Key Purposes of the Affidavit in Missouri:
1. Public Notice of Buyer’s Interest
Records the buyer’s equitable interest in the property with the county Recorder of Deeds.
Alerts anyone doing a title search (e.g., other buyers, lenders, title companies) that a prior claim exists.

2. Protects Against Seller Misconduct
Prevents the seller from:
Reselling the property to someone else.
Taking out loans against the property without disclosure.
Makes it harder for the seller to act in bad faith or “back out” after contract execution.

3. Supports Legal Standing in Court
Establishes evidence that a buyer has taken action to protect their interest.
Useful in disputes involving breach of contract, specific performance, or fraud.

4. Used in Creative Financing / Wholesaling
Common tool used by real estate investors or wholesalers to "cloud title" and ensure their deal doesn’t get bypassed.
Especially useful in Contracts for Deed, lease-options, and assignment deals.

5. Low-Commitment Alternative to Full Contract Recording
Instead of recording the full sales contract (which may contain sensitive info), the affidavit briefly states that a contract exists and protects the buyer's interest.

Legal Effect in Missouri:
Does not transfer legal title
Does not create a lien—it simply notifies the public of your interest
Gives priority rights if filed before others (like mechanics’ liens, new purchase agreements, etc.)

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