Title Replacement in ConnecticutToday we’re going to talk about some of the details for title replacement in the state of Connecticut. Connecticut has a form which allows for a duplicate title to be combined with a transfer of ownership. So if you’re purchasing a vehicle or have purchased a vehicle and the prior owner doesn’t have the title, they can actually request a duplicate to be issued in your name at the same time. That’s a form H-6B. So that’s a good thing in Connecticut; you can do two things simultaneously.
Lien Release for VehiclesIf you have a vehicle that has had a lien on it, you need a lien release. If the vehicle is more than ten years old or the lien is more than ten years old, you can use an H-115 form to release that lien. That way, you don’t have to have a specific document from the lien holder.
Transferring Ownership for Older VehiclesIf the car is more than ten years old, there doesn’t need to be a title. You can use a Q1 transfer form to transfer the ownership of the vehicle. In Connecticut, their DMV headquarters is in Wethersfield. That’s the best place to go; they’ll have the most comprehensive understanding of some of these rules.
Sales and Use Tax in ConnecticutIf you have a vehicle that has some missing documentation, be aware that Connecticut has a sales and use tax. So anytime a vehicle is transferred, there’s tax due. Jumping titles or skipping titles may be a way to avoid that tax, but it could catch up with you because Connecticut will audit those transfers to make sure they get their taxes.
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This is Dave at cartitles.com. In order to get a title in your name, you may have availability to use the bonded title process.
Bonded Title ProcessWhat that entails is purchasing a bond, which is a form of insurance policy, from a private company, an insurance company, and then presenting that to the DMV. They’ll use that guarantee in order to issue you a title.
Documentation RequirementsBe aware that the bonding company will also require certain documents. They’re going to need to approve that scenario. If you do not have sufficient documentation or a scenario of how you got the vehicle, the bonding company doesn’t have to issue you that insurance policy. They can reject it just like the DMV can, so make sure you collect all the documentation you can prior to approaching that bonding company.
State SpecificsAlso be aware that it is state specific. Some states allow bonded titles, some don’t. If you get a bonded title in a state that allows it and then attempt to bring that vehicle to a state that doesn’t recognize a bonded title, you may have an issue.
Bond Stamp DurationAlso be aware that that bond stamp will remain on the title for a certain period of time. It may be three years or five years; depends on the state, depends on the year of the vehicle. So make sure if you need to do something like finance a vehicle or sell it where that bonding stamp could be an issue, that you take that into account.
So how do you get a duplicate title for your car in Arizona? This is Dave at cartitles.com.
Cost and Submission MethodsIt only costs four dollars to get a replacement title. You can either mail the document to Phoenix, or there are some third-party locations where you can go in person all around the state to submit that form.
Lien Release RequirementsIf there’s a lien release or if there’s a lien on the vehicle, you’ll either need a lien release, or they’ll send the title duplicate to the lender and then they’ll send it to you if you pay off the loan.
Processing TimeThere’s a very fast ETA on these Phoenix duplicate titles in Arizona. If you go to the state office in person or if you send it by mail, they’ll turn it around in five days and send it back to you. So in addition to mailing time, it’s less than a week to get your title.
ConclusionSo, Arizona is a great place to get a duplicate title—four bucks and it comes back to you very quickly.
So what if you have a vehicle that has no title? Well, in every case of a vehicle, there is a title for the car. It may not be in your hands or may not be in your name. It may have been lost, but there is a title for every vehicle.
Methods to Obtain TitleNow, the first thing to look at is are there methods to get the title in your name? Because that’s what you want, right? You want to get the title in your name. Whether it’s from another state that has lacks or lower documentation requirements, sometimes there are title agents that will require them to transfer the car to you and then they transfer it back.
Sales Tax LiabilityBe aware that that might trigger a sales tax liability and even open up the door for prior skip title sales tax liabilities. You can usually do these things yourself without needing a title agent. The question’s going to be, if you’re skipping titles and you’re opening up sales tax liabilities, what are the ramifications of that? Is there kind of come back and you’re going to get a big tax bill at a later date?
Dealing with Third PartiesAlso, if you’re dealing with any third parties, be aware that if you sign a power of attorney document that gives them free rein to sign anything on your behalf for that vehicle. Now, even though it’s exclusive to just that car, it might give them the leeway to sign something that might not be true. It might allow them to sign an affidavit that says this car was an abandoned vehicle or this car had some process happened to it. If that didn’t happen, it’s just like you signed that document under oath.
ConclusionSo be aware that the third party, they just want to collect their title fees and get you whatever title they can. They may not do it the exact legal way, and if they’re under power of attorney for your name, that might come back to haunt you.
So if you have a lost car title and you need to do lien mitigation what is the process for doing that well lien mitigation means that there’s an open loan on the vehicle not that just there’s a lien recorded on title but there’s actually a loan money owed on that car.
Identifying Non-Performing LoansThe loan balance balance exists with the lender meaning that they’re looking to collect money it’s usually a non-performing loan meaning that the payments have not been paid for some period of time.
Potential ScenariosFor example if you purchase a vehicle from somebody and you’ve discovered there’s a loan on it that person probably wasn’t paying their payments up until the day they sold it to you that’s probably why they sold it because they weren’t paying their payments it may even be out for repo if that’s the case then that lender is going to be looking to have that account closed before they release the title.
Lien Mitigation ProcessNow if you are not the borrower on that loan or not related to the borrower they will likely do lien mitigation meaning that they’ll settle the amount for lower than face value because they can still collect that money from the actual borrower they just won’t have the vehicle as collateral so contacting them to do lien mitigation is a touchy thing you got to make sure you’re not a related party it’s an arm’s length transaction and understanding what the current status of that loan is will go a long way and figuring out how to get that loan down to a lower amount just the nominal value maybe a hundred or two to get that lien release in most cases the lender doesn’t want the car back they’re not in the car buying and selling business they’re in the lending business so getting the car back and then reselling it is going to be more trouble than it’s worth they just want to make sure that the borrowers aren’t getting away with getting a free car so showing that the documentation demonstrates is an arm’s length transaction goes a long way in doing lien mitigation.
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