Not legal advice. This is a plain-language reading of Missouri Revised Statutes sections 407.3600, 339.010, 339.020, 339.100, and 339.180 as published by the Missouri Revisor of Statutes and read on October 20, 2026. Have a Missouri real estate attorney review your contracts and disclosure form before you use them.
What does Missouri's wholesaling law say?
Missouri added a wholesaler disclosure rule as section 407.3600 of the Revised Statutes, under the chapter on trade and commerce, not the real estate license chapter. The Revisor of Statutes lists it as effective August 28, 2026 and cites it as "L. 2026 H.B. 2636 merged with S.B. 973." That placement matters. The rule is a consumer protection statute enforced through the Missouri Merchandising Practices Act, so the Attorney General and the seller both have tools, and the Real Estate Commission is not the enforcer.
The statute does two things. It defines a "wholesaler," and it requires that wholesaler to hand the owner a specific written disclosure before a contract exists. The required text tells the owner that the person in front of them is a wholesaler, is not the owner's representative, enters assignable contracts, may assign the contract to a third party without the owner's consent, may charge the third-party buyer a separate fee for profit, and may have agreed to a price below market value. It also advises the owner to seek legal advice. Compare the approach in Oklahoma, Tennessee, North Carolina, and South Carolina, which each wrote their own wholesaling rules.
Who counts as a wholesaler under Missouri law?
Section 407.3600.1 defines "residential real property" as real property improved by a building or structure with one to four dwelling units. A "wholesaler" is a person or entity that, for a fee, commission, or other valuable consideration (or with the intention, expectation, or promise of receiving one), enters into a purchase contract for residential real property in one of two ways: as the grantee, and then assigns or novates the contract to someone else, or as the grantor, and, without holding legal title, assigns or novates the contract to someone else.
Two groups are carved out. An individual who assigns to a relative within the third degree of consanguinity or affinity is not a wholesaler, and neither is a person or entity that assigns to a parent, affiliate, subsidiary, or affiliated group under common control. The definition turns on intent to be paid for passing the contract along, so a buyer who plans to keep the house is outside it. Note that the disclosure duty in subsection 2 is written for a "wholesaler acting as a grantee," which is the investor who buys from the owner.
| Item | What the statute says | Where |
|---|---|---|
| Covered property | Residential real property with one to four dwelling units | 407.3600.1(1) |
| Timing | Not less than 14 calendar days before entering the contract | 407.3600.2 |
| Form | Separate from the purchase contract, boldface, at least 12-point type | 407.3600.2 |
| Signatures | Wholesaler and record owner both sign and date before any binding contract | 407.3600.3 |
| Remedy | Owner cancels before close of escrow, earnest money returned within 30 days | 407.3600.4 |
| Waiver | Cannot be waived or modified; waivers after Aug 28, 2026 are void | 407.3600.5 |
How does the 14-day disclosure work in practice?
The clock runs from delivery of the signed statement to the earliest date a contract can be entered. The statute says "not less than fourteen calendar days before entering into a contract that transfers an interest in residential real property." Calendar days include weekends and holidays. A wholesaler cannot sign the owner up at the kitchen table in one visit, because a binding contract cannot exist until both parties have signed and dated the disclosure and the 14 days have run.
| Day | Step |
|---|---|
| Day 0 | Wholesaler delivers the standalone disclosure; owner and wholesaler sign and date it |
| Days 1 to 13 | Owner can get legal advice, compare offers, and ask questions; no purchase contract can be entered |
| Day 14 or later | Earliest date the wholesaler may enter the purchase contract |
| Before close of escrow | If the disclosure was not given, the owner can still cancel without penalty |
This reshapes the typical wholesale timeline. Under the old approach, a seller with a short deadline could sign and have an assignment lined up within days. Now a deal that starts as a wholesale must build in the two-week gap, which favors sellers who are not under a foreclosure date. If the owner needs a closing before the two weeks pass, a buyer who is purchasing the home to own is not a wholesaler under the definition and is not subject to the disclosure.
What happens if a Missouri wholesaler skips the disclosure?
Subsection 4 gives the record owner a cancellation right: if the wholesaler fails to make the disclosures before entering a binding contract, the owner "may cancel the contract at any time prior to the close of escrow without penalty," and the escrow or closing agent must disburse any earnest money paid by the wholesaler to the owner within thirty days after cancellation. That means a missed disclosure leaves the buyer holding a contract the seller can walk away from, plus a lost deposit.
Subsection 6 makes any violation an unlawful practice under the Missouri Merchandising Practices Act, and says a party who enters an agreement without receiving the disclosures may bring a private action against the wholesaler. Subsection 7 gives the Attorney General authority to enforce the section, and if a court finds a violation it may grant damages, injunctive relief, attorney fees, and other relief. Subsection 5 closes the escape hatch: no oral or written agreement can modify or waive the section, and a clause that tries to do so in an agreement executed, modified, or extended after August 28, 2026 is null and void. The statute sets no flat dollar penalty, so exposure depends on the facts and the court.
Do you need a Missouri real estate license to wholesale?
Section 407.3600 does not answer the license question either way, so Chapter 339 still governs. Section 339.020 makes it unlawful to act as a real estate broker, or to advertise or assume to act as one, without a license from the Missouri Real Estate Commission. Section 339.010.1 defines a broker as a person who, "for another, and for a compensation or valuable consideration," sells, offers to sell, negotiates, lists, or "buys, sells, offers to buy or sell or otherwise deals in options on real estate." It also reaches anyone who "assists or directs in the procuring of prospects" for a sale.
The counterweight is s. 339.010.9(1), which says the chapter does not apply to a person or entity who, "as owner, lessor, or lessee," performs those acts "with reference to property owned or leased by them." Whether an equitable interest under a purchase contract counts as property you own is not stated in the text I read, so it is a question for a Missouri attorney. Enforcement tools are real: under s. 339.100 the commission may investigate "an individual or entity acting as or representing themselves as a real estate licensee," and s. 339.180 lets a court enjoin unlicensed acts at the commission's request, in addition to any other penalty.
What should investors do on a Missouri deal?
Build the disclosure into your process before the first showing, not after the seller says yes. None of these steps replaces advice from a Missouri attorney.
- Use the statutory wording. Subsection 2 prescribes the disclosure text. Have an attorney confirm your form matches it, is a separate document, and prints in bold at 12 points or larger.
- Get both signatures and dates first. Do not sign a purchase contract until the disclosure is signed and dated by the owner and by you.
- Calendar the 14 days. Record the delivery date and the earliest contract date in your file.
- Never put a waiver in the contract. A waiver clause in an agreement executed or extended after August 28, 2026 is void.
- Keep deposits small and refundable on cancellation. A missed step lets the owner cancel and claim the earnest money.
- Consider owning the house. Buying to close yourself or using a double close instead of an assignment changes which rules apply, so ask your attorney.
- Sell to a direct cash buyer. Submit the deal to Home Pros or browse the marketplace.
Home Pros is a veteran-owned cash buyer based in San Antonio, founded in 2025. We buy houses as-is, pay closing costs, and can close in as little as 7 days. Missouri owners can read our Missouri page, see how we calculate an offer, or try the cash offer calculator, and investors can see how our cash buyers work. For more on the mechanics, read contract assignment explained, and for Missouri deal sources see the Missouri trustee sale process.
Frequently asked questions
Is wholesaling legal in Missouri?
Yes, but since August 28, 2026 it is regulated. Section 407.3600 requires a wholesaler who contracts as the buyer on a one-to-four unit home to give the owner a signed written disclosure at least 14 calendar days before entering the contract. Separately, the real estate license law in Chapter 339 still applies, so have a Missouri attorney review your deal.
Do you need a real estate license to wholesale in Missouri?
Section 407.3600 does not create a license requirement and does not say wholesaling is exempt from one. Chapter 339 requires a license to act as a broker, defined in s. 339.010 as someone who, for another and for compensation, negotiates or offers to sell or purchase real estate or deals in options on it. Section 339.010.9(1) exempts owners dealing with property they own.
How long before the contract must the wholesaler give the disclosure?
Not less than fourteen calendar days before entering into a contract that transfers an interest in residential real property. The wholesaler cannot enter a binding contract until both the wholesaler and the record owner have signed and dated the statement.
What happens if a Missouri wholesaler skips the disclosure?
The record owner may cancel the contract at any time before the close of escrow without penalty, and earnest money must be paid to the owner within thirty days of cancellation. The violation is also an unlawful practice under the Missouri Merchandising Practices Act, and the owner may sue.
Can a seller waive the 14-day disclosure?
No. Section 407.3600.5 says the section cannot be modified or waived by oral or written agreement, and any waiver in an agreement executed, modified, or extended after August 28, 2026 is null and void.
Who is exempt from the Missouri wholesaler definition?
An individual who assigns the contract to a relative within the third degree of consanguinity or affinity, and a person or entity that assigns to a parent, affiliate, subsidiary, or affiliated group under common control, are not wholesalers under the statute.
Sources
Documents were read on October 20, 2026. Quoted language is from the sources below.
- RSMo s. 407.3600, Disclosure statement, residential real property: definitions, the 14-day disclosure, cancellation, waiver, and enforcement.
- RSMo s. 339.010, Definitions: broker, options on real estate, and the owner exemption.
- RSMo s. 339.020, License required: unlawful to act as a broker without a license.
- RSMo s. 339.100, Investigation of certain practices: commission investigations.
- RSMo s. 339.180, Practice without a license: injunctions.
Not legal advice. Statutes change and courts and regulators may interpret them differently. Confirm current law with a licensed Missouri attorney.