Consequences of Canceling the Vermont Title LoopholeWell, it’s been about 6 months since the famous Vermont title loophole has been cancelled and banned by the state of Vermont and the other states so what have been the consequences and the Fallout from all this with vehicle titles look thousands of people every day purchase Vehicles without titles and they need a title solution for many years the Vermont loophole has been a go-to fix for that problem but at the same time it’s also been under Fire.
Awareness of Alternatives: Court Ordered TitlesIf you’ve been watching our Channel for the last few years you’ve seen us talk about the fact that this thing was going to go away we knew it even 5 years ago now that it’s gone what do you do what we have seen is the most powerful title loophole as an alternative to the Vermont process is now becoming much more publicized for example the court ordered title process which is eligible in all 50 states used to be that you could only find it on two counties website in the whole country and there are 3,611 counties in the country up until this year only two of them had something on their website about a court order title in fact if you walked into most County cour houses and talked to the clerk and said hey I want to do a court ordered car title they would not know what you’re talking about right.
Increasing Availability of Court Ordered TitlesWe’ve been doing court order titles for 7 eight years but most count didn’t know about it and it’s fair because most counties also don’t know about a dog bite lawsuit right it’s not a a name that they give to a process it’s a type of case that they do in their court but here’s the thing now that the Vermont loophole is cancelled and banned what you’re finding is more and more courts and every day we’re finding more here is one from Le County Pennsylvania here is one from uh IND in Minnesota right instruct instruction guide for a court order title here is one from Indiana court order title application um here is one from also from Pennsylvania inv voluntary transfer of a vehicle in that particular County so here’s the thing this is the way that the government wants you to get a title now just saying that means a lot of people aren’t going to want to do it that way most people want to do it their own way.
Advantages of Court Ordered TitlesBut even when the Vermont process was available this court order Ty actually had some advantages first of all the state of Vermont charged you sales tax on the full book value of the vehicle didn’t matter what you paid for it second of all you had to wait for the Vermont to process of registration get a license plate then take that to your state to exchange for a title A lot of times people didn’t do step two because they figured well I already got a license plate and I’ll drive around on it but that’s going to come back to haunt you because when you do go to switch it over to your state they’re going to see that you did drive around on it cuz a look at the date and they’ll penalize you the court order title bypasses all that you just go to the court you get a judgment of ownership you bring that to your DMV or dot whatever organization in your state gives titles smack it on the counter and they give you a title so the Fallout from this is because of the fact that now um Vermont is not available more and more counties are more familiar so they’re streamlining the process it’s making an easier process so on our website you’ll see instructions for how to do a core order title of course we have Title Service if you want some assistance with it but it’s the way to go it’s even better than a bonded title because on a bonded title you have to purchase a shity bond from a Bonding Agency that’s going to be 1.5 times the value of the vehicle in Most states then you have to submit it to the DMV for them to approve it at the court level once you get that petition you bring it to the DMV and they accept it you want to make sure though that you get all your paperwork right because if you see even on this fact sheet from Pennsylvania it says pendot which is their version of DMV will not offer legal advice regarding a court order title so they can’t help you the DMV in some respects can help you with paperwork the court cannot help you because that’s considered legal advice so make sure you have all your ducks in a row all your paperwork right you know most of the counties have a a big time um checklist you know this one is I don’t know 11 pages long with all their instructions and you could walk through it and do it all yourself right all the different steps but if you want help you can have that made available to you.
Conclusion: Benefits of Court Ordered TitlesThe good news from the Vermont loophole for title being shut down is that now everybody is doing the court order title which is much more powerful it’s a clean title unlike a bonded title you don’t have the word bonded stamped on your title you’re not jumping around all different states to get titles from this state and then switching it to another state worrying about insurance you’re doing it the way that is the most powerful you’re going over the head of the DMV so after 6 months we’re seeing that just like all things it works out in the long run in the best for consumers and people getting titles for their vehicles.
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Title and Vehicle Ownership:So how does it work if you’re buying a car and not getting a title from the seller? You know, a title is a legal government document issued only by government agency. You’ve seen them before; it’s a certificate that looks like this and that proves that you are the owner of the vehicle that the last title owner sold it to you; they transferred it to you.
Considerations Before Purchase:If you don’t have that and the seller doesn’t have one to give you, you need to think very carefully about that purchase. Because there’s a chance that you could buy that car and never get a title. You need to first ask the seller why they do not have a legal title document to give you when you give them the money.
Risks and Legal Ownership:If they’re the legal owner and they just lost it, they can get a duplicate real simple. If they’re not the legal owner, now you’re buying a car from somebody who’s not legally the owner; that could put you at risk. We always recommend that before you buy a car without a title, that you really think twice about: are you willing to put that money at risk?
Potential Issues with Title Acquisition:Most of the time, it’ll work out and you can get a bill of sale and get a title, but 20-30% of the time, you may never get a title for that vehicle. It could turn out that it has a lien on it, has back taxes, it’s a salvage, it’s parts only, or it could just turn out that the process you would need to do to get a title without having a valid certificate is too hard or too costly or takes too long and you just don’t want to do it.
Additional Claims and Considerations:There may also be other claims against the vehicle like a probate case or maybe a UCC against the vehicle that could also block the title transfer. So just because you’re getting a bill of sale doesn’t automatically mean you’re going to get a title.
Government Authority on Titles:Most of the time it does, but the government is the ultimate decider of titles. A title is a legal government document issued only by a government agency. You can’t buy one from a company; you can’t download one from the internet. It only happens after the government decides that you are legally entitled to be the owner of that vehicle.
Challenges Without a Title:And if you don’t have the title certificate that proves that, they’re going to make you jump through a lot of hoops. Now, there’s ways to make it easier; our website will give you instructions on how you can make that process easier, and we also have a title server so we could do that as well. But we never recommend buying a vehicle without a title unless you’re willing to take the risk with the money you’re paying for that car.
Title Transfer on Salvage VehiclesSo how do you transfer a title on a salvage vehicle? Well, here’s the good news and bad news. If you have a salvage title vehicle and you actually have the salvage title document, it’s a pretty straightforward process just like any other title transfer.
Seller Transfer and Application ProcessThe seller of the vehicle, which is normally going to be an insurance company if you bought it through Copart or IAA, will have signed it over to you on the back as the new owner. You apply for a new title just like you would with any other type of title, but with a salvage vehicle, there’s an additional step.
Inspection RequirementThe vehicle has to be inspected before a new title is issued. They’ll arrange for you to have an inspection done to ensure it’s safe for the road. A salvage title by definition is one that had an insurance claim paid, so they need to verify everything’s in order.
Documenting RepairsIf you’ve had to make repairs to the vehicle, keep your receipts. They’ll likely verify your repairs with receipts for parts at the time of the inspection. It’s part of ensuring the vehicle meets safety standards.
Challenges without TitleNow, if you don’t have the title—meaning you bought it from Copart or a seller who didn’t provide it—it gets more complicated. You usually need the old title to apply for a new one and get an inspection. Without it, you might need legal or administrative steps to proceed.
Alternative Steps and AssistanceIn that case, you may have to get a court order, contact the prior owner, or even the insurance company for a duplicate. Our website provides instructions on these processes, and we offer title services that can assist you through these challenges.
Ensuring Road SafetyA salvage title transfer is similar to any other title transfer, but it includes verifying the vehicle’s condition through an inspection. This ensures that nothing about its history makes it unsafe for the road. Inspections are thorough to prevent unsafe vehicles from being on the road.
Stringent Inspection ProcessInspectors are meticulous. Even if the vehicle looks fine to you, they’ll verify its condition to ensure it meets safety standards. This diligence ensures road safety and compliance with regulations.
So you can you find out the name of the owner of a vehicle by the VIN number or the license plate number the short answer is yes and no. I know that’s out of the answer, here’s how it works.
Vehicle Ownership ProtectionVehicle ownership information is protected under federal law from being revealed to third parties. It’s called the Driver’s Privacy Protection Act or DPPA.
Exceptions to ProtectionNow there are exceptions to that protection where you may be able to get that ownership. First of all, you’re not going to get it on Carfax or VIN check or any of these online VIN checkers. First of all, those are all illegitimate anyway, so all you’re going to get on there is maybe the state that it was last titled in and whether or not it’s a salvage.
Inaccuracy of Online CheckersEven then, we find many of those are incomplete. We’ve seen many vehicles that have a clean Carfax and it turns out it’s salvage, or that has no records on some VIN checker website and it turns out it’s reported stolen or has liens. Those online checkers are usually not 100% accurate. It’ll even say in their terms and conditions.
How to Get Accurate InformationSo if you want 100% certainty on what the background of a vehicle is, here’s how to do it and also how to get the owner’s name. What you do is you prepare a document called a DPPA request form. It stands for Driver Privacy Protection Act. It’s the form that allows the state government to release that private ownership information to you under certain conditions.
Filling Out the DPPA Request FormYou have to check off a box saying why you’re using it. Make sure you’re not using it for any kind of identity theft or fraud or scams, and also that you have to show your identity. The reason they have that protection law is because they don’t want people just looking up owners of a vehicle and then going knocking on their door of their house and bothering them.
History of the Protection LawMany times in the past, when this vehicle information was more readily available back in the ’70s and ’80s, people would write down a license plate or a VIN tag from a parking lot if they saw somebody driving bad, or maybe they cut them off in traffic, or maybe they were stalking them. Then they would go knock on the door and beat them up.
Famous Case Leading to LawThere was a famous case in California where there was an actress that had a stalker. The stalker wrote down their VIN tag from their dashboard, went to the door, and killed this woman. So they made laws to protect your privacy, and this helps you too. You don’t want somebody that just maybe thought you were driving bad and cut them off in traffic to write down your license plate or follow you to a parking lot and write down your VIN tag, and then they come knocking on your door and hit you in the head with a bat.
Importance of the LawSo these laws are there for a reason. But if you identify yourself properly, give a proper reason for wanting this information, you have to do it in formal channels. You can’t do it over the phone or by email or online. You have to sign a document, get it notarized, mail it to the DMV headquarters in your state, and they will mail you back a printout of that title record.
Limitations of RecordsThe only exception is if the title record is more than 7 or 10 years old, depending on the state. It may be purged from the system, so they may have no record at all. But it’s worth a try, and that way you can find out the prior owner if you want to try to contact them or get a title transfer done.
Handling Liens and Stolen VehiclesThe same holds true for things like liens and storage or liens and stolen vehicles. You request that using that DPPA form or go to your police department for stolen. They can’t look up liens or the owner’s name, but they can tell you if the vehicle’s stolen or not.
ConclusionThose are the ways to legitimately get vehicle information. You’re not going to get it by some online thing or by just punching in a VIN number on Google.
Filing for a Storage Lien on a VehicleSo how do you file for a storage lien on a vehicle or storage abandonment on a vehicle? Well, be careful because in most states you are not allowed to file for a storage lien or collect storage even on a vehicle unless you are a licensed automotive facility and you have written authorization for that storage. Towing companies are exempt if you’re a licensed towing company and you have verification that the tow was done properly either by a police request or from private property with a signed contract from the property owner.
Exemptions and RestrictionsThere may be exceptions to the storage exemption, but if you’re just a private person, civilian type person, you’re not allowed to just randomly make up storage fees to claim a vehicle. You also don’t want to call a vehicle an abandoned vehicle. In most states, abandoned doesn’t mean finders keepers; it doesn’t mean you get to keep the vehicle. You have to surrender it to the state for them to auction it off.
Proper Channels for Vehicle TitleHowever, if you have a vehicle you’re trying to get a title for, the way to do it is not abandoned vehicle or storage lien unless you are a licensed automotive facility that has a signed repair order authorization from the customer. The best way to do it is to do a court order title. You file a petition with the court to have you be declared the owner of the vehicle by court order. The court order supersedes any DMV rule, so if you have the right story and you’re legitimately entitled to own the vehicle, the court will sign off on that petition.
The Court Order Title ProcessYou bring that to the DMV, slap it on the counter, and it’ll give you a title. If you’re trying to kind of backdoor sketchy claim some vehicle that really you shouldn’t be having, don’t bother because it’s not going to work. But if you purchased a vehicle, acquired a vehicle, were given a vehicle, something was left on your property, the way to do it proper channels is to go through the court order process. That way, first of all, it will work because the DMV won’t reject it, and number two, it will verify your story that you’re entitled to the vehicle and it’ll make it completely legitimate.
Avoiding Invalid ClaimsIf you try to fudge up or kind of make up some paperwork to do an abandonment or mechanic’s lien or maybe a storage lien that’s not true, eventually it’ll come out and haunt you because they audit all of those even after they issue the title. Many titles have been revoked after the fact because they found that the story or the paperwork was invalid. So, court order title is the way to go. More information on our website at cartitles.com.
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