A Vehicle Bill of Sale in Missouri: What To Know
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A vehicle bill of sale in Missouri is a formal receipt that documents the purchase and sale of a car between a private seller and a buyer. This paperwork is frequently requested when the new buyer attempts to transfer the title and register the car with the Secretary of State’s Vehicle Services Division. A bill of sale acts as evidence of a legal change of ownership, highlighting any specific transaction details and the vehicle’s condition at the time of purchase.
This acts as a written record that marks the transfer of legal ownership of the vehicle being sold or donated. This isn’t just necessary to transfer the legal title through a governmental agency but also a vital aspect of personal record keeping. It can be crucial if the vehicle is involved in a legal dispute.
A vehicle Bill of Sale in Missouri serves as a receipt for the buyer and confirms that the seller no longer owns the car. The sale must be reported within 30 days of the sale to the Motor Vehicle and Driver Licensing Division by submitting a Bill of Sale. This same Bill of Sale document is also required for your car to acquire a clean title and registration.
Missouri Bill of Sale Requirements
Missouri sells tens of thousands of vehicles in used and dealership marketplaces every year. Since 2006, there have been some particular legal requirements for purchasing vehicles after new legislation. A vehicle Bill of Sale in Missouri is pretty straightforward, and the most critical aspect is to ensure that the bill of sale has all of the necessary information. Make sure you have several copies of the completed Missouri bill of sale for your records if you are a party named in the document. To the car buyer, you must offer the following information:
- 5049 - A Notice of Sale
- 108 - Application for Missouri Title and License (must be signed)
- 1957 - Bill of Sale form
- 4809 - Notarized Lien Release
- An odometer inspection and completed odometer disclosure form
- A certificate of title or manufacturer’s statement of origin (in some cases)
The Bill of Sale is required when buying a vehicle, or you won’t be driving it legally. In addition, you should budget for sales tax and title costs. To title and pay sales tax on your vehicle, you have 30 days from the date of purchase. On the 31st day following the purchase, if you do not title the car within 30 days, you will be charged a $25 title penalty. For every 30 days you are late, the penalty increases by $25, with a maximum fine of $200.
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Information Needed on a Missouri Bill of Sale
A basic Missouri bill of sale contains the following information on the buyer, seller, and the object being sold:
- The legal names of the parties (printed)
- The bill of sale’s details about the object being sold
- The sum for which the item was sold, as well as both parties’ signatures
- The bill of sale may also need to be notarized in some cases
Remember that all sellers and buyers must sign the back of the title in the assignment area and print their names. Notarization is not required for these signatures. The vendor must write in the odometer reading and date of sale. Correction fluid (white-out) and erasing markings from the title are not permitted. Remember to remove your license plates before the buyer gets ownership of the car, regardless of whether they are valid or expired.
An emissions & safety inspection, as well as lien release, is required in the city of St. Louis and the following counties:
- Franklin
- Jefferson
- St. Charles
- St. Louis
If a lienholder like a bank or credit union is listed on your title, the lienholder must offer you a notarized lien release stating that you have paid off the loan and are no longer liable for the debt. Suppose your lienholder does not release the lien using Form 4809, Notice of Lien, Claim Release, or authorization to add and remove a name from a title. In that case, they must send you a notarized declaration on their letterhead saying the lien is released. This may vary based on other states, so you should check with the appropriate DMV for the correct policy.
What Happens After the Sale?
You can get a temporary permit, transfer license plates from another vehicle, or purchase new license plates when you buy your car. This online sales tax calculator will help you figure out how much tax and levies you’ll have to pay.
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You must notify any transaction of a vehicle to the Department of Revenue. Sellers who are not Missouri licensed dealers must record the sale using a completed Notice of Sale (Form 5049) or Bill of Sale (Form 1957) form.
Once the sale is complete, you can get a temporary permit from the dealer or DMV to use a newly purchased vehicle (and even its trailer) if no plates are available for transfer. If you’re an out-of-state buyer, you can only get temporary permits from verified Missouri dealers.
Temporary permits are valid for 30 or 90 days from the date of purchase. Only approved dealers can sell 90-day licenses, which are only valid if specific requirements are satisfied. Per vehicle, only one temporary permit may be obtained. Temporary permits are not available for purchase and are no longer valid after a title application has been submitted. Junk cars are not eligible for temporary licenses.
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If not purchasing through a dealership, you can bring the following items to any Missouri license office to receive a temporary permit:
- The Certificate of Title or Manufacturer’s Statement of Origin (MSO) will need to be appropriately signed over to you
- Bill of Sale (Form 1957)
- Notice of Sale (Form 5049)
- A Missouri Application for Title and License (Form 108)
While these are similar requirements to many states across the country, these are the specific requirements for Missouri. It always helps to be prepared, so try to plan to gather these items before finalizing your purchase.
Missouri Bill of Sale FAQs
Q: Does Missouri require a bill of sale?
A: Yes and no. The Missouri Department of Revenue mandates all private car sellers to file either a notice of sale or a bill of sale within 30 days of the purchase date. If the seller fails to file either document, they will be fined, or done deliberately, they will receive a Class C misdemeanor plus a fine.
Q: Are there exceptions to the Missouri bill of sale?
A: There are exceptions to the bill of sale in Missouri. First, there’s no need to file a bill of sale if the car was sold to an out-of-state buyer or a dealership. Another instance where a bill of sale is not needed is when the vehicle is transferred to an insurance company due to a total loss of claim.
Q: Does a Missouri bill of sale need to be notarized?
A: In general, no. According to Form 1957 of the Missouri Department of Revenue, the bill of sale or the trade bill of sale is only required to be notarized when showing proof of ownership of the major parts of a rebuilt vehicle or when the department of revenue specifically needs it.
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