(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.
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