What Is “Title Jumping”? (Is It Illegal)

Title Jumping Explained
What is title jumping and how is it a problem for you if you’ve purchased a vehicle or you’re trying to sell a vehicle? Well, a title jump is when a vehicle title is signed over and left blank on the back of the title or flip from one person to another without the first buyer getting a new title in their name.

Legal Consequences
There’s a really good article from hot cars about how it can be a serious criminal problem—fines, penalties, and imprisonment. There’s actually people that are in jail for doing title jumping. It’s called the jump title or float title, sometimes called a skip title.

The Illegality of Title Jumping
You buy the car and then sell it without putting it into your name. So first you get an open title, meaning that somebody signs the back it doesn’t fill in the buyer in almost every state. It’s actually a crime to sign a title without writing in the buyer’s name and it’s illegal highly legal in all 50 states according to this article.

Exceptions and Legal Framework
There’s a couple states that allow exceptions for it if there are certain conditions met, talks about here extenuating circumstances somebody’s died or there’s some other scenario but in most cases it’s illegal.

Reasons for Prohibition
The reason for it is because the paper trail looks like the original owner just sold it to the last owner and all the people in between didn’t have any documentation the intermediate buyers were not recorded and that’s a problem because it doesn’t keep track of who owned the vehicle and it also evades taxes and fees.

Curb Stoning and Dealer’s Licenses
Another reason is that there’s some people that try to do what’s called curb stoning where they buy and sell vehicles without getting a dealer’s license so if you’re some person who wants to buy cars from auctions and um flip the car real quick before you put in your name that’s a way to be in a legal dealer.

How Titles Work
Let’s take a look how a title works and what a jump title would look like. Here is the back side of a typical vehicle title and how you would fill that in. First of all as a seller you put your name printed here you sign it there and have it notarized as the buyer you sign it saying you’re acknowledging that the vehicle is transferred to you.

Open Titles and Risks
If you do not sign it or put your name as a buyer this now becomes an open title so anybody could put their name there first of all there’s a risk that if somebody finds this title they can just write their name in and now the owner.

Confiscation and Legal Consequences
However if a person wants to just flip a vehicle and have it signed over to them maybe they’re gonna resell it right away and they don’t have anything written here then they could jump the title or skip the title that creates an illegal act that could create title problems later we talked to a client earlier today actually who went to the dmv with a title that was an open title and the dmv confiscated the title and put a flag on the system that means now the owner who was listed on the front of the title has to come forward and sign some forms before the title be transferred and good luck with that if you’re the buyer getting that owner to come forward because they already have your money so let’s take a look at another example of a title reassignment to see how that might work here’s another example of a reverse side of a title that shows places for reassignment so first it says any.

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How To Block A Title Transfer

Preventing Unauthorized Vehicle Transfers
Did you know that you can put a hold on a vehicle title to keep it from being transferred against your wishes or against your will in California? This is called a courtesy stop request. In some states, they have a different name for it like a title hold or hold request, or sometimes it’s called a stop title.

Process for Requesting a Courtesy Stop
There’s a process for it that you need to go through, and it’s designed to prevent unauthorized transfers of your vehicle. Maybe your vehicle’s been impounded, maybe it’s been towed, and you want to make sure no one gets the title for your vehicle.

Filling out Form REG 500
In California, this form, this courtesy stop request, it’s a one-page form, it’s called REG 500. You put in your requester name, address, the license plate VIN number, make and model, and you check the box saying “I request a vehicle license and title courtesy stop be placed on the vehicle for the following reasons,” and you type in whatever the reasons are.

Legal Considerations and Extensions
You may have to involve the courts. It says here, “Copy the complaint or petition for injunctive relief,” and we’ll talk about that here on this other form momentarily has to be attached to it if it applies. You can also request an extension or you can request removal. And then you sign it.

Sending the Form
You do not have to have it notarized, but you do have to swear that what you’re saying is true, put your license number, and you can print it, keep a copy, and send it to this particular address, attention courtesy stops.

Conclusion
This is the process for California. Again, every state has something similar. In other videos, we’ll talk specifically about other states, but the important thing is to understand this is for preventing an unauthorized transfer of your vehicle.

Ensuring Legal Protection
If you’re afraid that somebody might be looking to improperly take the title out of your name or to put in somebody else’s name or maybe add a lien to the vehicle, maybe you’re afraid that somebody is going to forge your signature on a title or to request a title for a vehicle that somehow is not in your possession.

DMV Stop and Duration
This courtesy stop request going to the DMV automatically stops the DMV from transferring title for 60 days. If you don’t have your injunction or a court order by then, you can get an extension as long as you have a file stamped copy. You’ll still need to officially serve the DMV with the complaint once that happens with the court if it’s a court issue, but you can use this as a method to protect your interest in a vehicle when there’s a risk or a threat or it’s vulnerable to being transferred out of your name or somebody slapping a lien on it or somebody selling it outside of your control.

Real-life Example
We had a client last month where the issue was that they were traveling, they were out of town, and their vehicle they left behind. They traveled by air and they got wind that somebody had moved their vehicle and maybe they had taken the title from their desk where they had it stored and they were wondering if somebody can assign forge their name and put the title in somebody else’s name. So that’s the reason they were interested in doing this courtesy stop request or a title hold to make sure that nobody either accidentally or maliciously was going to take their title and switch it over to another name or put a lien on it where they weren’t able to retain ownership of their vehicle.

Source and Legal Advice
This particular information comes from the Sacramento Public Law Library. Again, there may be legal matters involved with this. One thing they do tell you is make sure you keep insurance on the vehicle. You do not want to let your insurance lapse or cancel it even if the vehicle is not in your possession because any damage you’re not going to get paid for if you don’t have insurance. Any liability that happens with the vehicle, you may want to have protection against with an insurance policy. So get good insurance advice, good legal advice, but there is a method if you’re worried about somebody messing with your title or doing something sketchy with your title that you can stop any title changes using this process.

Final Caution
Again, good legal advice and do this properly to ensure that your vehicle doesn’t end up in the wrong hands and that you cannot access your title records for a vehicle that you legally own.

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DMV Converting From Metal To Electronic License Plates

Here’s a new development in the automotive registration profession. California has become the first state to approve for all vehicles digital license plates.

What is a Digital License Plate?
Well, you normally expect to see a license plate being a piece of metal that’s stamped and painted and put on your car. And that metal plate is provided by the government agency in the state which issues registrations, normally called Department of Motor Vehicles or Department of Transportation.

How Digital Plates Work
California is allowing for digital plates. It’s kind of like a um an e-reader. It’s got that ink on it like you’d read like a a tablet and it’s protected by a piece of glass that’s really strong that you know resists chips or breakage. But it can be programmed with an app so you can change the plate number on your vehicle.

Designed for Corporate Fleets
Now originally this is designed for corporate fleets so if you have a registration and you’re changing it from one state to another. But it also allows for different types of tracking of the vehicle. It can also be changed if the vehicle is reported stolen or if it has some type of violations against it that may show up on the screen.

Privacy Concerns
So what are your thoughts on privacy implications of having a digital license plate? Would you put it on your car? Some other states are looking at I believe Michigan Virginia are also looking at this technology.

Additional Information Display
The big proponent of this or the big reason for doing it is the plate can display information other than a car’s license plate number, meaning that you can put notifications about that vehicle or notifications about the cargo maybe if it’s a commercial vehicle or notifications about the driver if it’s in a fleet.

Long-Term Implications
So what are your thoughts on this and is this something that you think is going to be good in the long run or is it going to create more difficulties for registration and titling of a motor vehicle?

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How To Switch A New VIN Number On A Vehicle

Be very careful with VIN numbers on your vehicle. There’s a crackdown happening because there’s a very high number of VIN switching going on with vehicles. This happens to be a news piece out of Nevada where there is VIN tampering happening on vehicles.

Legal Status of VIN Numbers
What is not known by a lot of people is a VIN number is considered to be a legal document. A VIN number on a vehicle, the primary VIN, is designed to be permanently affixed to that vehicle with tamperproof rivets. If you start switching VIN numbers, moving from one car to another even innocently, maybe you have a car that’s been damaged and you need another VIN number, maybe you need to restore the vehicle and take that VIN tag off, there are federal laws regarding VIN tampering or VIN switching. You’re not supposed to take a VIN number off a car even for a legitimate, seemingly honest reason.

Increased Scrutiny on VIN Alterations
Because of this, a lot of scrutiny is now being placed on any type of VIN alteration. A lot of thieves, and this article is talking about drug cartels, are switching VINs on stolen vehicles. What they do is they get a vehicle that’s stolen, or salvaged, or parts only, or for some reason is not eligible for a title. They go get another VIN number off a clean vehicle, maybe one that’s wrecked, maybe one that they just steal off a car. It’s a lot easier to steal a VIN tag than steal a whole car. So they’ll steal a VIN tag off a car. The owner may not be aware of it for weeks or months because you don’t normally look at your VIN tag. They’ll use that on another vehicle to get a title on a stolen car or a parts-only car, sell it, and make off with the money.

VIN Inspections and Verifications
Because of this, a lot of states are going to VIN inspections and verifications. In addition to looking at the VIN number, they’re looking to see how it’s attached to the vehicle, making sure it’s not just with sheet metal screws or some rivets that aren’t factory. They know how to tell the difference. If you are purchasing a vehicle, have that VIN number inspected. Have the VIN compared to other places on the car. The police know where the hidden VINs are; they can look and make sure that they’re matching with the primary.

Clarification on Terminology
Now, before we get off on a tangent, remember that when we say VIN number, I know that the ‘N’ on VIN stands for number, so VIN number is kind of an oxymoron, but that’s what a lot of people say. The reason it’s said that way is because if you just say VIN, some people don’t know that ‘N’ is number, so they don’t know that it’s a number, they don’t know what a VIN is. So VIN number is kind of a common way to say something even though it’s technically incorrect.

Advice for Buyers and Sellers
If you’re buying a vehicle or selling a vehicle, pay very close attention to that VIN. Make sure it matches, make sure it’s not been altered, and make sure that if you have any reason you need to move a VIN tag from one vehicle to another, you get good legal advice or you get good documentation for how you do that without creating liability for yourself. Technically, it’s a federal crime called VIN tampering.

EVs Are Taking Over New Car Sales

Electric Vehicles Are Gaining Momentum
Okay, electric vehicles are coming on strong. New data from the automotive industry shows that 10 percent of new vehicles sold in 2022 were EVs. It’s a big deal. It’s getting to be more of a critical mass. When it’s one or two percent, that’s kind of a very slim margin, almost a rounding error for the car market. Now that you’re at 10, and presumably 2023 will be higher, electric vehicles are a significant portion of the new cars sold.

Implications for All Drivers
What does that mean for you? Even if you don’t have an electric vehicle, it’s going to change some of the automotive driving experiences and resources in the marketplace. For example, you might see more charging stations at gas stations. Shell Oil has bought up an EV charging company for 169 million. What does that tell you? They may be putting some of these charging stations at gas stations.

Preparing Your Home for EVs
Another thing you might want to do is anytime you’re upgrading something at your house that requires electrical, go ahead and put a charger in your garage. Even if you don’t have an electric vehicle, many times the cost of adding an EV charging circuit, a 220 circuit, is the labor. If you already have an electrician there, or if you’re already moving something around in your garage, adding that charging port, it’s really just a plug, is very minor. The cost of the hardware is very minimal. You can buy, you know, five or six feet of, you know, or number two wire. You can buy the little, um, plug, the 220 plug in a bracket for less than a hundred dollars. The hard part is the labor of hooking it up to your breaker box or your service box. If you have an electrician out already, if you have all the parts, you can even mount it on the wall, run the wire, just leave it dangling. You might be able to have that done cheap.

Future-Proofing Your Property
At some point, you’re going to need it, right? At some point, you’ll have an electric vehicle, or even if you sell your house before you buy one, the next buyer is going to have one. So having that there might be an advantage.

Planning for an EV Future
The other thing you can do is start to look at your usage and your trips to see where are their charging stations. How many miles are you driving? What range do you need? Because electric vehicles are increasing dramatically. Look, 10 percent of the market is a big deal. And if you have a gasoline vehicle, or both of your vehicles are gasoline, starting to anticipate how electric vehicles are going to impact your life is an important thing to do. Because it might help you decide where you’re going to live, what activities you’re going to partake in, and even employment to make sure that it matches the EV future where gasoline vehicles are less common and even in the minority.

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