Improperly transferring a title in Missouri can create significant legal and financial problems. If the seller does not complete the assignment of the title correctly, they may still be considered the legal owner of the vehicle. This means they could be held responsible for accidents, tickets, tolls or other violations associated with the car. For the buyer, a title with errors may not be accepted by the Missouri Department of Revenue (DOR), delaying registration and leaving them without valid ownership documents. In some cases, fraudulent or incomplete transfers may even result in fines or criminal charges.

When selling a vehicle in Missouri, the seller must sign and date the title in the appropriate section, disclose the odometer reading and provide the buyer with a completed Bill of Sale. The buyer then applies for a new title in their own name and pays taxes and fees.
 
Donating a vehicle follows a similar process but with fewer steps for the donor. If you donate through a charity such as Goodwill Car Donations, they often assist with the paperwork and submit the transfer to the DOR on your behalf. Unlike a sale, you won’t collect payment. Instead, you may be eligible for a tax deduction based on the vehicle’s value.

A Bill of Sale is not required in every Missouri transaction, but it is highly recommended. It serves as proof of the agreed-upon price, date of transfer and the identities of both the buyer and seller. This protects both parties from disputes or legal claims after the transfer. In donation cases, a receipt from the nonprofit serves a similar function and may also be used for tax purposes.

If a lienholder is listed on the title, the lien must be satisfied before ownership can be transferred. The lienholder provides a lien release document or signs the title in the designated section. Without this release, the Missouri DOR will not issue a new title to the buyer or recipient. Always confirm that the lien has been cleared to avoid delays or legal complications.

If your Missouri title has been lost, stolen or damaged, you must apply for a duplicate before completing the transfer. This involves submitting Form DOR-108, “Application for Missouri Title and License,” and paying the applicable replacement fee. Once the duplicate is issued, it can be signed and transferred as usual. Attempting to transfer a car without a proper title is not permitted.

To ensure a valid transfer, carefully fill out every required field on the title, including signatures, printed names, sale price and odometer reading. Signatures must be notarized if the form specifies it. Both parties should double-check for errors before submitting the paperwork. Afterward, the buyer should file the application for a new title with the Missouri DOR within 30 days to finalize the process.

If the buyer fails to register the vehicle, the seller may still be considered liable for accidents, tickets or tolls associated with it. To protect yourself, Missouri law allows sellers to submit a Notice of Sale (Form DOR-5049) to the DOR. This document proves you no longer own the vehicle and removes you from potential liability, even if the buyer neglects to register the title.

When selling to an out-of-state buyer, the Missouri seller signs and completes the title as usual. The buyer then registers the vehicle in their home state according to its requirements. Some states may ask for additional inspections or emissions tests. Conversely, if a Missouri resident purchases a car from out-of-state, they must bring the signed title, inspection documents and proof of insurance to a Missouri license office to secure a new title and plates.

For buyers, Missouri assesses a state sales tax of 4.225% plus any applicable local taxes on the purchase price of the vehicle. This must be paid at the time of registration. When donating a vehicle, no sales tax is required since there is no purchase price. Instead, donors may qualify for a charitable tax deduction based on the vehicle’s fair market value or the amount the charity receives from its sale.

After signing over the title, sellers should remove their license plates and submit a Notice of Sale to the Missouri DOR. Buyers should promptly apply for their new title within 30 days and arrange insurance coverage before driving. Donors should keep the donation receipt provided by the charity for tax purposes and confirm the title has been processed correctly to complete the transfer.