2014 Indiana Code TITLE 9. MOTOR VEHICLES ARTICLE 32. DEALER SERVICES CHAPTER 4. OBTAINING, EXPIRATION, REPLACEMENT, AND TRANSFER OF CERTIFICATE OF TITLE
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IC 9-32-4
Chapter 4. Obtaining, Expiration, Replacement, and Transfer
of Certificate of Title
IC 9-32-4-1 Version a
Transfer of title; sale of vehicle without certificate of title; failure
to deliver certificate of title; timely payment to this party
Note: This version of section effective until 1-1-2015. See also
following version of this section, effective 1-1-2015.
Sec. 1. (a) If a vehicle for which a certificate of title has been
issued is sold or if the ownership of the vehicle is transferred in any
manner other than by a transfer on death conveyance under
IC 9-17-3-9, in addition to complying with IC 9-17-3-3.4, the person
who holds the certificate of title must do the following:
(1) 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.
(2) 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 the following
conditions exist:
(A) The seller or transferor is a vehicle dealer licensed by the
state under this article.
(B) The vehicle dealer is not able to deliver the certificate of
title at the time of sale or transfer.
(C) The vehicle dealer provides the purchaser or transferee
with an affidavit under section 2 of this chapter.
(D) 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)(1) or (a)(2) 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 in a
calendar year.
(2) Two hundred fifty dollars ($250) for the second violation in
a calendar year.
(3) Five hundred dollars ($500) for all subsequent violations in
a calendar year.
Payment shall be made to the secretary of state and deposited in the
dealer enforcement account established under IC 9-32-7-2.
(d) If a purchaser or transferee does not receive a valid certificate
of title within the time specified by this section, the purchaser or
transferee has 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 or transferee.
(e) 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.
(f) 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 shall 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.
(g) A dealer shall make payment to a third party to satisfy any
obligation secured by the vehicle within ten (10) days after the date
of sale.
As added by P.L.92-2013, SEC.78. Amended by P.L.262-2013,
SEC.139.
IC 9-32-4-1 Version b
Transfer of title; sale of vehicle without certificate of title; failure
to deliver certificate of title; timely payment to this party
Note: This version of section effective 1-1-2015. See also
preceding version of this section, effective until 1-1-2015.
Sec. 1. (a) If a vehicle for which a certificate of title has been
issued is sold or if the ownership of the vehicle is transferred in any
manner other than by a transfer on death conveyance under
IC 9-17-3-9, in addition to complying with IC 9-17-3-3.4, the person
who holds the certificate of title must do the following:
(1) 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.
(2) 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 the following
conditions exist:
(A) The seller or transferor is a vehicle dealer licensed by the
state under this article.
(B) The vehicle dealer is not able to deliver the certificate of
title at the time of sale or transfer.
(C) The vehicle dealer provides the purchaser or transferee
with an affidavit under section 2 of this chapter.
(D) 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)(1) or (a)(2) 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 in a
calendar year.
(2) Two hundred fifty dollars ($250) for the second violation in
a calendar year.
(3) Five hundred dollars ($500) for all subsequent violations in
a calendar year.
Payment shall be made to the secretary of state and deposited in the
dealer enforcement account established under IC 9-32-7-2.
(d) If a purchaser or transferee does not receive a valid certificate
of title within the time specified by this section, the purchaser or
transferee has 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 or transferee.
(e) 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.
(f) 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 shall 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.
(g) A dealer shall make payment to a third party to satisfy any
obligation secured by the vehicle within ten (10) days after the date
of sale.
(h) Except as provided in subsection (i), a person who violates this
section commits a Class C infraction.
(i) A person who knowingly or intentionally violates subsection
(a)(1), (a)(2), or (d) commits a Class B misdemeanor.
As added by P.L.92-2013, SEC.78. Amended by P.L.262-2013,
SEC.139; P.L.217-2014, SEC.163.
IC 9-32-4-2
Affidavit form
Sec. 2. The affidavit required by section 1(a)(2)(C) of this chapter
must be printed in the following form:
STATE OF INDIANA
)
) ss:
COUNTY OF _____________ )
I affirm under the penalties for perjury that all of the following are
true:
(1) That I am a dealer licensed under IC 9-32.
(2) That I cannot deliver a valid certificate of title to the retail
purchaser of the vehicle described in paragraph (3) at the time
of sale of the vehicle to the retail purchaser. The identity of the
previous seller or transferor is ___________________. Payoff
of lien was made on (date)_______. I expect to deliver a valid
and transferable certificate of title not later than
(date)_______________ from the State of (state)________ to
the purchaser.
(3) That I will undertake reasonable commercial efforts to
produce the valid certificate of title. The vehicle identification
number is __________________.
Signed _______________________, Dealer
By_________________________________
Dated _____, ____
CUSTOMER ACKNOWLEDGES RECEIPT OF A COPY OF THIS
AFFIDAVIT.
___________________________________
Customer Signature
NOTICE TO THE CUSTOMER
If you do not receive a valid certificate of title within twenty-one
(21) days after the date of sale, you 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 after the vehicle dealer's failure to deliver a valid certificate of
title within that ten (10) day period. Upon return of the vehicle to the
vehicle dealer in the same or similar condition as when it was
delivered to you, the vehicle dealer shall pay you the purchase price
plus sales taxes, finance expenses, insurance expenses, and any other
amount that you paid to the vehicle dealer. If a lien is present on the
previous owner's certificate of title, it is the responsibility of the third
party lienholder to timely deliver the certificate of title in the third
party's possession to the dealer not more than ten (10) business days
after there is no obligation secured by the vehicle. If the dealer's
inability to deliver a valid certificate of title to you within the
above-described ten (10) day period 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, the
dealer may be entitled to claim against the third party the damages
allowed by law.
As added by P.L.92-2013, SEC.78. Amended by P.L.262-2013,
SEC.140.
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