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Vehicle Licensing Guide

Odometer Disclosure
VLIC-130

Original Date: 03/27/1978
Revision Date: 12/10/2011

PURPOSE:

To provide information and instructions on how to handle odometer disclosures.

BACKGROUND:

The odometer disclosure statements are designed to comply with federal and state odometer disclosure laws. The federal Truth in Mileage Act Regulations, (49CFR580, et. seq.) require that an individual or dealer in whose name a motor vehicle is titled disclose the mileage when there is a transfer of ownership. This protects both the buyer and the seller.

DEFINITIONS:

MANUFACTURER'S STATEMENT OF ORIGIN (MSO)/MANUFACTURER'S CERTIFICATE OF ORIGIN (MCO) -- Per VA Code § 46.2-1500 Code of Virginia - Certificate of origin means the document provided by the manufacturer of a new motor vehicle, or its distributor which is the only valid indication of ownership between the manufacturer, its distributor, its franchised motor vehicle dealers, and the original purchaser not for resale.

For DMV internal purposes, the MCO/MSO can be considered the vehicles "birth certificate". The MCO/MSO is the first record of the vehicle's existence and is the link between the vehicle's "manufacturer/distributor/franchised motor vehicle dealer" and the first retail purchaser.

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.

ACTUAL -- The exact distance the vehicle has traveled (accrued mileage) as displayed on the odometer, whether in miles or kilometers. Only whole numbers are used (no tenths).

NOT ACTUAL -- The exact distance the vehicle has traveled (accrued mileage) is unknown. The mileage that displays on the odometer is entered on the vehicle record with an indication that the true mileage is unknown.

EXCEEDS THE MECHANICAL LIMITS -- Refers to vehicles equipped with a 5 digit odometer that only display a reading up to but not greater than 99,999. The mileage displayed on the odometer is entered in the vehicle record with an indication that the reading exceeds the odometer's mechanical limits (i.e.: odometer displays 12,000, however the cumulative mileage is 112,000).

EXEMPT -- Non-Passenger vehicles with a gross vehicle weight rating (GVWR) of more than 16,000 pounds (vehicles designed to carry cargo) are exempt from odometer disclosure.

NOTE 1: The customer may choose to have the odometer reading recorded in the automated system for a vehicle that is exempt.

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.

NOT APPLICABLE -- Non-powered vehicles (i.e.: trailers).

DOCUMENTS USED TO DISCLOSE ODOMETER READING:
MCO/MSO - A conforming certificate/statement of origin is a secure document issued by the vehicle manufacturer to the entity authorized to sell the vehicle. It contains space for both the seller and the buyer to sign and print their names to disclose the odometer reading upon transfer of ownership of the motor vehicle.

NOTE 1: Odometer disclosures are not required until the first retail sale of the vehicle. The odometer reading may be disclosed on the MCO/MSO or an "Odometer Disclosure Statement" (VSA-5) or on another document that contains all of the information required on the VSA-5.

NOTE 2: For Dealership transactions, DMV no longer requires that the "printed" name on the odometer disclosure be hand-printed. Dealership computer-generated, typed, or stamped names are acceptable, as long as it has an original signature.

CONFORMING TITLE CERTIFICATE -- A secure certificate that contains at least an assignment and 2 reassignments that provide space for both the titled owner (seller), dealer representative and the buyer to sign and print their name to disclose the odometer reading upon transfer of ownership of a motor vehicle.

NON-CONFORMING TITLE CERTIFICATE -- A certificate that was issued prior to March 1990 and does NOT contain 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. 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.

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 can only be used by licensed dealers, are numbered for inventory control and contain space for both the dealer representative and the buyer to sign and print their names to disclose the odometer reading upon transfer of ownership of a motor vehicle.

NOTE: Individuals, who are authorized to act as agent for the person or entity assigning power of attorney, must be listed by name on the POA. POA may not be assigned to a company without defining the INDIVIDUAL(s) authorized to act as agent.

"POWER OF ATTORNEY TO SIGN FOR OWNER WHEN REGISTERING AND/OR TRANSFERRING OWNERSHIP OF A MOTOR VEHICLE" (VAD-70A). In the event of multiple names listed as either the sellers OR the buyers, only one seller or one buyer is required to sign on a VAD-70A to disclose the odometer reading.

NOTE: The VAD-70A is to be used only when the dealer does not have the title in his possession at time of resale either because the title is still held by the lender, or it has been lost. This document MUST be used as the official odometer disclosure document in the absence of the title.

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. 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. NOTE: If the vehicle is co-owned, only one co-owner is required to sign and print his name in PART A and/or PART B since this is a supplemental form to disclose the odometer reading. However, this form may be accepted with all co-owners' signatures and hand printed names.

DMV ODOMETER DISCLOSURE STATEMENT (VSA-5)/NON-SECURE OUT OF STATE ODOMETER DISLOSURE FORM - A non-secure form used for disclosing an odometer reading. This form may be used with a non-conforming title certificate for the assignment of ownership from the titled owner to the buyer or with the sale of a new vehicle via an MSO or MCO.

NOTE 1: In the event of multiple names listed as either the sellers OR the buyers, only one seller or one buyer is required to sign on a VSA-5 to disclose the odometer reading.

NOTE 2: A licensed dealer cannot use a VSA-5 or non-secure out of state odometer disclosure form when reassigning a previously titled vehicle.

NOTE 3: Lessees may disclose the odometer reading to the lessor on a VSA-5 Odometer Disclosure Statement or a similar document. The lessor shall transfer the odometer reading from the VSA-5 or similar document to the assignment section of the title certificate. The VSA-5 or similar document shall be attached to the title certificate.

CUSTOMER REQUIREMENTS:

  1. Submit the odometer reading via one of the documents listed above.

    NOTE 1: The odometer reading should be the numeric reading. The reading does not have to be converted from kilometers to miles or vice versa. Do not include tenths.

    NOTE 2: If the mileage on a 5 digit odometer is "15,000", but the total mileage on the vehicle is 115,000, enter "15,000 on the application for VA title and check the block on the application that indicates the mileage stated is in excess of the vehicle's mechanical limits.

    NOTE 3: If the mileage stated is not the actual mileage OR if the vehicle has previously been exempted by another state OR the odometer has been replaced, AND the true mileage is unknown, check the block on the application for VA title that indicates the odometer reading is "Not Actual".
  2. Sign in the appropriate section of the:

DMV SERVICE PROVIDER'S PROCESS:

  1. Verify the odometer documentation is complete.

    NOTE 1: In the event that the customer is re-titling a vehicle that was previously titled in another state and they are unaware of the correct odometer reading and the vehicle is unavailable for examination, process the title application with a Reason Title Held Code ODM2, Submit Vehicle Odometer Reading.

    NOTE 2: Do not use Reason Title Held Code ODM1, Odometer Verification. This code is to be used whenever verification of the odometer reading is needed because the odometer reading is questionable or not legible.

    NOTE 3: To release the held and free the title record, give the customer a VSA-5 and instruct the customer to fill in the correct mileage, sign the VSA-5 under "Transferor's Signature" and return the completed VSA-5 to the Customer Service Center (CSC) or mail it to: Department of Motor Vehicles
    Titles and Registration Work Center
    Richmond, Virginia 23225
  2. Review the application and verify that the customer has completed a VSA-17A or Section C or Section E of the Virginia title.
  3. Review the ownership documents and verify that the transfer of ownership has been completed. (Owner's name and other information should match the application.)
  4. Verify ownership documents for authenticity. (Refer to the Authenticity Manual / Fraudulent Document Manual.)
  5. Collect the appropriate fees.
  6. Process application according to data entry procedures. (Ensure that all liens have been recorded.)


    7. <<<<<REVISION
  7. 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.   END REVISION>>>>>
  8. Prepare and forward application and ownership documents to Quality Control Review for auditing. (Refer to VLIC-75 and VLIC-76.)

REFERENCE:

CONTACT:

For additional information contact:

PROCEDURE PROPONENT:

VSA/Titles and Registration Division

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