Missouri · RSMo chapter 339Missouri brokerage relationships and earnest money escrow rules

Missouri's brokerage relationship law (RSMo 339.710–339.860) starts from a default: a licensee is a transaction broker – helping a party without an agency or fiduciary relationship – unless the designated broker has a written seller's or landlord's agency agreement, a buyer's or tenant's agency relationship, a subagency agreement or a written dual agency agreement, or another listed exception applies (339.720). A buyer owes a broker compensation only under a written agreement that states the compensation terms. In a residential transaction, a licensee must give a person without a written agreement the commission's broker disclosure form at the earliest practicable opportunity during or after the first substantial contact (339.770). Seller's and buyer's agents are limited agents: they perform the written agreement, use reasonable skill and care, promote the client's interests with utmost good faith and loyalty, present all written offers in a timely manner, disclose adverse material facts they knew or should have known, recommend expert advice and account for money received; to a customer on the other side they owe only disclosure of adverse material facts actually known or that should have been known (339.730, 339.740). Dual agency requires the consent of all parties, presumed by a written agreement, and without a client's consent a dual agent may not reveal that a buyer would pay more, that a seller would take less, a party's motivations, willingness to accept other financing terms or prior offers (339.750); a transaction broker keeps the same information confidential (339.755). A designated broker may appoint specific licensees in writing as designated agents (339.820). Earnest money: a broker holding others' funds must keep them in a separate escrow or trust account, deposited promptly unless all parties agree otherwise in writing; if ownership of escrowed money is disputed, the broker reports and delivers it to the state treasurer within 365 days of the initial projected closing date, unless the parties agree in writing that it is not in dispute; and a broker isn't entitled to escrowed money as commission until the transaction closes or terminates, unless all parties agree in writing (339.105).