Missouri lawmakers passed Senate Bill 973 late on the final day of the 2026 legislative session and, assuming Governor Kehoe signs it, parts of the bill will take effect August 28, 2026. While the legislation covers several real estate and tax foreclosure issues, one of the biggest changes for everyday consumers and investors is a new state law aimed directly at real estate wholesaling.
For years, wholesaling has existed in a gray area where some investors legitimately tied up properties they intended to close on or had the financial ability to complete the deal if needed, while others simply locked homeowners into contracts they never truly had the ability or intention to perform on unless they could quickly flip the contract to someone else for a fee. This new law does not ban wholesaling in Missouri, but it does force much more transparency into the process, and frankly, I think that is a good thing.
Under the new law, wholesalers dealing with residential property of one to four units must provide sellers with a separate written disclosure at least 14 days before entering into a contract. The disclosure specifically tells the homeowner that the buyer is acting as a wholesaler, that the contract may be assigned to another buyer for a profit, that the wholesaler may never actually take title to the property, and that the agreed price may be below market value. The law also gives sellers the right to cancel the contract before closing if the disclosure was not properly provided. Violations can become claims under the Missouri Merchandising Practices Act and can expose wholesalers to lawsuits and attorney general enforcement.
In my opinion, legitimate investors should not be overly concerned about this law. If you are a real investor buying property for yourself, intending to close, capable of performing, and being upfront with sellers, this law really does not hurt you much. In fact, it may help separate serious investors from people who were simply throwing contracts around with little money, little risk, and little ability to actually close. That distinction matters because too many consumers today do not fully understand the difference between selling to an actual investor versus signing a contract with someone who may just be shopping their contract around hoping to find a buyer later.
For consumers, especially elderly homeowners, distressed sellers, or people responding to “cash buyer” marketing, this law creates at least some level of transparency before they sign away rights to their property. The required disclosure clearly tells sellers they are dealing with a wholesaler and encourages them to seek legal, tax, and real estate advice before signing. That is probably overdue.
For real estate agents, this law is also important because many agents encounter wholesale transactions without fully understanding how they work or how much risk can exist when the original buyer may not have the financial capacity to close. Agents representing sellers will likely need to pay closer attention to assignment language, proof of funds, timelines, and whether the buyer is actually the end purchaser or simply a contract middleman.
The bill also includes a new “sale leaseback” disclosure law aimed at protecting homeowners who sell their home but remain in the property as a tenant afterward, something that has become increasingly common with certain investor models. Personally, I have been far more concerned about some of those transactions than traditional investing because financially distressed homeowners can easily end up losing substantial equity while believing they are simply getting temporary financial help.
Overall, I think SB 973 is a fairly balanced approach. Missouri did not outlaw wholesaling, nor should it have, but lawmakers did make it harder for consumers to unknowingly enter into deals without understanding who they are really dealing with and how the transaction works. That is probably good for consumers, good for ethical investors, and ultimately good for the reputation of the real estate industry overall.
