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Section: 301.0213 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. RSMO 301.213


Published: 2015

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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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