Senate places wholesaler disclosure bill on informal calendar after consumer‑protection colloquy

The Senate heard a committee substitute for a bill aimed at real‑estate wholesaling and consumer protections. The Senator from the twentieth explained the measure would require any real estate wholesaler to provide a written disclosure to the property owner at least 14 days before entering a contract to transfer an interest in real property.

"The disclaimer must inform property owner that the wholesaler does not act on behalf or represent the property owner and that the wholesaler may assign the wholesaler's interest to a third party without the owner's consent prior to closing," the sponsor said when explaining the substitute. The substitute also allows the property owner to cancel the contract without penalty prior to the close of escrow if the disclosure was not made and classifies violations as unlawful practices enforceable by the Missouri attorney general.

Committee supporters framed the measure as a narrowly tailored consumer‑protection step to curb predatory wholesaling practices without impeding legitimate transactions. Senators from Boone and others said the substitute provides a reasonable 14‑day time window for owners to seek counsel, consult family or otherwise consider the transaction.

The sponsor requested—and the Senate granted—that the substitute be placed on the informal calendar for further consideration and for additional work with stakeholders; the bill was laid on the informal calendar at the sponsor's request.

What happens next: The sponsor said he would continue discussions with stakeholders and colleagues on amendments; the bill will remain on the informal calendar pending further drafting or amendment.

Key facts

- Sponsor: Senator from the twentieth. - Core requirement: Wholesaler must provide a bolded written disclosure in English (not less than 12‑point type) at least 14 days before entering into the contract. - Enforcement: Failure to disclose permits the owner to cancel and constitutes an unlawful practice enforceable by the Attorney General. - Procedural outcome: Bill laid on the informal calendar at the sponsor's request.