Chapter 4, Section A:|
Documents Required to Title and Register a Used Vehicle
Revised May 22, 2013
- Certificate of Title
The current outstanding Certificate of Title is the primary document when transferring ownership of a used vehicle. Photocopies are not acceptable for processing any type of title transactions.
- Bill of Sale
On a dealer transaction, when the assignment on the reverse side of the Title is incomplete or there is no more room on the back of the Title to make an assignment a Bill of Sale (MVD-10009) shall be used to complete the transaction. The Bill of Sale (MVD-10009) shall also be used to carry out a transfer in transactions between individuals, when the assignment on the reverse side is incomplete.
The Bill of Sale must be completed by the seller and include all vehicle information (year, make, VIN, sale price, seller’s name, address and signature, buyer’s name, address and signature). If the vehicle is a surplus vehicle from the Federal Government, the Bill of Sale must correspond with the Title or U.S. Government Release Assignment.
- Purchase Agreement
The purchase agreement is required on every title transaction involving a dealer sale. The purchase agreement for all vehicles must be the original or a certified copy. It includes purchase agreements for vehicles purchased from out-of-state dealers. This document is essential for the computations of the excise tax, based upon the net sale price of the vehicle. A non-certified copy may be accepted if the sale price conforms to the NADA Retail Pricing Index Guide (i.e. is at least 80% of the N.A.D.A. average trade-in or wholesale value of the vehicle).
If any taxes are paid out-of-state a certified copy of the purchase agreement must be provided. The purchase agreement must show the following: a. A complete description of the vehicle; b. A complete description of any trade-in vehicle; c. The gross sales price before trade-in deduction, if any; d. The net sales price less any discount; e. If vehicle was purchased from an out-of state dealer, the purchase agreement must reflect taxes paid, if any; f. Implied Warranty.
NOTE: An “Intent to Purchase” document cannot be accepted as a purchase agreement.
- Odometer Statement
The Motor Vehicle Division requires that the seller and buyer of a vehicle attest to the accuracy of the odometer mileage reading at the time of sale. The odometer mileage statement can be attested to in the assignment on the back of the New Mexico Title, on MVD Form 10009 “New Mexico Motor Vehicle Bill of Sale,” on MVD Form 10187 “Odometer Mileage Statement” or MVD Form 10001 “Application for Title and Registration”.
Odometer mileage disclosure statements may be accepted provided that they conform to federal standards, meaning they must have the language stating mileage is actual (AM), exceeds mechanical limits (EL) or warning odometer discrepancy (NM). The odometer statement is required on all motor vehicle title transactions, except off-highway vehicles.
- Vehicle Identification Number (VIN) Inspection
All used vehicles with Titles from any state other than New Mexico, being registered and titled in New Mexico for the first time, shall be visually inspected, by a certified VIN inspector to verify that the vehicle identification number on Title corresponds with the vehicle. This includes all “U.S. Government Certificate of Release of a Motor Vehicle”. Upon inspection of the vehicle, should there be any alterations or signs of tampering with the VIN plate, STOP inspection and contact law enforcement for a Level 3 or Level 4 VIN Inspection. MVD Form 10861 shall be entirely completed by the inspector.
- Proof of Trade-in Vehicle
If a vehicle was traded-in on the new vehicle, a copy of the trade-in registration or copy of Certificate of Title is required. Any vehicle can be traded for any vehicle. It is not necessary that the vehicle being traded in be registered to the buyer of the new vehicle. For example a vehicle belonging to the buyer's spouse might be used as a trade-in.
Title work brought in by dealers must include verification of ownership on vehicle trade-in. Field office personnel will not verify ownership of a trade in for a dealer. If proof of trade-in is a copy of the Title, verify license plate number belongs to applicant before reassigning the plate to the new vehicle.
- Release of Lien
When the outstanding Certificate of Title reflects a lien and there is a transfer of Title to a new owner or name change, the lien shown on the previous Title must be properly released. The lien can be released by proper endorsement of the lien holder, on the designated area on the outstanding Certificate of Title, MVD Form 10041 “Release of Lien”, or notarized release on letterhead signed by the lien holder. When lien holder is bank, financial institution, credit union, or other company the person releasing the lien must indicate their “position” with the company (agent, president, title clerk, etc.).
- Proof of Residence (PQU#64rev2)
The applicant for Title and Registration must provide a bona fide New Mexico residence address and mailing address. Reject the application if the applicant does not have a New Mexico residence address. Exceptions: Vehicles registered to a business may use a New Mexico business address instead of a residence address, and RVs where possession is taken in NM.
When there are multiple owners, at least one owner must be a bona fide resident of New Mexico. Proof of identity and New Mexico residency is only required for that one owner, who should be listed as the first individual owner on the vehicle’s registration and who is the only owner who can use the vehicle registration as proof of the owner’s New Mexico residence address. For this purpose it makes no difference whether the joint ownership designation is recorded as “and” or “or.”
NOTE: Post office box numbers are NOT acceptable as residence addresses, however they will be recorded as mailing addresses.
- Power Of Attorney (POA)
General or Limited 1. Must be notarized; 2. Owner must sign in ink; 3. Certified copies of POA are accepted; 4. If notary and commission expire, POA remains active until rescinded by owner; 5. POA cannot be used to execute any transaction after death of grantor; 6. Dealers MUST use a secured POA ONLY; 7. Proof of ID for Owner's Representative (Motor Vehicle photo I.D. Card or license). NOTE: A person appointed with a Power of Attorney CANNOT assign authority by Power of Attorney to another individual.
- Title Application with Owner’s Signature
When lien holder, dealer, or title company is submitting title work for applicant, the “Title Application” completely filled out must be included. The owner or the authorized representative must sign, in ink, on the “Title Application”. If a representative is signing for the applicant, a notarized “power of attorney” is required. An owner of a company or an officer of a corporation may sign the application for Title without a power of attorney.
- Affirmation Of Insurance (66-5-208B) NMSA)
The Mandatory Financial Responsibility Act (MFRA) of 1984 requires that every owner of a motor vehicle registered in New Mexico be able to demonstrate proof of financial responsibility for liability for damages, which may arise from the operation of the motor vehicle. Applicant must affirm that vehicle meets minimum requirements, which are: $25,000/bodily injury to or death of one person in any one accident $50,000/bodily injury to or death of two or more persons in any one accident $10,000/injury to or destruction of property of others in any one accident.
- Notice of Additional Requirements
When reviewing all the documents submitted by the applicant, if you should find that ANY of the required documents are missing; you must prepare MVD Form 10282 “Notice of Additional Requirements for Completion of Vehicle Transaction”. Use this form to document all requirements that have been met and especially to document everything that is missing or incorrect. Transactions will be rejected if documents lack any necessary information, if documents do not have all signatures, or if documents are incorrect or missing information. Any discrepancies found shall be explained to the applicant. Be sure to review documents carefully and note all additional requirements necessary to complete the transaction. Date the form with the date you issued it, give it to the applicant and advise them all required documents must be returned within 30 days of the date on the form to avoid late registration penalties. Reject the transaction if there are any erasures, alterations, typeovers or discrepancies on the documents. To the extent possible, documents should have the same typeset, ink, etc, to avoid being reviewed by staff as an alteration.
- Lien holder Information
When the vehicle is subject to a lien, the following information shall be entered on the Application for Title: a. File and maturity date; b. Name and address; c. Lien holder key code, if any; d. When names of applicants are joined by word “AND” both signatures are required.
- Spouse May Add Other Spouse’s Name with a Bill of Sale
If an owner to whom the Assignment of Title is made wants to add the name of a spouse, he or she may do so at the time of the original title transaction. A Bill of Sale from the spouse indicated on the Bill of Sale to the names of both must be completed. The Bill of Sale should indicate “adding name of spouse”. The lien holder, if any, must give written permission.
- Emission Inspection
Bernalillo County residents (who fall in the zip code category listed below) will be required to provide emission inspection certificates upon Application for Title and Registration on new and used vehicles. Exceptions are new vehicles sold by a dealer (MCO document), 1974 and older vehicles, motorcycles, diesel powered vehicles, vehicles with a DGVW greater than 10,000 lbs. and those vehicle owners who reside outside Bernalillo County.
The following are Bernalillo County zip codes for which emission inspections are mandatory for registering vehicles in the state of New Mexico:
87008 87101 87105 87109 87113 87117 87121 87153 87185 87194 87022 87102 87106 87110 87114 87118 87122 87154 87190 87195 87047 87103 87107 87111 87115 87119 87123 87176 87191 87196 87059 87104 87108 87112 87116 87120 87125 87184 87192 87197 87198
NOTE: Questions may be referred to the Pollution Control Management Division, 1500 Broadway, N.E., Albuquerque, New Mexico 87102, Telephone number (505) 764-1110.