Home sellers would get warnings before signing certain property deals

A property wholesaler acting as the buyer must give the homeowner a written disclosure before entering a binding contract. This applies when a wholesaler acts as the buyer in a contract involving a home with one to four dwelling units. It excludes certain transfers to relatives or related businesses. The disclosure must be separate from the contract, in bold print of at least 12-point size, and signed and dated by both the wholesaler and the owner before the binding contract. The disclosure must be given at least 14 calendar days before a contract that transfers an interest in the home.

A buyer in a sale-and-rent-back deal must give the seller a written warning about the deal. This applies when a person sells a home with one to four units that is or was their residence and agrees to rent or lease it as part of the same or a related deal. The warning must explain that the seller gives up ownership, may face eviction for breaking the lease, may lose the chance to buy the home back, and may affect credit, taxes, and legal rights. Both buyer and seller must sign the warning when they sign the deal. The seller must receive a copy within five days. The law bars agreements from waiving these protections. The warning must arrive at least 14 calendar days before the deal is signed; the signed copy is due within five days afterward. The transfer of title must wait at least 30 days after signing.

A county or eligible municipality may establish a public land bank agency to manage and transfer property. This applies to eligible Missouri counties and municipalities that choose to establish an agency. A county must have more than one million residents. A municipality must have more than 1,500 residents and cannot be in a county with more than one million residents. A land bank may own only property wholly within the county or municipality that established it. Its purpose is to return land to private ownership or public use. Within five years of acquiring a property, the agency must sell it, put it to productive use, or show significant progress toward doing so. Within eight years, it must sell, clear, or put it to public use; the local government may allow a one-year extension for unforeseen delays.