Missouri Bonded Vehicle Title, My Experience

I suspect that there will not be many of you who will benefit from this posting but if one day you ever find yourself a resident of the state of Missouri then this might be helpful. Now, I am no lawyer and this not intended to be a legal how to guide but hopefully you can learn something from my experience seeking a MO Bonded Vehicle Title.

Why would anyone want a MO Bonded Vehicle Title? Good question! As I understand it, bonded titles allow an owner of a vehicle who does not have a valid title from the previous seller to be able to get a title for the vehicle. If you buy a vehicle without a title, like I did, then you are going to need to gather up several more pieces of paper in order to apply for a bonded title in MO. In my case, I bought a blue 1977 RD400 listed on eBay from out of state. The bike was sold without a title as part of an estate sale. After a few rounds of questions with the seller, I was convinced it wasn't stolen and decided to pull the trigger and bid. My bid ended up winning and now I need to get a title. I was aware of this bonded title process before I bought the bike but had never gone through the process. As you might expect, I made a few mistakes that cost me some time but ultimately was successful and now have a titled 77 RD400 that I am excited to restore.

For you legal enthusiasts, this MO Bonded Title process is codified into MO law in statute Title XIX Chapter 301 Section 192 (301.192). If you intend to seek a bonded title I will tell you that you need to be the expert on the process and what is required. At every step of the process, from both government and non-government folks, all I heard was 'I'm not sure about this process.' or 'We only do this once in a blue moon.' I even got a lot of incorrect direction from some law enforcement folks and learned really quickly that it was no use trying to correct them. They tried to get me to get a declaratory judgment in order to get a title, but that process is really expensive (you have to hire an attorney and sue the Dept of Revenue) and I didn't want anything to do with that process. So my first 'pro' tip is to just make sure you KNOW what the law requires and remain persistent and polite when dealing with everyone in the process.

The law requires that any vehicle which an application for bonded title is sought be both at least seven years old and be worth less than $3,000. There are also seven (7) different additional items in order to be able to apply for a bonded title: (1) an affidavit explaining how the motor vehicle or trailer was acquired and the reason(s) a valid certificate of ownership cannot be furnished, (2) Presentation of all evidence of ownership in the applicant's (that's you) possession, (3) Title verification from a state in which the vehicle was previously titled or registered if known, (4) a notarized lean release from any lien holder or record, (5) a vehicle examination certificate issued and completed by the MO State Highway Patrol, (6) a statement certifying the odometer reading if the vehicle is less than ten years old, (7) a surety bond equal to twice the value of the vehicle

The following is my experience and what I did to satisfy each of the requirements.

After I got the bike home I started getting all the paperwork together. The first piece of paper I got was a notarized MO bill of sale form from the seller. The form number is MO-1957. Make sure the seller gets it notarized. With the BOS in hand, I went to my local DMV to explain my situation and confirm everything I needed to do to apply for a bonded title. This is where I began to learn that no one really knows about this process and that I was going to have to know the law in order to be successful. The DMV was the first place where they told me I needed to get a declaratory judgement (not true) in order to title the bike. After waiting for awhile while the DMV person called the 'home office' and waited on hold only to ask the person on the other end of the phone the exact same question I asked I got confirmation that a bonded title was a possibility.

While at the DMV I purchased the inspection form, MO-551. The total fee was $27.50. With the form in hand I called the MO Highway Patrol inspection station to setup an inspection appointment. The earliest time they had available was two weeks out. I had to have a friend help me trailer the bike to the inspection station. We pull up, on time, and the first words out of the inspectors mouth are, 'Do you have your surety bond?'. I did not have the bond and nowhere did I read that I needed to have the bond BEFORE the inspection. In fact, the law lists the bond as the last requirement. Since I did not have the bond they turned me away immediately. When I asked them could they point to something the provides instruction that I needed to have the bond before the inspection they said that the process was 'generally understood.' Needless to say I was not a happy camper at that point but I needed to get the surety bond in order to get the inspection done.

The surety bond has to be for twice the value of the bike. Now the law states the vehicle cannot be worth more than $3,000 and it also states that NADA or KBB value can be used to determine the value of the bike. The issue for me was that KBB had the retail price of the bike over $3,000 and NADA prices ranged from ~$2,000 to $7,000+. So those were not going to work. Fortunately, the law provides an escape hatch, instead of NADA or KBB you can get an appraisal from at least two licensed dealerships to establish the value of the vehicle. That was the rout I took. I ended up having to go to four dealerships before I got written appraisals on their dealership letterhead. I also had the dealerships include the VIN of the bike, the law doesn't say this is necessary but it turned out to be a good thing when I went to file. Every time I went to a dealership, their first reaction was to assume that I wanted to trade the bike in. It took a few conversations with salesman for them to understand that I wasn't interested in trading the bike in but rather that I wanted an appraisal. The first dealership flat out refused to provide me an appraisal. The second dealership provided one but charged me $40. The third dealership refused to include the VIN of the bike but didn't charge me for the appraisal. The fourth dealership provided the second appraisal and the salesman just wanted $10 for lunch.

With the appraisals in hand, I reached out to my insurance company to see if they offered surety bonds. They too were unfamiliar with the process but after about a week they were able to get me a surety bond for twice the appraised value of the bike. The law requires that the minimum price for the bond be $100 and that's what they charged me. So now I'm out $177.50 plus gas and time.

Since I had the surety bond I could reschedule the inspection, had to wait another two weeks for an available time. Again, I had to have a friend help me trailer the bike to the inspection station so they could complete the form. The entire inspection process was less than 15 min which was a bit of let down considering I've waiting for over a month to get this done.

Now I have the surety bond and inspection form 551 in hand I needed to complete the affidavit requirement. I asked the seller to send me a written statement about why the bike didn't have a title and also completed the general affidavit form MO-768 basically restating what the seller told me. I had to form notarized before signing it, also a good move that came in handy later.

The rest of the paperwork was either easy to get or was unnecessary. For the evidence of ownership I had the motorized Bill of Sale and a printout of the eBay listing of the bike. Where the bike was previously registered or titled was not known to the seller or me so I was able to skip that. There were no liens on the bike so no lien release necessary. The bike is greater than 10 years old so no odometer reading necessary.

With all the paperwork in hand I drove 2.5 hours to Jefferson City, MO. They are the only place where you can submit for a bonded vehicle title. The other option would be to mail the forms in but I suspected there would be a problem so I made the drive. Boy am I glad I did! I pulled up to the government building and walked right into the building and right up to the DMV counter. I told the woman behind the counter that I was there to apply for a bonded vehicle title. She deflated a bit and got a worried look on her face. I presented everything I had in my possession, confident that I had everything, and she took all my paperwork to someone in the back because she wasn't sure about the process and wanted to double check that I had everything.

After about 10 minutes she came back and said I had all the paperwork needed but wanted to confirm if I wanted the title to say SALVAGE. I absolutely did NOT want that. She quickly pointed out that the surety bond I received from my insurance company had the word SALVAGE in the header and so she could only issue a SALVAGE BONDED title with the paperwork I had. I really appreciate that she did this because she could have simply processed my request and I would have gotten a salvage title. I had to call my insurance company and after some phone calls and faxes and about 2 hours of waiting my insurance company was able to send the correct surety bond paperwork. After I got that I was able to apply for the bond.

The Bonded Title arrive about 4 weeks after I applied for it. So in a little over three months and with a direct cost of $177.50 plus gas and time I am now the legal owner of a 1977 RD400. SUCCESS!!!:woohoo: :laugh:

So that's my story. I hope you felt it was worth the read. Hopefully some of you will find this information useful. Thanks for reading.

Sounds like California
Steve

Not even an option here in Ohio (based on what I’ve read). Have to go the Declaratoy Judgement route. Someday I might try the Vermont work-around but that seems to be iffy.

Something that confuses me: why do folks sell titles at swap meets (like the upcoming AMA Vintage Motorcycle Days)? Are the buyers just hoping that nobody in the government notices the VIN on the title doesn’t match the VIN on the frame?

I live in the St. Louis area, and 5 out of the last 6 bikes I bought had either no title, or usually a severely FUD up title that the only thing they will do at the DMV is shake their heads after looking at it and hand it back to you. I had a sporty a few years ago, that as far as I could tell from all of the scribbling on the title and such, and had changed hands `8 times without being transferred. A severely screwed up arizona title was all I had. It is best to just make this stuff as if you never saw it.

I had another at the DMV tell me to go in front of a judge and tell me to get a judgement.. easy peasy... NOT.. I went to the court house and asked a magistrate judge, and was also told the same thing, I needed to hire a lawyer and file papers for a lawsuit with the registered owner.. screw dat.

From my experiences I have found that it is easier to go through the MO abandoned vehicle procedure, send out all of the certified letters, and take it to the MSHP with the 551 form for inspection, I usually go to troop F in Jeff City, then go to the state DMV office a the state capitiol with all of my paperwork in a folder, so I don't need to do it by mail.. I can hand them whatever they want and sign whatever while in jeff city.

dor.mo.gov/forms/Abandoned_Vehicle_Manual.pdf

Note, there is no registering a stolen vehicle. If it comes back as stolen it will be confiscated, and you might possibly be arrested.

When you complete the abandoned vehicle title process do you get a SALVAGE title or do you get a clean title?

CCrosswait wrote: When you complete the abandoned vehicle title process do you get a SALVAGE title or do you get a clean title?

I need to dig it out, but I believe it says "previous salvage vehicle" on the title. Not that it matters much to me as long as I can license and insure the bike. I think if it were transferred to to a new owner, it would no longer have that designation on the title.

I seem to remember some say salvage title, and some didn't.. It probably depends on who exactly is filling out the application at the DOR in jeff city. I did notice they try to hit me with penalties on these titles every time, even though I could not possibly go through the abandoned vehicle process in the 30 days required to transfer a vehicle in MO ($25.00 penalty / month). It has to be on your property and in your possession at least 30 days to be considered an abandoned vehicle in the first place. . it's not like I was just too lazy to go to the DMV or anything. It takes months to send out all of the required notices, and then wait for the return paperwork to arrive. I use the latest USPS certified letter notice as my reference time for their extra push for more bucks., since nothing can be done until all notices are served., and either delivered or returned to the last known address.
My KZ1000 was previously titled in IL, and I had to apply to the IL Secretary of State to get the registered onwers name / address. First I applied as a private citizen, they refused my request, then using my business name.. no problemo. Those silly state fuks! lol

2 flat tires, and all the locks punched out, (Even the gas cap non-lock mangled) signals hanging by the wires.. kinda rough, but it came around nicely.

Glad to know there are alternatives to get titles in MO. Thanks for sharing a bit of your story.

The bonded title process was appealing because the title doesn't have the word SALVAGE on it. I can also apply for a fully clear title in 3 years.

They didn't try to hit me with late fees thank God. I wasn't sure if they would try but considering it was the Highway patrol which took the most time I was prepared to argue my case. Not that arguing with the DMV works :blink:

CCrosswait wrote: Glad to know there are alternatives to get titles in MO. Thanks for sharing a bit of your story.

The bonded title process was appealing because the title doesn't have the word SALVAGE on it. I can also apply for a fully clear title in 3 years.

They didn't try to hit me with late fees thank God. I wasn't sure if they would try but considering it was the Highway patrol which took the most time I was prepared to argue my case. Not that arguing with the DMV works :blink:

You are correct! Arguing almost never works anyway, and sometimes makes things even worse, if their minds are already made up, as in the case telling me to "just go get a judgement", easy as pie.. Nope.
I never consider the words "salvage title" or "previous salvage vehicle" a deal breaker on any bike considering how well people are at registering motorcycles. My Kz1000K1 is my favorite bike of all time, out of all those others I fixed up and sold, I tell people my old Kaw is NOT for sale at any price.. well almost not any price. lol

I had one seller (Kz1000 #1) tell me he WASN'T going to spend a fortune registering the bike even AFTER he made a mess out of the title filling in HIS name and address to the title AND a >lien release< from a lender in the middle of BF Kansas. I sent a certified letter and legal notice to BOTH of them (the lien holder and the registered owner). The loan had been paid off so no problem with them, and apparently the Registered owner had moved (usual), sooo the letter came back after sitting in the mail box for a few weeks. . no problemo once again.