Failure to Provide Vehicle Title

FAILURE TO PROVIDE VEHICLE TITLE AFTER PURCHASE IS A BIG DEAL!

In California, California Vehicle Code ("CVC") Section 5753 provides the requirements for an Auto Dealer after a client purchases a vehicle.

Under CVC 5753(a), "It is unlawful for any person to fail or neglect properly to endorse, date, and deliver the certificate of ownership and, when having possession, to deliver the registration card to a transferee who is lawfully entitled to a transfer of registration."

Continued under CVC 5753(b), which provides: "Except when the certificate of ownership is demanded in writing by a purchaser, a vehicle dealer licensed under this code shall satisfy the delivery requirement of this section by submitting appropriate documents and fees to the department for transfer of registration in accordance with Sections 5906 and 4456 of this code and rules and regulations promulgated thereunder."

Furthermore, under CVC 5753 (c):

"(1) Within 15 business days after receiving payment in full for the satisfaction of a security interest and a written instrument signed by the grantor of the security interest designating the transferee and authorizing release of the legal owner's interest, the legal owner shall release its security interest and mail, transmit, or deliver the vehicle's certificate of ownership to the transferee who, due to satisfaction of the security interest, is lawfully entitled to the transfer of legal ownership.

(2) If a lease provides a lessee with the option to purchase the leased vehicle, within 15 business days after receiving payment in full for the purchase, and all documents necessary to effect the transfer, the lessor shall mail, transmit, or deliver the vehicle's certificate of ownership to the transferee, who, due to purchase of the vehicle, is lawfully entitled to the transfer of legal ownership."

Additionally, under CVC 5753 (e), "A legal owner or lessor that fails to satisfy the requirements of subdivisions (c) and (d), shall, without offset or reduction, pay the transferee twenty-five dollars ($25) per day for each day that the requirements of subdivisions (c) and (d) remain unsatisfied, not to exceed a maximum payment of two thousand five hundred dollars ($2,500). If the legal owner or lessor fails to pay this amount within 60 days following written demand by the transferee, the amount shall be trebled, not to exceed a maximum payment of seven thousand five hundred dollars ($7,500), and the transferee shall be entitled to costs and reasonable attorneys fees incurred in any court action brought to collect the payment. The right to recover these payments is cumulative with and is not in substitution or derogation of any remedy otherwise available at law or equity."

California requires vehicles to be legally registered to be operated on public roads. Evidence of proper registration is also required when operating the vehicle. Evidence or proper registration may be in the form of a license plate with a registration expiration date, or a temporary window tag. Dealerships are authorized to provide temporary registration and/or license plates for a vehicle purchased by a buyer.

If you bought a vehicle from a licensed dealership, certain registration tasks may be taken care of by the dealership. When a dealership sells a new car to a buyer, the dealership must report the sale to the California Department of Motor Vehicle (DMV). The dealership must also attach a copy of the report of sale form to the vehicle.

In the sale of a new vehicle, the dealership must submit to the DMV an application accompanied by all license and registration fees due, within 20 days from the date of sale. In the sale of a used vehicle, the dealership must submit to the DMV an application accompanied by all license and registration fees due, within 30 days from the date of sale. If done properly, the DMV will issue the registration and/or license plates to the buyer within 90 days.

If the dealership does not submit the proper paperwork and fees to the DMV, this can delay your receipt of the registration/license plates necessary to operate your vehicle on public roads. If you have a loan on the vehicle with a bank or lender, the bank or lender will also demand proper registration for the vehicle to secure your loan.