Vehicle Licensing Guide

Reassignment of Previously Titled Motor Vehicle by Licensed Dealer
VLIC-102.1

PURPOSE:

To provide information and instructions on accepting assignment/reassignment of a title to a motor vehicle by a licensed dealer.

DEFINITIONS:

<<<<<REVISION

CONFORMING TITLE CERTIFICATE -- A title certificate that DOES contain a space for both the titled owner (seller) and the buyer to sign and print their names to disclose the odometer reading upon transfer of ownership of a motor vehicle.

NOTE: The Virginia titles issued after March 1999 display a security feature of an asterisk (*) at the beginning and at the end of the numbers to prevent forgery or alteration of the numbers. On the title, asterisks border the odometer reading with no space between. Example: *98768*A. Blank spaces between the asterisks will immediately signal the potential buyer and DMV to potential fraud. The branding codes (above) will appear after the asterisks.   END REVISION>>>>>

<<<<<REVISION

NON-CONFORMING TITLE CERTIFICATE -- A title certificate that does NOT contain a space for both the titled owner (seller) and the buyer to sign and print their names to disclose the odometer reading upon transfer of ownership of a motor vehicle.

NOTE: Older versions of title certificates also may not contain a space to disclose the odometer reading. In this instance, the seller may disclose the odometer reading by writing it in a blank space in the assignment section of the title certificate. However, when a dealer receives an older title certificate, the first reassignment of the vehicle must then be made on a secure dealer reassignment form where the dealer representative and the buyer will sign and print their names to disclose the odometer reading.   END REVISION>>>>>

NOTE 1: Older versions of title certificates also do not contain a space to disclose the odometer reading. In this instance, the seller may disclose the odometer reading by writing it in a blank space in the assignment section of the title certificate. The first reassignment of the vehicle must then be made on a secure dealer reassignment form where the dealer representative and the buyer will sign and print their names to disclose the odometer reading.

NOTE 2: Under the guidance of the National Highway Traffic Safety Administration (NHTSA) and their Truth in Mileage regulations, some states opted to develop secure forms that included space for odometer disclosure for dealers to reassign a motor vehicle.

CONFORMING (SECURE) POWER OF ATTORNEY FORM or (SECURE) DEALER REASSIGNMENT FORM -- Forms that are printed on paper that have security features built into the paper that make alterations visible to the naked eye. The forms are numbered for inventory control.

ASSIGNMENT OF TITLE -- Transfer of ownership from the titled owner (seller) of a motor vehicle to the purchaser. This assignment is made on the title certificate in the section so labeled.

REASSIGNMENT OF TITLE -- Transfer of ownership from one licensed dealer to either another licensed dealer or a retail purchaser.

NOTE: A reassignment can be made on the title certificate in the section so labeled or on a secure dealer reassignment form.

"POWER OF ATTORNEY TO SIGN FOR OWNER WHEN REGISTERING AND/OR TRANSFERRING OWNERSHIP OF A MOTOR VEHICLE" (VAD-70A):

• Developed for use by Virginia dealers, this form is available ONLY through the Virginia Automobile Dealer Association (VADA) or the Virginia Independent Automobile Dealer Association (VIADA).
• The VAD-70A allows the VA dealer representative to sign for the titled owner (seller) of a motor vehicle and to disclose the odometer reading to the purchaser of the vehicle.
• The VAD-70A is only to be used when the dealer does not have the title in his possession because it is still held by the lender, or it has been lost. There are NO other situations when a dealer may use this form.
• Must be submitted with the retail customer's title application along with all reassignment forms.
• Must accompany the title certificate when a VA dealer sells a vehicle to an out-of-state dealer or to an out-of-state retail purchaser.
• In the event of multiple names listed as the sellers OR the buyers, only one seller or one buyer is required to sign on a VAD-70A to disclose the odometer reading. However, this form may be accepted with all co-owners' signatures and printed names.
  
  NOTE: If the vehicle is co-owned and only one of the co-owners signs in PART A, the other co-owner must either:
  1. Grant power of attorney via a "Power of Attorney to Sign for Owner When Registering or Transferring Ownership of a Motor Vehicle" (VSA-70) or it's equivalent OR
  2. Sign as a seller in the assignment section of the title certificate
• Photocopies of this form are not acceptable.

COMPLETION OF THE VAD-70A

PART A-POWER OF ATTORNEY TO DISCLOSE MILEAGE - must be completed by the seller and the dealer representative to disclose the odometer reading when the title certificate is NOT available (lost or being held by the lienholder) at the time of the transfer.

PART B-POWER OF ATTORNEY TO REVIEW TITLE DOCUMENTS AND ACKNOWLEDGE DISCLOSURE - should be completed by the purchaser and the dealer representative when the title certificate is not available (lost or being held by the lienholder) at the time of the sale.

NOTE 1: PART B CANNOT be completed if PART A is blank.

NOTE 2: Power of attorney CANNOT be granted to a dealership; it must be granted to an individual representing the dealership.

PART C - CERTIFICATION must be completed by the dealer representative upon receipt of the title certificate. By completing this section, the dealer representative is certifying that the information contained in PART A and PART B (if completed) has been accurately transferred to the assignment on the title certificate.

"REASSIGNMENT OF TITLE BY LICENSED MOTOR VEHICLE DEALER" (VAD-20):

• Developed for use by Virginia dealers, this form is available ONLY through the Virginia Automobile Dealer Association (VADA) or the Virginia Independent Automobile Dealer Association (VIADA).
• Can ONLY be used by licensed dealers.
• Licensed motor vehicle dealers can use the VAD-20, Dealer Reassignment Form, with either a MCO or MSO as a reassignment when running out of space on MCO/MSO itself. The use of the VAD-20 allows the dealer to sell the vehicle as new without causing any customer confusion by requiring the dealer to title the vehicle when reassignments are full on the MCO/MSO. If a motor vehicle dealer sells a new motor vehicle to another dealer or customer and the reassignments on the MCO/MSO are full, the dealer can use the current VAD-20, Dealer Reassignment Form, to transfer ownership of the vehicle.
  
  NOTE: The VA dealer named as the purchaser in the last reassignment on a VAD-20 must secure a VA title certificate in the dealer's name before reassigning the vehicle to another purchaser.
• The "Reassignment of Title by Licensed Motor Vehicle Dealer" VAD-20 allows a dealer to reassign a vehicle an additional 3 times after the reassignments on a title certificate have been completed.
• Reassignments completed on a secure reassignment form can be accepted even though there are open reassignments on the title certificate.
  
  NOTE 1: In the event a dealer uses a VAD-20 to transfer ownership when blank reassignment blocks exist on the title certificate, he must then write "VAD-20" and the document number in the first blank reassignment block on the title certificate to indicate that reassignment is on the VAD-20.
  
  NOTE 2: A VA dealer SHOULD use the reassignment on the VA or out-of-state title certificate to transfer ownership and only make use of a supplemental reassignment form once all the reassignments on the title certificate have been completed.
  
  NOTE 3: If an out-of-state dealer has used an out-of-state supplemental reassignment form, the VA dealer, when reassigning the vehicle, SHOULD continue on that form and not add a VAD-20.
• Must be accompanied by a VA title certificate or an out-of-state title certificate.
• Multiple reassignment forms are acceptable if all reassignments were not completed on the prior reassignment form. However, a maximum of four reassignments, counting a combination of those on the title and the in-state and/or out-of-state reassignment forms, are permitted before re-titling is required.
  
  NOTE: Multiple secure in-state, out-of-state or a mix of reassignment forms can be accepted provided that the title certificate accompanies them.
• The VA dealer named as the purchaser in the last reassignment on a VAD-20 must secure a VA title certificate in the dealer's name before reassigning the vehicle to another purchaser.
• A VA dealer must reassign on a vacant reassignment on the title certificate or on a VAD-20 when a non-secure reassignment form accompanies an out-of-state title certificate.
  
  NOTE: The odometer can be disclosed on a non-secure form for new vehicles. An "Odometer Disclosure Statement" (VSA-5) can be accepted for new vehicles, however it is preferable that the odometer be disclosed in the appropriate section of the Manufacturer's Certificate of Origin (MCO) or Manufacturer's Statement of Origin (MSO).
• An out-of-state dealer can complete an open reassignment.
• A VA dealer can reassign a vehicle on a secure out-of-state reassignment form when an out-of-state title certificate accompanies the form.
• Photocopies of this form are NOT acceptable.

CUSTOMER REQUIREMENTS:

1. Submit the title certificate along with secure supplemental reassignment form(s).
2. If required, distribute the 3 sections of the VAD-70A as follows:
   1. Submit PART A (red copy) along with the title certificate.
   2. Send PART B (green copy) to the headquarters Titles and Registration Work Center.
   3. The dealer must retain PART C (yellow copy) for 5 years.
3. Record all security interests (liens) held against the vehicle on:
   • "Application for Certificate of Title and Registration" VSA-17A
   • "Application for Certificate of Title-Manufactured Home" (VSA-17B) OR
   • Application for Certificate of Title and Registration section of the VA title certificate
4. Submit completed:
   • "Application for Certificate of Title and Registration" (VSA-17A) OR
   • "Application for Certificate of Manufactured Home" (VSA-17B) OR
   • Completed Application for Certificate of Title and Registration section of the VA title certificate
5. Submit proof of address. (Refer to VLIC-3.530.)
6. Submit applicable taxes and fees.

DMV SERVICE PROVIDER'S PROCESS:

1. Verify that the application is completed entirely and correctly:
   • "Application for Certificate of Title and Registration" (VSA-17A)
   • "Application for Certificate of Manufactured Home" (VSA-17B) OR
   • Completed Application for Certificate of Title and Registration section of the VA title certificate
2. Verify that the customer has an approved proof of address document. (Refer to VLIC-3.530.)


<<<<<REVISION

3. Review the Virginia or out-of state title to verify that the seller and the buyer have completed the transfer of ownership (assignment of title) and the seller has recorded the odometer reading at the time of the sale.
   1. If the seller's information is incomplete, inform the customer they must return to the seller to have them complete the assignment of title ensuring the seller records their printed name, signature, and the current odometer reading on the vehicle, date of sale and sales price.
      1. Verify the odometer reading is completed in the "assignment of title" or one of the following:
         • Conforming (Secure) Power of Attorney Form or (Secure) Dealer Reassignment Form
         • DMV Odometer Disclosure Statement (VSA-5)/Non-Secure Out of State Odometer Disclosure Form.
      2. If the odometer reading is blank, advise the customer to return to the seller to complete the odometer reading.
         
         IMPORTANT: The seller must complete the odometer reading on the assignment of title. (Refer to VLIC-3.520)   END REVISION>>>>>
4. If a VAD-70A is submitted, verify that the person granted power of attorney and the seller have signed and printed their names and the odometer reading has been entered in PART A.
   1. If PART B of the VAD-70A has been completed, verify that person granted power of attorney and the buyer have signed and printed his or her names and that the odometer reading has been entered in PART B of the form.
   2. Verify that the person granted power of attorney in PART A of a VAD-70A completes PART C by signing and printing his or her name to certify that the information has been transferred to the assignment on the title certificate correctly.
   3. Verify that each reassignment has been completed correctly and that a dealer representative from both the selling and buying dealership has signed and printed his or her name in all supplemental reassignments.
      
      NOTE: When a title is transferred between dealers (non-retail), the person authorized to sign for the dealership signs and prints on the reassignment form. Due to limited space on a re-assignment form, in the "PRINTED NAME" field the authorized person may print just the name of the dealership. This should be accepted with or without the printed name of the individual signing for the dealership, as long as a valid signature is present.
   4. Verify that the odometer reading is either the same reading or is greater than the reading entered in the previous reassignment(s).
5. Collect the appropriate taxes and fees.
6. Notify the customer of the following Virginia requirements (if applicable):
   • State inspection must be performed on the vehicle and the state inspection sticker must display 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 a 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.

<<<<<REVISION

7. Process the title in the system for the customer (Refer to VLIC-3.000)
   • Ensure that the correct odometer reading and odometer code is entered into the system.
     
     IMPORTANT: The system will not allow an odometer reading to be recorded that is lower than the odometer reading recorded in the prior Virginia vehicle record or the odometer reading return from NMVTIS. (Refer to VLIC-3.520)
   • Prevent an incorrect $15 dealer fee by entering "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 purchased a vehicle from a dealership and come to the CSC for processing.   END REVISION>>>>>
8. Ensure that all liens recorded on the VSA-17A OR the Application for Certificate of Title and Registration section of the VA title certificate are entered into the automated system.
9. Prepare documents with correct barcode coversheet and place in appropriate area for document preparation.

REFERENCE:

<<<<<REVISION

• Code of Virginia: §§ 46.2-600, 46.2-621, 46.2-622, 46.2-623, 46.2-628, 46.2-1500, 46.2-1530.2, 46.2-1930.2, 46.2-1992.23:2,, 46.2-1993.23:1   END REVISION>>>>>
• Code of Federal Regulations: 49CFR580
• DMV Policy

CONTACT:

For additional information contact:

• Your CSC Manager/Assistant Manager
• DMV DIRECT Help Desk at (804) 367-6646

PROCEDURE PROPONENT:

Titling Work Center