2013 Maryland Code
TRANSPORTATION
§ 13-113 - Transfers to or from dealers or dismantlers or recyclers generally


MD Transp Code § 13-113 (2013) What's This?

§13-113.

(a) If the transferee of a vehicle is a licensed dealer who holds the vehicle for sale, the dealer shall, within 20 days of the date of the transfer to the dealer of the vehicle, obtain the certificate of title of the vehicle, which shall contain an assignment and warranty of title executed by the former owner.

(b) If the transferee of a vehicle is a licensed dealer who holds the vehicle for sale, the dealer shall retain the certificate of title in his possession until the further sale or transfer of ownership of the vehicle.

(c) During business hours, the licensed dealer shall allow any representative of the Administration and any police officer full access to all certificates of title of vehicles held by him for sale.

(d) (1) Except as provided in paragraph (2) of this subsection, if a licensed dealer holds a vehicle for sale and transfers the vehicle to another licensed dealer who holds the vehicle for sale, the transferring dealer, without applying for a new certificate of title, shall:

(i) Execute an assignment of title to the transferee dealer in the manner and on the form that the Administration requires; and

(ii) Include in the assignment a statement certifying each security interest, lien, or other encumbrance on the vehicle.

(2) If the certificate of title held by the transferring dealer does not contain an open dealer reassignment section, the transferring dealer shall apply to the Administration for the issuance of a certificate of title.

(e) (1) If a licensed dealer holds a vehicle for sale and transfers the vehicle to someone other than another licensed dealer who holds the vehicle for sale, the dealer shall:

(i) Execute an assignment and warranty of title to the transferee in the manner and on the form that the Administration requires; and

(ii) Comply with the provisions specified in this subsection.

(2) If the vehicle is a Class A (passenger) vehicle, Class D (motorcycle) vehicle, Class G (trailer) travel trailer or camping trailer, or Class M (multipurpose) vehicle and is to be registered and titled in this State, the transferring dealer shall:

(i) Obtain from the transferee a completed application and collect all taxes and fees required for titling the vehicle; and

(ii) Within 30 days of the date of delivery of the vehicle, send or electronically transmit them, together with every other document or data required by §§ 13-104, 13-104.1, and 13-108.1 of this subtitle, to the Administration.

(3) If the vehicle is to be registered and titled in this State, but is not a Class A (passenger) vehicle, Class D (motorcycle) vehicle, Class G (trailer) travel trailer or camping trailer, or Class M (multipurpose) vehicle, the transferring dealer shall, within 30 days of the delivery of the vehicle, either:

(i) Deliver the certificate of title to the transferee; or

(ii) Send or electronically transmit the transferee’s completed application and all taxes and fees required for titling the vehicle, together with every other document or data required by §§ 13-104, 13-104.1, and 13-108.1 of this subtitle, to the Administration.

(4) If the vehicle is not to be titled in this State and is to be registered in another state, the transferring dealer shall deliver the certificate of title to the transferee within 30 days of delivery of the vehicle.

(f) (1) Notwithstanding any other provisions to the contrary, an automotive dismantler or recycler licensed under Title 15 of this article may transfer a vehicle that he owns, regardless of the type of ownership document issued for the vehicle, to another licensed automotive dismantler or recycler or to a licensed dealer, without applying for a new certificate of title, as provided in this subsection.

(2) The automotive dismantler or recycler shall:

(i) Execute an assignment of title to the transferee automotive dismantler or recycler or dealer in the manner and on the form that the Administration requires; and

(ii) Include in the assignment a statement certifying each security interest, lien, or other encumbrances on the vehicle.

(g) If an automotive dismantler or recycler licensed under Title 15 of this article owns a vehicle declared as salvage and if a salvage certificate has been issued for the vehicle under §§ 13-506 and 13-507 of this title, the automotive dismantler or recycler may transfer the vehicle to any person, without applying for a new certificate of title, by executing an assignment of ownership on the salvage certificate or on the form that the Administration otherwise requires.

§ 13-113 - 1. Transfers of new vehicles to and from dealers -- In general

(a) General rule. -- At the time that any manufacturer or distributor transfers a new vehicle to a dealer, the manufacturer or distributor shall give the dealer a manufacturer's certificate of origin for the vehicle.

(b) Assignment of manufacturer's certificates. -- At the time that any dealer transfers a new vehicle to another dealer, the transferring dealer shall assign the manufacturer's certificate of origin for the vehicle to the transferee.

(c) In-State dealer franchise required -- Transfer of new vehicle. -- Unless each of the dealers has a franchise in this State for the particular make of a vehicle, a dealer may not transfer a new vehicle to another dealer.

(d) In-State dealer franchise require -- Acceptance of transfer of new vehicle. -- Unless each of the dealers has a franchise in this State for the particular make of a vehicle, a dealer may not accept a transfer of a new vehicle from another dealer.

§ 13-113 - 2. Transfers of new vehicles to and from dealers -- Two-stage vehicles

(a) Definitions. --

(1) In this section the following words have the meanings indicated.

(2) "Completed vehicle" means a two-stage vehicle that does not require any additional manufacturing operation to perform its intended function, except for the addition of readily attachable components or minor finishing operations.

(3) "First-stage manufacturer" means:

(i) Any person who manufactures an incomplete vehicle;

(ii) Any person who distributes an incomplete vehicle of that manufacturer; and

(iii) Any dealer who has a franchise for the particular make of the incomplete vehicle of that manufacturer.

(4) "Incomplete vehicle" means an assemblage that:

(i) Consists of at least a frame and chassis structure, power train, steering system, and braking system, to the extent that those systems are to be a part of the completed vehicle; and

(ii) Requires additional manufacturing operations, other than the addition of readily attachable components or minor finishing operations, to become a completed vehicle.

(5) "Minor finishing operations" includes painting, upholstering, or other cosmetic modifications.

(6) "Readily attachable components" includes any mirror, extra light, or tire and rim assembly.

(7) "Second-stage manufacturer" means:

(i) A person who performs manufacturing operations on an incomplete vehicle so that it becomes a completed vehicle; and

(ii) Any person who distributes a completed vehicle of that manufacturer.

(8) "Two-stage vehicle" means a motor vehicle that requires manufacturing operations performed by two separate manufacturers to produce a completed vehicle capable of performing its intended function.

(b) Transfers by manufacturers -- In general. -- Transfers of two-stage vehicles by manufacturers shall be made as provided in subsections (c) and (d) of this section.

(c) Transfers by manufacturers -- Transfers from first-stage manufacturers to second-stage manufacturers. -- At the time that any first-stage manufacturer transfers to a second-stage manufacturer a new incomplete vehicle that is to be sold or registered in this State, the first-stage manufacturer shall give the second-stage manufacturer a manufacturer's certificate of origin for the incomplete vehicle, assigned to the second-stage manufacturer by the first-stage manufacturer.

(d) Transfers by manufacturers -- Transfers from second-stage manufacturers to dealers. -- At the time that any second-stage manufacturer transfers to a dealer a new completed vehicle that is to be sold or registered in this State, the second-stage manufacturer shall give the dealer the manufacturer's certificates of origin issued by both the second-stage manufacturer and the first-stage manufacturer and assigned to the dealer by the second-stage manufacturer.

(e) Transfers by dealers -- In general. -- Transfers of new completed vehicles by dealers shall be made as provided in subsections (f), (g), and (h) of this section.

(f) Transfers by dealers -- In-State franchise required. -- Each dealer who holds a new completed vehicle for sale shall have a franchise in this State for the particular make of at least one stage of that vehicle.

(g) Certain transfers without certificates permitted -- In general. -- If the dealer's franchise is for the make of only the first stage of the completed vehicle, the dealer may transfer the vehicle, without obtaining a certificate of title, by executing an assignment and warranty of title accompanied by the certificates of origin issued by the first-stage manufacturer and the second-stage manufacturer.

(h) Certain transfers without certificates permitted -- Franchise for make of second stage of completed vehicle. -- If the dealer's franchise is for the make of only the second stage of the completed vehicle, the dealer may transfer the vehicle, without obtaining a certificate of title, by executing an assignment and warranty of title accompanied by the certificates of origin issued by the first-stage manufacturer and the second-stage manufacturer, if the certificate of origin issued by the first-stage manufacturer is assigned to the second-stage manufacturer.

(i) Notice in contract of sale for completed vehicle. -- A dealer shall include in a contract for sale of a completed vehicle a notice in writing of:

(1) The make and year of the first stage; and

(2) The make, model, and year of the second stage.

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