(a) A person, as defined in Section 40-12-240, in possession of a motor vehicle that is considered an abandoned motor vehicle may sell the motor vehicle at a public auction.
(b)(1) Notice of the date, time, and place of the sale and a description of the motor vehicle to be sold, including the year, make, model, and vehicle identification number, shall be given by publication once a week for two successive weeks in a newspaper of general circulation in the county in which the sale is to be held, provided the vehicle is currently registered in the county. In counties in which no newspaper is published, notice shall be given by posting such notice in a conspicuous place at the courthouse. The first publication or posting, as the case may be, shall be at least 30 days before the date of sale. A person selling a motor vehicle at public auction under subsection (a) shall give notice of the public auction to the department at least 35 calendar days prior to the date of the public auction.
(2) The notice of public auction shall be in a manner as prescribed by the department and shall include all of the following:
a. The name and address of the current owner and lienholder of record, if any, as reflected on the current title or registration record of state.
b. The contact information for the person or entity filing the notice.
c. The motor vehicle's identification number, year, make, and model.
d. The date, time, and location of the auction.
e. If the motor vehicle is not being sold by a bonded agent pursuant to Section 32-8-34, Section 40-12-398, or Section 40-12-414, a statement that the purchaser is required to post a bond pursuant to Section 32-8-36 in order to obtain title to the vehicle.
(3) The auction shall occur where the vehicle is located. The department, within five calendar days of receipt of the notice of public auction, shall send a motor vehicle interest termination notice to the current owner and lienholder of record, if any, as disclosed on the notice of public auction. The motor vehicle interest termination notice shall advise the owner and lienholder of record, if any, that their interest in the motor vehicle, upon its sale, will be terminated pursuant to this chapter, and personal property and items contained in the motor vehicle will be disposed of in a manner determined by the person or entity conducting the sale.
(4) The notice shall include all the information provided in the notice of public auction as well as the owner or other interested party's appeal rights, pursuant to Sections 32-13-4 and 40-2A-8, to contest the proposed sale of the motor vehicle.
(c)(1) Upon payment of the sales price to a seller who is a bonded agent, pursuant to Section 32-8-34, Section 40-12-398, or Section 40-12-414, the purchaser of the abandoned motor vehicle shall be entitled to, and the person making the sale shall issue, a bill of sale for the abandoned motor vehicle, free and clear of all liens, security interests, and encumbrances, in a form as prescribed by the department. Upon payment of the sales price to a seller who is not a bonded agent, the purchaser of the abandoned motor vehicle shall be entitled to, and the person making the sale shall issue, a bill of sale for the abandoned motor vehicle, in a form as prescribed by the department. In addition, the purchaser shall post a surety bond pursuant to Section 32-8-36 to obtain title for any sale on or after January 1, 2020.
(2) If the purchaser of an abandoned motor vehicle fails to apply for a certificate of title within one calendar year from the date of the sale, the purchaser shall be subject to posting a bond under Section 32-8-36.
(3) Each person who sells a motor vehicle pursuant to this chapter, for three years from the date of the sale, shall maintain all of the following:
a. Copies of the notices sent pursuant to subsection (d) of Section 32-8-84, to the previous motor vehicle owner and lienholder of record, along with evidence that the notices were sent by certified mail.
b. Any associated National Motor Vehicle Title Information System (NMVTIS) records and owner and lienholder records received from any state pursuant to subsection (d) of Section 32-8-84.
c. Any other records as required by the department.
(4) Notwithstanding any other provision in this section, if the person making the sale of the motor vehicle failed to provide proper notices as required in subsection (d) of Section 32-8-84, or this chapter, the sale of the abandoned vehicle shall be void and the current owners, registrants, secured parties, and lienholders of record, if any, for the motor vehicle shall retain their ownership, security interests, liens, and interests in the motor vehicle.
(d)(1) Each purchaser of an abandoned motor vehicle subject to titling shall make an application for a certificate of title unless the motor vehicle is being sold by the purchaser to a licensed automotive dismantler and parts recycler or secondary metals recycler for the purpose of dismantling it or recycling it into metallic scrap for remelting purposes.
(2) A purchaser of an abandoned motor vehicle who sells an abandoned motor vehicle to a licensed automotive dismantler and parts recycler or secondary metals recycler, in lieu of surrendering the certificate of title as prescribed in Section 32-8-87(s)(1), may surrender the bill of sale for the abandoned motor vehicle to the licensed automotive dismantler and parts recycler or secondary metals recycler. The licensed automotive dismantler and metals recycler or secondary parts recycler shall then proceed with the notice of cancellation procedures as prescribed in Section 32-8-87(s)(1) utilizing the bill of sale in lieu of the certificate of title. The bill of sale shall be subject to the same records retention requirements as those prescribed in Section 32-8-87(s)(1) for a certificate of title.
(e)(1) If the current certificate of title to a motor vehicle sold pursuant to this chapter is designated a salvage certificate of title, or if the records of the department indicate an application for a salvage certificate of title has previously been received, the new certificate of title issued by the department shall also be a salvage certificate of title.
(2) The purchaser of a salvage abandoned motor vehicle shall not be permitted to register the vehicle or operate it upon the highways of this state until the vehicle is restored by a licensed rebuilder and inspected by the department as required by Section 32-8-87 and a rebuilt Alabama certificate of title is issued.
Last modified: May 3, 2021