A Brief Introduction About the Missouri Bill of Sale
When a motor vehicle is sold in the state of Missouri, you require a Missouri bill of sale. It contains information relating to the buyer and the seller as well as the motor vehicle being purchased and sold. The vehicle needs to be notarized by the Department of Revenue in case there have been any modifications or a specific request.
You need this document if you want to register your vehicle. You need to register your vehicle within 30 days of purchase in the state of Missouri to avoid any fines or late fees. You need to register it at the department of motor vehicles Missouri in person irrespective of whether it was bought from a dealership or a vehicle. The details of the vehicle like the year, make, vehicle ID number, sale date will all be provided in the mo bill of sale.
To register your vehicle, you need to fill up the bill of sale form Missouri. All the relevant details regarding the buyer, seller, and the vehicle need to be filled up.
Who Takes the Missouri Bill of Sale – People Involved
In a Missouri vehicle bill of sale, there are two parties to the agreement, the buyer and the seller of the vehicle. The buyer needs this bill to register the car in his or her name, and the seller needs it to prove that the car was sold from their showroom.
Purpose of the Missouri Bill of Sale – Why Do You Need It
A Missouri auto bill of sale is required as it provides legal protection to the buyer and the seller of the vehicle. In case there is a problem with the vehicle after the purchase, the buyer can take legal action against the seller. The bill is proof that a transaction took place.
Without this bill, the previous owner will have to take responsibility for any speeding or parking tickets or any other serious incident caused by the new owner of the vehicle. The bill of sale ensures that the present owner of the car is held liable for any of these offenses.
There is complete information regarding the vehicle in this bill starting from the make and model to the odometer reading. This information makes the registration of the car easier.
You get a vehicle history report when you purchase the vehicle which is provided by the seller. You can verify the accuracy of the report with the bill of sale. If you need to conduct an inquiry regarding the car, you can do so using the bill of sale. Every province has its laws regarding the information required in a bill of sale. You need to know the law of your state as some states need the bill of sale to be notarized. However, this bill does not signify ownership.
Contents of the Missouri Bill of Sale – Inclusions
A bill of sale Missouri car should contain all relevant details regarding the vehicle being sold as well as information about the buyer and seller of the vehicle.
The bill of sale should include the following information:
- Parties to the agreement: The names of the parties to the agreement, the buyer and the seller of the vehicle
- Communication address: The complete address and other communication details of both parties
- Date of the agreement: The date on which the transaction took place
- Vehicle details: The year of manufacture and the make of the vehicle, the title number, the vehicle ID number, the date of sale and the sale price
- Signature of both parties: The signature of both parties to the agreement should be checked
- Consideration: The purchase price that is being paid to the seller, including any down payment made and the amount and number of installments to be paid and their due date. The mode by which the down payment is being paid should be mentioned be it cash, check or any other instrument
- Delivery of vehicle: The seller must deliver the vehicle to the buyer on or before the delivery date stated in the agreement at the seller’s premises. It is the duty of the buyer to be present at the seller’s premises during standard business hours. If delivery is made by the seller after the delivery date, then they have to ensure that the condition of the vehicle is the same
- Conveyance of vehicle title: The seller will convey the title of the vehicle to the buyer on delivery of the vehicle
How to Draft the Missouri Bill of Sale – Points to Consider While Preparing the Agreement
While drafting the bill of sale, it is important to know the laws regarding the sale of a vehicle in the state of Missouri.
The following points need to be kept in mind while drafting the bill:
- The names of the buyer and seller of the vehicle
- The complete address and other communication details of the parties to the agreement
- The effective date of the sale
- The consideration received by the seller from the buyer. The amount of down payment made to the seller, the number of installments to be paid and their due dates
- There must be space for the signature of the buyer and seller
- Governing laws: The forum where any disputes relating to this agreement shall be governed by and the jurisdiction of the courts
- Modification: If there are any provisions for modification of the agreement, then that needs to be mentioned
- Severability: This clause needs to be incorporated to ensure that if a part of this agreement is not enforceable, the remaining part shall remain in force
- Integration: This agreement supersedes all previous agreements and negotiations
- Force majeure event: In the event of a natural calamity or terrorist act, neither party shall be held responsible for failure to perform
- Indemnification of legal costs: The party which has violated the agreement will have to reimburse any costs incurred by the affected party in terms of attorney fees and out-of-pocket expenses.
As far as negotiation is concerned in a Missouri bill of sale, the buyer can negotiate the best terms regarding the price of the vehicle or any other benefits which the seller can provide before purchasing the vehicle.
Where the vehicle is not being purchased from the showroom, the final price will depend on the year of manufacture and the condition of the car.
[Also Read: Motorcycle Bill of Sale]
Benefits & Drawbacks of the Missouri Bill of Sale
The benefits of the Missouri bill of sale are:
- Protection of interest of both parties: The interest of the buyer and seller of the vehicle are protected by the bill of sale. The seller is paid the value of the car, as mentioned in the agreement, and the buyer can make use of the bill of sale to register the car in his or her name.
- Prerequisite for registration: The bill of sale is mandatory for registration of the vehicle. You need to register your vehicle within 30 days of purchase in Missouri.
- Legal protection: The bill of sale acts as evidence that the transaction has taken place so that if there is any defect in the vehicle the buyer can take the seller to court for breach of contract.
The drawbacks of a Missouri bill of sale are:
- Offenses committed by the buyer: The bill of sale is not the transfer of title; the vehicle needs to be registered for that. If the new owner of the car does not register the car, then the registration remains in your name. In this case, if the buyer commits a serious offense such as an accident, then you as the seller would be held liable.
What Happens in Case of Violation of Missouri Bill of Sale?
A vehicle bill of sale is proof that a transaction took place between the buyer and seller. If the buyer of the vehicle finds that there is a technical problem with the car after taking delivery, then it is the responsibility of the seller to replace the vehicle at no cost or face legal charges.
If the seller has concealed information about the title of the vehicle such as the title is free of any encumbrances and it is later found by the buyer that the title of the vehicle is not clear, then the bill of sale serves as a legal document which the buyer can use to take legal action against the seller.
If the buyer fails to pay any of the subsequent installments after making the down payment and taking delivery of the vehicle, then the seller can take the buyer to court for violation of the contract. The buyer will not only have to pay the balance due but also any penalty and legal charges incurred by the seller. If the seller fails to deliver the vehicle by the given delivery date, it is considered to be a violation of the agreement. The seller will have to pay the penalty for non-performance.
Whether you are a buyer of a car or a seller of a vehicle in the state of Missouri, it is important to ensure that you abide by the laws of the state.
The buyer of the car needs to ensure that the title of the vehicle is clear and should investigate the history of the vehicle if required. The bill of sale should be verified against the actual vehicle being delivered to determine if the vehicle being sold matches the specifications. If the buyer, later on, finds that there was some defect with the vehicle, then the vehicle should be taken to the seller either for replacement or refund of the purchase price.
The seller on their part should ensure that the vehicle is free of encumbrances and is the make and condition that is mentioned in the agreement. The seller can take action against the buyer if payments are not made in time.