Bill > SB1594

This bill establishes the Contract for Deed Act, which aims to regulate agreements where a seller finances the sale of real property to a buyer, and the buyer makes payments over time before receiving legal title. The Act defines "contract for deed" as either a long-term (over three years) or short-term (three years or less) executory contract for property used as a residence, excluding newly constructed homes. Key provisions include requiring contracts to be in writing, prohibiting oral modifications, and mandating specific disclosures from the seller to the buyer, such as the purchase price, interest rate, and any liens on the property. For long-term contracts, sellers must provide extensive disclosures about the property's condition and title, and buyers have a 14-day right to cancel. The Act also sets limits on late fees and prohibits prepayment penalties on short-term contracts, while long-term contracts have specific rules regarding foreclosure and trustee sales if the buyer defaults after paying a significant portion of the purchase price. Sellers are required to provide annual statements to buyers and transfer legal title within 30 days of the final payment, with penalties for non-compliance. The Act also outlines procedures for buyers to convert their interest into legal title by paying off the balance or through a promissory note and deed of trust arrangement.

Labor and Employment

https://www.senate.mo.gov/26info/BTS_Web/Bill.aspx?SessionType=R&BillID=2468908