When buying a motor vehicle, vessel, trailer, animal, or other goods in Missouri, using a bill of sale can provide several benefits for both the buyer and seller, as well as state authorities.
One major advantage is that it serves as a documented record of the terms of purchase, outlining the details of the transaction.
For the seller, the bill of sale helps to limit their responsibility and liability once the item has been transferred to the buyer and the document has been signed. This can be particularly useful in cases where disputes arise after the sale.
Missouri Bill of Sale Parties
The main parties to the bill of sale are the buyer and seller. More people can be involved, such as an agent who helps one of the parties with the sale.
The seller transfers ownership of the goods to the buyer. They have the right to receive payment for the sold goods and the obligation to provide accurate and complete information about them.
The buyer receives the goods as described in the bill of sale. Their main obligation is to pay the agreed-upon price for the goods and inspect them before buying them to ensure they meet their needs.
Buyer and Seller Disclosure
When selling a vehicle, the seller must provide an accurate odometer reading to the buyer to disclose the vehicle's mileage, which is essential for determining the vehicle's value and condition. Therefore, most states require a separate odometer disclosure statement in addition to the bill of sale to ensure that the buyer is aware of the vehicle's mileage.
On the other hand, the as-is clause means that the item is being sold in its current condition with no guarantees or warranties. It states that the buyer accepts the item with any flaws and that the seller won't be responsible for any issues that might arise after the sale.
Missouri Bill of Sale Description of Goods
It is important to clearly define the purchased goods by giving detailed information about them.
For example, if the transferred good is a motor vehicle, you should individualize it using the following data:
Vehicle make, model, and year of production
Horsepower of the vehicle
Vehicle identification number (VIN)
Body type and color
Declaring the item's condition is very important, too, as it entails indicating whether it is brand new or used and has any flaws or defects.
By providing this detailed information in the bill of sale, all parties clearly understand item conditions.
Missouri Bill of Sale Purchase Price
There are three commonly used compensation methods for a purchased item: payment, trade, or gift.
Payment is the most common method, and it involves the exchange of money for goods. It can be made through cash payments, credit card transactions, bank transfers, or any other agreed-upon payment method.
Trade involves the exchange of goods instead of money. In a trade, both parties agree to exchange goods of equal or similar value, which should be clearly stated in the bill.
If the value of the goods is not equal, an additional sum of money should be included in the bill of sale to balance out the difference.
Gifts are often given for a specific reason, like to build good relationships with clients, reward employees for their hard work, or show gratitude to a relative. In this case, the buyer owes nothing to the seller.
However, the value of the gift should be stated in the bill for tax purposes.
Missouri Bill of Sale for Motor Vehicles (Cars) Requirements
In Missouri, when buying a motor vehicle, the buyer must obtain a title and pay sales tax on it within 30 days of purchase. Failure to do so can result in a $25 penalty on the 31st day after purchase, which increases by another $25 for every additional 30 days you are late, up to a maximum penalty of $200.
Additionally, when selling a motor vehicle in Missouri, sellers must report the sale within 30 days by submitting a bill of sale and other documentation to the Missouri Department of Revenue.
However, to complete the title process for a motor vehicle in Missouri, the buyer must provide certain documents to the Missouri Department of Revenue, including a bill of sale.
When purchasing a vehicle from another state, the seller and buyer should provide proof of ownership, which can be a bill of sale.
Abandoned or Junk Vehicles
When selling or buying a junk vehicle, parties must create and fill out a bill of sale, which should be submitted to the Missouri Department of Revenue.
This document must include the vehicle's make, model, year, vehicle identification number, and a statement from the seller about the vehicle's overall condition.
Vehicles Sold by Dealers
When buying a vehicle from an authorized dealer, it is customary for the parties to create a bill of sale that outlines all the relevant information about the transaction. This includes the details about both the buyer and seller and information about the vehicle, its condition, and the purchase price.
Vehicles Sold by Private Parties
To register a vehicle and obtain a title, the private seller and buyer should create and fill out a bill of sale, which serves as evidence of the transaction.
Missouri Bill of Sale for Boats (Vessel) Requirements
To title and register a boat, vessel, or outboard motor in Missouri, whether bought in or out of the state, a wide list of documents, including a bill of sale, must be submitted at any Missouri license office
In that case, the bill of sale must contain the following details:
Names and addresses of the seller and buyer
Vessel’s make, model, length, and year of production
Hull identification number (HIN)
Any flaws, as well as a description of any additional equipment
Purchase price and sale date
Signatures of both parties
Missouri Bill of Sale for Firearms Requirements
Although a bill of sale is not required for the firearm registration procedure in Missouri, it is recommended that the seller and buyer complete one with the following information:
Make and model
Signatures of the seller and buyer
Missouri Bill of Sale for Horses Requirements
Due to the often high value of the horse, it is important to have a record of the transfer of ownership from the seller to the buyer.
To ensure documentation of the sale is in order, it is recommended to obtain a valid bill of sale. It should include the sales price, warranties from both the buyer and seller, and information about the horse's health condition.
Missouri Bill of Sale for Trailers (RVs) Requirements
According to Missouri law, the buyer of a newly purchased trailer has 30 days from the date of purchase to title the trailer and pay sales tax.
In certain situations, as part of the mandatory documents required to be submitted to the Department of Revenue, a bill of sale is required as proof of the transfer of ownership.
Missouri Bill of Sale Other Requirements
The buyer and seller can use any language for their bill of sale, but it is important to note that only the bill of sale written in English can be used for the registration and ownership processes.
On the other hand, it is recommended for the parties to make three copies of the bill of sale: two for the buyer and seller's own records and one to be submitted to the Department of Revenue.
Missouri Bill of Sale Taxes
The Missouri state sales tax rate is 4.225%, but local sales taxes may also apply depending on the seller’s location. It is standard practice that sellers collect the sales tax from buyers and submit it to the Department of Revenue.
Missouri Bill of Sale FAQ
Missouri law stipulates that a bill of sale is required to register motor vehicles, trailers, and vessels and must have a specific form. However, to transfer other goods, the parties can provide a handwritten bill of sale.
A bill of sale must be signed by both the buyer and seller.
You can simply download one of the customizable and reliable bill of sale templates available on our website.
The bill of sale provides advantages to both the seller and the buyer. For the seller, it helps to reduce their responsibility for the item once it is sold to the buyer.