What does wholesaling mean in Missouri?
Missouri now defines a “wholesaler” in statute: someone who, for a fee or expecting one, signs a purchase contract on a 1–4 unit home and then assigns or novates it to someone else.
What is an assignment of contract?
You sign to buy, then sell your contract right to an end buyer for a fee. In Missouri this is allowed, but 407.3600 applies on 1–4 unit homes: the 14-day disclosure comes first.
What is a double close?
You buy the house (A-to-B) and resell it (B-to-C), often the same day. You own it when you resell, so Missouri’s owner exemption covers the resale (339.010.9(1)). Whether a double close falls outside 407.3600 is untested.
What is a novation?
A novation replaces your contract with a new one. 407.3600 names “assigns or novates,” so the 14-day disclosure applies to novations too.
Marketing the contract vs. marketing the property
Missouri’s broker test turns on acting “for another.” A wholesaler who buys for their own account and sells their own contract right is acting for themselves. Marketing the house as if you own it, or acting as the seller’s middleman for a fee, is where chapter 339 applies. No MREC statement on wholesaling was found.
Is wholesaling legal in Missouri?
Yes. Assignments are allowed but regulated. For 1–4 unit homes, RSMo 407.3600 requires the 14-day disclosure before a binding contract. You don’t need a license to assign your own contract as long as you act for yourself and don’t market the house as if you own it.
Which wholesaling activities need a Missouri license?
| Activity | License needed? | Why / source |
|---|---|---|
| Assigning your own purchase contract, acting for yourself | Generally no | The broker test is acting “for another, and for a compensation” (RSMo 339.010.1). No MREC statement found. |
| Marketing the house as if you own it | Risky: can be brokerage | 339.010, 339.020 |
| Acting as the seller’s middleman for a fee | Yes | 339.010.1: acts “for another” for compensation |
| Dealing in options for another person | Yes | 339.010.1(5) |
| Holding yourself out as a licensed broker | Yes | 339.010.1(6) |
| Selling property you own (after a double close or flip) | No | Owner exemption, 339.010.9(1) |
| A licensed attorney | Exempt | 339.010.9(2) |
The 407.3600 disclosure applies from your first deal. Missouri has no numeric deal threshold in chapter 339.
Do you need a real estate license to wholesale in Missouri?
Not to assign your own contract while acting for yourself. Chapter 339 makes it unlawful “to act as a real estate broker ... or to advertise or assume to act as such without a license” (339.020), and a broker is someone who acts “for another, and for a compensation.”
Is there a Missouri “wholesale license”?
We found no separate real estate wholesaler license in chapter 339 or in 407.3600. 407.3600 is a disclosure rule, not a license. If you want a license, it’s the salesperson license (see option 4).
Can licensed agents wholesale their own deals?
Yes, but MREC rules on disclosing licensed status apply when licensees act for their own account (20 CSR 2250-8), and your broker supervises your deals.
What are the penalties for unlicensed brokerage?
A knowing violation is a class B misdemeanor (339.170), MREC can seek a court injunction (339.180), and you can’t sue to collect a fee for brokerage services without a license (339.160).
What does RSMo 407.3600 actually say?
RSMo 407.3600 came from 2026’s HB 2636 merged with SB 973. The governor signed it July 9, 2026 (bill page), and it has been in effect since Aug 28, 2026. The key parts:
A wholesaler who signs a purchase contract on “residential real property” (one to four dwelling units) and assigns or novates it for a fee. Vacant land and 5+ units are outside it.
Assigning to a relative within the third degree, or to “a parent, affiliate, subsidiary, or affiliated group under common control.”
“Not less than fourteen calendar days before” the contract, a written disclosure “separate from the purchase contract,” in bold type “not less than twelve points.”
The owner may cancel “at any time prior to the close of escrow without penalty,” and the earnest money goes to the owner within 30 days.
The section can’t be modified or waived by any oral or written agreement.
An unlawful practice under the Missouri Merchandising Practices Act, a private right of action, and attorney general civil actions.
What does the 14-day disclosure have to say?
The statute spells out the wording. Here it is as published on revisor.mo.gov. Print it on its own page in bold, at least 12-point type, and confirm the current text at the source before you use it.
Missouri law requires a wholesaler acting as a grantee, before entering into a contract or agreement that conveys an interest in residential real property, to provide certain information to the record owner in a conspicuous manner printed in boldface type font size not less than twelve points. Failure by a wholesaler to present or complete this form shall be considered an unlawful and unfair practice under the Missouri Merchandising Practices Act. Any person who enters into an agreement that conveys an interest in residential real property to a wholesaler acting as a grantee without receiving this disclosure has a cause of action against the wholesaler. A wholesaler acting as a grantee is prohibited from entering into a binding contract to acquire an interest in residential real property unless this statement is signed and dated by the record owner of the property.
The owner acknowledges that the person presenting this document is a wholesaler, as defined in section 407.3600 of the Revised Statutes of Missouri, and that the owner is advised to seek legal advice before entering into any agreement or contract with the wholesaler. A wholesaler is acting on the wholesaler’s own behalf and does not represent the owner in this transaction. A wholesaler enters assignable contracts with owners and seeks to sell or assign the wholesaler’s interest for a profit. The wholesaler may assign the wholesaler’s interest in the purchase contract to a third party without the owner’s consent before closing. The wholesaler may charge a fee to the third-party buyer separately for profit. The agreed purchase price between the owner and wholesaler may be below market value and is conveyed voluntarily.
The owner acknowledges disclosure of the information provided in this form by signing and dating below: _________ (Property owner signature) ___ (date) _________ (Wholesaler signature) ___ (date).
Source: RSMo 407.3600Which Missouri bills created the wholesaler law?
| When | Bill | Status | What it does | Source |
|---|---|---|---|---|
| 2026 session | SS HB 2636 (Rep. Bill Owen) | Law Truly agreed and finally passed May 15, 2026; signed by the governor July 9, 2026; in effect Aug 28, 2026 | Created the 407.3600 wholesaler disclosure, plus the Residential Sale Leaseback Protection Act (442.920) and other real estate changes. | Bill page, summary |
| 2026 session | SB 973 (Sen. Curtis Trent) | Merged into law | Same 407.3600 text, plus tax sale (ch. 140), land bank (ch. 141) and sale-leaseback changes. | Truly agreed text |
| 2026 session | HCS HB 2517 (Rep. Chris Brown) | Didn’t pass alone Last action: Senate hearing Apr 29, 2026 | A standalone wholesaler disclosure bill. Its language passed through HB 2636 / SB 973. | Summary |
| 2024 session | HB 2156 | Not a wholesaling bill | Sometimes cited online as a wholesaling bill. The House summary shows it is about public school retirement systems. | House summary |
| 2023–25 sessions | Other wholesaling bills | None found | Searched house.mo.gov and senate.mo.gov. | — |
Testimony on HB 2517 came from the Missouri Association of Realtors, the National Association for Housing Revitalization and two local investor companies, with no opposition voiced.
What disclosures, contract terms and earnest money rules apply in Missouri?
How does the 14-day disclosure work, step by step?
| Step | Timing | What must be in writing | Source |
|---|---|---|---|
| 1. Give the owner the disclosure | At least 14 calendar days before a binding contract | The statutory text, on a separate page, bold, 12-point or larger | 407.3600(2) |
| 2. Owner and wholesaler sign and date it | Before any binding contract (whether signing must also be 14 days ahead is unclear) | Both signatures and dates | 407.3600(2) and (3) |
| 3. Sign the purchase contract | After the 14 days | The contract. Best practice: a recital of the date the disclosure was delivered | 407.3600(3) |
| 4. Deposit earnest money | At contract | Escrow instructions with the title company that reflect 407.3600(4) | 407.3600(4) |
| If the disclosure was skipped | Any time before closing | Owner may cancel without penalty; earnest money goes to the owner within 30 days | 407.3600(4) |
What should a Missouri assignment clause or addendum cover?
- Buyer named as “[LLC] and/or assigns,” with the right to assign without seller consent (this matches the statutory disclosure).
- A recital that the separate 407.3600 disclosure was delivered on a stated date, at least 14 days earlier, and signed. Keep a copy in your file; don’t attach it to the contract.
- Principal-not-agent, that you may profit, and that the price may be below market (mirrors the statute).
- The assignment fee, paid at closing through the title company.
- The end buyer’s earnest money: amount, holder, deadline and hard date.
- The end buyer takes on all buyer duties; say whether you are released.
- The original contract attached, with the closing date and title company unchanged.
- As-is / no-reliance terms and default remedies.
- If the seller will rent back, the separate 442.920 sale-leaseback disclosure.
How much earnest money is typical in Missouri?
No statutory minimum for a private buyer was found, and no primary source gives a market norm. Licensees handle escrow under RSMo 339.105. It matters more now: if the disclosure was skipped, the closing agent pays your earnest money to the owner. Put it with the title company, in writing.
What other disclosures apply?
The federal lead-based paint disclosure applies to pre-1978 housing when you are the seller (double close). The Merchandising Practices Act (RSMo 407.020) bans deception in real estate sales. No Missouri statute requiring a seller property disclosure form was found.
What does it cost to record?
Missouri has no real estate transfer tax (none found). The statutory base is $5 for the first page and $3 per extra page plus add-on funds (RSMo 59.310). County totals: Jackson County $23 first page, $3 each extra for documents received on or after Aug 28, 2026 (county); St. Louis County $26 first page, $3 each extra (county).
Assignment vs. double close in Missouri: which should you use?
| Factor | Assignment | Double close | Novation |
|---|---|---|---|
| 407.3600 disclosure | Applies (1–4 units) | Arguably outside “assigns or novates” (untested). Give it anyway. | Applies: the law names novation |
| License | OK if you act for yourself and market the contract, not the house | You own it when you resell, so the owner exemption applies | Same as assignment |
| Fee visible to the seller? | Yes | No | Depends on the paperwork |
| Cost | One closing | Two closings, two recordings, funding cost | One closing |
| Best end buyer | Any buyer the contract allows | Cash buyers. FHA buyers usually can’t buy within 90 days of your purchase (24 CFR 203.37a). | Varies |
Your options in Missouri
First, plainly: assignments are allowed but restricted in Missouri. For 1–4 unit homes, deliver the 407.3600 disclosure at least 14 days before a binding contract. You don’t need a license to assign your own contract, as long as you act for yourself and don’t market the house as if you own it.
Assign the contract, after the 14-day disclosure
Give the owner the statutory disclosure on its own page at least 14 calendar days before you sign, have both of you sign and date it, then sign the contract with an assignment clause. Keep proof of the delivery date. Market the contract, not the house, and act for yourself, not as the seller’s agent.
Double close with transactional funding
In Missouri, a double close means you buy the house and then resell it, instead of assigning your contract. Transactional funding, such as Real Estate Wealth Network’s No Fee Funding, can cover the first closing. Missouri’s 14-day wholesaler disclosure (RSMo 407.3600) is written around assignments, so ask your attorney whether to give it on a double close too. Many investors give it on every deal.
- Two closings mean two recordings (Jackson $23/$3; St. Louis County $26/$3).
- St. Louis City requires a Certificate of Inspection before a new occupant moves in, or before selling an occupied structure without one in the past 12 months.
- KCMO landlord buyers need a Healthy Homes rental permit.
- FHA buyers usually can’t buy a home resold within 90 days (24 CFR 203.37a).
- $600,000 available per transaction
- No points, no interest, no profit split
- $99/mo membership
Close in an LLC’s name, then sell the LLC
A single-purpose LLC signs the contract, and you sell the LLC’s membership interest to the end buyer, who closes in the LLC’s name.
- There’s no Missouri guidance or court case on LLC sales. On its face, selling the LLC isn’t an “assignment or novation,” but 407.3600 bars waivers, treats violations as Merchandising Practices Act violations, and carves out transfers to an “affiliate ... under common control,” which shows the legislature thought about entity deals. Don’t use an LLC sale to skip the 14-day disclosure: give it anyway, and talk to a Missouri real estate attorney.
- Missouri has no transfer tax, so there’s no controlling-interest tax trigger.
- Securities questions can come up if buyers are passive investors. Tax treatment differs from an assignment fee, so ask a CPA.
- Check the seller’s contract for anti-assignment or change-of-control terms.
Get a Missouri real estate license
- Education: a 48-hour Salesperson Pre-Examination Course, finished on or before exam day, plus the 24-hour Missouri Real Estate Practice Course, taken after the 48-hour course (MREC, 20 CSR 2250-3).
- Exam: national and state portions, $52 whether you take one or both (MREC handbook).
- Background check: fingerprints through IDEMIA/IdentoGO, registered via MACHS.
- Apply within six months of finishing the 48-hour course, and work under a broker. The license fee itself wasn’t confirmed.
- Time: roughly 1 to 3 months (our estimate, not MREC’s).
JV with a licensed Missouri agent or broker
The agent markets and represents. You can’t be paid part of a licensee’s commission unless you’re licensed (339.150.2), so structure your side as your own purchase or contract, put the deal in writing, and have a Missouri attorney review it.
Is wholesaling different in Kansas City, St. Louis, Springfield or Columbia?
407.3600 and chapter 339 apply statewide. Local rules on inspections, rental permits, recording fees and tax sales differ.
| Metro (county) | Median sale price | Notes for wholesalers |
|---|---|---|
| Kansas City, MO (Jackson, Clay, Platte) | $305K | All KCMO rental owners must register under the Healthy Homes program: $26 per unit plus a one-time $26 application, due before a change of ownership (city). Jackson County recording $23 / $3. Land Bank listings: KC Land Bank. Across the state line, Kansas City, Kansas follows Kansas law: see our Kansas guide. |
| St. Louis City | $254K | A Certificate of Inspection is needed before a vacant unit is occupied, or before selling an occupied structure without one in the past 12 months (city). LRA land bank offers by appointment (LRA). |
| Springfield (Greene) | $220K | Annual tax sale on the fourth Monday in August for property owing at least two years as of May 1 (county). |
| Columbia (Boone) | $309K | Tax certificate sale: buyers must be present, the owner can redeem within one year, and an assignee of a certificate must be a Missouri resident (county). University town with steady rental demand. |
Prices are Redfin’s 3-month median sale prices (secondary data from a brokerage). Most counties hold tax sales on the fourth Monday in August; Jackson County and St. Louis City use the Land Tax Collection Act instead. Mortgage foreclosure is mostly a non-judicial trustee’s sale, with a limited one-year redemption right (RSMo 443.410).
If I work both sides of the Kansas City state line, which rules apply?
The rules of the state where the property sits. Missouri-side deals follow 407.3600 and chapter 339. Kansas-side deals follow Kansas law, where KREC says selling a contract interest needs a license. See our Kansas guide.
