Does Missouri Have a "Time is of the Essence" Clause for Real Estate Contracts?

A property owner can sell directly via a contract for deed.

In Missouri, a property owner can sell directly to a buyer via a contract for deed. The contract establishes an installment payment agreement. Adding a "time is of the essence" clause protects the owner's interests.

Contract Terms

The property owner is the seller. The seller and buyer agree to an installment agreement. Under the terms of the contract, the buyer receives title upon payment of all installments. Until then, it remains in the seller's possession.

Forfeiture Clause

A "time is of the essence" clause is a forfeiture clause. If the buyer fails to make the payments on time, the seller can cancel the contract. If that happens, ownership reverts to the seller. Possession also reverts to the seller and the buyer must evacuate. The owner can keep all payments previously made.

Prevailing Law

Missouri contract law governs contracts for deed. The seller is in the stronger position. It is advisable for a buyer to seek advice from an attorney specializing in contract law or a real estate expert.

References

• U.S. Legal: Missouri Contract for Deed Law
• U.S. Legal Forms: Contracts for Deed Definition