(a)Certificates of title. Unless otherwise exempted by law or this chapter, the owner of any motor vehicle that is required to be registered in accordance with Transportation Code, Chapter 502, shall apply for a Texas [certificate of] title in accordance with Transportation Code, Chapter 501. (1)Motorcycles, motor-driven cycles, and mopeds. (A)The title requirements of a motorcycle are the same requirements prescribed for any motor vehicle. (B)A motorcycle, motor-driven cycle, or moped designed for or used exclusively on golf courses is not classified as a motor vehicle and, therefore, title cannot be issued until the unit is registered. (C)A vehicle that meets the criteria for a moped and has been certified as a moped by the Department of Public Safety will be registered and titled as a moped. If the vehicle does not appear on the list of certified mopeds published by that agency, the vehicle will be treated as a motorcycle for title and registration purposes. (D)A motor installed on a bicycle must be certified by the Department of Public Safety before the vehicle may be classified as a moped. (2)Farm vehicles. (A)The term motor vehicle does not apply to implements of husbandry, which may not be titled. (B)Farm tractors owned by agencies exempt from registration fees in accordance with Transportation Code, §502.453 [ §502.202], are required to be titled and registered with "Exempt" license plates issued in accordance with Transportation Code, §502.451 [§502.201]. (C)Farm tractors used as road tractors to mow rights of way or used to move commodities over the highway for hire are required to be registered and titled. (D)Farm semitrailers with a gross weight of more than 4,000 pounds that are registered in accordance with Transportation Code, §502.146, [§504.504] may be issued a Texas [certificates of ] title. (3)Neighborhood electric vehicles. (A)The title requirements of a neighborhood electric vehicle (NEV) are the same requirements prescribed for any motor vehicle. (B)A "neighborhood electric vehicle" is a motor vehicle that: (i)is originally manufactured to meet, and meets, the equipment requirements and safety standards established for "low speed vehicles" in Federal Motor Vehicle Safety Standard 500 (49 C.F.R. §571.500); (ii)is a slow moving vehicle, as defined by Transportation Code, §547.001 that is able to attain a speed of more than 20 miles per hour, but not more than 25 miles per hour in one mile on a paved, level surface; (iii)is a four-wheeled motor vehicle; (iv)is powered by electricity or alternative power sources; (v)has a gross vehicle weight rating (GVWR) of less than 3,000 pounds; and (vi)is not a golf cart as defined in Transportation Code, §502.001(18) [§502.001(7)]. (4)Exemptions from title. Vehicles registered with the following distinguishing license plates may not be titled under Transportation Code, Chapter 501: (A)vehicles eligible for machinery license plates and permit license plates in accordance with Transportation Code, §502.146 [§504.504]; and (B)vehicles eligible for farm trailer license plates in accordance with Transportation Code, §502.433 [§502.163 ], unless the owner chooses to title a farm semitrailer as provided by Transportation Code, §501.036. (5)Trailers, semitrailers, and house trailers. Owners of trailers and semitrailers shall apply for and receive a Texas [certificate of] title for any stand alone (full) trailer, including homemade full trailers, or any semitrailer having a gross weight in excess of 4,000 pounds. Farm semitrailers with a gross weight of more than 4,000 pounds that are registered in accordance with Transportation Code, §502.146 [§504.504], may be issued a Texas [certificates of] title. House trailer-type vehicles must meet the criteria outlined in subparagraph (C) of this paragraph to be titled. (A)In the absence of a manufacturer's rated carrying capacity for a trailer or semitrailer, the rated carrying capacity will not be less than one-third of its empty weight. (B)Mobile office trailers, mobile oil field laboratories, and mobile oil field bunkhouses are not designed as dwellings, but are classified as commercial semitrailers and must be registered and titled as commercial semitrailers if operated on the public streets and highways. (C)House trailer-type vehicles and camper trailers must meet the following criteria in order to be titled. (i)A house trailer-type vehicle designed for living quarters and that is eight body feet or more in width or forty body feet or more in length (not including the hitch), is classified as a manufactured home or mobile home and is titled under the Texas Manufactured Housing Standards Act, Occupations Code, Chapter 1201, administered by the Texas Department of Housing and Community Affairs. (ii)A house trailer-type vehicle that is less than eight feet in width and less than forty feet in length is classified as a travel trailer and shall be registered and titled. (iii)A camper trailer shall be titled as a house trailer and shall be registered with travel trailer license plates. (iv)A recreational park model type trailer that is primarily designed as temporary living quarters for recreational, camping or seasonal use, is built on a single chassis, and is 400 square feet or less when measured at the largest horizontal projection when in the set up mode, shall be titled as a house trailer and may be issued travel trailer license plates. If the park model type trailer exceeds one hundred two inches in width or forty feet in length, the title will include a brand to indicate that an oversize permit must be obtained to move the trailer on the public roads. (b) - (e)(No change.) (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 [§520.023]. 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 [Certificate of title] issuance. A [certificate of] title will not be issued in the name of a transferee until the transferee files an application for the [certificate of] title as described in this section. (g)Bonded titles. [Suspension, revocation, or refusal to issue Certificates of Title.] [(1)Grounds for title suspension, revocation, or refusal to issue. The department will refuse issuance of a certificate of title, or having issued a certificate of title, will suspend or revoke the certificate of title if the:] [(A)application contains any false or fraudulent statement;] [(B)applicant has failed to furnish required information requested by the department;] [(C)applicant is not entitled to the issuance of a certificate of title under Transportation Code, Chapter 501;] [(D)department has reasonable grounds to believe that the vehicle is a stolen or converted vehicle or that the issuance of a certificate of title would constitute a fraud against the rightful owner or a lienholder;] [(E)registration of the vehicle stands suspended or revoked; or] [(F)required fee has not been paid.] [(2)Contested case procedure. Any person who has an interest in a motor vehicle to which the department has refused to issue a certificate of title or has suspended or revoked the certificate of title may contest the department's decision in accordance with Transportation Code, §501.052 and §501.053, in the following manner.] [(A)Hearing. Any person who has an interest in a motor vehicle to which the department has refused to issue a certificate of title or has suspended or revoked the certificate of title may apply for a hearing to the designated agent of the county in which the applicant resides. At the hearing the applicant and the department may submit evidence, and a ruling of the designated agent will bind both parties. An applicant wishing to appeal the ruling of the designated agent may do so to the County Court of the county in which the applicant resides.] [(B)Alternative to hearing. In lieu of a hearing, any] (1)A person who has an interest in a motor vehicle to which the department has refused to issue a [certificate of] title or has suspended or revoked a [certificate of] title may file a bond with the department on a department form. (2)The amount of the bond must be [ , in an amount] equal to one and one-half times the value of the vehicle as determined using the Standard Presumptive Value (SPV) from the department's 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 on a department form from a licensed Texas motor vehicle dealer or licensed Texas insurance adjuster. [by the department, and in a form prescribed by the department.] (3)The applicant must pay the department a $15 administrative fee in addition to any other required fees. (4)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 state appointed Safety Inspection Station. (5)On the filing of the bond, the department may issue a [certificate of] title. [The bond shall expire three years after the date it becomes effective and will be returned to the person posting bond, on expiration, unless the department has been notified of the pendency of an action to recover on the bond.] (h)Rescission cancellation or revocation by affidavit. (1)The department may rescind, cancel, or revoke an application for a title if a notarized affidavit is presented 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: (i)was never in possession of the title applicant; or (ii)was in the possession of the title applicant; and (D)the signatures of the dealer, the applicant, and any lienholder as principal to the document; (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. (3)A dealer shall obtain written acknowledgment from the subsequent purchaser that discloses the vehicle was subject to a prior retail sale and the effect, if any, the prior retail sale has on the warranty coverage of the vehicle. A copy of the written acknowledgment shall be provided to the subsequent purchaser and the dealer shall maintain a copy of the written acknowledgment in the sales file of the motor vehicle. (i)[(h)] 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 [certificate of] 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)[certificate of] title or document number, or a description of the motor vehicle including, but not limited to, the motor vehicle's: (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 [certificate of] 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.
This agency hereby certifies that the proposal
has been reviewed by legal counsel and found to be within the agency's
legal authority to adopt.
Filed with the Office
of the Secretary of State on May 7, 2012
TRD-201202300 Brett Bray
General Counsel
Texas Department of Motor Vehicles
Earliest possible date of adoption: June 17, 2012
For further information, please call: (512)
467-3853
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