407.938. Contract, form of--notice required, contents--contract to be accompanied by notice of cancellation, contents. - Missouri Statutes

Contract, form of--notice required, contents--contract to beaccompanied by notice of cancellation, contents.

407.938. 1. Every contract shall be in writing and shallfully disclose the exact nature of the foreclosure consultant'sservices and the total amount and terms of compensation.

2. The following notice, printed in at least fourteen-pointboldface type and completed with the name of the foreclosureconsultant, shall be printed immediately above the statementrequired by subsection 3 of this section:

NOTICE REQUIRED BY MISSOURI LAW

................................. (Enter name of foreclosureconsultant) or anyone working for him or her cannot:

(1) Take any money from you or ask you for money until.................................. (Enter name of foreclosureconsultant) has completely finished doing everything he or shesaid he or she would do; and

(2) Ask you to sign or have you sign any lien, mortgage,deed of trust, or deed.

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

You, the owner, may cancel this transaction at any timeprior to midnight of the third business day after the date ofthis transaction. See the attached notice of cancellation formfor an explanation of this right.

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

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

(2) The date the owner signed the contract.

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

NOTICE OF CANCELLATION............. (Enter date of transaction.) ............... (Date)You may cancel this transaction, without any penalty orobligation, within three business days from the above date. Tocancel this transaction, mail or deliver a signed and dated copyof this cancellation notice, or any other written notice, or senda telegram to ................................. (Enter name offoreclosure consultant) at ..................................(Enter address of foreclosure consultant's place of business) NOTLATER THAN MIDNIGHT OF ........................ (Enter date) Ihereby cancel this transaction on ..................... (Date)......... (Owner's signature)

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

(L. 1992 S.B. 705 § 4)