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Consumer Protection
RSMo 407.938effective 28 Aug 1992

Contract, form of

In plain English

When a foreclosure consultant (someone hired to help a person who is losing their home) makes a deal with a homeowner, the deal must be in writing and clearly explain what services will be done and how much it costs. The contract must include specific warnings in large, bold print, be written in the same language used to make the deal, and be signed and dated by the homeowner. The contract must also come with a separate cancellation notice form — made in duplicate and easy to tear off — so the homeowner can cancel the deal if they change their mind. The consultant must give the homeowner a copy of both the contract and the cancellation form.

Word-for-word law

407.938. Contract, form of — notice required, contents — contract to be accompanied by , contents. — 1. Every contract shall be in writing and shall fully disclose the exact nature of the 's services and the total amount and terms of .

2. The following notice, printed in at least fourteen-point boldface type and completed with the name of the foreclosure consultant, shall be printed immediately above the statement required by 3 of this section:

3. The contract shall be written in the same language as principally used by the foreclosure consultant to describe his services or to negotiate the contract, shall be dated and signed by the owner, and shall contain in immediate proximity to the space reserved for the owner's signature a in a size equal to at least ten-point bold type, as follows:

4. The contract shall contain on the first page, in a type size no smaller than that generally used in the body of the document, each of the following:

(1) The name and address of the foreclosure consultant to which the notice or is to be mailed;

(2) The date the owner signed the contract.

5. The contract shall be accompanied by a completed form , captioned "notice of cancellation", which shall be attached to the contract, shall be easily detachable, and shall contain in type of at least ten-point the following statement written in the same language as used in the contract:

6. The foreclosure consultant shall provide the owner with a copy of the contract and the attached notice of cancellation.

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Source & history notes

(L. 1992 S.B. 705 § 4)

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Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.

RSMo 407.938: Contract, form of | KnowMo Laws