Transfer of title; sale of vehicle without certificate of title; failure
to deliver certificate of title
Sec. 3. (a) If a vehicle for which a certificate of title has been
issued is sold or if the ownership of the vehicle is otherwise
transferred, the person who holds the certificate of title must do the
following:
(1) Endorse on the certificate of title an assignment of the
certificate of title with warranty of title, in a form printed on the
certificate of title, with a statement describing all liens or
encumbrances on the vehicle.
(2) Except as provided in subdivisions (3) and (4), deliver the
certificate of title to the purchaser or transferee at the time of
the sale or delivery to the purchaser or transferee of the vehicle,
if the purchaser or transferee has made all agreed upon initial
payments for the vehicle, including delivery of a trade-in
vehicle without hidden or undisclosed statutory liens.
(3) In the case of a sale or transfer between vehicle dealers
licensed by this state or another state, deliver the certificate of
title within twenty-one (21) days after the date of the sale or
transfer.
(4) Deliver the certificate of title to the purchaser or transferee
within twenty-one (21) days after the date of sale or transfer to
the purchaser or transferee of the vehicle, if all of the following
conditions exist:
(A) The seller or transferor is a vehicle dealer licensed by
the state under IC 9-23.
(B) The vehicle dealer is not able to deliver the certificate of
title at the time of sale or transfer.
(C) The vehicle dealer reasonably believes that it will be
able to deliver the certificate of title, without a lien or an
encumbrance on the certificate of title, within the twenty-one
(21) day period.
(D) The vehicle dealer provides the purchaser or transferee
with an affidavit under section 3.1 of this chapter.
(E) The purchaser or transferee has made all agreed upon
initial payments for the vehicle, including delivery of a
trade-in vehicle without hidden or undisclosed statutory
liens.
(b) A licensed dealer may offer for sale a vehicle for which the
dealer does not possess a certificate of title, if the dealer can comply
with subsection (a)(3) or (a)(4) at the time of the sale.
(c) A vehicle dealer who fails to deliver a certificate of title within
the time specified under this section is subject to the following civil
penalties:
(1) One hundred dollars ($100) for the first violation.
(2) Two hundred fifty dollars ($250) for the second violation.
(3) Five hundred dollars ($500) for all subsequent violations.
Payment shall be made to the bureau and deposited in the state
general fund. In addition, if a purchaser or transferee does not
receive a valid certificate of title within the time specified by this
section, the purchaser or transferee shall have the right to return the
vehicle to the vehicle dealer ten (10) days after giving the vehicle
dealer written notice demanding delivery of a valid certificate of title
and the dealer's failure to deliver a valid certificate of title within that
ten (10) day period. Upon return of the vehicle to the dealer in the
same or similar condition as delivered to the purchaser or transferee
under this section, the vehicle dealer shall pay to the purchaser or
transferee the purchase price plus sales taxes, finance expenses,
insurance expenses, and any other amount paid to the dealer by the
purchaser.
(d) For purposes of this subsection, "timely deliver", with respect
to a third party, means to deliver to the purchaser or transferee with
a postmark dated or hand delivered not more than ten (10) business
days after there is no obligation secured by the vehicle. If the dealer's
inability to timely deliver a valid certificate of title results from the
acts or omissions of a third party who has failed to timely deliver a
valid certificate of title to the dealer, the dealer is entitled to claim
against the third party one hundred dollars ($100). If:
(1) the dealer's inability to timely deliver a valid certificate of
title results from the acts or omissions of a third party who has
failed to timely deliver the certificate of title in the third party's
possession to the dealer; and
(2) the failure continues for ten (10) business days after the
dealer gives the third party written notice of the failure;
the dealer is entitled to claim against the third party all damages
sustained by the dealer in rescinding the dealer's sale with the
purchaser or transferee, including the dealer's reasonable attorney's
fees.
(e) If a vehicle for which a certificate of title has been issued by
another state is sold or delivered, the person selling or delivering the
vehicle must deliver to the purchaser or receiver of the vehicle a
proper certificate of title with an assignment of the certificate of title
in a form prescribed by the bureau.
(f) The original certificate of title and all assignments and
subsequent reissues of the certificate of title shall be retained by the
bureau and appropriately classified and indexed in the most
convenient manner to trace title to the vehicle described in the
certificate of title.
(g) A dealer shall make payment to a third party to satisfy any
obligation secured by the vehicle within five (5) days after the date
of sale.
As added by P.L.2-1991, SEC.5. Amended by P.L.60-1994, SEC.1;
P.L.2-1995, SEC.42; P.L.59-1998, SEC.1; P.L.268-2003, SEC.8;
P.L.97-2004, SEC.37.
Last modified: May 27, 2006