Missouri Wholesaling Law: RSMo 407.3600 Disclosure Guide

Wholesaling is legal in Missouri, and as of August 28, 2026 it has its own statute. RSMo 407.3600, enacted in the 2026 session through SB 973 and HB 2636, requires a wholesaler buying residential property to give the owner a separate, boldface, signed disclosure at least fourteen calendar days before entering into the contract. Skip it and the owner can cancel at any time before closing and keep your earnest money. Violations are treated as unlawful practices under the Missouri Merchandising Practices Act.

This guide covers who the law applies to, what the disclosure must say, the consequences of missing it, how Missouri's broker licensing law fits in, and a checklist for every Missouri deal. For the national picture, see our state-by-state wholesaling legal guide.

What RSMo 407.3600 Says

Two 2026 bills enacted the same section, and both were signed:

• SB 973 was truly agreed and finally passed on May 15, 2026 and signed by the Governor on July 13, 2026 (senate.mo.gov).
• HB 2636 was approved by the Governor on July 9, 2026.

The section took effect August 28, 2026. Read the codified text at revisor.mo.gov.

Who is a wholesaler

A "wholesaler" is a person or entity that, "for a fee, commission, or other valuable consideration," enters into a purchase contract for residential real property either "As the grantee, and assigns or novates the contract to another person or entity," or "As the grantor, and, without holding legal title to the real property, assigns or novates the contract." Note that the definition covers novations, not just assignments.

Residential only. The law covers "real property that is improved by a building or other structure that has one to four dwelling units." Vacant land and buildings with five or more units are outside it.

Exclusions. The definition does not cover assigning or novating to "a relative within the third degree of consanguinity or affinity," or to "a parent, affiliate, subsidiary, or affiliated group under common control."

The Disclosure Requirement

• Timing: "Not less than fourteen calendar days before entering into a contract that transfers an interest in residential real property." This is the part that changes Missouri workflows most. The disclosure comes two weeks before the purchase contract, not with it.
• Format: a written statement "separate from the purchase contract or agreement, printed in boldface type font size not less than twelve points."
• Content: the statute supplies the wording. It tells the owner, among other things, that "A wholesaler is acting on the wholesaler's own behalf and does not represent the owner in this transaction," that "The wholesaler may assign the wholesaler's interest in the purchase contract to a third party without the owner's consent before closing," that "The wholesaler may charge a fee to the third-party buyer separately for profit," and that the agreed purchase price "may be below market value." It also advises the owner to seek legal advice. Copy the statutory text exactly from the statute rather than paraphrasing it.
• Signatures: both the owner and the wholesaler sign and date it.
• No contract until signed: "A wholesaler acting as the grantee shall not enter into a binding contract that transfers an interest in residential real property until both the wholesaler and the record owner of the property sign and date the disclosure statement."

Consequences of Missing the Disclosure

• Owner cancellation: if the disclosure is not made, "the record owner… may cancel the contract at any time prior to the close of escrow without penalty and the escrow or closing agent shall disburse any earnest money paid by the wholesaler to the record owner within thirty days."
• No waiver: "Provisions of this section shall not be modified or waived by any oral or written agreement."
• MMPA violation: "Any violation of this section shall be considered an unlawful practice under the Missouri merchandising practices act." A party who enters an agreement without receiving the disclosures "may bring a private action against a wholesaler."
• Attorney General enforcement: the Attorney General may sue, and the court may grant damages, injunctive relief, and attorney fees.

Licensing: RSMo Chapter 339

The 2026 law did not change Missouri's broker licensing statute. Under RSMo 339.010, a broker is anyone who, "for another, and for a compensation or valuable consideration," does any of a list of acts, including one who "Buys, sells, offers to buy or sell or otherwise deals in options on real estate" or "Assists or directs in the procuring of prospects, calculated to result in the sale… of real estate." "Real estate" includes "any other interest or estate in land."

The licensing provisions do not apply to a person "who as owner, lessor, or lessee shall perform any of the acts… with reference to property owned or leased by them." Under RSMo 339.020, it is unlawful "to act as a real estate broker… or to advertise or assume to act as such without a license." Knowingly violating the chapter is a class B misdemeanor (RSMo 339.170), and an unlicensed person cannot sue to collect compensation for broker services (RSMo 339.160).

The regulator is the Missouri Real Estate Commission. We found no Commission guidance on wholesaling. The new disclosure statute does not create a license or registration for wholesalers, but it also does not say that complying with it satisfies Chapter 339. If you work for others or market properties you do not control, ask a Missouri attorney whether a license is required.

Assignment vs Double Close in Missouri

Assignment or novation: covered by 407.3600 when you are the grantee on a residential purchase contract and assign or novate it for consideration. The 14-day disclosure applies.

Double close: if you actually take title and then resell, you are not assigning or novating the contract, and the 407.3600 wholesaler definition is written around assignment and novation. That does not make double closing a workaround: your seller-facing obligations under the MMPA still apply, and you need funds to close the first purchase. Get an attorney's view before relying on a double close to avoid the disclosure.

Distressed Sellers and Sale-Leasebacks

Missouri's foreclosure consultant law (RSMo 407.935 and following) covers anyone who offers, for pay, to stop or postpone a foreclosure sale or "Save the owner's residence from foreclosure" on an owner-occupied one-to-four-family home. SB 973 also created the Missouri Residential Sale Leaseback Protection Act (RSMo 442.920). If a seller wants to stay in the home after selling, read that statute and talk to an attorney before you proceed.

Missouri Compliance Checklist

1. Confirm whether the property is residential (one to four units). If so, 407.3600 applies to an assignment or novation.
2. Deliver the statutory disclosure, separate from the contract, in bold type of at least 12 points, using the statute's wording.
3. Have both you and the owner sign and date it, then wait at least fourteen calendar days before signing the purchase contract.
4. Keep the signed disclosure and proof of the date in the deal file. Without it, the owner can cancel before closing and keep your earnest money.
5. Do not include any waiver language. The statute voids it.
6. Market accurately: you hold a contract, not the property.
7. If the seller is in foreclosure or wants a leaseback, review RSMo 407.935+ and 442.920 with an attorney first.
8. Ask a Missouri attorney whether your business model also needs a broker license under Chapter 339.

Frequently Asked Questions

Is wholesaling legal in Missouri?

Yes. Missouri regulates wholesaling through disclosure rather than banning it. Since August 28, 2026, RSMo 407.3600 requires a signed, boldface disclosure to the owner of residential property at least fourteen calendar days before the contract.

When did Missouri's wholesaling law take effect?

August 28, 2026. It was enacted by SB 973 (signed July 13, 2026) and HB 2636 (approved July 9, 2026).

What happens if I don't give the disclosure?

The owner may cancel the contract at any time before closing without penalty, and the closing agent must pay your earnest money to the owner within thirty days. The violation is also an unlawful practice under the Missouri Merchandising Practices Act, which allows private lawsuits and Attorney General enforcement.

Does the Missouri law require a license?

RSMo 407.3600 does not create a wholesaler license or registration. Missouri's separate broker licensing law, RSMo Chapter 339, still applies, and the new law does not say that complying with the disclosure rule satisfies it.

Does it apply to land or commercial property?

No. It applies to "residential real property," defined as real property improved by a structure with one to four dwelling units.

Disclaimer

This guide is for informational purposes only and does not constitute legal advice. Statutes and bill status were checked against official Missouri sources on October 6, 2026. Laws change, and how any statute applies depends on your facts. Consult a licensed Missouri real estate attorney before relying on this information for a transaction. Deal Run provides tools and information to help wholesalers operate more effectively. We are not a law firm and do not provide legal services.