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TITLE 43TRANSPORTATION
PART 10TEXAS DEPARTMENT OF MOTOR VEHICLES
CHAPTER 217VEHICLE TITLES AND REGISTRATION
SUBCHAPTER AMOTOR VEHICLE TITLES
RULE §217.16Application for Title When Dealer Goes Out of Business

(a) A person who purchased a vehicle from a dealer who is required to apply for a title on the purchaser's behalf under Transportation Code, §501.0234 may apply for title as prescribed by this section if the dealer has gone out of business and did not apply for title.

(b) For purposes of this section, a dealer has gone out of business if:

  (1) the dealer's license has been closed or has expired; or

  (2) operations have ceased at the licensed location as determined by the department.

(c) For purposes of this section, a person must obtain a letter on department letterhead stating a dealer has gone out of business. A person may request the letter by contacting the department, including a Regional Service Center, or a county tax assessor-collector's office.

(d) An application under subsection (a) of this section must meet the requirements of §217.4 of this title (relating to Initial Application for Title) except the applicant:

  (1) must provide the sales contract, retail installment agreement, or buyer's order in lieu of evidence of vehicle ownership as described in §217.5(a) of this title (relating to Evidence of Motor Vehicle Ownership);

  (2) must provide the letter described by subsection (c) of this section; and

  (3) is not required to provide a release of lien if the only recorded lienholder is the dealer that has gone out of business.

(e) If a title application under this section does not include a properly completed odometer disclosure statement, as required by Transportation Code, §501.072, the odometer brand will be recorded as "NOT ACTUAL MILEAGE."

(f) The department will waive the payment of the following fees if the applicant can provide evidence showing the fee was paid to the dealer:

  (1) a title application fee under Transportation Code, §501.138;

  (2) delinquent transfer penalty under Transportation Code, §501.146;

  (3) all fees under Transportation Code, Chapter 502; and

  (4) the buyer's temporary tag fee under Transportation Code, §503.063.


Source Note: The provisions of this §217.16 adopted to be effective March 1, 2020, 45 TexReg 1230

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