| Date: |
February 21, 2007 |
| To: |
All County Tax Assessor-Collectors |
| Subject: |
Manufacturer Buy Back (Lemon Law) Title Transactions |
These documents contain text of correspondence sent by
TxDOT to the county tax assessor-collectors, statutory agents who provide
vehicle registration and titling services for citizens in Texas. This
information is provided to apprise the general public of issues affecting the
state’s vehicle titling and registration process.
PURPOSE
To advise of a policy change regarding the acceptance of
specific title transactions resulting from a manufacturer buy
back or Lemon Law.
DETAILS
Manufacturers are required to title a vehicle in their name when a
vehicle is reacquired or repurchased to resolve a Lemon Law complaint or
warranty claim. At this time, the Texas title is not branded; instead, a legal
restraint is placed on the motor vehicle record. When a Texas resident purchases
a vehicle for which a manufacturer buy back title has been issued, they are
informed by the county at the time of title application, and by letter when the
title application is received in this department. However, if these vehicles are
sold out of state, we may be unable to comply with disclosure requirements to
inform the purchaser by mail if the purchaser information is not readily
available.
Manufacturers should not process manufacturer buy back titles through the
state of Texas on vehicles owned, located, and titled out of state. Allowing
these
out-of-state vehicles to be titled in Texas is effectively preventing disclosure
of the manufacturer buy back status to a future purchaser. A change in policy is
necessary to protect those possibly uninformed consumers.
COUNTY ACTION
Effective April 1, 2007, manufacturer buy back transactions for vehicles that do
not indicate a direct connection to Texas should not be accepted. Acceptable
transactions should include a Texas title and/or registration, a Texas owner, or
proof the vehicle is physically located in Texas. Box 14b on the Application for
Texas Certificate of Title, Form 130-U, should be completed to record the
vehicle’s physical location. If the vehicle’s physical location indicates an
address of a title service or similar company processing applications for
manufacturers, these applications may not be accepted.
As a reminder, acceptable manufacturer buy back transactions must receive
special handling. Special handling transactions should be submitted in
accordance with Registration and Title Bulletin #052-06.
CONTACT
Please contact your local Vehicle Titles and Registration
Division Regional Office if you need additional information. In some cases the Registration and Title Bulletins (RTB) contain attachments. If you
require a copy of the original signed RTB and the attachments, please
e-mail us and include the RTB number.
Repeat requests are subject to charges in accordance with Open Record
policies. A subscription service is also available for an annual fee of
$250. Subscribers will automatically receive all RTB mailings as they
are issued. |
