2016 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
Transfer of title; sale of motor vehicle without certificate of title;
failure to deliver certificate of title; timely payment to third party
Sec. 1. (a) If a motor vehicle for which a certificate of title has
been issued is sold or if the ownership of the motor 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 that holds the certificate of title must do the
following:
(1) In the case of a sale or transfer between dealers licensed by
this state or another state, deliver the certificate of title within
thirty-one (31) days after the date of the sale or transfer.
(2) Deliver the certificate of title to the purchaser or transferee
within thirty-one (31) days after the date of sale or transfer to
the purchaser or transferee of the motor vehicle, if all the
following conditions exist:
(A) The seller or transferor is a dealer licensed by the state
under this article.
(B) The dealer is not able to deliver the certificate of title at
the time of sale or transfer.
(C) The 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 motor vehicle, including delivery of
a trade-in motor vehicle without hidden or undisclosed
statutory liens.
(3) Keep proof of delivery of the certificate of title with the
dealer records.
(b) A dealer may offer for sale a motor 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 dealer that fails to deliver the certificate of title within the
time specified under subsection (a) 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 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
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transferee has the right to return the motor vehicle to the dealer ten
(10) days after giving the 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
motor vehicle to the dealer in the same or similar condition as
delivered to the purchaser or transferee under this section, the 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. The relief
referenced in this subsection is relief for the purchaser or transferee
only and does not preclude the ability of the division to collect civil
penalties under subsection (c).
(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 motor vehicle. If the
dealer's inability to timely deliver a valid certificate of title results
from the acts or omissions of a third party that 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 that 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 motor vehicle for which a certificate of title has been
issued by another state is sold or delivered, the person selling or
delivering the motor 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 motor vehicle within ten (10) days after the
date of sale.
(h) Except as provided in subsection (i), a person that violates this
section commits a Class C infraction.
(i) A person that knowingly or intentionally violates subsection
(a)(1), (a)(2), or (d) commits a Class B misdemeanor.
(j) For purposes of this section, "deliver the certificate of title"
means to deliver the certificate of title to the purchaser or transferee
by postmark dated mail, certified mail with return receipt, or hand
delivery.
As added by P.L.92-2013, SEC.78. Amended by P.L.262-2013,
SEC.139; P.L.217-2014, SEC.163; P.L.151-2015, SEC.39;
Indiana Code 2016
P.L.174-2016, SEC.48.
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 motor vehicle described in paragraph (3) at the
time of sale of the motor 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 thirty-one (31)
days after the date of sale, you have the right to return the motor
vehicle to the dealer ten (10) days after giving the dealer written
notice demanding delivery of a valid certificate of title and after the
dealer's failure to deliver a valid certificate of title within that ten
(10) day period. Upon return of the motor vehicle to the dealer in the
same or similar condition as when it was delivered to you, the dealer
shall pay you the purchase price plus sales taxes, finance expenses,
insurance expenses, and any other amount that you paid to the 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 motor 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 that has
failed to timely deliver the certificate of title in the third party's
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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; P.L.174-2016, SEC.49.
Indiana Code 2016
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