Missouri real estate wholesaling laws (2026)

Is wholesaling legal in Missouri?

Yes, wholesaling is legal in Missouri, but since August 28, 2026 it has been regulated by a mandatory disclosure law. Senate Bill 973, signed by Governor Kehoe on July 13, 2026, added RSMo § 407.3600. It applies when you contract for a fee to buy residential property with one to four dwelling units and then assign or novate that contract. Before entering a binding contract, you must give the record owner a separate written disclosure in bold type of at least 12 points, and both of you must sign and date it at least 14 calendar days before the contract. A violation is an unlawful practice under the Missouri Merchandising Practices Act, which the Attorney General enforces and which also allows private lawsuits. The law creates no wholesaler license, but RSMo chapter 339 still requires one to act for others. Missouri has no statewide transfer tax.

What Missouri requires from wholesalers

• Applies to residential real property with 1-4 dwelling units where you contract for a fee and then assign or novate the contract
• Give the record owner a separate written disclosure (bold, at least 12-point type) at least 14 calendar days before entering a binding contract
• Wholesaler and record owner must both sign and date the disclosure; you may not enter a binding contract until the owner has signed it
• Keep the signed disclosure on file; failing to present or complete it is an MMPA violation
• Do not act as an agent for others or collect commissions without a license under RSMo ch. 339

How to wholesale legally in Missouri: step by step

1. 1

   Confirm the deal is covered. Section 407.3600 applies to residential real property with one to four dwelling units when you contract for a fee and then assign or novate the contract. Switching from an assignment to a novation does not take a deal outside the statute.

2. 2

   Prepare a stand-alone disclosure. The notice must be a separate written document, printed in bold type of at least 12 points, given to the record owner. Do not bury it in the purchase agreement, and check the enacted text of § 407.3600 for the required content.

3. 3

   Start the 14-day clock before you contract. You and the record owner must both sign and date the disclosure at least 14 calendar days before a binding contract, and you may not contract until the owner has signed. Build that waiting period into every acquisition timeline.

4. 4

   Sign the purchase contract and file the disclosure. Once the waiting period has run, execute an assignable contract. Keep the signed and dated disclosure with it; failing to present or complete the notice is itself an unlawful practice under the Merchandising Practices Act.

5. 5

   Stay on the principal side of chapter 339. Market your contract interest, not the property, and do not act as an agent for the owner or buyer or collect commissions. SB 973 did not create a wholesaler license, so general broker licensing rules still apply.

6. 6

   Close through a title or escrow company. Missouri does not require an attorney, and title companies handle most closings. Send the disclosure, contract and assignment to the closer early so the file shows compliance before the end buyer funds.

7. 7

   Know the cancellation exposure. According to statute summaries, an owner who never received the disclosure may cancel before closing without penalty, with earnest money paid to the owner within 30 days. Verify these mechanics in the enacted statute.

Seller protections and penalties in Missouri

• Mandatory 14-day pre-contract disclosure period
• If the disclosure was not given, the owner may cancel before closing without penalty; earnest money is paid to the owner within 30 days (per statute summaries; verify enacted text)
• Owner who conveys without receiving the disclosure has a cause of action against the wholesaler

Penalties: Unlawful practice under the Missouri Merchandising Practices Act (Attorney General enforcement and private civil action); contract cancellation and loss of earnest money.

Assignment vs. double close in Missouri

SB 973 is written around assignment and novation, so both of those exits need the 14-day signed disclosure on covered one-to-four-unit deals. Once it is in place, an assignment closes once, with one deed from the record owner to your end buyer and your fee paid at closing. A double close, where you buy and then resell, involves two separate purchases. Whether § 407.3600 reaches a true purchase-and-resale is not clear from the summaries available, and the law is new and untested in court, so ask a Missouri attorney before treating a double close as a way around the disclosure. Giving the disclosure anyway is the cautious approach. On cost, Missouri is favorable: there is no statewide transfer tax, so the second leg of a double close adds mainly title, escrow and recording charges rather than a second round of deed tax. Title companies in St. Louis and title or escrow companies in Kansas City are used to two-step closings but will want to see the disclosure in the file.

Transfer tax: Missouri has no statewide real estate transfer tax; sources report that the state constitution bars new taxes on real estate sales or transfers. County recording fees still apply.

Closings: Missouri closings are typically run by title or escrow companies, and an attorney is not required; title companies predominate around St. Louis, while escrow or title companies generally close deals around Kansas City.

Compare your net both ways with the double close calculator. If you double close, transactional funding can cover the A-to-B purchase.

Compliance mistakes to avoid in Missouri

• Signing the purchase contract the same day the owner signs the disclosure. The statute requires at least 14 calendar days between the signed disclosure and a binding contract.
• Folding the disclosure into contract fine print. It must be a separate document in bold type of at least 12 points.
• Assuming a novation avoids the law. Section 407.3600 covers contracts you assign or novate for a fee.
• Treating a missing disclosure as a paperwork issue. It is an unlawful practice under the Merchandising Practices Act, enforceable by the Attorney General and through private civil actions.
• Collecting a commission or acting for an owner without a license under RSMo chapter 339, which SB 973 left in place.

Recent changes to Missouri wholesaling law

1. Aug 28, 2026

   SB 973 wholesaler disclosure law takes effect

   New RSMo 407.3600: 14-day pre-contract signed disclosure for 1-4 unit residential wholesale deals, enforced under the MMPA. SB 973 also includes separate sale-leaseback provisions.

2. Jul 13, 2026

   Governor Kehoe signs SB 973

   Signed after passage in the 2026 regular session.

Real estate licensing in Missouri

Real estate licensing in Missouri is overseen by Missouri Real Estate Commission (Division of Professional Registration).

Salesperson applicants complete a 48-hour Salesperson Pre-Examination Course, pass the PSI-administered national and state exam, then complete the 24-hour Missouri Real Estate Practice Course, submit fingerprints and apply with a sponsoring broker, reportedly within six months of finishing the 48-hour course. Licensing requirements

Running the numbers on a Missouri deal

Compliance is half the job; pricing is the other half. Use the wholesale MAO calculator to work backward from your end buyer's costs, estimate value with the ARV calculator, budget repairs with the rehab cost estimator, and sanity-check with the 70% rule. New to the math? Start with how to calculate MAO.

Most Missouri end buyers use a lender. Jaken Finance Group funds fix-and-flips up to 100% of total cost on qualified deals, typically in 7–10 business days on a complete file — see Missouri investor loans or our end-buyer financing guide.

Missouri wholesaling FAQ

Statutes, rules and sources

• RSMo § 407.3600

  Real estate wholesaler disclosure (SB 973, 2026)

  Effective Aug 28, 2026Read the text

• RSMo ch. 339

  Missouri real estate broker licensing law

• Missouri Revisor - RSMo 407.3600
• Missouri Governor - SB 973
• Missouri Senate - SB 973 (HCS for SS)
• Missouri House - HB 2517 summary

Last reviewed Nov 6, 2026. This page summarizes public sources for general information and isn't legal advice. Local rules may also apply — confirm with a licensed Missouri real estate attorney before you contract.