(C)A corrected manufacturer's certificate of origin will be required if the manufacturer's certificate of origin contains an: (i)incomplete or altered vehicle identification number; (ii)alteration or strikeover of the vehicle's model year; (iii)alteration or strikeover to the body style, or omitted body style on the manufacturer's certificate of origin; or (iv)alteration or strikeover to the manufacturer's rated carrying capacity. (D)A Statement of Fact may be requested to explain errors, corrections, or conditions from which doubt does or could arise concerning the legality of any instrument. A Statement of Fact will be required in all cases: (i)in which the date of sale on an assignment has been erased or altered in any manner; or (ii)of alteration or erasure on a Dealer's Reassignment of Title. (5)Rights of survivorship. A signed "rights of survivorship" agreement may be executed by a natural person acting in an individual capacity in accordance with Transportation Code, §501.031. (6)Identification required. (A)An application for title shall not be accepted by a county tax assessor-collector unless the applicant presents a current photo identification of the owner containing a unique identification number and expiration date. The identification document must be a: (i)driver's license or state identification certificate issued by a state or territory of the United States; (ii)United States or foreign passport; (iii)United States military identification card; (iv)North Atlantic Treaty Organization identification or identification issued under a Status of Forces Agreement; or (v)United States Department of Homeland Security, United States Citizenship and Immigration Services, or United States Department of State identification document. (B)If the motor vehicle is titled in: (i)more than one name, then identification of one owner must be presented; (ii)the name of a leasing company, the identification of the lessee or lessor's employee along with a business card or authorization written on the lessor's letterhead matching the identification of the employee must be presented; (iii)the name of a trust, then the identification of a trustee must be presented; or (iv)the name of a business, government entity, or organization, then a business card or authorization written on letterhead must be presented matching the identification of the applicant. (C)If a power of attorney is being used to apply for a title, then the applicant must show: (i)identification matching the person or employee of the entity named as power of attorney; (ii)a business card or authorization written on the letterhead of an entity named as power of attorney that matches the identification of the employee; and (iii)identification of the owner or lienholder. (D)Within this subsection, "current" is defined as not to exceed 12 months of expiration date. (E)A person who holds a general distinguishing number issued under Chapter 503 of the Transportation Code or Chapter 2301, Occupations Code, is not required to submit the owner's identification to the county tax assessor-collector but must retain a copy of the owner's current photo identification in the purchase and sales records as required under §215.144 of this title (relating to Records of Sales and Inventory). (d)Title [certificate of title] issuance. (1)Issuance. The department or its designated agent will issue a receipt and process the application for [certificate of] title on receipt of: (A)a completed application for [certificate of] title; (B)accompanying documentation required by subsections (b)(4) and (c) of this section; (C)the statutory fee for a title application, unless exempt under: (i)Transportation Code, §501.138; or (ii)Government Code, §431.039 and copies of official military orders are presented as evidence of the applicant's active duty status and deployment orders to a hostile fire zone; and (D)any other applicable fees. (2)Titles. The department will issue and mail or deliver a [certificate of] title to the applicant or, in the event that there is a lien disclosed in the application, to the first lienholder. (3)Receipt. The receipt issued at the time of application for title may be used only as evidence of title and may not be used to transfer any interest or ownership in a motor vehicle or to establish a new lien. (e)Replacement of [certificate of] title. If a [certificate of] title is lost or destroyed, the department will issue a certified copy of the title to the owner, the lienholder, or a verified agent of the owner or lienholder in accordance with Transportation Code, Chapter 501, on proper application and payment of the appropriate fee to the department. (1)Identification required. (A)An owner or lienholder may not apply for a certified copy of title unless the applicant presents a current photo identification of the owner or lienholder containing a unique identification number and expiration date. The identification document must be a: (i)driver's license or state identification certificate issued by a state or territory of the United States; (ii)United States or foreign passport; (iii)United States military identification card; (iv)North Atlantic Treaty Organization identification or identification issued under a Status of Forces Agreement; or (v)United States Department of Homeland Security, United States Citizenship and Immigration Services, or United States Department of State identification document. (B)If the motor vehicle is titled in: (i)more than one name, then identification for each owner must be presented; (ii)the name of a leasing company, the identification of the lessor's employee along with a business card or authorization written on the lessor's letterhead matching the identification of the employee must be presented; (iii)the name of a trust, then the identification of a trustee must be presented; or (iv)the name of a business, government entity, or organization, then a business card or authorization written on letterhead must be presented matching the identification of the applicant. (C)If a power of attorney is being used to apply for a certified copy of title, then the applicant must show: (i)identification matching the person or employee of the entity named as power of attorney; (ii)a business card or authorization written on the letterhead of an entity named as power of attorney that matches the identification of the employee; and (iii)identification of the owner or lienholder. (D)Within this subsection, "current" is defined as within six month of expiration date. (2)Issuance. An application for a certified copy must be properly executed and supported by appropriate verifiable proof for the vehicle owner, lienholder, or agent regardless of whether the application is submitted in person or by mail. [(A)If the applicant requests that a certified copy be issued before the fourth business day following application, the application must be made in person.] [(B)An applicant other than the vehicle owner, lienholder, or verified agent must apply for a certified copy of a certificate of title by mail.] (3)Denial. If issuance of a certified copy is denied, the applicant may resubmit the request with the required verifiable proof or may pursue the privileges available in accordance with Transportation Code, §§501.052 and 501.053 [subsection (g)(2)(A) and (B) of this section]. (4)Certified copy designation. A certified copy of an existing [certificate of] title will be marked "Certified Copy" until ownership of the vehicle is transferred, when the words "Certified Copy" will be eliminated from the new [certificate of] title. (5)Fees. The fee for obtaining a certified copy of a [certificate of] title is $2 if the application is submitted to the department by mail and $5.45 if the application is submitted in person for expedited processing at one of the department's regional offices. (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.] (1)[(B)] Application. A [ Alternative to hearing. In lieu of 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 a [certificate of] title may file a bond with the department on a department form.[, in an amount] (2)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 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 [by the department, and in a form prescribed by the department.]. (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 county tax assessor-collector within 30 days of the purchase or assignment. (C)If the motor vehicle is 25 years or older, an appraisal less than $4000 will not be accepted. (3)Administrative Fee. The applicant must pay the department a $15 administrative fee in addition to any other required fees. (4)Out of state vehicles. 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, a law enforcement officer, or a department Regional Service Center on a form prescribed by the department. (5)Issuance. 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 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: (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. If the vehicle was in the possession of the title applicant, then the dealer shall disclose to the subsequent purchaser that 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 disclosure shall be provided to the subsequent purchaser and the dealer shall maintain a copy 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 Cont'd...
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