Kentucky Title Reference Guide

Transcription

1 Kentucky Title Reference Guide The IAA Vehicle Alternate Method of Disposal Guide is a proprietary document prepared solely for internal use by Insurance Auto Auctions, Inc., its subsidiaries and affiliated entities ( IAA ). No part of this document is to be photocopied, reproduced, stored in a retrieval system, transmitted electronically, or disclosed to a third party without prior written consent of Diversified Services Administration or IAA Executive Management.

2 Table of Contents Contact Information... 3 Title and Disposal Information... 4 Standard Title Processing... 4 DMV Title Fees... 4 Duplicate Title... 5 Other Information... 5 Deceased Owner Requirements... 5 Name Changes... 5 Owner Retained... 5 Un-Recovered Theft... 5 Alternate Disposal... 5 State Guidelines... 6 Title Requirements by Vehicle Type... 6 Title Branding Guidelines... 7 Determining the Correct Title Type... 8 Frequently Asked Questions... 9 Is a copy of the written estimate needed to process the title?... 9 What type of PoA is required if the title is not signed?... 9 What is required to correct a mistake that is made by the owner on the back of the title?... 9 Does the Lienholder hold the title in Kentucky?... 9 What paperwork is required when an owner is deceased?... 9 What do I do if the insured cannot locate the title?... 9 What if my insured s name is different than on the face of the title?... 9 Example Documents Kentucky Title (Front) Kentucky Title (Back) Glossary Index Page 2

3 Please note - This document is intended to cover most requirements for obtaining a negotiable, lien-free title. It is not intended to replace motor vehicle department regulations or rulings. If you have title questions please contact IAA s Title Solutions Department (TitleSolutions@iaai.com). Contact Information IAA Website: Title Questions: IAA Title Solutions 7835 Woodland Drive Suite 200 Indianapolis, IN Toll Free: FAX: TitleSolutions@iaai.com IAA Locations in Kentucky: Ashland Bowling Green 123 Four Wheel Drive 710 Woodford Avenue Ashland, KY Bowling Green, KY Phone: Phone: Fax: Fax: Auction: Bi-Tuesday at 9:30 AM ET Auction: Second/Fourth Friday 9:30AM CT Paducah Louisville 1701 Lane Road 1825 South Preston Highway Paducah, KY Shepherdsville, KY Phone: Phone: Fax: Fax; Auction: Third Tuesday of each month Auction: First/Third Friday Motor Vehicle Department: Division of Motor Vehicle Licensing 200 Mero Street Frankfort, KY Phone: Kentucky Motor Vehicle Licensing Page 3

4 Title mistakes can be costly and can significantly delay the sale of salvage vehicles. Catching these potential errors before the title paperwork goes to the auction can prevent title problems that will delay a vehicle s sale by weeks or even months. Standard Title Processing Title and Disposal Information IAA will apply for the appropriate title in the insurance company s name. In order to initiate this process the vehicle provider must provide the following documentation: Properly Executed Title o Non-Lien Original title signed by all titled owners o Lien Original title, unsigned Lien released on front of title by lienholder requires signature and stamp Generic Notarized Power of Attorney, signed by all titled owners o Missing Title Generic, Notarized Power of Attorney, signed by all titled owners Lien Release (if applicable) o Lien released on the front of the title by a financial institute (bank, credit union, etc) o Must be released by signature and stamp o Must include year, make, model, and VIN and titled owner s name, file number / date of filing. Names must match o Title Lien Statement State Form TC96-187E required no alternates Odometer Disclosure Odometer disclosure is required for vehicles less than 10 model years. This can be accomplished on the title or with a separate odometer statement, signed by the owner. Mileage should be stated with a verified reading and should not be an estimate or guess. If IAA is not processing the title, please attach the properly executed sale document and any additional required forms as outlined above to your coversheet, with your selling instructions noted, and forward to the appropriate IAA Branch. DMV Title Fees Salvage title fee: $9.00 Duplicate title fee: $6.00 U/T: $9.00 ATV: $15.00 Page 4

5 Duplicate Title With the insured s cooperation, IAA can apply for a duplicate title. IAA will need: One (1) generic, notarized Power of Attorney from owner. Lien release (if applicable) Deceased Owner Requirements Other Information If JTWROS, surviving spouse signs title; copy of Death Certificate required If joint ownership and the title states "or" then only one (1) owner needs to sign If no conjunction or the title states "and" then survivor must supply a court order or letter of administration signed by a judge (no death cert is needed) and executor must sign the title and provide court order Executor if not signing title, PoA is required Name Changes If your insured s name is different than it appears on the title (i.e. different last name or nickname instead of first name), a copy of the marriage license or court document stating legal name has changed may be required in addition to the signed title. Please contact branch if questions arise. If the name is completely different then this could be a situation where the owner purchased the vehicle from someone and didn t title it properly. In most cases the owner will be required to pay sales taxes and have the vehicle titled properly before it can be sold. Contact your local IAA auction or Title Solutions for assistance in resolving these situations. PoA or one in the same Owner Retained If the vehicle has been declared a total loss by the Provider the owner is required to obtain salvage title and provide a copy of the salvage title to the Provider. Settlement held until Salvage Title received. Un-Recovered Theft The provider is required to obtain a salvage title in their name because the provider will need proof of ownership if the vehicle is recovered. PoA and copy of DL for all titled owners. Salvage title is only option required Alternate Disposal Parts Only KY title only, No lien, Taxes current year paid Page 5

6 State Guidelines Title Requirements by Vehicle Type Vehicle Type Titled Note Passenger vehicles Yes ATVs * Contact branch for specific details Boats Yes After 1/1/1986 Commercial trucks (i.e. tractor trailers) Farm Equipment Manufactured and mobile homes Yes Yes Yes Mopeds No Sell on Bill of Sale Motor Homes and RV s Motorcycles Yes Yes Off-road vehicles No Sell on Bill of Sale Snowmobiles No Sell on Bill of Sale Trailers with GVRW greater than 3000 Yes lbs Trailers with GVWR 3000 lbs or less No Sell on bill of sale Page 6

7 Title Branding Guidelines Salvage Title Salvage titles are required for vehicles that are stolen or have been deemed uneconomical to repair by the insurance company. Salvage Repairable A Salvage-Repairable title is for vehicles that have been declared a total loss but are repairable. This type of title requires at least one sub-brand. Collision Theft Fire Vandalism Salt Flood Other Clear Title To request a clear title we need the following Must be accompanied by letter from Insurance Company on their letterhead, stating that the vehicle has less then 75% damage and are requesting a clear title. Also must be accompanied by the original repair estimate. Affidavit of non-highway use, Resale certificate for provider Page 7

8 Determining the Correct Title Type Vehicle declared a total loss Is vehicle a junked vehicle, snowmobile, ORV, or moped? Y Vehicle not titled in Kentucky N Is vehicle an ATV? Y Titling at owner s discretion N Is cost of repair </ 75% of ACV? Y Apply for Clear Title N Is vehicle an unrecovered theft? Y Salvage Title Required Page 8

9 Frequently Asked Questions Is a copy of the written estimate needed to process the title? No. We do not require a damage appraisal to process the title in the state of Kentucky. What type of PoA is required if the title is not signed? The state of Kentucky accepts generic notarized Power of Attorney form. What is required to correct a mistake that is made by the owner on the back of the title? If there is an error on the title please contact the branch to determine if an Affidavit of Correction will suffice or if a duplicate title is required. Affidavit of Correction is acceptable to correct simple errors, not whiteout or heavy mark over. Does the Lienholder hold the title in Kentucky? No. In Kentucky the owner will hold the title even if a lien is on the title. What paperwork is required when an owner is deceased? Please refer to the section entitled Other Information. What do I do if the insured cannot locate the title? Please refer to the section entitled Other Information. What if my insured s name is different than on the face of the title? Please refer to the section entitled Other Information. Page 9

10 Example Documents Kentucky Title (Front) Page 10

11 Kentucky Title (Back) Page 11

12 Glossary Term Affidavit of Correction Appraisal Date of Loss Duplicate Title Definition A notarized form that can correct certain errors made by an owner on title. Written estimate detailing damage and replacement costs for a vehicle. Also known as an Estimate of Repair. Date accident occurred or vehicle was stolen. A duplicate title is a replacement title obtained through the state DMV. When a duplicate title is issued the original title becomes void. Electronic Title Some states are now using E-Titles especially when there s a Lienholder listed. An E Title is held in the DMV system until the Lienholder releases the lien and then the title is printed and mailed out to the specified party. Exceeds Mechanical Limits (EML) Lien Release Not Actual Mileage (NAM) Odometer Disclosure Owner Owner Retained Exceeds Mechanical Limits is an option on most titles that is selected when the vehicle has travelled more miles than the odometer can register. Many older vehicles were limited to 99,999.9 miles so if the vehicle had exceeded the odometers mechanical limits when it had travelled 100,000.0 miles. This option is rarely selected on newer vehicles since most odometers now register up to 999,999 miles. When a lien has been perfected on a vehicle the state requires the lienholder to release the lien indicating that the lien has been satisfied before ownership of the vehicle can be transferred. Lien releases are typically executed by having the lienholder sign and date the face of the title or by providing a separate notarized lien termination statement on lienholder letterhead. If a separate statement is used the statement should include a description of the vehicle (including VIN, year, make and model) and the owner s name(s). Not Actual Mileage is an option on most titles that allows the owner to indicate that the mileage shown on the odometer is not a true representation of the mileage of the vehicle. This can happen on some vehicles when the odometer or the vehicles engine control unit (ECU) is replaced or when the odometer or its related systems are damaged. Odometer disclosure is required for vehicles less than 10 model years. This can be accomplished on the title or with a separate odometer statement, signed by the owner. Mileage should be stated with a verified reading and should not be an estimate or guess. The name listed on the front of the title. It usually states Owner or Legal Owner. An owner retained vehicle is any vehicle deemed a total loss by the provider that the owner elects to maintain ownership of. Most states will require that the title is converted into some form of salvage title. The rules regarding who is responsible for transferring the title vary by state. Page 12

13 Glossary Term Parts Only Title Power of Attorney (PoA) Properly Executed Title Provider Repair Estimate Sale Document Salvage Title Title Problems Title Solutions Total Loss Un-Recovered Theft Definitions A Title issued with the sole intent of allowing the vehicle to be sold for parts. Vehicles with parts only titles are typically not allowed to be titled again or driven on public roads. PoA allows the appointed person/provider to sign Title, application or any other documents related to the vehicle listed on the form on behalf of the owner. Title that is properly signed by owner and LH has released lien if applicable. Insurance company, charity, or individual selling the vehicle through IAA. Written appraisal detailing damage and replacement costs for a vehicle. Also known as a Damage Appraisal. Document that was used to sell the vehicle at an IAA auction. (bill of sale, MV907A, clear title, salvage title, certificate of destruction, junk title, scrap title etc.) Titles are branded Salvage on vehicles 10 model years of age or newer that are stolen or have been deemed uneconomical to repair by the insurance company. These vehicles are issued a salvage title and may be subject to repair and re-inspection. Title paperwork received by IAA that is not correct or incomplete and requires additional documents or information before the title can be processed and vehicle can be sold. Innovative service provided by IAA that offers prompt solutions for your toughest title problems. Any vehicle that has been deemed uneconomical to repair by the insurance company. Any vehicle that has been stolen and not recovered. Page 13

14 Index A Affidavit of Correction Appraisal... 12, 13 B Boats... 6 C Commercial truck... 6 D Deceased Owner... 5 Duplicate Title... 5, 12 E EML F Farm Equipment... 6 L Lien release... 4, 12 M Manufactured and mobile homes... 6 Mopeds... 6 Motorcycles... 6 N NAM Name changes... 5 O Odometer disclosure... 4 Owner Retained... 5, 12 P POA... 9, 13 T Trailers... 6 U Un-recovered Theft... 5, 13 Page 14