The top five most common vehicle title problems.
Jump to Title IssuesThe first one is a jump-to-title where you have a title for a vehicle that is signed over but the original title owners were two, three, or four owners ago, so you can’t sign that many times on one title, and the prior ownership chain is broken where you don’t have a clear chain of title, and that’s one of the biggest types of problems that we fix.
Liens on vehiclesThe second one is a lien on a vehicle. This is where there’s a bank or lending institution that has a lien recorded on the title. The loan itself might be paid off to zero, or the bank might not have any requirement to pay any more money, but the lien is still recorded with the title records at the DMV. That’s the second most common thing we see when we fix titles.
Damaged DocumentsThe third one is a damaged document. This is when you actually have the title; the legal title document is in hand, but there’s some damage or erasure. Sometimes people cross things out or put white-out, and that voids the title; it’s not usable by the DMV.
Purged RecordsNumber four are purged records. This is when the prior history of that vehicle in the ownership history has been removed from the DMV record that’s been deleted because it’s so old. Some states do it after five years, some are seven, and some are ten. It depends on the age of the car too, but once those records are deleted, it’s very difficult to create a new title history.
Auction Title WoesAnd the last one that we deal with is our auction titles. When a person buys a vehicle from an auction, the auction either doesn’t give the right paperwork or they provide the paperwork, and then it’s damaged or it’s the wrong kind. Sometimes it’s a certificate of destruction, a salvage title, or a rebuild title. In those cases, there’s a lot of legwork to get that squared away. So those are the top five things we see. It’s very likely that one of those applies to you, and that’s why you’re looking to get a title for your vehicle.
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Mechanics Lien ScamSo what are the top three scams that are out there for getting lost replacement titles for vehicles for people the first one is a mechanic’s lien scam this is where a repair shop or body shop tells a client that they can get them a title for their car using a mechanic’s lien well the mechanic’s lien process is supposed to be used by a licensed body shop or repair shop to get a title for a car that somebody brought in for service and they didn’t pick up there are very clear representations have to be signed off on under penalties of perjury and documents have to be notarized in order to get that done when it’s done just to help somebody get a title for the car they already own that’s fraud and incorrect representations are made and it gets them a title that is an incorrect type of title there have been many many cases where law enforcement even at the federal level the u.s. The Secret Service has prosecuted and arrested people for doing fake mechanic’s lien titles, so that scam is still out there. There are companies that advertise on the internet every day to get people’s titles using mechanic’s lien.
Transfer to Agent Scamwhat about transfer to agent this is the second lost car title scam this is where you have to sign over your car to the person getting you title they somehow get a title in their name and then transfer it back to you the question is you have a risk of loss that person owns your car that company owns your car while this is happening you don’t know what type of title washing they’re doing behind the scenes and there’s a paper trail of that ownership you are signing the titles of that person now you don’t know what happens for a while and now it’s signed over back to you if anything ever comes up behind that illegal method of getting a title it’s going to show that you had it then it was blindly transferring out of your name and then comes back to you who are they gonna be looking at for the person who did that scam and it’s probably going to be you.
Unlicensed Title Agent Scamthe third way is an unlicensed title agent these are fly-by-night work-at-home type title people who are unaware of legal requirements they have no license they have no physical location you don’t have any recourse if there’s fraud or error or something done improperly and usually be that they’re not licensed meaning they’re using improper methods to get you your title that’s way to that to eliminate that is to look for a place that has a physical address as not just an online company and you can talk to somebody maybe walk in the door meet him in person and make sure they’re aware of all the legal requirements those three car title scams are costing people tens of thousands of dollars for getting titles or on lay where titles get revoked and are not kept valid and sometimes people have legal or criminal consequences because of these car title scams.
Dealing with salvage titles and vehicle inspectionsDo you have a salvage title for a vehicle that’s causing problems with your plans for that car? One thing you may run into is that you may need a vehicle inspection in order to get a new salvage title in your name. Sometimes those that require that inspection need the vehicle to be repaired up to their standards before that inspection happens. The problem is that if it’s not in your name and you spend all this money and it fails inspection, then you’re out all that money. So keep the receipts for any major component parts that you put on that car.
Importance of Documenting PartsHere’s why: When that car is inspected, they’re going to look at all the new parts that were put on. If you put on a front clip, an engine, transmission, axle—anything that’s what’s called a major component part—needs to be documented as to where that came from. If you purchased it new from a manufacturer or dealer, you need to have a receipt showing you bought a new fender. If you purchased it, which is more likely a used part from a junkyard or salvage yard, that salvage yard needs to give you the VIN number of the car that it came from.
Preventing Auto TheftIn most states, the government is preventing auto theft from taking parts off stolen cars to fix a salvage car. So you have to have the VIN number of the source of that major component part. So keep those receipts. Don’t try to jump states to wash their salvage off the title, meaning don’t try to use other states registrations to erase the salvage title. There’s a national database, and at some point it’ll catch up to that car, and if you’re the one who transferred it from one state to another, it’s going to tie into you, and you’re going to have legal consequences for that.
Rebuilt Titles and Certificate of DestructionSometimes, when a salvage title has been inspected and cleared, it becomes a rebuilt title. It can still have a brand on the title and a stamp on it, but it may not be salvaged. Be aware that if you have a certificate of destruction, that is not the same as a salvage title. That is like a death certificate for a car. Once that certificate of destruction or COD has been issued, that VIN number is now extinguished and can no longer be used as a vehicle for the road, no matter what you do to repair it or what kind of inspection you get.
Title Chain IssuesMotorcycles are more likely to need a lost title because there’s more frequently a gap in the title chain meaning that motorcycles aren’t always on the road in most parts of the country they can only be used about half the year so having a motorcycle off the road means that’s all that more time that the title can get lost that it’s not being transferred that the ownership isn’t being maintained sometimes a bike can be off the road for two or three years it’s also not what’s called an essential vehicle because it can’t be used year-round it’s not somebody’s primary vehicle in most cases so a lot of times these bikes will sit in a garage sit in a backyard sit in storage for years and then somebody will sell it during that time the title chain can be broken there’s also easier DMV rules for titling motorcycles so if you do have a motorcycle with a loss title the DMV rules are a lot more lacs to get you a title than it is for more expensive vehicle.
Starting with what you haveSo start with what you have: do you have a bill of sale? Do you have the owner’s name? Do you have the VIN number? Start with what you have and then work forward to build on things you don’t have, but don’t take any shortcuts. Title applications are legal documents that have to be done the right way.
DIY Title ApplicationYou can do it yourself very inexpensively you don’t have to pay a lot of money you don’t have to hire a person you can do all this stuff yourself in fact for most motorcycles that are older than 15 years you can actually get a legal title ownership application document from Vermont it doesn’t matter where you live doesn’t matter what state you’re in doesn’t matter where the bike is you can get a Vermont registration title and then convert it to your state very easy to do we’ve done other videos on this in the past so motorcycles are actually very easy although a lot of times the title chain has been broken for a longer period of time so that may start you out with a little more work to do but remember you can do it yourself and nobody needs to charge you money to do this for you.
Exporting Vehicles and Title RequirementsIf you’re looking for a title for your vehicle, it may be because you’re wanting to export the vehicle, and the export process requires that you present a title or other ownership documents. The export requirements are often different from the requirements for getting a new title.
Differing Requirements for ExportIn fact, the DMV has different requirements than things like customs, freight forwarders, or other government agencies that restrict the export of vehicles. One thing to look at is: are you the shipper or the owner? If you’re the owner of the vehicle, that means the title is in your name. If you are the shipper or the shipping company, sometimes you may not be the owner but are shipping the vehicle at the owner’s request. Those are two different things, and the documentation might be different, or you might need the owner to become involved if you’re the shipper.
Case Study: Insufficient DocumentationWe had a case today where we talked to somebody on the phone who actually had a vehicle that was in the US that had been shipped back from China. They tried to ship it from here to China. It made it on the boat from the US, got to China, and the Chinese government would not let it come off the boat because the documentation was insufficient. So it had to come all the way back, come off the boat, and now it’s back in the US pending title clarification and the right documents.
Preparing Before Going to the PortMake sure you fix these problems before you even go to the port. Even if you have the vehicle not on the boat, if it’s at the port waiting for you to fix a title, it’s costing money for storage at the port. You also don’t have control of the vehicle. It can get damaged if it sits for three months without being started or run. It could have other mechanical problems. So make sure you have all the title paperwork cleared up, correct, and in your hands before you even bring it to the port facility.
Customs and title requirementsCustoms is your first obstacle. Even if you try to ship a car as parts only without a title, customs will get involved with a vehicle or even major component parts of a vehicle because they’re trying to prevent stolen vehicles and stolen parts from being exported where you may not need the same type of titling requirements.
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