees.

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