1 CCR 204-10-8 - DEALER TITLE
Basis: The statutory bases for this rule are 42-6-102(2), 42-6-104, 42-6-111(2), 42-6-137(6), and 42-6-138(4), C.R.S.
Purpose: The purpose of this rule is to establish requirements for a motor vehicle dealer or wholesaler for providing proof of ownership and for the processing of certificates of title.
1.0
Definitions
1.1 "Agent" means an individual authorized by
a dealer or wholesaler to act on behalf of that dealer or wholesaler.
1.2 "Assigned" means a certificate of title
or MCO that is signed by a seller and accompanied by the Colorado dealer's bill
of sale for motor vehicle to evidence the chain of ownership progression to the
dealer or wholesaler.
1.3
"Manufacturer's Certificate of Origin" or "MCO" has the same meaning as
Colorado Code of Regulation 1 CCR 204-10 Rule 22. Manufacturer's Certificate of
Origin - Requirements and Use.
1.4
"Working Day" means the daily period beginning at 8:00 a.m. and ending at 5:00
p.m. Monday through Friday, with the exception of those days designated as
official State of Colorado holidays by statute or Executive Order of the
Governor, or where a county operates under alternative posted hours.
1.5 "Secure and Verifiable Identification"
means a document issued by a state or federal jurisdiction or recognized by the
United States Government and that is verifiable by federal or state law
enforcement, intelligence, or the Homeland Security Agency.
1.6 "Letter of Authorization" means an
authorization on a dealer's or wholesaler's letterhead from a designated
representative of a dealer or wholesaler to the Department authorizing a
specific person to act as an Agent for the dealer or the wholesaler.
1.7 "Third Party Provider" means an
electronic vehicle or special mobile machinery registration, lien, or titling
service provider that is approved by the Department to perform the
registration, lien, and titling functions set forth in articles 1 to 6 of Title
42, as defined in 42-1-102(102.8), C.R.S.
2.0
Proof of Ownership
Requirements
2.1 A Colorado
dealer or wholesaler must maintain the following proof of ownership for each
vehicle in their possession:
a. If the vehicle
is a used vehicle with a Colorado certificate of title:
1. A Colorado certificate of title Assigned
to the dealer or wholesaler; and,
2. Odometer disclosure if required.
b. If the vehicle is a used
vehicle with an out-of-state certificate of title:
1. The out-of-state certificate of title
Assigned to the dealer or wholesaler; and,
2. Odometer disclosure if required;
and,
3. Colorado Dealer's
Out-of-State Vehicle Information Disclosure; and,
4. Colorado verification of vehicle
identification number.
c.
A new vehicle Assigned by MCO to a dealer or wholesaler:
1. MCO Assigned or re-Assigned to a
franchised dealer or wholesaler; and,
2. Odometer disclosure if required.
3. A dealer or wholesaler shall not hold a
MCO unless that dealer or wholesaler is franchised to sell that specific make
of vehicle as indicated on the MCO.
d. A new vehicle Assigned or re-Assigned with
its MCO from an out-of-state franchised dealer or wholesaler to a franchised
Colorado dealer or wholesaler:
1. MCO
re-Assigned to the franchised dealer or wholesaler; and,
2. Odometer disclosure if required;
and,
3. A dealer or wholesaler
shall not hold a MCO unless that dealer or wholesaler is franchised to sell
that specific make of vehicle as indicated on the MCO.
e. A vehicle with incomplete or insufficient
certificate of title shall be marked "Not for Sale" and withheld from any
public offering.
3.0
Requirements for Obtaining Certificate of Title in One Working
Day
3.1 A dealer or
wholesaler may obtain a "dealer resale" certificate of title in the licensed
name of the dealer or wholesaler within one Working Day after application, at
the Department of Revenue, by making a "3 Dealer Title" appointment at the
Lakewood office; limited to one appointment per company per day. A maximum of 3
dealer titles will be processed in this manner per company per day. The
required documents, as outlined in section 4.0 below, and payment of the
statutorily required fee are required.
3.2 A dealer or wholesaler may obtain 3
"dealer resale" certificates of title per company per day in the licensed name
of the dealer or wholesaler at their county motor vehicle office, through
appointment or walk-in, based on that county's transaction policies.
3.3 A dealer or wholesaler requesting the
Department issue a certificate of title to an Agent must provide a Letter of
Authorization, listing the names of all persons who will be acting as Agents on
their behalf. Letters of Authorization will be kept on file at the Department.
It shall be the responsibility of the dealer or wholesaler to notify the
Department of any changes in Agents. A person attempting to obtain a Dealer
Resale certificate of title that is not listed on the dealer's or wholesaler's
Letter of Authorization will not be permitted to receive the certificate of
title. If the dealer, wholesaler, or Agent fails to pick up the certificate of
title after one Working Day the Department may choose to hold the certificate
of title until it is picked up or mail it to the dealer or
wholesaler.
3.4 The Agent shall be
required to present Secure and Verifiable Identification at the time of
application and upon receipt of a certificate of title. The Agent shall sign a
receipt verifying receipt of the certificate of title.
3.5 An Agent representing more than one
dealer or wholesaler must have a Letter of Authorization from each dealer or
wholesaler for which the Agent is an authorized Agent in order to obtain a
certificate of title on behalf of that dealer or wholesaler.
4.0
Requirements for Acceptance of
Applications for Dealer Resale Certificate of Title
4.1 An application for dealer resale
certificate of title will only be accepted when:
a. The supporting ownership document is a MCO
properly Assigned to a dealer or wholesaler or re-Assigned to a dealer or
wholesaler; or,
b. The supporting
ownership document is a certificate of title properly Assigned to a dealer or
wholesaler; or,
c. The supporting
ownership document is a salvage certificate of title for a vehicle that has
been made roadworthy, as defined in section
42-6-102(15),
C.R.S., and is being submitted for a dealer resale certificate of title in the
dealer's or wholesaler's name.
4.2 An application for a dealer resale
certificate of title must be free and clear of all liens and
encumbrances.
4.3 An application
for a dealer resale certificate of title must be complete and contain all
required documents listed in section 2.0 Proof of Ownership Requirements
above.
4.4 The Department may limit
dealer resale certificate of title applications to three applications per
dealer, wholesaler or Agent per Working Day. Additional applications above the
maximum limit of three may not be processed in one Working Day.
5.0
Dealer Resale Certificate of Title
Application Processing Timeframes
5.1 Dealer titles shall be processed as
listed in sections 3.1 and 3.2.
5.2
Processing is contingent upon an application meeting requirements, receiving
payment, passing Department auditing of the application and documents, and
extraordinary circumstances beyond the control of the Department.
5.3 Dealer resale titles may also be dropped
off at (or mailed to) the state or county offices; dropped off dealer titles
will be available for pickup within 5 Working Days.
5.4 Dealer resale titles obtained through a
Third Party Provider are not subject to the timeframes referenced in this
section 5.0.
5.5 A dealer or
wholesaler may request overnight mail service of a dealer resale certificate of
title. If overnight mail service is requested the dealer or wholesaler must
provide the state or county with a pre-paid return envelope. Otherwise, the
agency will mail any dealer resale certificate of title that is not picked up
or overnight mailed by first class mail to the dealer or wholesaler.
5.6 A dealer resale certificate of title that
is not picked up by the dealer, wholesaler, or Agent within 8 Working Days of
submitting the application will be mailed to the dealer or wholesaler. If
mailing instructions are not provided to the state or countywith the
application, the dealer resale certificate of title will be destroyed, and the
dealer or wholesaler will be required to apply for a duplicate title.
6.0
Duplicate Certificates of
Title
6.1 Only licensed
Colorado dealers or wholesalers may, at the Department's discretion, obtain
duplicate certificates of title directly from the Department.
6.2 A dealer or wholesaler may obtain a
duplicate certificate of title for a vehicle that has been "traded-in" to them,
but the owner has lost, misplaced, or accidentally destroyed the certificate of
title.
6.3 The dealer or wholesaler
must provide a power of attorney from the previous owner and the vehicle must
be in the dealer's or wholesaler's possession before an application for a
duplicate certificate of title will be accepted.
6.4 A duplicate certificate of title showing
an active recorded lien will not be provided to a dealer or wholesaler. If a
proper lien release is submitted with a duplicate certificate of title
application, the satisfied lien will be removed from the vehicle record and a
duplicate certificate of title will be provided to the dealer or
wholesaler.
7.0
Payment
7.1 An
application for a dealer resale certificate of title will not be processed
until all statutorily required fees are paid.
7.2 A check returned for insufficient funds
will require any and all future payments by that dealer or wholesaler to be
made by cash or certified funds.
7.3 Refunds will be processed at the
discretion of the Department.
8.0
Appeals
8.1 If a
dealer or wholesaler has been denied issuance of a dealer resale certificate of
title or a duplicate title, the dealer or wholesaler may request a hearing, in
writing, within 60 days after the date of the notice of denial. Written hearing
requests shall be submitted to the Department of Revenue, Hearings
Division.
8.2 The hearing shall be
held at the Department of Revenue, Hearings Division. The presiding hearing
officer shall be an authorized representative designated by the Executive
Director. The Department's representative need not be present at the hearing
unless the presiding hearing officer requires his or her presence or the dealer
or wholesaler requests his or her presence in writing. If the Department's
representative is not present at the hearing, the hearing officer has the
discretion to consider any written documents and affidavits submitted by the
Department.
Notes
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