During the Missouri 2015 Legislative Session Senate Bill 456 passed. On July 13, 2015 Governor Nixon signed the bill.
Sponsored by Senator Mike Kehoe (R-Jefferson City) and Rep. T.J. Berry (R-Kearney), this bill allows a dealer to sell a vehicle (for up to sixty days) without a title. Currently, motor vehicle dealers are authorized to purchase or accept in trade any motor vehicle for which there has been issued a certificate of title. This act modifies this to any vehicle for which there has been issued a certificate of ownership. Once the vehicle has been delivered to the dealer, the prior owners’ insurable interest in such vehicle ceases. The act specifies that such dealers provide to the Department of Revenue a surety bond or irrevocable letter of credit in an amount not less than $100,000 in lieu of the $25,000 bond otherwise required for licensure as a motor vehicle dealer. If a dealer receives certain items, they may sell such vehicle prior to receiving and assigning to the purchaser a certificate of ownership. In order to do so, they have to have prepared and delivered to the purchaser an application for title for the vehicle in the purchaser’s name, and have entered into a written agreement for the subsequent assignment and delivery of the certificate of ownership within 60 days after delivery of the motor vehicle to the purchaser. The agreement requires the purchaser to provide to the dealer proof of financial responsibility and proof of insurance. The dealer must maintain a copy of the agreement, and has to deliver a form to the Department of Revenue showing that the purchaser has purchased the vehicle without contemporaneous delivery of the title. If these requirements are met, among others, they shall constitute evidence of an ownership interest in the vehicle.
This bill was signed by Governor Jay Nixon on July 13th; HOWEVER, this WILL NOT BECOME LAW UNTIL AUGUST 28, 2015! Until that time, YOU MUST ADHERE TO THE CURRENT LAW regarding delivery of title at THE time of sale.