After 16 years in the same Penrose house, Gwendolyn Key‑Hutchinson says a 30‑day notice landed on her door with a stark choice: pay more or get out. Her situation is part of a growing wave of “contract‑for‑deed” deals that housing advocates say are squeezing would‑be buyers and long‑time renters across St. Louis. Tenants describe these arrangements as rent‑to‑own on paper, but in practice they say they cover repairs, insurance and tax bills while the seller keeps the deed and most of the leverage. The result, they argue, is an owner‑financing setup that leaves residents with few legal protections and no clear path to an actual title.
Key‑Hutchinson’s notice was tied to a company controlled by Virginia‑based investor Joey Chianese, who reporters say has been buying low‑cost houses around the city and then offering them on owner‑financing terms, according to the St. Louis Post‑Dispatch. An investigation by the St. Louis Post‑Dispatch found that Chianese’s network has purchased more than 150 homes in the region since 2022 and has filed at least 130 eviction suits against occupants who were making payments but never received deeds. Documents reviewed by the paper show long payment terms and double‑digit interest rates. Tenants describe low up‑front costs that hide high monthly payments, balloon clauses and contracts that can be canceled over technical defaults.
How the deals work
Under an “agreement for deed,” the seller keeps legal title while the buyer moves in and makes installment payments, often covering property taxes, insurance and all repairs out of pocket. The Consumer Financial Protection Bureau has warned that these contracts can be predatory and, in August 2024, issued an advisory opinion stating that many contracts for deed meet the Truth in Lending Act’s definition of credit. That means they may be subject to mortgage‑style safeguards, including disclosure rules and ability‑to‑repay requirements that traditional home loans must follow.
Local pushback and court rulings
Nonprofit legal aid lawyers at Legal Services of Eastern Missouri and other advocates have started fighting these cases in court and filing countersuits. They argue that the contracts function as credit transactions that violate federal and state consumer laws. Judges in both city and county associate courts have begun dismissing eviction petitions tied to agreement‑for‑deed paperwork. In one decision, a judge concluded, “Because the Agreement for Deed is clearly not a lease and the Plaintiff not a landlord, Plaintiff lacks standing” – a ruling that has helped some tenants stay in their homes while the legal battles continue, as reported by local reporters.
Where to get help…