2006 Code of Virginia § 46.2-1542 - Temporary registration

46.2-1542. Temporary registration.

A. Notwithstanding 46.2-617 and 46.2-628, whenever a dealer licensed bythe Board sells or conditionally sells and delivers to a purchaser a motorvehicle, the dealer may issue temporary license plates and a certificate oftemporary registration. The temporary license plates and the certificates fortemporary registration shall be obtained from the Commissioner or may beprinted according to terms set by the Commissioner and may be issued if (i)the dealer has the title or the certificate of origin for the vehicle or (ii)is unable at the time of the sale to deliver to the purchaser the certificateof title or certificate of origin for the vehicle because the certificate oftitle or certificate of origin is lost or is being detained by another inpossession or for any other reason beyond the dealer's control. The temporaryregistration certificate shall bear its date of issuance, the name andaddress of the purchaser, the identification number of the vehicle, theregistration number to be used temporarily on the vehicle, the name of thestate in which the vehicle is to be registered, the name and address of theperson from whom the dealer acquired the vehicle, and whatever otherinformation may be required by the Commissioner. A copy of the temporaryregistration certificate and a bona fide buyer's order shall be delivered tothe purchaser and shall be in the possession of the purchaser at all timeswhen operating the vehicle. One copy of the certificate shall be retained bythe dealer, which copy may be retained in electronic format under terms setby the Commissioner, and shall be subject to inspection at any time by theDepartment's agents. The original of the certificate shall be forwarded bythe dealer to the Department directly on issuance to the purchaser if thevehicle is to be titled outside the Commonwealth, along with the physical orelectronic application for title. The issuance of a temporary certificate ofregistration to a purchaser pursuant to this section shall have the effect ofvesting sufficient interest in the vehicle in the purchaser for the periodthat the certificate remains effective for purposes of allowing the purchaser(a) to obtain and provide insurance coverage for the vehicle, including butnot limited to insurance indemnifying the purchaser against liability orproviding for recovery for damage to or loss of the vehicle and (b) tooperate the vehicle as if the purchaser had full rights of ownership, allsubject to cancellation by applicable law or agreement between the dealer andthe purchaser prior to the time the dealer submits an application for titlealong with all required fees.

B. A temporary certificate of registration issued by a dealer to a purchaserpursuant to this section shall expire when the certificate of title to thevehicle is issued by the Department in the name of the purchaser and thepermanent license plates have been affixed to the vehicle, but in no eventshall any temporary certificate of registration issued under this section beeffective for more than thirty days from the date of its issuance. In theevent that the dealer fails to produce the old certificate of title orcertificate of origin to the vehicle or fails to apply for a replacementcertificate of title pursuant to 46.2-632, thereby preventing delivery tothe Department or purchaser before the expiration of the temporarycertificate of registration, the purchaser's temporary rights may terminateand the purchaser shall have the right to return the vehicle to the dealerand obtain a full refund of all payments made toward the purchase of thevehicle, provided the purchaser provides notice to the dealer of a decisionto return the vehicle before issuance of a title for the vehicle by theDepartment, less any damage to the vehicle incurred while ownership wasvested in the purchaser, and less a reasonable amount for use not to exceedone-half the amount allowed per mile by the Internal Revenue Service, asprovided by regulation, revenue procedure, or revenue ruling promulgatedpursuant to 162 of the Internal Revenue Code, for use of a personal vehiclefor business purposes.

C. Notwithstanding subsection B of this section, if the dealer fails todeliver the certificate of title or certificate of origin to the purchaserwithin thirty days, a second temporary certificate of registration may beissued. However, the dealer shall, not later than the expiration of the firsttemporary certificate, deliver to the Department an application for title,copy of the bill of sale, all required fees and a written statement of factsdescribing the dealer's efforts to secure the certificate of title orcertificate of origin to the vehicle. On receipt of the title applicationwith attachments as described herein, the Department shall record thepurchaser's rights hereunder to the vehicle and may authorize the dealer toissue a second thirty-day temporary certificate of registration. If thedealer does not produce the certificate of title or certificate of origin tothe vehicle before the expiration of the second temporary certificate, thepurchaser's rights to the vehicle under this section may terminate and heshall have the right to return the vehicle as provided in subsection B ofthis section.

D. If the dealer is unable to produce the certificate of title or certificateof origin to the vehicle within the sixty-day period from the date ofissuance of the first temporary certificate, the Department may extendtemporary registration for an additional period of up to ninety days,provided the dealer makes application in the format required by theDepartment. If the dealer does not produce the certificate of title orcertificate of origin to the vehicle before the expiration of the additionalninety-day period, the purchaser's rights hereunder to the vehicle mayterminate and he shall have the right to return the vehicle as provided insubsection B of this section.

E. The Commissioner, on determining that the provisions of this section orthe directions of the Department are not being complied with by a dealer, maysuspend, after a hearing, the right of the dealer to issue temporarycertificates of registration.

(1988, c. 865, 46.1-550.5:1; 1989, cc. 364, 727; 1995, cc. 767, 816; 2006,cc. 835, 897.)