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Capitol Update: 2025 Missouri Real Estate Law Changes Every REALTOR® Should Know

By Missouri REALTOR Party posted 07-23-2025 11:48 AM

  

Missouri REALTORS® are navigating a transformative year with new laws that affect how they operate. From licensing procedures to housing voucher policies and tax incentives, here’s a breakdown of the most impactful changes - and what they mean for your business. 

License Law Changes: Written Agreements Now Required 

Under HB 595 and HB 596, Missouri now mandates that real estate professionals must have a written agency agreement in place before performing any brokerage services, including showing homes or discussing listings in detail. 

What This Means for REALTORS®:

  • No more informal showings; a signed agreement is required first. 
  • Applies to buyer’s agents, tenant’s representatives, and listing agents. 

  • Increases transparency for consumers and aligns with national settlement changes. 

In preparation for conforming with the license law update, make sure to update your client intake process and ensure all agents are trained on the new requirements. For any questions on this, or any other real estate legal matter, reach out to Legal Line at 573-447-5278. 

More Flexibility of Housing Providers 

HB 595 and HB 596 also gives landlords greater control over tenant screening by removing local mandates around income source (like housing vouchers). This helps streamline leasing decisions while still observing and abiding by federal Fair Housing protections. 

What This Means for REALTORS®: 

REALTORS® must still comply with federal Fair Housing laws. Advise landlord clients carefully and document all screening criteria to avoid legal pitfalls. 

Capital Gains Tax Eliminated in Missouri 

Effective January 1, 2025, Missouri has eliminated its state capital gains tax. This applies to individuals and businesses, including gains from real estate sales. 

What This Means for REALTORS®: 

  • Sellers may retain more profit from property sales, leading to increased listing activity, especially among investors and retirees. 

  • Is a strong selling point for marketing investment properties. 

You can highlight this tax advantage in your listing presentations and investor outreach to encourage sales. 

The Governor signed these bills on July 14, and they will become law on August 28, 2025. 

Learn more: https://bit.ly/4lq96Dz 

To view additional resources and information, visit our Legislative Priorities and Updates page. 

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