Montana Title Reference Guide

Transcription

1 Montana 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... 4 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 Can a title be processed without a lienholder s release?... 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 If an owner s full name is listed, does he/she need to sign as listed on the face of the title?. Error! Bookmark not defined. 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 Montana Title (Front) Montana Title (Back) Glossary Index 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). Page 2

3 Contact Information IAA Website: Title Questions: IAA Title Solutions 7835 Woodland Drive Suite 200 Indianapolis, IN Toll Free: FAX: IAA Locations in Montana: Motor Vehicle Department: Billing 75 Cerise Road Billings, MT Phone: Fax: Auction: Wednesday 9AM MT Missoula Garrymore Lane Missoula, MT Phone: Fax: Auction: Bi-Wednesday at 11:00 AM MT Title and Registration Bureau Motor Vehicle Division Montana Department of Justice 1003 Buckskin Drive Deer Lodge, MT Phone: 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 Page 3

4 weeks or even months. Title and Disposal Information Standard Title Processing IAA will apply for the appropriate title in the provider s name. In order to initiate this process the vehicle provider must provide the following documentation: Properly Executed Title Titles must be notarized. Montana is a title holding state for owners. Owners must submit properly signed original title. For lien files, provider must submit a notarized signed satisfaction of lien letter documenting vehicle VIN, year, make and model, along with owner s name. An unsigned title or mileage left blank requires a secured Power of Attorney. Odometer Disclosure Odometer disclosure is required for vehicles less than 15 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. Lien Release (if applicable) Lien satisfied and dated on the face of the title or separate lien termination statement on lienholder letterhead, with a vehicle description and owner s name(s) 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: $ 5.00 Clear title fee: $12.00 Duplicate title fee: $10.00 URT: $12.00 Duplicate Title With the insured s cooperation, IAA can apply for a duplicate title. IAA will need: One (1) Notarized Generic Power of Attorney Copies accepted Copy of driver s license for titled owner(s) Lien release if applicable. Copies are acceptable Statement of Fact on file for all claims Page 4

5 Other Information Deceased Owner Requirements JTROS or "OR" between owner names: Survivor signs and provides copy of Death Certificate and MVT-12 (Application for Title of a Vehicle by Right of Survivorship). If "and" between names, provide Certified copy of the Death Certificate and MVT-12 (Application for Title of a Vehicle by Right of Survivorship). 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 a Montana 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 Owner Retained If the vehicle is five (5) or fewer model years old, has been declared a total loss by the Provider, and has been deemed repairable, the owner can retain the vehicle but must obtain a salvage title Vehicles that have been deemed Non-repairable cannot be retained by the vehicle owner The Provider is required to notify the DMV of the total loss owner retention Vehicles that do not apply to salvage law can be retained with their original title Un-Recovered Theft The provider is required to obtain a title in their name because the provider will need proof of ownership if the vehicle is recovered Alternate Disposal Parts Only Page 5

6 State Guidelines Title Requirements by Vehicle Type Vehicle Type Titled Note Passenger vehicles ATVs Boats Unless they are under 12 feet not powered by a motor Commercial trucks (i.e. tractor trailers) Manufactured and mobile homes Mopeds No Sell on bill of sale Motor Homes and RV s Motorcycles Off-road vehicles Snowmobiles Trailers includes travel and utility Slide in Campers Page 6

7 Title Branding Guidelines Salvage Title Salvage titles are required for vehicles five (5) model years of age or newer that have been deemed uneconomical to repair by the provider. Passenger vehicles 5 or more model years old at the date of the loss are exempt from the salvage title process. Recovered Theft or Reconstructed If older than 5 years clear title Unrecovered clear title Clear Title If the vehicle is more than 5 years old it can be sold with a clear title Trailers are exempt from title branding and can be sold with a clear title or bill of sale if they are less than 3,000 lbs GVWR Page 7

8 Determining the Correct Title Type Vehicle is declared a total loss Is the vehicle more than 10 years old? Sell vehicle with a clear title No Has the vehicle been declared repairable by the Provider? No Apply for and sell vehicle with a Repairable Salvage title which carries at least one sub-brand of collision, theft, flood, fire, salt, vandalism or other Apply for and sell with a Salvage-Parts Only title Page 8

9 Frequently Asked Questions Is a copy of the written estimate needed to process the title? The state of Montana does not require a damage appraisal to process the title. Can a title be processed without a lienholder s release? No. If a lien is listed on the face of the title, the lienholder must sign and date the release or provide a separate notarized lien termination on lienholder letterhead. Either document must include a vehicle description and owner s name(s). What type of POA is required if the title is not signed? The state of Montana will accept a Generic Notarized Power of Attorney form to sign the title on behalf of the owner. 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. If the title was assigned to the wrong purchaser a duplicate title will be required. An affidavit of correction will not be sufficient. Please contact the branch for more specific situations. 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 Montana Title (Front) Page 10

11 Montana 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. 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 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 A Junk Receipt is issued with the sole intent of allowing the vehicle to be sold for parts. Vehicles with a Junk Receipt can have a rebuilt title issued in the future. 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. Provider, 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 5 model years of age or newer that have been deemed uneconomical to repair by the provider. 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 provider. Any vehicle that has been stolen and not recovered. Index Page 13

14 A Affidavit of Correction Appraisal... 12, 13 B Boats... 6 C Commercial truck... 6 D Deceased Owner... 5 Duplicate Title... 4, 12 E EML L Lien release... 4, 12 M Manufactured and mobile homes... 6 Mopeds... 6 Motorcycles... 6 N NAM Name changes... 5 O Odometer disclosure... 4, 12 Owner Retained... 5, 12 P POA... 9, 13 T Trailers... 6, 7 U Un-recovered Theft... 5, 13