Key Takeaways
- Missouri real estate contracts must be in writing under the Statute of Frauds to be enforceable
- Essential elements include offer, acceptance, consideration, legal capacity, and lawful purpose
- Earnest money is not required but demonstrates buyer's good faith commitment
- Contract contingencies allow parties to terminate if conditions are not met
- Time is typically of the essence in Missouri real estate contracts
Last updated: January 2026
Missouri Contract Basics
Real estate contracts in Missouri must comply with state law requirements to be valid and enforceable.
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Statute of Frauds
Missouri's Statute of Frauds requires that certain contracts be in writing to be enforceable:
| Must Be in Writing | Details |
|---|---|
| Real estate sales contracts | All sales of real property |
| Leases over one year | Long-term lease agreements |
| Listing agreements | Employment of broker to sell |
| Options to purchase | Rights to buy property |
Essential Contract Elements
A valid Missouri real estate contract requires:
| Element | Description |
|---|---|
| Offer | Clear proposal with definite terms |
| Acceptance | Unqualified agreement to offer |
| Consideration | Something of value exchanged |
| Legal capacity | Parties competent to contract |
| Lawful purpose | Legal objective |
| Written form | Required by Statute of Frauds |
Consideration
| Valid Consideration | Not Valid |
|---|---|
| Earnest money | Promise without consideration |
| Mutual promises | Illusory promises |
| Property exchange | Past consideration |
Earnest Money
Purpose
Earnest money demonstrates the buyer's good faith commitment to the transaction:
| Feature | Description |
|---|---|
| Required? | No, but customary |
| Typical amount | 1-3% of purchase price |
| Held by | Broker or title company |
| Disposition | Applied to purchase or refunded |
Earnest Money Disputes
When parties disagree about earnest money:
| Resolution Method | Description |
|---|---|
| Written release | Both parties sign release |
| Interpleader | File with court to decide |
| Mediation | Neutral third party helps resolve |
| Litigation | Court decides |
Key Point: The broker holding earnest money cannot decide who receives it—only release with agreement of both parties or court order.
Contract Contingencies
Common Contingencies
| Contingency | Purpose |
|---|---|
| Financing | Buyer must obtain loan |
| Inspection | Satisfactory property inspection |
| Appraisal | Property must appraise at value |
| Sale of other property | Buyer must sell current home |
| Clear title | Seller must provide clear title |
Contingency Requirements
| Requirement | Purpose |
|---|---|
| Time limit | Deadline to satisfy condition |
| Written waiver | To remove contingency |
| Termination right | If not satisfied |
Time is of the Essence
In Missouri real estate contracts:
| Time of Essence Clause | Effect |
|---|---|
| Included | Deadlines are strictly enforced |
| Not included | Reasonable time allowed |
Consequences
| If Deadline Missed | Result |
|---|---|
| With time of essence | May be breach of contract |
| Without time of essence | Reasonable time to perform |
Offer and Counteroffer
Offer Rules
| Rule | Description |
|---|---|
| Revocation | Offeror can revoke before acceptance |
| Expiration | Offer expires at stated time |
| Death | Terminates offer |
| Rejection | Terminates offer |
Counteroffer
A counteroffer:
- Rejects the original offer
- Creates a new offer
- Roles reverse—original offeror becomes offeree
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Test Your Knowledge
Under Missouri's Statute of Frauds, which of the following must be in writing to be enforceable?
A
B
C
D
Test Your Knowledge
When a buyer makes a counteroffer in Missouri, what happens to the original offer?
A
B
C
D