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"Title Only" Sales (04/01/1995)
This notice discusses the specific instances when a dealer may process a retail transaction as "title only."
Under the law, dealers are required to apply for both a title and a registration for each vehicle sold to a retail buyer. Dealers must ensure that vehicles sold to the public for use on public roadways are properly insured and registered.
However, dealers may sell a vehicle at retail and process the transaction "title only" (no registration) if the sale fits one of the following situations:
Inoperable vehicle - This includes engine missing, not driveable, parts car, etc. Complete the RD-108 and in the Remarks Section enter "Title Only - No Registration - Vehicle Inoperable." The vehicle must be towed or hauled by trailer from the dealership.
Customer's request - Complete the RD-108 and in the Remarks Section enter "Title Only - No Registration - Customer's Request." The RD-108 must also state the method of delivery, either "vehicle towed," "vehicle trailered," or "vehicle delivered on dealer plate." For example: "Title Only - No Registration - Customer's Request - Vehicle Towed."
Salvage titled vehicle - A salvage titled vehicle is not eligible for registration until it has been recertified and issued a "rebuilt" title.
In all other cases dealers must apply for title and registration. Proof of insurance is required. Dealers should never allow vehicles to be removed unless they are either properly registered, towed, hauled by trailer, or driven on a dealer plate.
For further information please contact the Dealer and Repair Resource Section at (517) 373-6993.