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Bill

SB 1594

Establishes the Contract for Deed Act

2026 Regular Session Introduced by Doug Beck

SB 1594 creates Missouri's first statutory regulation of seller-financed "contract for deed" real estate transactions with consumer protection standards and disclosure requirements.

Second Read and Referred S Emerging Issues and Professional Registration Committee
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WeVote Research Nonpartisan
Bill Summary · SB 1594

Legislative bill overview

SB 1594 establishes a comprehensive regulatory framework for "contracts for deed" (also called land contracts), which are alternative financing arrangements where a seller finances a property purchase directly rather than through traditional mortgage lenders. The bill appears to set standards, disclosure requirements, and consumer protections for these transactions in Missouri.

Why is this important

Contracts for deed are popular in underserved lending markets but carry significant risks for buyers, including potential loss of property and payments without legal ownership protections. Clear statutory regulation can provide consumer safeguards while enabling access to homeownership for those unable to qualify for traditional mortgages—though oversight must balance these competing interests.

Potential points of contention

  • Consumer protection level: Disagreement over whether protections go far enough (favoring buyers) or create excessive regulatory burdens (favoring sellers/investors)
  • Predatory lending concerns: Critics may worry the framework doesn't adequately prevent exploitative terms, while supporters may argue regulations don't unfairly restrict legitimate seller financing
  • Market access vs. safety: Tension between expanding homeownership pathways for underserved populations and preventing vulnerable buyers from entering unfavorable agreements

Compiled from official sources — confirm details with the bill’s official record.

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