Missouri Revised Statutes
Chapter 301
Registration and Licensing of Motor Vehicles
←301.210
Section 301.213.1
301.215→
August 28, 2015
Dealers may purchase or accept in trade vehicles subject to existing liens, when--sale of vehicles subject to lien, when--replacement certificate, when--liability, when--violation, penalty.
301.213. 1. Notwithstanding the provisions of sections 301.200 and
301.210, any person licensed as a motor vehicle dealer under sections
301.550 to 301.580 that has provided to the director of revenue a surety
bond or irrevocable letter of credit in an amount not less than one hundred
thousand dollars in a form which complies with the requirements of section
301.560 and in lieu of the twenty-five thousand dollar bond otherwise
required for licensure as a motor vehicle dealer shall be authorized to
purchase or accept in trade any motor vehicle for which there has been
issued a certificate of ownership, and to receive such vehicle subject to
any existing liens thereon created and perfected under sections 301.600 to
301.660 provided the licensed dealer receives the following:
(1) A signed written contract between the licensed dealer and the
owner of the vehicle outlining the terms of the sale or acceptance in trade
of such motor vehicle without transfer of the certificate of ownership; and
(2) Physical delivery of the vehicle to the licensed dealer; and
(3) A power of attorney from the owner to the licensed dealer, in
accordance with subsection 4 of section 301.300, authorizing the licensed
dealer to obtain a duplicate or replacement title in the owner's name and
sign any title assignments on the owner's behalf.
2. If the dealer complies with the requirements of subsection 1 of
this section, the sale or trade of the vehicle to the dealer shall be
considered final, subject to any existing liens created and perfected under
sections 301.600 to 301.660. Once the prior owner of the motor vehicle has
physically delivered the motor vehicle to the licensed dealer, the prior
owners' insurable interest in such vehicle shall cease to exist.
3. If a licensed dealer complies with the requirements of subsection
1 of this section, and such dealer has provided to the director of revenue
a surety bond or irrevocable letter of credit in amount not less than one
hundred thousand dollars in a form which complies with the requirements of
section 301.560 and in lieu of the twenty-five thousand dollar bond
otherwise required for licensure as a motor vehicle dealer, such dealer may
sell such vehicle prior to receiving and assigning to the purchaser the
certificate of ownership, provided such dealer complies with the following:
(1) All outstanding liens created on the vehicle pursuant to sections
301.600 to 301.660 have been paid in full, and the dealer provides a copy
of proof or other evidence to the purchaser; and
(2) The dealer has obtained proof or other evidence from the
department of revenue confirming that no outstanding child support liens
exist upon the vehicle at the time of sale and provides a copy of said
proof or other evidence to the purchaser; and
(3) The dealer has obtained proof or other evidence from the
department of revenue confirming that all applicable state sales tax has
been satisfied on the sale of the vehicle to the previous owner and
provides a copy of said proof or other evidence to the purchaser; and
(4) The dealer has signed an application for duplicate or replacement
title for the vehicle under subsection 4 of section 301.300 and provides a
copy of the application to the purchaser, along with a copy of the power of
attorney required by subsection 1 of this section, and the dealer has
prepared and delivered to the purchaser an application for title for the
vehicle in the purchaser's name; and
(5) The dealer and the purchaser have entered into a written
agreement for the subsequent assignment and delivery of such certificate of
ownership, on a form prescribed by the director of revenue, to take place
at a time, not to exceed sixty calendar days, after the time of delivery of
the motor vehicle to the purchaser. Such agreement shall require the
purchaser to provide to the dealer proof of financial responsibility in
accordance with chapter 303 and proof of comprehensive and collision
coverage on the motor vehicle. Such dealer shall maintain the original or
an electronic copy of the signed agreement and deliver a copy of the signed
agreement to the purchaser. Such dealer shall also complete and deliver to
the director of revenue such form as the director shall prescribe
demonstrating that the purchaser has purchased the vehicle without
contemporaneous delivery of the title.
Notwithstanding any provision of law to the contrary, completion of the
requirements of this subsection shall constitute prima facie evidence of an
ownership interest vested in the purchaser of the vehicle for all purposes
other than for a subsequent transfer of ownership of the vehicle by the
purchaser, subject to the rights of any secured lienholder of record;
however, the purchaser may use the dealer-supplied copy of the agreement to
transfer his or her ownership of the vehicle to an insurance company in
situations where the vehicle has been declared salvage or a total loss by
the insurance company as a result of a settlement of a claim. Such
insurance company may apply for a salvage certificate of title or junking
certificate pursuant to the provisions of subsection 3 of section 301.193
in order to transfer its interest in such vehicle. The purchaser may also
use the dealer-supplied copy of the agreement on the form prescribed by the
director of revenue as proof of ownership interest. Any lender or
insurance company may rely upon a copy of the signed written agreement on
the form prescribed by the director of revenue as proof of ownership
interest. Any lien placed upon a vehicle based upon such signed written
agreement shall be valid and enforceable, notwithstanding the absence of a
certificate of ownership.
4. Following a sale or other transaction in which a certificate of
ownership has not been assigned from the owner to the licensed dealer, the
dealer shall, within ten business days, apply for a duplicate or
replacement certificate of ownership. Upon receipt of a duplicate or
replacement certificate of ownership applied for under subsection 4 of
section 301.300, the dealer shall assign and deliver said certificate of
ownership to the purchaser of the vehicle within five business days. The
dealer shall maintain proof of the assignment and delivery of the
certificate of ownership to the purchaser. For purposes of this
subsection, a dealer shall be deemed to have delivered the certificate of
ownership to the purchaser upon either:
(1) Physical delivery of the certificate of ownership to any of the
purchasers identified in the contract with such dealer; or
(2) Mailing of the certificate, postage prepaid, return receipt
requested, to any of the purchasers at any of their addresses identified in
the contract with such dealer.
5. If a licensed dealer fails to comply with subsection 3 of this
section, and the purchaser of the vehicle is thereby damaged, then the
dealer shall be liable to the purchaser of the vehicle for actual damages,
plus court costs and reasonable attorney fees.
6. If a licensed dealer fails or is unable to comply with subsection
4 of this section, and the purchaser of the vehicle is thereby damaged,
then the dealer shall be liable to the purchaser of the vehicle for actual
damages, plus court costs and reasonable attorney fees. If the dealer
cannot be found by the purchaser after making reasonable attempts, or if
the dealer fails to assign and deliver the duplicate or replacement
certificate of ownership to the purchaser by the date agreed upon by the
dealer and the purchaser, as required by subsection 4 of this section, then
the purchaser may deliver to the director a copy of the contract for sale
of the vehicle, a copy of the application for duplicate title provided by
the dealer to the purchaser, a copy of the secure power of attorney
allowing the dealer to assign the duplicate title, and the proof or other
evidence obtained by the purchaser from the dealer under subsection 3 of
this section. Thereafter, the director shall mail by certified mail,
return receipt requested, a notice to the dealer at the last address given
to the department by that dealer. That notice shall inform the dealer that
the director intends to cancel any prior certificate of title which may
have been issued to the dealer on the vehicle and issue to the purchaser a
certificate of title in the name of the purchaser, subject to any liens
incurred by the purchaser in connection with the purchase of the vehicle,
unless the dealer, within ten business days from the date of the director's
notice, files with the director a written objection to the director taking
such action. If the dealer does file a timely, written objection with the
director, then the director shall not take any further action without an
order from a court of competent jurisdiction. However, if the dealer does
not file a timely, written objection with the director, then the director
shall cancel the prior certificate of title issued to the dealer on the
vehicle and issue a certificate of title* to the purchaser of the vehicle,
subject to any liens incurred by the purchaser in connection with the
purchase of the vehicle and subject to the purchaser satisfying all
applicable taxes and fees associated with registering the vehicle.
7. If a seller misrepresents to a dealer that the seller is the owner
of a vehicle and the dealer, the owner, any subsequent purchaser, or any
prior or subsequent lienholder is thereby damaged, then the seller shall be
liable to each such party for actual and punitive damages, plus court costs
and reasonable attorney fees.
8. When a lienholder is damaged as a result of a licensed dealer's
acts, errors, omissions, or violations of this section, then the dealer
shall be liable to the lienholder for actual damages, plus court costs and
reasonable attorney fees.
9. No court costs or attorney fees shall be awarded under this
section unless, prior to filing any such action, the following conditions
have been met:
(1) The aggrieved party seeking damages has delivered an itemized
written demand of the party's actual damages to the party from whom damages
are sought; and
(2) The party from whom damages are sought has not satisfied the
written demand within thirty days after receipt of the written demand.
10. The department of revenue may use a dealer's repeated or
intentional violation of this section as a cause to suspend, revoke, or
refuse to issue or renew any license required pursuant to sections 301.550
to 301.580, in addition to the causes set forth in section 301.562. The
hearing process shall be the same as that established in subsection 6 of
section 301.562.
(L. 2015 S.B. 456)
*Word "tile" appears in original rolls.
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