Signed by Governor Mike Kehoe

Vote Smart's Synopsis:

Vote to pass a bill that establishes disclosure requirements for residential sale leaseback transactions in Missouri.

Highlights:

• Defines a “sale leaseback” as a transaction or series of transactions in which a seller sells residential real estate that is/was the seller’s residence, and enters into a lease or rental agreement to remain in or re-occupy the property (Sec. A).

• Requires a buyer, in any sale leaseback transaction, to provide the seller with certain disclosures alerting the seller of the nature of the transaction and advising them of actions they may take (Sec. A).

• Specifies that this disclosure must be provided between 3-10 days before the execution of any sale leaseback agreement (Sec. A).

• Establishes a civil penalty of up to $10,000 for each violation of this act (Sec. A).

• Specifies that all of the following apply for any mortgage modification (Sec. A):

• The mortgage continues to secure the obligation as modified;

• The priority of the mortgage is not affected by the modification;

• The mortgage retains its priority regardless of whether a record of the mortgage modification is recorded in public records; and

• The modification is not considered a novation (replacement of the old agreement).

• Specifies various exceptions for the provisions related to mortgage modification in this act (Sec. A).

Full Bill Text