A Missouri residential real estate purchase agreement (“Contract for Sale and Purchase of Real Estate”) is a contract which commits a buyer to an offer to purchase real estate, according to specific terms agreed by the buyer and seller. Negotiated specifics include the purchase price, financing method, closing date, and more.
Do Sellers in Missouri Have To Disclose Property Defects?
Missouri does not require real estate sellers to disclose material defects in a property. A few states, including Missouri, hold to a “caveat emptor” (“may the buyer beware”) rule, where the buyer has full responsibility to investigate and resolve any issues with the property.
This means even if the buyer doesn’t perform full due diligence, they don’t have the legal option to reverse a real estate transaction. For example, if the seller says the condition of the roof is fine to the best of their knowledge, and the buyer doesn’t perform a roof inspection, the buyer won’t be able to reverse the purchase if the roof later turns out to have structural issues.
Special Rules for Real Estate Disclosure in Missouri
Missouri has unusual rules codifying what is and isn’t a material fact that a seller might have to disclose. Under Missouri law, the following facts do have to be disclosed if known:
- That the property was used for methamphetamine production (even if there were no criminal convictions related), and
- That endangerment of child welfare occurred on the property
The following facts do not require disclosure even if asked about directly:
- Whether anyone at the property was ever diagnosed with HIV or another disease not related to management of real property
- Whether the property was ever the site of a homicide, suicide, or other felony
Required Seller Disclosures in Missouri
Missouri sellers of residential real estate have very few disclosures which are required by law. These disclosures, while not required in many cases, are nonetheless common in state real estate purchase agreements:
- Seller’s Disclosure Statement for Residential Property: Discloses material defects with a property that are known to the seller at the time of sale, and details any potential issues and conditions that may affect the value of the property. There is no statute that compels the seller of a residence to provide this disclosure statement, but many buyers will insist on it as a condition to contract for sale of real estate.
- Condominium Cost Development: Although incorporated within a standard disclosure statement, the Missouri Realtors also offer a separate disclosure rider for condominium cost that provides additional detail.
- Lead-Based Paint Disclosure: Any home constructed earlier than 1978 must come with a disclosure upon the transfer of the property which includes any information about the presence of lead on the premises, as well as educational materials that communicate the health risks associated with lead exposure.
- Methamphetamine Disclosure: Provides disclosure when a property previously was used for the production of methamphetamines. Sellers may depend on their personal knowledge for this question rather than having to search police records.
- Waste Disposal Site or Demolition Landfill: Provides disclosure when the real estate being sold was ever used as a site for solid waste disposal or demolition landfill.
- Show Me State Disclosure: Provides disclosure when the property was the site of the endangerment of a child through physical injury.
Sources
- 1 Mo. Rev. Stat. § 442.606
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1. In the event that any parcel of real property to be sold, exchanged or transferred is or was used as a site for methamphetamine production, the seller or transferor shall disclose in writing to the buyer or transferee the fact that methamphetamine was produced on the premises, provided that the seller or transferor had knowledge of such prior methamphetamine production. The seller or transferor shall disclose any prior knowledge of methamphetamine production, regardless of whether the persons involved in the production were convicted for such production.
2. A seller or transferor of any parcel of real property shall disclose in writing the fact that any premises to be sold or transferred either was the place of residence of a person convicted of any of the following crimes, or was the storage site or laboratory for any of the substances for which a person was convicted of any of the following crimes, provided that the seller or transferor knew or should have known of such convictions:
(1) Creation of a controlled substance in violation of section 579.110*;
(2) Possession of ephedrine with intent to manufacture methamphetamine in violation of section 195.246**;
(3) Unlawful use of drug paraphernalia with the intent to manufacture methamphetamine in violation of subsection 2 of section 579.074*;
(4) Endangering the welfare of a child by any of the means described in subdivision (4) or (5) of subsection 1 of section 568.045; or
(5) Any other crime related to methamphetamine, its salts, optical isomers and salts of its optical isomers either in chapter 195, or in any other provision of law.
Source Link - 2 Mo. Rev. Stat. § 442.60
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1. The fact that a parcel of real property, or any building or structure thereon, may be a psychologically impacted real property, or may be in close proximity to a psychologically impacted real property shall not be a material or substantial fact that is required to be disclosed in a sale, exchange or other transfer of real estate.
2. “Psychologically impacted real property” is defined to include:
(1) Real property in which an occupant is, or was at any time, infected with human immunodeficiency virus or diagnosed with acquired immune deficiency syndrome, or with any other disease which has been determined by medical evidence to be highly unlikely to be transmitted through the occupancy of a dwelling place; or
(2) Real property which was the site of a homicide or other felony, or of a suicide.
3. No cause of action shall arise nor may any action be brought against any real estate agent or broker for the failure to disclose to a buyer or other transferee of real estate that the transferred real property was a psychologically impacted real property.
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