Establishes the Contract for Deed Act

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
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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
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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 maintain 49
fee simple title free from any liens or other encumbrances 50
to property covered by a contract for deed for the entire 51
duration of the contract. This subsection shall not apply 52
to a lien or encumbrance placed on the property that is: 53
(1) Placed on the property because of the conduct of 54
the purchaser; 55
(2) Agreed to by the purchaser as a condition of a 56
loan obtained to place improvements on the property, 57
including utility or fire protection improvements; or 58
(3) Placed on the property by the seller prior to the 59
execution of the contract in exchange for a loan used only 60
to purchase or repair the property, or subsequently placed 61
on the property by the seller in exchange for a loan to 62
refinance such prior loan, if: 63
(a) The seller, not later than the third day before 64
the date the contract is executed, notifies the purchaser in 65
a separate written disclosure: 66
a. Of the name, address, and phone number of the 67
lienholder or, if applicable, servicer of the loan; 68
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b. Of the loan number and outstanding balance of the 69
loan; 70
c. Of the monthly payments due on the loan and the due 71
date of those payments; 72
d. In fourteen-point type that, if the seller fails to 73
make timely payments to the lienholder, the lienholder may 74
attempt to collect the debt by foreclosing on the lien and 75
selling the property at a foreclosure sale; and 76
e. Of seller's consent to allow purchaser to receive 77
communications from the lienholder about the loan secured by 78
the lien; 79
(b) The lien: 80
a. Is attached only to the property sold to the 81
purchaser under the contract; 82
b. Secures indebtedness that, at no time, is or will 83
be greater in amount than the amount of the total 84
outstanding balance owed by the purchaser under the 85
executory contract; and 86
c. Secures indebtedness that by its terms is scheduled 87
to be fully repaid on a date before the date on which the 88
purchaser's installment payments on the executory contract 89
are scheduled to be fully paid; 90
(c) The lienholder: 91
a. Does not prohibit the property from being 92
encumbered by an executory contract; 93
b. Agrees in the lien instrument or other recorded 94
instrument to give written notice to purchaser of any 95
indebtedness default; and 96
c. Consents to verify the status of the loan on 97
request of the purchaser and to accept payments directly 98
from the purchaser if the seller defaults on the 99
indebtedness; and 100
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(d) The following covenants are placed in the 101
executory contract: 102
a. A covenant that obligates the seller to make timely 103
payments on the loan and to give monthly statements to the 104
purchaser reflecting the amount paid to the lienholder, and 105
the information described by paragraph (a) of this 106
subdivision; 107
b. A covenant that obligates the seller, not later 108
than the third day after the seller receives or has actual 109
knowledge of a document or an event described by this 110
subparagraph, to notify the purchaser in writing in fourteen- 111
point type that the seller has been sent a notice of 112
default, notice of acceleration, or notice of foreclosure or 113
has been sued in connection with a lien on the property and 114
to attach a copy of all related documents received to the 115
written notice; and 116
c. A covenant that warrants that if the seller does 117
not make timely payments on the loan or any other 118
indebtedness secured by the property, the purchaser may, 119
without notice, cure any deficiency with a lienholder 120
directly and deduct from the total outstanding balance owed 121
by the purchaser under the executory contract, without the 122
necessity of judicial action, one hundred fifty percent of 123
any amount paid to the lienholder. 124
8. A violation of subsections 4, 6, or 7 of this 125
section or section 442.833: 126
(1) Is an unlawful practice within the meaning of 127
sections 407.020 and 407.025 and is actionable in a public 128
or private suit brought under such sections; and 129
(2) In addition to other rights or remedies provided 130
by law, entitles the purchaser to cancel and rescind a 131
contract for deed and receive from the seller: 132
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(a) The return of all payments of any kind made to the 133
seller under the contract; and 134
(b) Reimbursement for: 135
a. Any payments the purchaser made to a taxing 136
authority for the property; and 137
b. The value of any improvements made to the property 138
by the purchaser. 139
9. The provisions of subsection 8 of this section 140
shall not limit or effect any other rights or remedies a 141
purchaser has under any other law. 142
10. A seller is not liable under this section if: 143
(1) A lien is placed on the property by a person other 144
than the seller; and 145
(2) Not later than the thirtieth day after the date 146
the seller receives notice of the lien, the seller takes all 147
steps necessary to remove the lien and has the lien removed 148
from the property. 149
442.808. 1. Before a long term contract for deed is 1
signed by the purchaser, the seller shall provide the 2
purchaser with: 3
(1) A statement of the amount, if any, of delinquent 4
real property taxes or assessments due and owing on the 5
property subject to the contract; and 6
(2) A legible copy of any insurance policy, binder, or 7
other evidence relating to the property that indicates: 8
(a) The name of the insurer and the insured; 9
(b) A description of the property insured; and 10
(c) The amount for which the property is insured. 11
2. Not less than ten days before a long term contract 12
for deed is signed by the purchaser, the seller shall 13
provide the purchaser with: 14
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(1) A legible copy of the recorded instrument 15
demonstrating the seller owns the property, and any document 16
that describes an encumbrance or other claim, including a 17
restrictive covenant or easement, that affects title to the 18
real property; and 19
(2) A written notice, which shall be attached to the 20
contract proposed for execution, informing the purchaser of 21
the condition of the property that shall, at a minimum, be 22
completed by the seller, and executed by the seller and 23
purchaser and read substantially similar to the following: 24
25
26
27
28
29
30
31
WARNING: IF ANY OF THE ITEMS BELOW HAVE NOT
BEEN CHECKED, YOU MAY NOT BE ABLE TO LIVE ON THE
PROPERTY. BEFORE SIGNING A CONTRACT, YOU HAVE
THE RIGHT TO INSPECT THE PROPERTY INSIDE AND OUT.
SELLER'S DISCLOSURE NOTICE CONCERNING THE
PROPERTY AT __________ (insert street address or
legal description and city)

32
33
34
35
THIS DOCUMENT STATES CERTAIN APPLICABLE FACTS
ABOUT THE PROPERTY YOU ARE CONSIDERING
PURCHASING. CHECK ALL THE ITEMS THAT ARE
APPLICABLE OR TRUE:

36
37
_____ The property is in a recorded
subdivision.

38
39
40
41
_____ The property has water service that has
been approved by the appropriate municipal,
county, or state agency and that provides potable
water.

42
43
_____ The property has operable public sewer
service.

44
45
46
47
_____ The property has an operable, private
septic system sewer which has been approved by
the appropriate municipal, county, or state
agency for installation of a septic system.

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48 _____ The property has electric service.
49
50
_____ The property has operable gas or propane
service.

51
52
_____ The property is not in a one hundred year
floodplain.

53
54
_____ The roads to the boundaries of the property
are paved and maintained by:

55 _____ The seller;
56
57
_____ The owner of the property on which the road
exists;

58 _____ The municipality;
59 _____ The county; or
60 _____ The state.
61
62
_____ No individual or entity other than the
seller:

63 Owns the property;
64 Has a claim of ownership to the property; or
65 Has an interest in the property.
66
67
_____ No individual or entity has a lien filed
against the property.

68
69
70
71
_____ There are no restrictive covenants,
easements, or other title exceptions or
encumbrances that prohibit construction of a
house on the property.

72 NOTICE: SELLER ADVISES PURCHASER TO:
73
74
(1) OBTAIN A TITLE ABSTRACT OR TITLE
COMMITMENT COVERING THE PROPERTY AND HAVE THE

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3. If the property is not located in a recorded 83
subdivision, the seller shall provide the purchaser with a 84
separate disclosure form stating that utilities may not be 85
available to the property until the subdivision is recorded 86
as required by law. 87
4. If the seller advertises property for sale under a 88
long term contract for deed, the advertisement shall 89
disclose information regarding the availability of water, 90
sewer, and electric service. 91
442.815. 1. A seller shall not include as a term of a 1
contract for deed a provision that: 2
(1) Imposes a late payment fee that exceeds five 3
percent of the monthly payment under the contract; 4
(2) Imposes a prepayment penalty or any similar fee if 5
the purchaser elects to pay the entire amount due under the 6
contract before the scheduled payment date under the 7
contract; or 8
(3) Forfeits that portion of an option fee or other 9
option payment exceeding one thousand five hundred dollars 10
paid under the contract for a late payment. 11
75
76
ABSTRACT OR COMMITMENT REVIEWED BY AN ATTORNEY
BEFORE SIGNING A CONTRACT OF THIS TYPE; AND
77
78
(2) PURCHASE AN OWNER'S POLICY OF TITLE
INSURANCE COVERING THE PROPERTY.

79 ________ ________________________
80 (Date) (Signature of Seller)
81 ________ ________________________
82 (Date) (Signature of Purchaser)
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2. A provision of a contract for deed that purports to 12
waive a right or exempt a party from a liability or duty 13
pursuant to sections 442.800 to 442.845 shall be void. 14
3. Subdivision (2) of subsection 1 of this section 15
shall not apply to a short term contract for deed. 16
442.818. 1. In addition to other rights or remedies 1
provided by law, the purchaser may cancel and rescind a long 2
term contract for deed for any reason by sending by 3
certified or registered mail, return receipt requested, or 4
by delivering in person a signed, written notice of 5
cancellation to the seller not later than the fourteenth day 6
after the date the purchaser signs the contract. 7
2. If the purchaser cancels a long term contract for 8
deed as provided by subsection 1 of this section, the seller 9
shall, not later than the tenth day after the date the 10
seller receives the purchaser's notice of cancellation: 11
(1) Return to the purchaser the executed contract and 12
any property exchanged or payments made by the purchaser 13
under the contract; and 14
(2) Cancel and release any security interest arising 15
out of the contract. 16
3. The seller shall include in immediate proximity to 17
the space reserved in a long term contract for deed for the 18
purchaser's signature a statement printed in fourteen-point 19
bold-faced type or fourteen-point uppercase typewritten 20
letters that reads substantially similar to the following: 21
22
23
24
25
26
YOU, THE PURCHASER, MAY CANCEL THIS CONTRACT
AT ANY TIME DURING THE NEXT TWO WEEKS. THE
DEADLINE FOR CANCELING THE CONTRACT IS __________
(insert date). THE ATTACHED NOTICE OF CANCELLATION
EXPLAINS THIS RIGHT.

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4. The seller shall provide a notice of cancellation 27
form to the purchaser at the time the purchaser signs a long 28
term contract for deed that is printed in fourteen-point 29
bold-faced type or fourteen-point uppercase typewritten 30
letters and that reads substantially similar to the 31
following: 32
33 (date of contract)
34 NOTICE OF CANCELLATION
35
36
37
YOU MAY CANCEL THE CONTRACT FOR ANY REASON WITHOUT
ANY PENALTY OR OBLIGATION BY ________ (insert
date).

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39
40
41
42
43
44
(1) YOU MUST SEND BY CERTIFIED OR REGISTERED
MAIL, RETURN RECEIPT REQUESTED, OR DELIVER IN
PERSON A SIGNED AND DATED COPY OF THIS CANCELLATION
NOTICE OR ANY OTHER WRITTEN NOTICE TO
________________ (Name of Seller) AT
________________ (Seller's Address) BY ________
(insert date).

45
46
47
(2) THE SELLER SHALL, NOT LATER THAN THE
TENTH DAY AFTER THE DATE THE SELLER RECEIVES YOUR
CANCELLATION NOTICE:

48
49
50
(a) RETURN THE EXECUTED CONTRACT AND ANY
PROPERTY EXCHANGED OR PAYMENTS MADE BY YOU UNDER
THE CONTRACT; AND

51
52
(b) CANCEL AND RELEASE ANY SECURITY INTEREST
ARISING OUT OF THE CONTRACT.

53
54
I ACKNOWLEDGE RECEIPT OF THIS NOTICE OF
CANCELLATION FORM.

55 ________ ________________________
56 (Date) (Signature of Purchaser)
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5. The seller shall not request the purchaser to sign 60
a waiver of receipt of the notice of cancellation form 61
required by this section. 62
6. In addition to other rights or remedies provided by 63
law, the purchaser may cancel and rescind a long term 64
contract for deed at any time if the purchaser learns that 65
the property that is covered by the contract is not properly 66
subdivided, split, or platted in accordance with state and 67
local law, and the seller has failed to correct the 68
deficiency within six months of receiving written notice 69
from buyer. A purchaser cancelling and rescinding a 70
contract under this subsection shall: 71
(1) Deliver a signed, written notice of the 72
cancellation and rescission to the seller in person; or 73
(2) Send a signed, written notice of the cancellation 74
and rescission to the seller by certified or registered 75
mail, return receipt requested. 76
7. If a purchaser cancels a contract as provided under 77
subsection 6 of this section, the seller, not later than the 78
tenth day after the date the seller receives the notice of 79
cancellation and rescission, shall: 80
(1) Deliver in person or send by certified or 81
registered mail, return receipt requested, to the purchaser 82
a signed, written notice that the seller intends to 83
subdivide or plat the property properly; or 84
57 I HEREBY CANCEL THIS CONTRACT
58 ________ ________________________
59 (Date) (Signature of Purchaser)
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(2) Return to the purchaser all payments of any kind 85
made to the seller under the contract and reimburse the 86
purchaser for: 87
(a) Any payments the purchaser made to a taxing 88
authority for the property; and 89
(b) The value of any improvements made to the property 90
by the purchaser. 91
8. A purchaser shall not exercise the purchaser's 92
right to cancel and rescind a long term contract for deed 93
pursuant to subsection 6 of this section if, on or before 94
the ninetieth day after the date the purchaser receives the 95
seller's notice pursuant to section 442.824, the seller: 96
(1) Properly subdivides or plats the property; and 97
(2) Delivers in person or sends by certified or 98
registered mail, return receipt requested, to the purchaser 99
a signed, written notice evidencing that the property has 100
been subdivided or platted in accordance with state and 101
local law. 102
9. The seller shall not terminate the purchaser's 103
possession of the property covered by a long term contract 104
for deed being cancelled and rescinded before the seller 105
pays the purchaser any money to which the purchaser is 106
entitled. 107
442.821. 1. Except as provided by subsection 2 of 1
this section, the seller shall record a long term contract 2
for deed, including the attached disclosure statement 3
required by subdivision (2) of subsection 5 of section 4
442.805, in the land records of the county in which the 5
property is located on or before the thirtieth day after the 6
date the contract is executed. 7
2. If a long term contract for deed is terminated for 8
any reason, the seller shall record an instrument that 9
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releases and terminates the contract, accompanied by an 10
affidavit executed by the seller certifying the termination 11
occurred in compliance with the terms of the contract, 12
including, if applicable, certification of delivery of a 13
written default and termination notice from seller to 14
purchaser, and that the property is not occupied by the 15
purchaser. 16
442.824. 1. A seller may enforce the remedy of 1
rescission or of forfeiture and acceleration against a 2
purchaser in default under a contract for deed only if: 3
(1) The seller notifies, in the manner described in 4
subsection 2 of this section, the purchaser of: 5
(a) The seller's intent to enforce a remedy under this 6
section; and 7
(b) The purchaser's right to cure the default within 8
the thirty-day period described by subsection 3 of this 9
section; 10
(2) The purchaser fails to cure the default within the 11
thirty-day period described by subsection 3 of this section; 12
and 13
(3) Section 442.827 does not apply. 14
2. (1) Notice shall be in writing and shall be 15
delivered by registered or certified mail, return receipt 16
requested. The notice shall be conspicuous and printed in 17
fourteen-point bold-faced type or fourteen-point uppercase 18
typewritten letters, and shall include on a separate page 19
the following statement: 20
21 NOTICE
22
23
24
YOU ARE NOT COMPLYING WITH THE TERMS OF THE
CONTRACT TO BUY YOUR PROPERTY. UNLESS YOU TAKE THE
ACTION SPECIFIED IN THIS NOTICE BY ________ (insert

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(2) In addition to the requirements of subdivision (1) 27
of this subsection, the notice shall: 28
(a) Identify and explain the remedy the seller intends 29
to enforce; 30
(b) If the purchaser has failed to make a timely 31
payment, specify: 32
a. The delinquent amount, itemized into principal and 33
interest; 34
b. Any additional charges claimed, such as late 35
charges or attorney's fees; and 36
c. The period to which the delinquency and additional 37
charges relate; and 38
(c) If the purchaser has failed to comply with a term 39
of the contract, identify the term violated and the action 40
required to cure the violation. 41
(3) Notice by mail is given when it is mailed to the 42
purchaser's residence or place of business. The affidavit 43
of a person knowledgeable of the facts to the effect that 44
notice was given is prima facie evidence of notice in an 45
action involving a subsequent bona fide purchaser for value 46
if the purchaser is not in possession of the real property 47
and if the stated time to avoid the forfeiture has expired. 48
A bona fide subsequent purchaser for value who relies upon 49
the affidavit under this subsection shall take title free 50
and clear of the contract. 51
3. Notwithstanding an agreement to the contrary, a 52
purchaser in default under a contract for deed may avoid the 53
enforcement of a remedy described by subsection 1 of this 54
section by complying with the terms of the contract on or 55
25
26
date), THE SELLER HAS THE RIGHT TO TAKE POSSESSION
OF YOUR PROPERTY.
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before the thirtieth day after the date notice is given 56
under that subsection. 57
442.827. 1. If a purchaser defaults after the 1
purchaser has paid thirty percent or more of the amount due 2
or the equivalent of forty-eight monthly payments under a 3
long term contract for deed: 4
(1) The seller shall be granted the power to sell, 5
through a trustee designated by the seller, the purchaser's 6
interest in the property: 7
(a) As provided by this section; or 8
(b) As provided under the procedures specified in 9
sections 443.190 to 443.270; 10
(2) The seller shall not enforce the remedy of 11
rescission or of forfeiture and acceleration; and 12
(3) The seller may exercise the power granted under 13
subdivision (1) of this subsection after first notifying the 14
purchaser of a default under the contract and allowing the 15
purchaser at least thirty days after the date notice is 16
given to cure the default. The notice shall be provided as 17
prescribed by subsection 2 of section 442.824 except that 18
the notice specified in subsection 2 of section 442.824 19
shall be replaced by the following statement: 20
2. The trustee or a substitute trustee designated by 28
the seller under subdivision (1) of subsection 1 of this 29
21 NOTICE
22
23
24
25
26
27
YOU ARE NOT COMPLYING WITH THE TERMS OF THE
CONTRACT TO BUY YOUR PROPERTY. UNLESS YOU TAKE
THE ACTION SPECIFIED IN THIS NOTICE BY ________
(insert date), A TRUSTEE DESIGNATED BY THE SELLER
HAS THE RIGHT TO SELL YOUR PROPERTY AT A PUBLIC
AUCTION.

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section shall publish and serve a notice of sale as 30
prescribed by sections 443.310, 443.320, and 443.325. A 31
notice of sale shall not be valid unless it is given after 32
the period to cure has expired. 33
3. The trustee or a substitute trustee designated by 34
the seller shall conduct the sale as prescribed by section 35
443.327. The seller shall: 36
(1) Convey to a purchaser at a sale conducted under 37
this section fee simple title to the real property; and 38
(2) Warrant that the property is free from any 39
encumbrance. 40
4. The remaining balance of the amount due under a 41
long term contract for deed shall be the debt for purposes 42
of a sale under this section. If the net proceeds of the 43
sale exceed the debt amount, the seller shall disburse the 44
excess funds to the purchaser under the contract. If the 45
proceeds of the sale are insufficient to extinguish the debt 46
amount, the seller's right to recover the resulting 47
deficiency shall be subject to sections 443.230 and 443.240 48
unless a provision of the contract releases the purchaser 49
under the contract from liability. 50
5. The affidavit of a person knowledgeable of the 51
facts that states that the notice was given and the sale was 52
conducted as provided by this section shall be prima facie 53
evidence of those facts. A purchaser for value who relies 54
on an affidavit under this subsection shall acquire title to 55
the property free and clear of a long term contract for deed. 56
6. Notwithstanding any terms of a contract to the 57
contrary, the placement of a lien for the reasonable value 58
of improvements to residential real estate for purposes of 59
providing utility service to the property shall not 60
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constitute a default under the terms of a long term contract 61
for deed for the purchase of the real property. 62
442.830. 1. The seller shall provide the purchaser 1
with an annual statement in January of each year for the 2
term of a long term contract for deed. If the seller mails 3
the statement to the purchaser, the statement shall be 4
postmarked not later than January thirty-first. 5
2. The statement required by subsection 1 of this 6
section shall include the seller's good faith understanding 7
of the following information: 8
(1) The amount paid under the contract; 9
(2) The remaining amount owed under the contract; 10
(3) The number of payments remaining under the 11
contract; 12
(4) The amounts paid to taxing authorities on the 13
purchaser's behalf if collected by the seller; 14
(5) The amounts paid to insure the property on the 15
purchaser's behalf if collected by the seller; 16
(6) If the property has been damaged and the seller 17
has received insurance proceeds, an accounting of the 18
proceeds applied to the property; and 19
(7) If the seller has changed insurance coverage, a 20
legible copy of the current policy, binder, or other 21
evidence that satisfies the requirements of subdivision (2) 22
of subsection 1 of section 442.808. 23
3. A seller who conducts less than two transactions in 24
a twelve-month period under this section who fails to comply 25
with subsection 1 of this section shall be liable to the 26
purchaser for: 27
(1) Liquidated damages in the amount of one hundred 28
dollars for each annual statement the seller fails to 29
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provide to the purchaser within the time required by 30
subsection 1 of this section; and 31
(2) Reasonable attorney's fees. 32
4. A seller who conducts two or more transactions in a 33
twelve-month period under this section who fails to comply 34
with subsection 1 of this section shall be liable to the 35
purchaser for: 36
(1) Liquidated damages in the amount of two hundred 37
fifty dollars a day for each day after January thirty-first 38
that the seller fails to provide the purchaser with the 39
statement, but not to exceed the fair market value of the 40
property; and 41
(2) Reasonable attorney's fees. 42
442.833. 1. The named insured under an insurance 1
policy, binder, or other coverage relating to property 2
subject to a long term contract for deed shall inform the 3
insurer, not later than the tenth day after the date the 4
coverage is obtained or the contract executed, whichever is 5
later, of: 6
(1) The long term contract for deed and the term of 7
the contract; and 8
(2) The name and address of the other party to the 9
contract. 10
2. An insurer who disburses proceeds under an 11
insurance policy, binder, or other coverage relating to 12
property that has been damaged shall issue the proceeds 13
jointly to the purchaser and the seller designated in a long 14
term contract for deed, and to any lender secured by any 15
deed of trust affecting the property if such deed of trust 16
so requires. 17
3. If proceeds under an insurance policy, binder, or 18
other coverage are disbursed, the purchaser and seller shall 19
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ensure that the proceeds are used to repair, remedy, or 20
improve the condition on the property. 21
4. Notwithstanding the provisions of this section to 22
the contrary, and unless any existing deed of trust 23
affecting the property states otherwise, if the insurer 24
determines repair is not feasible, the insurance proceeds 25
shall first be used to satisfy any remaining amounts due 26
under the deed of trust and promissory note which it secures 27
and shall then be used to satisfy any remaining amounts due 28
under a long term contract for deed. Any remaining balance 29
shall be paid to the purchaser. 30
442.836. 1. The seller shall transfer recorded, legal 1
title of the property covered by a long term contract for 2
deed to the purchaser not later than the thirtieth day after 3
the date the seller receives the purchaser's final payment 4
due under the contract. 5
2. Unless a court finds good cause for noncompliance, 6
a seller who violates subsection 1 of this section shall be 7
liable to the purchaser for: 8
(1) Liquidated damages in the amount of: 9
(a) Two hundred fifty dollars a day for each day the 10
seller fails to transfer the title to the purchaser during 11
the period that begins the thirty-first day and ends the 12
ninetieth day after the date the seller receives the 13
purchaser's final payment due under the contract; and 14
(b) Five hundred dollars a day for each day the seller 15
fails to transfer title to the purchaser after the ninetieth 16
day after the date the seller receives the purchaser's final 17
payment due under the contract; and 18
(2) Reasonable attorney's fees. 19
3. If a person to whom a seller's property interest 20
passes by will or intestate succession is required to obtain 21
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a court order to clarify the person's status as an heir or 22
to clarify the status of the seller of the property before 23
the person may convey good and indefeasible title to the 24
property, the court in which the action is pending may waive 25
payment of the liquidated damages and attorney's fees under 26
subsection 2 of this section if the court finds that the 27
person is pursuing the action to establish good and 28
indefeasible title with reasonable diligence. 29
4. As used in this section, the term "seller" includes 30
a successor, assignee, personal representative, executor, or 31
administrator of the seller. 32
5. As used in this section, the phrase "good cause for 33
noncompliance" includes the failure of the seller, if the 34
seller is an heir to the original seller, to have received 35
from the original seller or any other person notice of the 36
requirements of a long term contract for deed. 37
442.839. 1. A purchaser, at any time after paying 1
fifteen percent of the principal purchase price and without 2
paying penalties or charges of any kind, shall be entitled 3
to convert the purchaser's interest in property under a long 4
term contract for deed into recorded, legal title in 5
accordance with this section. 6
2. If the purchaser tenders to the seller an amount of 7
money equal to the balance of the total amount owed by the 8
purchaser to the seller under a long term contract for deed, 9
the seller shall transfer to the purchaser recorded, legal 10
title of the property covered by the contract. 11
3. Subject to subsection 4 of this section, if the 12
purchaser delivers to the seller of property covered by a 13
long term contract for deed a promissory note that is equal 14
in amount to the balance of the total amount owed by the 15
purchaser to the seller under the contract and that contains 16
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the same interest rate, due dates, and late fees as the 17
contract: 18
(1) The seller shall execute a deed containing any 19
warranties required by the contract and conveying to the 20
purchaser recorded, legal title of the property; and 21
(2) The purchaser shall simultaneously execute a deed 22
of trust that: 23
(a) Contains the same terms as the contract regarding 24
the purchaser's and seller's duties concerning the property; 25
(b) Secures the purchaser's payment and performance 26
under the promissory note and deed of trust; and 27
(c) Conveys the property to the trustee, in trust, and 28
confers on the trustee the power to sell the property if the 29
purchaser defaults on the promissory note or the terms of 30
the deed of trust. 31
4. On or before the tenth day after the date the 32
seller receives a promissory note under subsection 3 of this 33
section that substantially complies with that subsection, 34
the seller shall: 35
(1) Deliver to the purchaser a written explanation 36
that legally justifies why the seller refuses to convert the 37
purchaser's interest into recorded, legal title under 38
subsection 3 of this section; or 39
(2) Communicate with the purchaser to schedule a 40
mutually agreeable day and time to execute the deed and deed 41
of trust under subsection 3 of this section. 42
5. A seller who violates this section is liable to the 43
purchaser in the same manner and amount as a seller who 44
violates section 442.836 is liable to a purchaser. This 45
subsection shall not limit or affect any other rights or 46
remedies a purchaser has under other law. 47
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6. On the last date that all of the conveyances 48
described by subsections 2 and 3 of this section are 49
executed, a long term contract for deed: 50
(1) Shall be considered completed; and 51
(2) Shall have no further effect. 52
442.842. 1. A purchaser under a long term contract 1
for deed, on written request, shall be entitled to receive 2
the following information from the seller: 3
(1) As of the date of the request or another date 4
specified by the purchaser, the amount owed by the purchaser 5
under the contract; and 6
(2) If applicable, the name and address of the 7
seller's desired trustee for a deed of trust to be executed 8
under section 442.839. 9
2. On or before the tenth day after the date the 10
seller receives from the purchaser a written request for 11
information described by subsection 1 of this section, the 12
seller shall provide to the purchaser a written statement of 13
the requested information. 14
3. If the seller does not timely respond to a request 15
made under this section, the purchaser may: 16
(1) Determine or pay the amount owed under the 17
contract, including determining the amount necessary for a 18
promissory note under section 442.839; and 19
(2) If applicable, select a trustee for a deed of 20
trust under section 442.839. The seller may replace the 21
trustee with a trustee of seller's choice at any time. 22
4. For purposes of subdivision (2) of subsection 3 of 23
this section, a purchaser shall select a trustee that lives 24
or has a place of business in the same county where the 25
property covered by the contract is located. 26
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5. Not later than the twentieth day after the date a 27
seller receives notice of an amount determined by a 28
purchaser under subdivision (1) of subsection 3 of this 29
section, the seller may contest that amount by sending a 30
written objection to the purchaser. An objection under this 31
subsection shall: 32
(1) Be sent to the purchaser by regular and certified 33
mail; 34
(2) Include the amount the seller claims is the amount 35
owed under the contract; and 36
(3) Be based on written records kept by the seller or 37
the seller's agent that were maintained and regularly 38
updated for the entire term of the contract. 39
442.845. If a seller is liable to a purchaser under 1
sections 442.800 to 442.845, the purchaser, without taking 2
judicial action, may deduct the amount owed to the purchaser 3
by the seller from any amounts owed to the seller by the 4
purchaser under the terms of a long term contract for deed. 5
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