Here is an update of a few changes in Missouri law that may have an impact or relate to sales transactions in Missouri:

HCS SCS SB 1033 - Real Property Transfers to Counties - Acknowledgements Now Required

In Missouri (except the City of St. Louis), grantees generally are not required to execute the deed conveying the property.  This law changes existing law by requiring that property transfers (except water and sewer line easements) to a county (whether by dedication or donation) be signed, proved and acknowledged by the county commission as a condition for recording.  Comment:  The City of St. Louis had delinquent owners deed the property to the Mayor or the City.  It is unclear what the motivation is for this particular piece of legislation.  It may be simply to clarify how and when public roads or other improvement are dedicated to county for purposes of county maintenance.

HCS SCS SB 907 - Real Property Transfers - Invalidates Transfer Fees

Specifies that any transfer fee, declaration, or covenant which requires the payment of a fee to a specific person upon the transfer of real estate will not be binding on or enforceable against any subsequent owner, purchaser, or mortgagee of any interest in real property.  Any lien claiming to secure the payment of a transfer fee under a transfer fee covenant recorded in Missouri on or after September 1, 2008, will be void and unenforceable.   Comment:  This law was intended to address a developing real estate investment practice whereby subsequent transfers of property triggered transfer fees payable to the original owner or to the original listing broker.  The law only prohibits this practice prospectively for covenants recorded or after September 1, 2008.  There are several exemptions.  However, transfer fees associated with the sale of condominiums are not adequately addressed or exempted by this law and may be subject to challenge.

SCS SB 1009 - Real Estate Transactions - Good Funds Law

All moneys accepted by a settlement agent for closing a real estate transaction must be certified funds unless the buyer, seller, or lender is a financial institution.  Real estate transactions of less than $2,500 are exempted from the requirement that they be certified funds.  Comment:  Prior limit of $10,000 was reduced to $2,500.

SCS HCS HB 2188 - Mortgage Fraud - Penalties

Specifies that licensed real estate brokers, salespersons, and appraisers can be brought before the Administrative Hearing Commission and lose their license for committing mortgage fraud. A licensee who is criminally convicted of mortgage fraud will automatically have his or her license revoked; and the Missouri Real Estate Commission or the Missouri Real Estate Appraisers Commission within the Department of Insurance, Financial Institutions, and Professional Registration may maintain an action in circuit court. The court may impose a civil penalty of up to $2,500 per violation and may grant other relief determined just and proper.  Other provisions relate to mortgage brokers and other lenders.  Comment:  The MREC already had the power to revoke or suspend a person's license for fraud.  The only real change is that revocation of the license is mandatory.

HCS SB 958 - Tree Trimming by Electric Suppliers - Tree Removal Expense

Allows electric suppliers to trim, remove, and control trees and vegetation that threaten the safe and reliable operation of electrical service. If any tree which is trimmed by an electric supplier dies within three months as a result of the trimming, the owner may request in writing that the electric supplier remove the tree at the supplier's expense. The electric supplier must respond to the request within 90 days.  Comment:  This law is intended to balance the need for tree trimming to avoid the disruption of electrical service against the rights of property owners.  It provides for notice to the owner prior to non-emergency trimming as well as the right to demand the removal, at the electric supplier's expense, of trees that die as a result of tree trimming by electric suppliers.

Note:  The opinions and statements contained herein represent my personal opinions and observations.  These blog entries are not reviewed, endorsed or approved for publication by Gilded Age, L.L.C., Gilded Age Sales, L.L.C. or Preservation Real Estate Advisors, L.L.C.

Disclaimer:  The author is a licensed attorney.  However, the opinions and statements contained herein are for informational and discussion purposes only and shall not constitute the provision of legal advice.  Nothing contained herein shall establish an attorney-client relationship.   Readers are cautioned to seek legal counsel in their state before using or relying upon any of the information contained herein.