Vehicle Licensing Guide

Titling a Motor Vehicle
VLIC-102

PURPOSE:

To provide information and instructions on titling a motor vehicle.

BACKGROUND:

Every person who owns a motor vehicle, trailer or semitrailer, before it is operated on any highway in the Commonwealth must obtain a certificate of title and registration for the vehicle by completing the "Application for Certificate of Title and Registration" (VSA-17A) or the Virginia Title within 30 days of purchase or transfer. All security interests (liens) held against the vehicle must be recorded on the VSA-17A or Virginia title.

NOTE: If the vehicle ownership is being transferred, a paper title MUST be submitted.

If a customer desires to title a vehicle with "Tenants by the Entirety" or "Tenants by the Entireties," the owners must be husband and wife. Otherwise, the vehicle should be titled in joint ownership with rights of survivorship. (Refer to VLIC-126.)

The customer may ask DMV not to print a paper title, but to maintain an electronic title record. This option is available for titles with or without liens. Customers may request a paper title be printed at any time from any CSC as long as no other vehicle stops or held conditions exist and any existing lien is satisfied. Provided no previous paper title was printed, releasing the CUST held from the electronic title record causes an automatic title print. Paper titles printed from electronic title records are printed at no fee only one time.

NOTE: When customers request the release of the electronic record (release CUST held) to receive a paper title print and the title was previously printed (i.e., for the lienholder or for other reasons), CSCs must process a substitute title transaction and collect the substitute title fee. The release of a CUST held will not automatically generate another paper title print IF the title was previously printed.

DEFINITIONS:

"NEW MOTOR VEHICLE" - Any vehicle that is in the possession of the manufacturer, factory branch, distributor, distributor branch, or motor vehicle dealer and for which an original title has not been issued by DMV or by the issuing agency of any other state and has less than 7,500 miles accumulated on its odometer.

NOTE: Pursuant to §46.2-1530, a new motor vehicle, having a gross vehicle weight rating (GVWR) less than 16,000 pounds that had accumulated on its odometer at the time of the sale mileage in excess of 750 miles as a demonstrator vehicle, or as the result of delivery to a prospective purchaser who never took title to it but returned it to the dealer untitled, can be resold as a "new" motor vehicle. This information is disclosed by the dealer on the buyer's order for the sale.

"USED MOTOR VEHICLE" - Any vehicle other than a new motor vehicle as defined above.

"DEMONSTRATOR VEHICLE"- . Any new motor vehicle having a gross vehicle weight rating of less than 16,000 pounds that has more than 750 miles accumulated on its odometer that has been driven by dealer personnel or by prospective purchasers during the course of selling, displaying, demonstrating, showing, or exhibiting it. It may be sold as a new motor vehicle, provided the dealer complies with the provisions of subsection D of §46.2-1530.

"LEASED MOTOR VEHICLE" - Any vehicle used by an entity (lessee) offering some form of compensation to use the vehicle and who has an agreement with the owner of the vehicle (lessor) for such use for 12 months or more. The leased vehicle must be titled in the lessor's name, unless it is a lease-purchase agreement, and then it may be titled in the lessee's name.

"LESSEE" - the entity offering compensation in exchange for the use of the vehicle for more than 12 months generally under contract.

"LESSOR" - the entity offering use of the vehicle for 12 months or more in exchange for compensation. In Virginia, the lessors do not need to be licensed. The lessor may also be known as the leasing company. A Virginia licensed vehicle dealer may be considered the vehicle lessor for purposes of Motor Vehicle Sales and Use Tax exemption.

"NON-NEGOTIABLE TITLE"- A title that is issued when a vehicle is purchased in Virginia, a lien needs to be recorded, and the vehicle will be titled and/or registered in another state.

CUSTOMER REQUIREMENTS (TITLING):

1. Submit one of the following applications:
   • Completed "Application for Certificate of Title and Registration" VSA-17A
     
     OR
   • The completed Virginia Title with the "Assignment of Title by Owner" and "Application for New Owner Certificate of Title and Registration" sections completed.
   
   

   NOTE 1: The registration fee for any vehicle specially equipped to be driven by or to transport persons with disabilities will be based on the vehicle weight prior to the installation of the special equipment. The customer must indicate the vehicle weight on the appropriate titling application.

   NOTE 2: If the owner (or owners) of the vehicle is deceased, the surviving legal heir, executor or administrator of the estate who is signing the title as the seller of the vehicle must provide documents based on how the vehicle is titled, as outlined in the chart below.

   How the Vehicle is Titled*	PROOF DOCUMENT(s) REQUIRED
   JOINT OWNERSHIP WITH OR WITHOUT AN EXECUTOR OR ADMINISTRATOR The vehicle is titled as joint owner with the right of survivorship: both customers names are listed on the title as the vehicle owners and "or" appears between the names listed, the words "or survivor" appear after the names, or the words "Tenants by the Entireties" or "Tenants by the Entirety" appear after the names.	A certified or notarized death certificate And The vehicle title
   JOINT OWNERSHIP AND AN EXECUTOR OR ADMINISTRATOR HAS BEEN APPOINTED The vehicle is titled as joint owner without the right of survivorship: The customer is listed on the title as one of the vehicle owners and the word "and" appears between the names listed, or the words "or survivor" do not appear after the names, or the words "Tenants by the Entireties" or "Tenants by the Entirety" do not appear after the names.	The vehicle title And A court-issued document appointing the executor or administrator.**
   JOINT OWNERSHIP AND AN EXECUTOR OR ADMINISTRATOR HAS NOT BEEN APPOINTED The vehicle is titled as joint owner without the right of survivorship: the customer is listed on the title as one of the vehicle owners and the word "and" appears between the names listed, or the words "or survivor" do not appear after the names, or the words "Tenants by the Entireties" or "Tenants by the Entirety" do not appear after the names.	A certified or notarized death certificate And The vehicle title And One of the following: A notarized copy of the will and a completed "Statement of Authority to Assign Title" (VSA-24) OR An affidavit indicating that the deceased's estate falls under the small estate laws, currently the value of the estate must be less than $50,000 OR A completed "Statement of Authority to Assign Title" (VSA-24)
   SINGLE OWNERSHIP AND AN EXECUTOR OR ADMINISTRATOR HAS BEEN APPOINTED The vehicle is titled as a single owner if only one name appears on the title.	The vehicle title And A court-issued document appointing the executor or administrator.**
   SINGLE OWNERSHIP AND AN EXECUTOR OR ADMINISTRATOR HAS NOT BEEN APPOINTED The vehicle is titled as a single owner if only one name appears on the title.	A certified or notarized death certificate And Vehicle title And One of the following: A notarized copy of the will and a completed "Statement of Authority to Assign Title" (VSA-24) OR An affidavit indicating that the deceased's estate falls under the small estate laws, currently the value of the estate must be less than $50,000 OR A completed "Statement of Authority to Assign Title" (VSA-24)

   *If a bank holds the title to the deceased's vehicle, the co-owner of the vehicle is obligated to pay the balance of the loan. If a bank holds the title of the vehicle and there is no co-owner, the executor or administrator of the estate is responsible for satisfying any liens.

   **Executors and administrators are usually named in a will. However, if no will exists, the court, under certain circumstances, will appoint an executor or administrator.

2. Submit proof of address. (Refer to VLIC-101.)

3. Submit ONE of the following sets of ownership documents:
   • Manufacturer's Certificate of Origin or Manufacturer's Statement of Origin (MCO or MSO) which shows an assignment of ownership and sales price.
     
     NOTE: If the sales price is not on the MCO or MSO, then a Bill of Sale must also be submitted with MCO/MSO.
   • Out-of-state title or registration (current or expired for less than one year) from previous state of residence or a branch of the United States Armed Forces with their name appearing as owner. Refer to the Authenticity Manual to ensure that title presented is authentic and correct.
     
     If the customer conveys that their state does not issue a title and they do not have an acceptable registration card (current or expired no more than one year), check the NADA Guidebook. If the guidebook confirms the lack of title issuance for this state, accept the expired registration card and request the customer to also complete an Affidavit In Lieu of Title Certificate, VSA-12.
   • Virginia title or out-of-state title properly assigned to the applicant, and Bill of Sale if the transfer, including sale price, is not indicated on the title.
     
     NOTE 1: Vehicles that have been owned for 12 months or more and have a valid assignable Virginia or out-of-state title do not need proof of the purchase price.
     
     NOTE 2: A Bill of Sale can be in the form of a handwritten statement signed by seller and purchaser, the Vehicle Price Certification (Bill of Sale) (SUT 1) signed by the seller and purchaser, or the sale price written on the title by the seller.
     
     NOTE 3: When a new vehicle is sold by a franchised dealer to another dealer who does not hold a franchise for the same make vehicle, the second dealer must title the vehicle in his name and cannot use the second assignment to assign the vehicle to a retail or wholesale purchaser. Only when the selling dealer and the purchasing dealer hold a franchise from the same manufacturer for the same make vehicle can the purchasing dealer use the second assignment.
     
     NOTE 4: For information on foreign market vehicles refer to VLIC-102E
4. Record all security interests (liens) held against the vehicle.
   
   NOTE: For dealerships needing to show proof that the lien exists on a vehicle record, print a transaction receipt for the customer. The transaction receipt for titles with liens now displays the lienholder's information in addition to the vehicle information. The system displays the "Print Transaction Receipt" screen automatically at the completion of an original title with lien transaction. The lienholder information is no longer available after 30 days. (The screen will appear ONLY after the fees are paid and the transaction is processed.)
5. Pay the appropriate fees:
   • Title fee.
   • Motor Vehicle Sales and Use Tax (Refer to VLIC-A-4.)
   • Registration fees, if applicable.
     
     NOTE: Customer may provide one of the following acceptable documents as proof of payment of SUT to another state (All documents provided must have VIN displayed):
     • Bill of Sale showing payment to another state
     • Buyer's Order
     • Receipt for sales and use tax paid
     • Letter from DMV(out of state) or Tax Collection agency on letterhead indicating the amount of sales and use tax paid to that state
     • Lease Agreement indicating sales tax payments

DMV SERVICE PROVIDER'S PROCESS (TITLING):

1. Review the application and verify that the customer has completed an "Application for Certificate of Title and Registration" VSA-17A or the Virginia title correctly.
   
   NOTE 1: If the owner (or owners) of the vehicle is deceased, ensure that the surviving legal heir, executor or administrator of the estate who is signing the title as the seller of the vehicle has provided the purchaser with:
   
   A probated will and a completed "Application of Authority to Assign Title" VSA-24 or a court-issued qualification papers. OR Both a will appointing the executor or administrator and an "Application of Authority to Assign Title" VSA-24 if there is no surviving spouse or child.
   
   NOTE 2: Multiple VSA 24s can be submitted if there are several legal heirs. All VSA 24s must be submitted at the time of processing the transaction and must reference the same vehicle.
   
   NOTE 3: The registration fee for any vehicle specially equipped to be driven by or to transport persons with disabilities will be based on the vehicle weight prior to the installation of the special equipment. The customer must indicate the vehicle weight on the appropriate titling application.
2. Verify that the customer has an approved proof of address document. (Refer to DMV-177 and VLIC-101.)
   
   NOTE 1: No proof of identification, residency, social security number (SSN) or Federal Employer's Identification Number (FEIN) is currently required to title a vehicle.
   
   NOTE 2: Do not send customers away for proof of identity, residency, SSN or FEIN when coming in to title a vehicle.
   
   NOTE 3: If the customer is a Maryland resident who wishes to title/register a vehicle in Virginia, advise them that they may face a substantial penalty by the state of Maryland if law enforcement stops them in Maryland and has reasonable proof that they are a Maryland resident and the vehicle is primarily located in Maryland, but titled/registered in Virginia.
3. Review the ownership documents for authenticity (refer to the Authenticity Manual / Fraudulent Document Manual) and verify that the transfer of ownership has been completed.
   
   NOTE 1: Owner's name and other information should match the VSA-17A or title.
   
   NOTE 2: If the customer cannot provide a title, but has other evidence of ownership, you may create a title record and place a held condition on it, indicating waiting for the title from another state (i.e. NY). No title certificate will be issued until the previous title has been submitted to DMV. However, there are certain jurisdictions that do not issue titles at all, while other jurisdictions only issue titles for certain vehicles. Check your Authenticity Manual for this information before placing the held condition. If the jurisdiction does not issue a title, the customer must provide the vehicle registration card.
   
   NOTE 3: If the customer's existing title is in the possession of a lienholder, the customer must submit that title to DMV before a new title may be issued.
4. Check documents for appropriate odometer disclosure statements. (Refer to VLIC-130.)
   
   NOTE 1: On used vehicles, odometer disclosures MUST be on the ownership documents. On new vehicles, the odometer disclosure may be on the ownership documents or a supplemental document (i.e. MSO/MCO, Odometer Disclosure Statement (VSA-5) or equivalent).
   
   NOTE 2: Some states do not require odometer disclosures on titles for older vehicles. DMV will honor these exemptions. If the vehicle is at least 10 model years old in the calendar year in which it is sold or transferred AND was exempt from odometer disclosure on its out-of-state title, then no odometer disclosure is required to apply for a Virginia title. However, the exemption must be indicated on the new title.
   
   Enter the appropriate odometer exemption code when processing these titles according to data entry procedures. When printing the title, "EXEMPT" will be printed in the odometer reading field and "PRIOR STATE" will be printed in the odometer field.
5. Process the title transaction according to data entry procedures.
   
   NOTE 1: If the system generates an NMVTIS error message when processing an out of state title, verify that the title number displayed in the NMVTIS error message matches the title number shown on the document presented by the customer. If the title numbers match, re-enter the correct title number, refer to the NMVTIS State Title Number Reference Chart, and finish processing the title transaction. If the title numbers do not match, place a hold on the title using NMVTIS as the title held reason, and finish processing the title transaction. Advise customer the title will be mailed from HQ and to allow 7 to 10 days. If they have not received it after that time frame they should call DMV Direct at 804-497-7100 to check the status.
   
   NOTE 2: If the NMVTIS system is down at the time of titling an error message stating: "NMVTIS down, Proceed with NMVTIS held." will display. Place a held on title using NMVDWN as the title held reason and finish processing the title transaction. Advise customer the title will be mailed from HQ and to allow 7 to 10 days. If they have not received it after that time frame they should call DMV Direct at 804-497-7100 to check the status.
   
   NOTE 3: To process a title with more than 2 owner names listed on the application, enter the first 2 owner names, place an Administrative HELD to prevent the title from printing, then process the title. Once processed, maintain the ownership of the vehicle by adding the remaining owner names to the title record, then release the Administrative HELD to allow the title to print.
   
   NOTE 4: A customer may request an electronic record be maintained by DMV whether a lien exists on the title or not. An electronic record of the vehicle will be maintained until either the lienholder requests a title print, or the lien is satisfied and the customer requests a title print, or the vehicle is sold.
   
   NOTE 5: If the customer requests that DMV retain an electronic record of the title, place a held on the record using held code CUST.

   NOTE 6: To prevent an incorrect $15 dealer fee, enter "Cus" in the "Man Dlr Rsn" field for the following situations:

   • Online dealers who are unable to complete their transactions online because the system does not allow it.
   • Owners who purchase a vehicle from a dealership and come to the CSC for processing.
   • DMV Licensed Dealers (Motorcycle, Trailer and Travel Trailer/Motor Home dealers)
6. ENSURE THAT ALL LIENS HAVE BEEN RECORDED.
7. Collect the appropriate fees. For SUT exemptions refer to VLIC-A-4.
8. Notify the customer of the following Virginia requirements:
   • State inspection must be performed on the vehicle and the state inspection sticker must be displayed on the windshield, if applicable AND
   • The locality sticker or decal must be displayed on the windshield, if applicable.
     
     NOTE: Some localities do not require sticker/decal to be displayed on a vehicle, however payment of the local registration fee is still required. Check with the appropriate locality for requirements.
9. Inform the customer of the option to have DMV maintain an electronic record of their title. If they request this option, complete the transaction and give the customer the registration card that is generated for their record. Otherwise, give the paper title to the customer.
   
   NOTE 1: If the customer requests that DMV retain an electronic record of the title and returns at a later time to have a paper title printed, he must provide identification showing he is the registered owner of the vehicle. To print the paper title, refer to Requesting Paper Title below.
   
   NOTE 2: All liens, stops and helds must be satisfied and removed before the paper title may be printed.
10. Return any documentation presented that is not required for processing a title (e.g. marriage license, divorce decree, death certificate, and/or original power of attorney drafted by a law firm). These documents may be noted on the application but must be returned to the customer.
11. Prepare and send application and ownership documents back with the daily work for document preparation. (Refer to CSCOM-903.)
    
    
    • All original documentation for NMVTIS and NMVDWN held titles should be immediately faxed to the NMVTIS Help Desk at 804-367-1490. Once paperwork has been faxed send it back with daily work for document preparation.

CUSTOMER REQUIREMENTS (REQUESTING PAPER TITLE):

1. Provide identification proving registered ownership of the vehicle.
2. Verify current address.
   
   NOTE: If customer is unable to come into a CSC, the paper title can be requested by mailing a written request to the address below or requesting online. The title will be mailed to the address on record providing there are no other held or stop conditions on the record. The customer should send the payment (if applicable) and the written request to:
   Virginia DMV
   Attn: Titling Work Center
   PO Box 27412
   Richmond, VA 23269

DMV SERVICE PROVIDER'S PROCESS (REQUESTING PAPER TITLE):

1. Verify that the customer is one of the registered owners of the vehicle.
   
   NOTE 1: If customer is not one of the registered owners, the paper title CANNOT be released.
   
   NOTE 2: Any ONE of multiple owners on the vehicle record may authorize release of the "CUST" held, pay fees (if applicable) and receive the title via mail or over the counter.
2. Release lien (if applicable).
3. Release the title according to CSCNet. Release the "CUST" held.
   
   NOTE 1: Removal of a CUST held automatically generates a paper title print. If the title has never been printed before, there is no charge to the customer.
   
   NOTE 2: If the title was printed at anytime in the past, CSCs MUST process a substitute title transaction and collect the substitute title fee to print paper titles when releasing a CUST held.
4. Collect fee (if applicable).
5. Give the printed title to the customer.