Missouri SB 1594: SB 1594 - This act establishes the Contract for Deed Act. GENERAL APPLICABILITY The act regulates residential real estate contracts where the contract has not been fully performed and where the seller does not deliver the deed for the property until the buyer finishes making installment payments over a specified time to the seller, referred to as a contract for deed. The act distinguishes between a long term contract for deed and a short term contract for deed. A long term contract for deed is for a period of more than 3 years whereas a short term contract for deed is for a period of 3 years or less. A contract for deed shall not be enforceable unless the contract is in writing and signed by the party to be bound or by that party's authorized representative. The rights and obligations of the parties to a contract shall be determined solely from the written contract, and any prior oral agreements between the parties shall be superseded by and merged into the contract. The act contains various requirements on the seller to make the purchaser aware of the purchase price, interest rates, and late fees. Any real property sold under a contract for deed shall be owned by the seller and be free from any liens or other encumbrances undisclosed to the purchaser. The property must also be kept free of certain liens during the length of the contract. If the seller violates these restrictions the seller can be liable under the merchandising practices law, the buyer can cancel and rescind the contract with a full refund, and the seller is required to reimburse the buyer for property taxes and the value of any improvements to the property. A contract for deed shall not include any of the following: 1. Late-payment fees that are more than 5% of the monthly payment; 2. Penalties for prepayment, in the case of a long term contract for deed; and 3. Provisions that require a person to forfeit a portion of an option fee exceeding $1,500 for late payment. SELLER DISCLOSURE REQUIREMENTS (Section 442.808) The act imposes certain obligations on a seller with respect to long term contracts for deed. First, before a long term contract for deed is signed by the purchaser, the seller shall provide the purchaser with: 4. A statement of the amount, if any, of delinquent real property taxes or assessments due and owing on the property subject to the contract; and 5. A legible copy of any insurance policy, binder, or other evidence relating to the property, as described in the act. Second, not less than ten days before a long term contract for deed is signed by the purchaser, the seller shall provide the purchaser with: • A legible copy of the recorded instrument demonstrating the seller owns the property, and any document that describes an encumbrance or other claim, including a restrictive covenant or easement, that affects title to the real property; and • A written notice, which shall be attached to the contract proposed for execution, informing the purchaser of the condition of the property that shall, at a minimum, be completed by the seller, and executed by the seller and purchaser in a form substantially similar to that indicated in the act. Third, if the seller advertises property for sale under a long term contract for deed, the advertisement shall disclose information regarding the availability of water, sewer, and electric service. Failure to comply with the aforementioned obligations is considered an unlawful merchandising practice under the merchandising practices law. Moreover, a purchaser is also entitled to cancel and rescind any contract and receive a full refund of all payments made to seller if a seller does not comply with such obligations. These provisions do not limit or effect any other rights or remedies a purchaser has under any other law. PURCHASER OPTION OF RESCISSION OR CANCELLATION OF LONG TERM CONTRACT FOR DEED (Section 442.818) A buyer is allowed to cancel a long term contract for deed within fourteen days of signing it. The seller is required to notify the buyer of their right to cancel the contract. The seller is also required to return the buyer's payments within ten days of receiving the buyer's cancellation notice. Moreover, a purchaser may cancel and rescind a long term contract for deed at any time if the purchaser learns that the property that is covered by the contract is not properly subdivided, split, or platted in accordance with state and local law, and the seller has failed to correct the deficiency within six months of receiving written notice from buyer. If the purchaser cancels the contract for this reason, the seller, not later than the 10th day after the date the seller receives the notice of cancellation and rescission, shall: • Deliver in person or send by certified or registered mail, return receipt requested, to the purchaser a signed, written notice that the seller intends to subdivide or plat the property properly; or • Return to the purchaser all payments of any kind made to the seller under the contract and reimburse the purchaser for any payments the purchaser made to a taxing authority for the property and the value of any improvements made to the property by the purchaser. SELLER OPTIONS IN CASE OF DEFAULT (Section 442.824 and 442.827) A seller may rescind any contract for deed, or declare the contract terminated and retake the land, if the person who purchases the property fails to make payment on time or comply with a term of the contract. Before the seller can take these actions, the seller must give a specific notice to the buyer and give the buyer thirty days to cure the default. If the buyer has already paid 30% of the amount due on a long term contract for deed, or 48 monthly payments, then the seller cannot rescind the contract, or declare the contract terminated and retake the land, but the seller can sell the property after giving the buyer notice and 30 days to cure the default. The sale must be conducted by a trustee with the same notice required in foreclosure sales. If after the sale the buyer still owes money, the seller can have a judgment against the purchaser. ANNUAL STATEMENTS (Section 442.830) A seller party to a long term contract for deed is required to provide purchasers with an annual statement in January of each year, which shall include the seller's good faith understanding of the status of the purchaser's payments made to date under the contract, as well as other information delineated in the act. A seller who fails to comply with this requirement is liable for liquidated damages and reasonable attorney's fees, as described in the act. TRANSFER OF TITLE (Section 442.836) A seller party to a long term contract for deed is required to transfer title of the property to the buyer within 30 days of the buyer's final payment. If the seller does not comply with this requirement, the seller is liable for liquidated damages and reasonable attorney's fees, as described in the act. This act is similar to SB 677 (2014), SB 388 (2013), SB 555 (2012), and HB 296 (2011). SCOTT SVAGERA

Status: Second Read and Referred S Emerging Issues and Professional Registration Committee (as of 2026-02-05)

State: Missouri · Session: 2026 · Bill: SB 1594

Sponsors: Beck, Doug

SECOND REGULAR SESSION
SENATE BILL NO. 1594
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR BECK.
6513S.01I KRISTINA MARTIN, Secretary
AN ACT
To amend chapter 442, RSMo, by adding thereto fifteen new sections relating to contracts for
deeds.

Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapter 442, RSMo, is amended by adding thereto 1
fifteen new sections, to be known as sections 442.800, 442.802, 2
442.805, 442.808, 442.815, 442.818, 442.821, 442.824, 442.827, 3
442.830, 442.833, 442.836, 442.839, 442.842, and 442.845, to 4
read as follows:5
442.800. 1. Sections 442.800 to 442.845 shall be 1
known and may be cited as the "Contract for Deed Act". 2
2. As used in sections 442.800 to 442.845, the 3
following terms mean: 4
(1) "Contract for deed", both a long term contract for 5
deed and a short term contract for deed; 6
(2) "Default", the failure to: 7
(a) Make a timely payment; or 8
(b) Comply with a term of a contract for deed; 9
(3) "Long term contract for deed", an executory 10
contract for conveyance of real property, other than a newly 11
constructed residence not theretofore occupied, that is used 12
or to be used as a purchaser's residence or as the residence 13
of a person related to the purchaser within the second 14
degree of consanguinity or affinity, that includes an option 15

SB 1594 2
to purchase the property if the term of the contract and any 16
extension thereof is more than three years; 17
(4) "Short term contract for deed", an executory 18
contract for conveyance of real property, other than a newly 19
constructed residence not theretofore occupied, that is used 20
or to be used as a purchaser's residence or as the residence 21
of a person related to the purchaser within the second 22
degree of consanguinity or affinity, that includes an option 23
to purchase the property if the term of the contract and any 24
extension thereof is three years or less. 25
442.802. 1. Sections 442.800 to 442.845 shall not 1
apply to: 2
(1) An executory contract that provides for the 3
delivery of a deed from the seller to the purchaser within 4
one hundred eighty days of the date of the final execution 5
of the executory contract; or 6
(2) Any transaction involving the conveyance of real 7
property where the seller is a bank licensed under Missouri 8
law. 9
2. For purposes of sections 442.800 to 442.845, a 10
disclosure required by such sections that is made by a 11
seller's agent shall be deemed a disclosure made by the 12
seller. 13
442.805. 1. A contract for deed shall not be 1
enforceable unless the contract is in writing and signed by 2
the party to be bound or by that party's authorized 3
representative. 4
2. The rights and obligations of the parties to a 5
contract for deed shall be determined solely from the 6
written contract, and any prior oral agreements between the 7
parties shall be superseded by the contract. 8

SB 1594 3
3. A contract for deed shall not be varied by any oral 9
agreements or discussions that occur before or 10
contemporaneously with the execution of the contract. 11
4. The seller shall include in a separate document or 12
in a provision of a contract for deed a statement printed in 13
fourteen-point bold-faced type or fourteen-point uppercase 14
typewritten letters that reads substantially similar to the 15
following: 16
5. Not less than ten days before a contract for deed 27
is signed by the purchaser, the seller shall provide to the 28
purchaser a written statement that specifies: 29
(1) The purchase price of the property; 30
(2) The interest rate charged under the contract; 31
(3) The total amount of principal and interest, which 32
shall be reasonably estimated if the interest rate is 33
variable, to be paid under the contract; 34
(4) The late charge, if any, that may be assessed 35
under the contract; 36
17
18
19
20
21
22
THIS EXECUTORY CONTRACT REPRESENTS THE FINAL
AGREEMENT BETWEEN THE SELLER AND PURCHASER AND MAY
NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF
THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

23 ________ ________________________
24 (Date) (Signature of Seller)
25 ________ ________________________
26 (Date) (Signature of Purchaser)

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(5) The interest rate upon default, if any, charged 37
under the contract; and 38
(6) The fact that the seller shall not charge a 39
prepayment penalty or any similar fee if the purchaser 40
elects to pay the entire amount due under the contract 41
before the scheduled payment date under the contract. 42
6. A potential seller shall not execute a contract for 43
deed with a potential purchaser if the seller does not own 44
the property in fee simple free from any liens or other 45
encumbrances not previously disclosed in writing to the 46
purchaser in accordance with subsection 1 of this section. 47
7. Except as provided by subsection 6 of this section, 48
a seller, or the seller's heirs or assigns, shall main

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