HB 296 - Contract for Deed Act Summary

• Establishes the "Contract for Deed Act" (sections 442.700 to 442.746) regulating executory contracts for residential real property purchases in Missouri.

• Requires sellers to provide purchasers with pre-contract disclosures including property condition statements, title encumbrances, delinquent taxes, insurance information, and detailed payment terms before signing.

• Grants purchasers a 14-day cancellation right for any reason and requires sellers to return all payments and release security interests within 10 days of cancellation notice.

• Prohibits sellers from including prepayment penalties, excessive late fees (capped at 8% of monthly payment), or restrictions on purchaser financing for property improvements in the contract.

• For purchasers who have paid 30% or more of the contract amount, limits seller remedies to foreclosure-type sale through a trustee rather than simple rescission or forfeiture, with surplus proceeds returned to purchaser.

• Requires sellers to record the executory contract within 30 days, provide annual accounting statements, and transfer legal title within 30 days of final payment (with penalties of $250-$500 per day for delays).

• Allows purchasers to convert their interest to recorded legal title after paying 15% of the principal by tendering remaining balance or providing a promissory note with equivalent terms.