Vehicle Titles and Registration - Year 2003 RTBs

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These documents contain text of correspondence sent by TxDOT to the county tax assessor-collectors, statutory agents who provide vehicle registration and titling services for citizens in Texas. This information is provided to apprise the general public of issues affecting the state’s vehicle titling and registration process.

Registration and Title Bulletin #104-03

Date:	September 9, 2003
To:	All County Tax Assessor-Collectors
Subject:	Title Only Transactions Indicating Out-of-state Lienholders

PURPOSE
To clarify the procedures for processing Title Only transactions that indicate an out-of-state lienholder.

DETAILS
Title Only transactions are continuing to be processed on repossessed vehicles with out-of-state lienholders. In addition, some out-of-state lienholders are using a C/O Texas address to process these types of transactions. The Title Control Systems (TCS) Branch rejects in excess of 100 such transactions per month.

Transportation Code, Section 501.074, reads in part, as follows:

"(a) The department shall issue a new certificate of title for a (motor vehicle registered) in this state for which the (ownership is transferred) by operation of law.

(b) If a lien is foreclosed by nonjudicial means, the department may issue a new certificate of title in the name of the purchaser at the foreclosure sale on receiving the affidavit of the lienholder of the fact of the nonjudicial foreclosure."

In accordance with this statute, a repossessed vehicle is transferred utilizing the existing title and a repossession affidavit when the vehicle is sold to a purchaser. The provision does not require a title in the lienholder’s name. Out-of-state lienholders will be required to secure title in the state where the lienholder is located.

COUNTY ACTION
Please do not process Title Only transactions on repossessed vehicles indicating an out-of-state lienholder or indicating a C/O Texas address supported by an out-of-state or Texas title indicating an out-of-state lienholder.

VTR CONTACT PERSON(S)
If you have any questions, please contact your local Texas Department of Transportation Vehicle Titles and Registration Division Regional Office. Thank you.

In some cases the Registration and Title Bulletins (RTB) contain attachments. If you require a copy of the original signed RTB and the attachments, please email your request with the RTB number to VTR Info Request/Open Records. Repeat requests are subject to charges in accordance with Open Record policies. A subscription service is also available for an annual fee of $250. Subscribers will automatically receive all RTB mailings as they are issued.