| (f) Department notification of second hand vehicle
transfers. A transferor of a motor vehicle may voluntarily make written
notification to the department of the sale of the vehicle, in accordance
with Transportation Code, §501.147. The written notification
may be submitted to the department by mail, in person at one of the
department's regional offices, or electronically through the department's
Internet website.
(1) Records. On receipt of written notice of transfer
from the transferor of a motor vehicle, the department will mark its
records to indicate the date of transfer and will maintain a record
of the information provided on the written notice of transfer.
(2) Title issuance. A title will not be issued in the
name of a transferee until the transferee files an application for
the title as described in this section.
(g) Bonded titles.
(1) Who may file. A person who has an interest in a
motor vehicle to which the department has refused to issue a title
or has suspended or revoked a title may request issuance of a title
from the department on a prescribed form if the vehicle is in the
possession of the applicant; and
(A) there is a record that indicates a lien that is
less than ten years old and the surety bonding company ensures lien
satisfaction or release of lien;
(B) there is a record that indicates there is not a
lien or the lien is ten or more years old; or
(C) the department has no previous record.
(2) Administrative fee. The applicant must pay the
department a $15 administrative fee in addition to any other required
fees.
(3) Value. The amount of the bond must be equal to
one and one-half times the value of the vehicle as determined using
the Standard Presumptive Value (SPV) from the department's Internet
website. If the SPV is not available, then a national reference guide
will be used. If the value cannot be determined by either source,
then the person may obtain an appraisal.
(A) The appraisal must be on a department form from
a Texas licensed motor vehicle dealer for the categories of motor
vehicles that the dealer is licensed to sell or a Texas licensed insurance
adjuster who may appraise any type of motor vehicle.
(B) The appraisal must be dated and be submitted to
the department within 30 days of the appraisal.
(C) If the motor vehicle is 25 years or older, the
appraised value of the vehicle cannot be less than $4,000.
(4) Out-of-state vehicle inspection. If the applicant
is a Texas resident, but the evidence indicates that the vehicle is
an out-of-state vehicle, the vehicle identification number must be
verified by a Texas licensed Safety Inspection Station or a law enforcement
officer who holds an auto theft certification.
(5) Place of application. An applicant may apply for
a bonded title if the applicant submits:
(A) a pencil tracing or photo of the vehicle identification
number, or if unable, then a Statement of Physical Inspection, Form
VTR-270;
(B) any evidence of ownership;
(C) the original bond within 30 days of issuance;
(D) the rejection letter within one year of issuance
and the receipt for $15 paid to the department;
(E) the documentation determining the value of the
vehicle;
(F) an Out-of-State Vehicle Identification Certificate,
Form VI-30 from the Texas Department of Public Safety, if there is
no Texas record;
(G) a weight certificate if there is no title or the
vehicle is an out of state commercial vehicle;
(H) a certification of lien satisfaction by the surety
bonding company or a release of lien if the rejection letter states
that there may be a lien less than ten years old; and
(I) any other required documentation and fees.
(6) Report of Judgment. The bond must require that
the surety report payment of any judgment to the department within
30 days.
(h) Appeal to the county of refusal to issue, or revocation
or suspension of title.
(1) If the department refuses to issue a title, revokes
a title, or suspends a title, the applicant may apply to the county
for a tax-assessor collector hearing.
(2) The county tax assessor-collector must hold a hearing
upon receipt of:
(A) a copy of the department's refusal, revocation,
or suspension documents; and
(B) an applicant's request for a hearing.
(3) A person wishing to appeal the county tax assessor-collector
ruling may appeal to a court with jurisdiction.
(i) Rescission, cancellation or revocation by affidavit.
(1) The department may rescind, cancel, or revoke an
application for a title if a notarized or county stamped affidavit
is completed and presented to the department within 21 days of initial
sale containing:
(A) a statement that the vehicle involved was a new
motor vehicle in the process of a first sale;
(B) a statement that the dealer, the applicant, and
any lienholder have canceled the sale;
(C) a statement that the vehicle was:
(i) never in possession of the title applicant; or
(ii) in the possession of the title applicant;
(D) the signatures of the dealer, the applicant, and
any lienholder as principal to the document; and
(E) an odometer disclosure statement executed by the
purchaser of the motor vehicle and acknowledged by the dealer if a
statement is made pursuant to subparagraph (C)(ii) of this paragraph
to be used for the purpose of determining usage subsequent to sale.
(2) A rescission, cancellation, or revocation containing
the statement authorized under paragraph (1)(C)(ii) of this subsection
does not negate the fact that the vehicle has been subject to a previous
retail sale.
(j) Discharge of lien. A lienholder shall provide the
owner, or the owner's designee, a discharge of the lien after receipt
of the final payment within the time limits specified in Transportation
Code, Chapter 501. The lienholder shall submit one of the following
documents:
(1) the title including an authorized signature in
the space reserved for release of lien;
(2) a release of lien form prescribed by the department,
with the form filled out to include the:
(A) title or document number, or a description of the
motor vehicle including, but not limited to, the motor vehicle:
(i) year;
(ii) make;
(iii) vehicle identification number; and
(iv) license plate number, if the motor vehicle is
subject to registration under Transportation Code, Chapter 502;
(B) printed name of lienholder;
(C) signature of lienholder or an authorized agent;
(D) printed name of the authorized agent if the agent's
signature is shown;
(E) telephone number of lienholder; and
(F) date signed by the lienholder;
(3) signed and dated correspondence submitted on company
letterhead that includes:
(A) a statement that the lien has been paid;
(B) a description of the vehicle as indicated in paragraph
(2)(A) of this subsection;
(C) a title or document number; or
(D) lien information;
(4) any out-of-state prescribed release of lien form,
including an executed release on a lien entry form;
(5) out-of-state evidence with the word "Paid" or "Lien
Satisfied" stamped or written in longhand on the face, followed by
the name of the lienholder, countersigned or initialed by an agent,
and dated; or
(6) original security agreements or copies of the original
security agreements if the originals or copies are stamped "Paid"
or "Lien Satisfied" with a company paid stamp or if they contain a
statement in longhand that the lien has been paid followed by the
company's name.
(k) Fees. The department and the county will charge
required fees, and only those fees provided by statute or by rule.
(1) Mechanic lien fees. The $25 fee provided by Property
Code, §70.006 may be charged once per vehicle.
(2) There is no charge for issuance of title receipt
or the duplicate title receipt at the time of application.
|
| Source Note: The provisions of this §217.3 adopted to be effective March 4, 2010, 35 TexReg 1761; amended to be effective May 6, 2012, 37 TexReg 3185; amended to be effective September 2, 2012, 37 TexReg 6687; amended to be effective April 14, 2013, 38 TexReg 2231; amended to be effective April 6, 2014, 39 TexReg 2325 |
