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SECOND REGULAR SESSION
SENATE BILL NO. 1684
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR MCCREERY .
7097S.02I KRISTINA MARTIN, Secretary
AN ACT
To amend chapter 442, RSMo, by adding thereto one new section relating to sale leaseback
transactions, with penalty provisions.
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
one new section, to be known as section 442.920, to read as 2
follows:3
442.920. 1. This section shall be known and may be 1
cited as the "Missouri Residential Sale Leaseback Protection 2
Act". 3
2. For purposes of this section, the following terms 4
mean: 5
(1) "Buyer", any person or entity that acquires an 6
ownership interest in residential real estate in a sale 7
leaseback transaction; 8
(2) "Residential real estate", real property that is 9
improved by a building or other structure that has one to 10
four dwelling units; 11
(3) "Sale leaseback", a transaction or series of 12
transactions in which a seller sells residential real estate 13
that is or was the seller's residence to another party and, 14
as a condition of the sale, or as part of the same or a 15
related transaction, enters into a lease or rental agreement 16
to remain in or re-occupy the property; 17
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(4) "Seller", any natural person who transfers an 18
ownership interest in residential real estate in a sale 19
leaseback transaction. 20
3. (1) In any sale leaseback transaction, the buyer 21
shall provide the seller with the following disclosure on a 22
single page in a clear and conspicuous manner, printed in 23
boldface type: 24
25
26
27
28
If you sign a sale leaseback agreement, you
are entering into a contract to sell your
home. This means you will no longer own your
home.
29
30
You may be subject to eviction if you do not
follow the lease terms.
31 You may lose the right to buy back your home.
32
33
This may affect your credit, taxes, and legal
rights.
34 You are encouraged to speak with:
35 (1) An attorney;
36 (2) A real estate agent;
37 (3) A housing counselor;
38 (4) A tax advisor; and
39 (5) A real estate appraiser.
40
41
42
43
You have the right to cancel any sale
leaseback agreement, without penalty, up to
the date of closing. Your cancellation must
be made in writing, NOT by phone call.
44
45
No sale leaseback can be closed for at least
thirty (30) days after signing an agreement.
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(2) The disclosure required by subdivision (1) of this 51
subsection shall be provided to the seller not more than ten 52
days and not less than three business days before the 53
execution of any sale leaseback agreement, and the 54
disclosures shall be signed by both the seller and the buyer 55
concurrently with the execution of the sale leaseback 56
agreement. 57
(3) A copy of the signed disclosure required by 58
subdivision (1) of this subsection shall be provided to the 59
seller within five days of the execution of the sale 60
leaseback agreement. 61
4. There shall be no delivery, recording, or other 62
transfer of title from seller to buyer until thirty days 63
after the execution of any sale leaseback agreement. 64
5. (1) A seller who is party to a sale leaseback 65
agreement shall have the right to cancel any such agreement 66
prior to the transfer of title, but in no event earlier than 67
thirty days after execution of the sale leaseback agreement, 68
without penalty. 69
(2) Notice of cancellation shall be given in writing 70
by seller to buyer. 71
(3) Within ten business days after the receipt of a 72
notice of cancellation, all payments of any kind made by 73
either party shall be refunded and an acknowledgment that 74
the sale leaseback agreement is void shall be sent by buyer 75
to seller. 76
46
47
48
If you cancel an agreement, all payments of
any kind made by either party shall be
refunded.
49
50
Do not sign unless you fully understand the
terms.
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(4) A seller who exercises the right of cancellation 77
shall not be liable for any damages as a result of the 78
exercise of that right. 79
6. (1) Any violation of the provisions of this 80
section shall be subject to a civil penalty not to exceed 81
ten thousand dollars per violation. 82
(2) The attorney general may bring an action to 83
enforce this section, including actions for injunctive 84
relief, civil penalties, and restitution. 85
(3) Any seller harmed by a violation of this section 86
may bring a civil action to recover: 87
(a) Actual damages; 88
(b) Statutory damages of ten thousand dollars, which 89
shall be in addition to any actual damages proven; 90
(c) Attorneys' fees and costs; and 91
(d) Equitable or injunctive relief. 92
7. No provision of this section shall be modified or 93
waived by any agreement. Any portion of an agreement that 94
is executed, modified, or extended after the effective date 95
of this section that modifies or waives a duty or remedy 96
under this section is void ab initio and unenforceable. 97