Missouri Added A Bill For Wholesaling....

[Caleb Brown]

Missouri just changed the rules for residential wholesaling. Governor signed so now it'll be put in practice. If you wholesale residential properties in Missouri you need to be aware of this. 

Starting August 28, wholesalers (who fall under the requirements) will be required to provide a separate written disclosure at least 14 days before a purchase contract is signed.

The disclosure lets the seller know:

- The buyer is acting as a wholesaler.
- The contract may be assigned to another buyer for a profit.
- The wholesaler may never actually take title to the property.
- The agreed purchase price could be below market value.

There is more nuances in the bill so I would read it over and be compliant. The goal with the bill is transparency. During the busy 2020-2023 we saw a influx of wholesalers. This meant there was new people who didn't disclose or weren't transparent with owners.

I am not against wholesalers but I do think transparency is key. Homeowners need to understand what they are walking into and who the end buyer is. Whether you agree with the law or not, it's important to understand how it affects you if you're investing in Missouri.

What's your thoughts?

[Jay Hinrichs]

Quote from @Caleb Brown:

Yeah that is a long time. I think it's to avoid multiple wholesalers locking up a property. I wouldn't be surprised if there is some changes as this goes into practice

my bet is 90% of wholesalers will ignore it and just continue doing the things they always have until they get caught.. maybe the big ones like a we buy ugly homes franchise will honor it but the legion of small time wholesalers dont think will follow this unless taken to the mat