Vehicle Licensing Guide

Secure Power of Attorney
(VAD 70A)
VLIC-130A

PURPOSE:

To provide information and instructions for titling a vehicle that is submitted with a secure power of attorney form, VAD-70A.

BACKGROUND:

The Motor Vehicle Information and Cost Savings Act (Truth in Mileage Act) allows for a vehicle to be sold outside of Virginia when a secure Power of Attorney (POA) is used.

When a dealer uses a secure POA to reassign a vehicle the dealer MUST do the following:

• If a dealer sells a vehicle to an out-of-state buyer or another dealer, the secure first page (red) of the Power of Attorney form (VAD 70A) must be included with the original title as part of the reassignment process.
• The secure second page (green) of the Power of Attorney, along with a copy of the front and back of the title which is being reassigned, must be sent to the state that issued the POA. The state will return these back to DMV.
• The dealer selling the vehicle must retain the non-secure third page (yellow) of the POA and a copy of the front and back of the title for a period of five (5) years.

<<<<<REVISION

DEFINITIONS

"POWER OF ATTORNEY TO SIGN FOR OWNER WHEN REGISTERING AND/OR TRANSFERRING OWNERSHIP OF A MOTOR VEHICLE" (VAD-70A) - a form printed on paper with security features built into the paper that make alterations visible to the naked eye. This form is only to be used by licensed dealers, numbered for inventory control, and contains 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.

• 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.

IMPORTANT: 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.

HOW TO USE A POWER OF ATTORNEY WHEN REGISTERING AND/OR TRANSFERRING OWNERSHIP OF A MOTOR VEHICLE:

The following pertains to the use of a "Power of Attorney To Sign for Owner When Registering and/or Transferring Ownership of a Motor Vehicle" (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.

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.

• 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.
• For power of attorney (POA), 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 the agent.   END REVISION>>>>>

CUSTOMER (DEALER) REQUIREMENTS:

1. WHEN A VIRGINIA DEALER EXECUTES A VIRGINIA POWER OF ATTORNEY AND THE TITLE INVOLVED IS A VIRGINIA TITLE:
   1. If the vehicle is being titled in Virginia in the dealer's name or name of the purchaser, the dealer must:
      • Submit the first page (red) of the POA.
      • Submit the assigned Virginia title.
      • Submit an "Application for Certificate of Title and Registration" (VSA 17A), "Application for Certificate of Title - Manufactured Home" (VSA-17B)
      • Submit copy of proof of address document. (Refer to VLIC-3.530.)
   2. If the title is to be reassigned out-of-state, the dealer must:
      • Submit the second page (green) of the POA.
      • Submit a copy (front and back) of the Virginia title.
2. WHEN A VIRGINIA DEALER EXECUTES A VIRGINIA POWER OF ATTORNEY AND THE TITLE INVOLVED IS FROM ANOTHER STATE:
   1. If the vehicle is being titled in Virginia in the dealer's name or the name of the purchaser, the dealer must:
      • Submit the first page (red) of the POA.
      • Submit the out of state title.
      • Submit an "Application for Certificate of Title and Registration (form VSA 17A)
        OR
        "Application for Certificate of Title - Manufactured Home" (VSA-17B).
      • Submit copy of proof of address document. (Refer to VLIC-3.530.)
      
      NOTE: If the vehicle is being titled in a name other than the dealer's name, it can be reassigned on the foreign title or on a reassignment form of a foreign state.
   2. If the title is to be reassigned out-of-state, the dealer must:
      • Submit a second page (green) of the POA.
      • Submit a copy (front and back) of the Virginia title.
3. WHEN A VIRGINIA DEALER OBTAINS A VEHICLE FROM A VIRGINIA DEALER OR OUT-OF-STATE DEALER AND THE TITLE TO THE VEHICLE IS A VIRGINIA TITLE OR OUT-OF-STATE TITLE:
   1. If the vehicle is being titled in Virginia either in the dealer's name or name of the purchaser, the dealer must:
      • Submit the assigned title.
      • Submit the first page of the POA (if attached to title).
      • Submit an "Application for Certificate of Title and Registration" (VSA 17A), "Application for Certificate eof Title - Manufactured Home" (VSA-17B)
        OR
        the Virginia title.
      • A dealer reassignment form from Virginia (VAD-20) or another state, if applicable.

DMV SERVICE PROVIDER'S PROCESS:

1. Verify that the information on the POA is consistent with the title and accompanying documents.
   
   NOTE: The POA should provide the following information:
   • Odometer reading at time of transfer
   • Date of transfer
   • Transferor's name and current address
   • Transferee's name and current address
   • Identity of the vehicle, including its make, model, year, body type, and vehicle information number
   • Signature and printed names of both the transferor and transferee
   • Transferor certification that odometer reflects actual mileage or box checked to indicate:
     • Odometer reading reflects mileage in excess of the odometer mechanical limits (code "E")
     • Odometer reading is NOT the actual mileage -- WARNING - ODOMETER DISCREPANCY (code "N")
       
       NOTE: 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. When printing the title, "EXEMPT" will be printed in the odometer reading field and "PRIOR STATE" will be printed in the odometer field.
2. Reject any documents that:
   • are not legible/readable
   • contain conflicting information
   • have apparent alterations and/or erasures
   • contain strike throughs and no accompanying explanation for the strike throughs
3. Verify that the title and accompanying documents are completed correctly.
4. Verify that the transferee (individual given power of attorney) has provided the odometer reading on the title (if conforming title) or odometer disclosure statement - VSA 5 (if non-conforming title) exactly as the odometer mileage was disclosed by the transferor on the POA form.
   
   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.
5. Verify that the customer has an approved proof of address document. (Refer to DMV-177 and VLIC-3.530.)
   
   NOTE: If the dealer is submitting the paperwork, a copy of the proof of address document is acceptable.


<<<<<REVISION

6. Process the title in the system.
   • 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)   END 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.
8. Prepare transaction documents with correct barcode coversheet and place in appropriate area for document preparation.

REFERENCE:

• Code of Virginia § 46.2-600
• Code of Federal Regulations: 49CFR580

CONTACT:

For additional information contact:

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

PROCEDURE PROPONENT:

Titling Work Center VSA Dealer Services