2006 Code of Virginia § 46.2-1993.35 - Temporary certificates of ownership

46.2-1993.35. Temporary certificates of ownership.

A. Notwithstanding 46.2-617 and 46.2-628, whenever a dealer licensed bythe Department sells and delivers to a purchaser a vehicle and is unable atthe time of the sale to deliver to the purchaser the certificate of title orcertificate of origin for the vehicle because the certificate of title orcertificate of origin is lost or is being detained by another in possessionor for any other reason beyond the dealer's control, the dealer shallexecute, on forms provided by the Commissioner, a temporary certificate ofownership. The 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 temporarycertificate and a bona fide bill of sale shall be delivered to the purchaserand shall be in the possession of the purchaser at all times when operatingthe vehicle. One copy of the certificate shall be retained by the dealer andshall be subject to inspection at any time by the Department's agents. Theoriginal of the certificate shall be forwarded by the dealer to theDepartment directly on issuance to the purchaser if the vehicle is to betitled outside the Commonwealth, along with application for title. Theissuance of a temporary certificate of ownership to a purchaser pursuant tothis section shall have the effect of vesting ownership of the motorcycle inthe purchaser for the period that the certificate remains effective.

B. A temporary certificate of ownership issued by a dealer to a purchaserpursuant to this section shall expire on receipt by the purchaser of acertificate of title to the vehicle issued by the Department in the name ofthe purchaser, but in no event shall any temporary certificate of ownershipissued under this section be effective for more than thirty days from thedate of its issuance. In the event that the dealer fails to produce the oldcertificate of title or certificate of origin to the vehicle or fails toapply for a replacement certificate of title pursuant to 46.2-632, therebypreventing delivery to the Department or purchaser before the expiration ofthe temporary certificate of ownership, the purchaser's ownership of thevehicle may terminate and the purchaser shall have the right to return thevehicle to the dealer and obtain a full refund of all payments made towardthe purchase of the vehicle, less any damage to the vehicle incurred whileownership was vested in the purchaser, and less a reasonable amount for usenot to exceed one-half the amount allowed per mile by the Internal RevenueService, as provided by regulation, revenue procedure, or revenue rulingpromulgated pursuant to 162 of the Internal Revenue Code, for use of apersonal vehicle for 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 ownership 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 ownership of the vehicle and may authorize the dealer to issue asecond thirty-day temporary certificate of ownership. If the dealer does notproduce the certificate of title or certificate of origin to the vehiclebefore the expiration of the second temporary certificate, the purchaser'sownership of the vehicle may terminate and he shall have the right to returnthe vehicle as provided in subsection B of this 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 ownership for an additional period of up to ninety days, providedthe dealer makes application in the format required by the Department. If thedealer does not produce the certificate of title or certificate of origin tothe vehicle before the expiration of the additional ninety-day period, thepurchaser's ownership of the vehicle may terminate and he shall have theright to return the motorcycle as provided in subsection 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,may, after a hearing, suspend the right of the dealer to issue temporarycertificates of ownership.

F. The provisions of this section shall not apply to all-terrain vehicles andoff-road motorcycles.

(1996, cc. 1043, 1052; 2006, c. 896.)