CHAPTER 14 - SPECIAL TITLE PROCEDURES

 

SECTION A.  RE-ISSUANCE OF TITLE AFTER NON-RECEIPT

 

This procedure for re-issuance after non-receipt applies only to registered owners (and lien holders when address on record is in correct due to clerk error.  A duplicate Title will be issued at no fee if the applicant meets all the following requirements:

 

1.  The Motor Vehicle Division must have mailed the “Certificate of Title” to the registered owner.  A vehicle inquiry should be made to verify       that the Title was mailed out.

 

2.  At least 30 days must have elapsed from the original date of issuance (to allow for mail to be returned as undelivered).

 

3.  The registered owner must make the request for re-issuance within 90 days from the date of original issuance.

 

4.  The applicant must complete MVD Form 10022, “Affidavit of Non-Receipt”.

 

5.  The applicant must provide identification (i.e. driver license).   When application is made by mail, applicant should send a copy of driver license, not the license itself.


SECTION B.  “TITLE ONLY” TRANSACTIONS

 

The Motor Vehicle Division will issue a vehicle Title without a Certificate of registration or a license plate, under certain conditions.  A “Title Only” transaction is one in which the applicant receives only a Certificate of Title.  Payment of the title fee is always required.  In some instances, the registration fee is also charged.  “Title Only” transactions should be noted as “TO00000” in the “License Plate Number” field.  The following are examples of “Title Only” transactions:

 

1.  Non-Franchised Dealers Selling a New Car (66-3-118C)

 

Non-franchised dealers who wish to sell a new vehicle must convert the Manufacturer’s Certificate of Origin to a Title and pay both the title and the registration fees.  However, they are not required to pay excise tax.  The Title Application should specify in the “Remarks” field:  “For dealer re-sale only”.

 

2.  Isolated Cases Involving Dealers

 

A dealer may have a Title with various assignments, which prevents him from transferring the Title to an out-of-state buyer.  The Motor Vehicle Division must use caution in accepting these transactions.  In situations, which require a VIN inspection, a certified VIN Inspector should conduct the inspection.  The dealer must submit an invoice showing that the vehicle was sold to a non-resident and pay the title fee only.  In the “Remarks” specify “Sold out of state”.   This is to prevent dealers from “washing Titles in New Mexico”.

 

3.  Inoperable Vehicles (66-3-10)

 

An inoperable vehicle purchased for reconstruction or rebuilding, mechanical or otherwise, and which the buyer does not intend to operate for an extended period of time, may be titled through a “Title Only” transaction.  The applicant pays the title fee and the excise tax.  No plates are issued.  Once the vehicle is made operable, the applicant, upon affirming insurance, shall be charged the registration fee. 

 

4.  Vehicles to be Traded-In

          

Vehicles that are gifts, which the new owner wishes to trade-in on another vehicle, may be titled through a “Title Only” transaction.  The applicant pays the title fee.  The Title Application should specify in the “Remarks” field “Vehicle to be traded-in”.

 

5.  Stolen and Unrecovered Vehicles, Titled to Insurance Company

 

The Motor Vehicle Division will issue a “Title Only” to insurance companies for stolen and unrecovered vehicles.  The insurance company pays only the title fee.  The Title is branded “Salvage”.

 

6.  Vehicles Which Are Not Insured

 

A vehicle purchased for which the buyer cannot affirm insurance, may be titled through a “Title Only” transaction.  The applicant pays the tax and title fee.   No plates are issued.  The applicant, upon affirmation of insurance, shall be charged the registration fee.

 

7.  Commercial Vehicles (DGVW Exceeding 26,000 Pounds)

 

Vehicles with a Declared Gross Vehicle Weight (DGVW) of more than 26,000 pounds (except some motor homes), whose owner or operator chooses to register the vehicle in New Mexico for tax purposes will be issued a Title Only.  The applicant shall be assessed excise tax if applicable and title fee.  Registration of vehicles with a DGVW exceeding 26,000 pounds, (except motor homes) is done by the Vehicle Services Bureau, Commercial Vehicle Section.  The field office WILL NOT issue registration, temporary permits or license plates for IRP registrations.

 


SECTION C. TITLE TRANSACTIONS WHICH ARE NOT “TITLE ONLY”

       

The following title transactions are NOT “Title Only” transactions, and should be processed like any other Title and Registration application.

 

1.  Franchised Dealer Titling in His Name or Name of Dealership

 

Franchised dealers are not required to obtain Title in their own name before transferring Title to a buyer.  However, if a franchised dealer wishes to title a vehicle that he is franchised to sell in his name or the name of the dealership, the dealer must pay all fees (excise tax, registration and title fee), unless affirmation is received that vehicle will remain in inventory for, then a title only may be issued.  A Title, registration and license plate are issued.  The dealer is required to affirm insurance.

 

2.  Used Car Dealer Titling in His Name or Name of Dealership

 

Used car dealers are not required to obtain Title in their own name before transferring Title to a buyer.  However, if a used car dealer wishes to title a vehicle in his name or the name of the dealership, the dealer must pay all fees (excise tax, registration, and title fee), unless affirmation is received that vehicle will remain in inventory for sale, then a title only may be issued.  A Title, registration and license plate is issued.  The dealer must affirm insurance.

 


SECTION D.  TITLING AFTER REPOSSESSION

 

Titling in Name of Repossessor Not Required

 

Vehicle titles from all states, which are accompanied by repossession documents, shall be accepted for transfer and registration without requiring the repossessor to title in his name before resale.  However, if a repossessor wishes to title the vehicle in his name, he may acquire a “Title Only”.

 

Documents Required to Title Vehicle After Repossession:

 

1.      Original Certificate of Title This document must indicate the lien of the repossessor on the face of the Title.

 

2.      Affidavit of Repossession – The applicant must submit MVD Form 10012, “Affidavit of Repossession” completed by the repossessor.

 

3.      Release of Lien The lien holder reflected on the Title must sign a release of lien before the Title can be transferred.

 

4.      Odometer Disclosure Statement – The lien holder or repossessor agent must complete an “Odometer Disclosure Statement” reflecting odometer reading at the time of sale.  Exceptions:  Off-highway motor vehicles.

 

5.      Bill of Sale If the applicant has purchased the vehicle from the repossessor, the assignment on the back of the Title may be completed, or a “Bill of Sale”, MVD Form 10009 must be completed.

 

NOTE:  In situations where the lien holder has undergone a name change (example from Bank of America to Norwest Bank) an affidavit of fact or a letter of explanation shall be required.

 


SECTION E.  GENERAL SURETY, INDEMNITY BOND OR CERTIFICATE OF TITLE BOND

 

Use of General Surety, Indemnity Bond or Certificate of Title Bond

 

Motor vehicle laws provide for use of a general surety, indemnity bond or Certificate of Title bond, when no Title or other supporting documents which are necessary to process the Title Application are available.  The Title and Registration must be applied for in the name of the person or company that has posted the bond.

 
Documents Required to Process Title with Surety Bond:

 

1.  Title Verification

 

If the registered owner and lien holder are known, they must be notified by registered mail.  Return receipt requested.  Due to the confidentiality Law, Motor Vehicle Division will not provide confidential information from the vehicle files for this purpose.

 

NOTE:  Applicant must make every effort to contact last registered owner.

 

When there is any indication that the vehicle is titled or registered in another licensing jurisdiction, the applicant must ALSO request Title verification from that licensing jurisdiction.

 

If Title verification reveals a registered owner, the registered owner and lien holder, if any must be contacted, by Registered Mail, Return Receipt Requested, to request the Title.  The Post Office “Return Receipt”, along with a copy of the letter or letter which came back unclaimed, must accompany Title application documents.

 

2.  Vehicle Identification Number Inspection

 

A Motor Vehicle Division Certified VIN Inspector must inspect the vehicle.  The same VIN must appear on all required documents.

 

3.  National Crime Investigation Center (N.C.I.C.) Clearance

 

An “NCIC Clearance”, is a statement from law enforcement indicating that the vehicle is not listed as “STOLEN” on their files.  Applicant must submit a completed NCIC Certificate of Clearance

 

NOTE:  NCIC Clearance is only valid for 30 days, therefore, applicant may have to obtain another NCIC Clearance before submitting paperwork for issuance of a New Mexico Title. 

 

4.  General Surety, Indemnity Bond or Certificate of Title Bond

 

The applicant must purchase the bond from a bonding company authorized to do business in New Mexico.  The bond must be for twice the value of the vehicle and issued for a term not to expire for three years after issuance.  The value of the vehicle for bonding purposes must be comparable to the most recent NADA Used Car Guide Listing, NADA Antique Car Guide or a certified appraisal.  The Vehicle Identification Number on the Title Verification, VIN Inspection, and NCIC Clearance must all correspond with the one on the bond.  The bond must be a General Surety Bond, Indemnity Bond or Certificate of Title Bond and must indicate that it covers all documents used to support issuance of the Title.  The bond must state:

 

a.      Where the Bond Company is organized (parent company).

b.      That the bonding company is authorized to conduct business in New Mexico, and that they are authorized to transact surety bonds.

c.      That the bonding company will be responsible for all liabilities, which might be incurred because of the issuance of Title, based on the bond and will hold the Motor Vehicle Division, and it's employees, harmless against any loss or damage from any action taken against the bond.

d.      That the bond will run three consecutive years.

 

5.  Odometer Mileage Statement

 

If the vehicle is a motor vehicle (except off-highway vehicles) the applicant must acknowledge the odometer mileage at the time of sale.

 

Note:  If seller did not provide an odometer disclosure statement, capture the odometer on the vehicle and enter "NM".

 

Fees for Title and Registration Issued with Bond

 

Charge the regular titling and registration fees.  Compute the excise tax based upon one-half (1/2) the amount shown on the bond.

 

The Application for Title and Registration MUST be made within 30 days from the date of issuance of the bond or late registration fees apply. After ninety days, excise tax is 4.5%.

 

NOTE:  All of the above documents must be submitted with the Title Application. The documents must be the original documents; copies will not be accepted.  Each document must be inspected for erasures, alterations, strikeovers, additions or any other discrepancies; reject the application if there are any of these on any document.

 


SECTION F.  TITLING THROUGH LIEN PROCESS TYPES OF LIENS

 

1.  Mechanic’s Lien  (48-3-1)

 

Persons/companies in the business of performing repair work may claim a “Mechanic’s Lien” on a vehicle when the owner fails to pick up the vehicle and pay authorized repair fees within a reasonable period of time.  The vehicle must be in New Mexico and in the lien claimant’s possession.  If the lien claimant chooses to dispose of the vehicle (eight years and older) to a licensed dismantler he/she need only provide the licensed dismantler with an NCIC Clearance and no further action is necessary.  If the lien claimant chooses to sell the vehicle, or if the vehicle is not eight (8) years and older, lien claimant must follow instructions on titling through lien process.  The lien process on this type of lien starts when the account becomes due and payable.  This process applies to residents or businesses operating in New Mexico only.

 

2.  Storage Lien  (48-3-1)

 

Persons/companies in the business of storage may claim a “Storage Lien” on a vehicle when the owner fails to pick up the vehicle and pay authorized storage fees within a reasonable period of time.  The vehicle must be in New Mexico and in the lien claimant’s possession.  If the lien claimant chooses to dispose of the vehicle (eight years and older) to a licensed dismantler he/she need only provide the licensed dismantler with an NCIC Clearance and no further action is necessary.  If the lien claimant chooses to sell the vehicle, or if the vehicle is not eight (8) years and older, lien claimant must follow instructions on titling through lien process.  The lien process on this type of lien starts when the account becomes due and payable.  This process applies to residents or businesses operating in New Mexico only.

 

3.  Abandoned Vehicle Lien (48-3-1)

 

Persons/companies may claim an “Abandoned Vehicle Lien” on a vehicle that was abandoned on their property and left for an unreasonable period of time, generally at least thirty (30) days.  The vehicle must be in New Mexico and in the lien claimant’s possession.  If the lien claimant chooses to dispose of the vehicle (eight years and older) to a licensed dismantler, he/she need only provide the licensed dismantler with an NCIC Clearance and no further action is necessary.  If the lien claimant chooses to sell the vehicle, or if the vehicle is not eight (8) years and older, lien claimant must follow instructions on titling through lien process.  The lien process on this type of lien starts when the account becomes due and payable.  This process applies to residents or businesses operating in New Mexico only.


4.  Landlord’s Lien (48-3-1)

 

Persons/companies in the business of renting may claim a “Landlord’s Lien”.  These liens are placed on a vehicle (including mobile home or trailer) which has been placed in or upon the claimant’s business, when the owner fails to pay authorized rent fees including gas, water, electricity or other services within a reasonable period of time.  Lien claimant may be the owner or operator of a rental dwelling, auto/trailer court or campground.  The vehicle must be in New Mexico and in the lien claimant’s possession.  If the lien claimant chooses to dispose of the vehicle (eight years and older) to a licensed dismantler, he/she need only provide the licensed dismantler with an NCIC Clearance and no further action is necessary.  If the lien claimant chooses to sell the vehicle, or if the vehicle is not eight (8) years and older, lien claimant must follow instructions on titling through lien process below.  The lien process on this type of lien starts when the account becomes due and payable.  This process applies to residents or businesses operating in New Mexico only.

 

5.  Towing Lien (48-3-1)

 

Persons/companies licensed in the business of towing by the New Mexico State Corporation Commission (SCC) may claim a lien on a vehicle when the owner fails to pick up the vehicle and pay authorized towing and storage fees within a reasonable period of time.  The vehicle must be in New Mexico and in the lien claimant’s possession.  If the lien claimant chooses to dispose of the vehicle (eight years and older) to a licensed dismantler, he/she need only provide the licensed dismantler with an NCIC Clearance and no further action is necessary.  If the lien claimant chooses to sell the vehicle, or if the vehicle is not eight (8) years and older, lien claimant must follow instructions on titling through the lien process.  The lien process on this type of lien starts when the account becomes due and payable.  This process applies to residents or businesses operating in New Mexico only.

 


SECTION G.  TITLING THROUGH LIEN PROCESS – DOCUMENTS REQUIRED

 

1.  Title Verification

 

Effective July 1, 1996, New Mexico came under a cloak of confidentially (66-2-7.1, NMSA 1978) as required by Federal mandate.  As a result, the Motor Vehicle Division is prohibited from providing registered owners’ addresses and any personal information on record.  A suppressed vehicle record printout may be provided.

 

Lien claimants filing a “Towing Lien” are able to obtain Title verification without any of the registered owner’s information being suppressed.

 

If the titling jurisdiction(s) responds to a Title verification request with a “NO RECORD” response, the lien claimant must submit the “No Record” documents(s) and a completed copy of MVD Form 10058 “Notice of Lien”.  Upon receipt of the NO RECORD response the lien claimant must advertise the vehicle for sale at public auction in a newspaper of general circulation in the county where the vehicle will be sold, once a week for two consecutive weeks, or post handbills.  IF THE LIEN CLAIMANT IS UNABLE TO OBTAIN THE REGISTERED OWNER’S NAME AND ADDRESS, THE LIEN PROCESS CANNOT BE COMPLETED!

 

2.  NCIC (National Crime Investigation Center) Clearance

 

An NCIC Clearance, MVD Form 10468, is a statement from the State Police indicating the vehicle is not listed as “STOLEN” on their files.  Applicant must submit a completed NCIC Certificate of Clearance. 

 

 

·        NCIC Clearance is only valid for 30 days, therefore, lien claimant may have to obtain another NCIC Clearance before submitting paperwork for issuance of a New Mexico Title. 

 

3.  Notice of Lien

 

The lien claimant must complete MVD Form 10058, “Notice of Lien”.  It must be sent by Certified or Registered Mail, Return Receipt Requested, to the registered owner, lien holder (if any) and all other parties involved, advising them of the amount due for services and allowing them ten (10) days to pay the accrued debt.

 

Lien claimant must keep a copy of each notice that was mailed along with the certified or registered postmaster mail receipt and the return receipt (green card).  The lien claimant will surrender these documents at the time of the Title Application.

 

4.  Advertisement of Public Sale

 

The lien claimant must advertise the vehicle for sale if no one pays off the debt and recovers the vehicle within ten (10) days of notification.  Advertising must be done in one of the following ways:

 

a.  Posting of Handbills A handbill is a sign which is 8” x 11”.  Lien claimant must post six (6) handbills in six (6) conspicuous public locations in the county where the auction will be held; OR

 

b.  Advertising in a Newspaper Advertisement must be done in a newspaper of general publication, in the county in which the vehicle will be sold, once a week for two (2) consecutive weeks.

 

Handbills or advertisement must contain the following information:  full description of vehicle; the amount due; time, date, location of sale; and why the vehicle is being sold at public auction.  The handbills or advertisement must indicate the date that posting or advertising took place.

 

NOTE:  Lien claimant must submit a sample of either the handbill or advertisement proof as part of the documentation for Title and Registration.

 

How to Determine the Date of Auction:

 

·        New Mexico Registered Vehicles

 

The date of auction may not be less than 44 days from the date indicated on the certified mail receipt; or 34 days from the date handbills were posted.

Example: 34 + 10 = 44, or 34 days from the last date of publication.

                                                                                                                                                                                    

·        Vehicles Registered In Another State

 

If Title verification indicates that the vehicle is from another licensing jurisdiction (out of state), the date of auction may not be less than seventy (70) days from the date indicated on the certified mail receipt.

 

5.  Title Verifications Which Come Back With A “No Record” Response

 

Immediately upon receipt of the “No Record” response, the lien claimant must advertise the vehicle for sale at public auction in a newspaper of general circulation once a week for two consecutive weeks.  The date of sale must be at least sixty (60) days from the date of the second newspaper publication. 


6.  Affidavit of Resale

 

The Affidavit of Resale is a summary of the entire process.  This form also includes an Odometer Mileage Statement and Assignment of Bill of Sale.  After the auction has been completed, the lien claimant must complete MVD Form 10059, “ Affidavit of Resale” in its entirety.  The lien claimant must sign the affidavit of resale.

 

a.       When a person successfully bids for the vehicle, the lien claimant checks off the appropriate space and enters the purchaser’s name.  Note:  Purchaser must apply for a Title in his/her name and pay excise tax on purchase price, title and registration fee.  Odometer disclosure must be made on the Affidavit of Resale form.

 

b.       When no one bids for the vehicle or bids were unacceptable, the lien claimant shall check off appropriate space and apply for the Title and pay registration and title fees.  NO TAX is applicable.  Lien claimant CANNOT SELL the vehicle until he/she acquires a Title in his/her name. Must be transferred within thirty (30) calendar days from date of auction or penalty will apply. 

 

7.  Vehicle Identification Number Inspection

 

A certified VIN inspector must inspect the vehicle.  The same VIN must appear on all required documents. 

 

When conducting an inspection of the Vehicle Identification Number, VISUALLY inspect the number and enter it on the VIN inspection form (MVD Form 10861A) and verify that is corresponds with all required documents.

 

8.  Work Repair Order (Mechanic’s Lien Only)

 

The claimant must furnish the Motor Vehicle Division with a work repair order.  The work repair order must itemize work performed and associated costs, with registered owner’s signature authorizing repairs.

 

9.  A Copy of the Order of Towing (Towing Lien Only)

 

The lien claimant must provide a copy of the towing order.  It must indicate who gave authorization for the towing of the vehicle and other associated costs.

 

NOTES:

·        When all the supporting documents have been obtained and properly executed, the lien claimant or the person who has purchased the vehicle at the public sale must bring all supporting documents to a Motor Vehicle Division field office and apply for vehicle Title and Registration.  Motor Vehicle Division field office personnel will begin transaction with a vehicle record inquiry and review documents for final clearance.  The vehicle record inquiry must indicate registered owner’s name as shown on Post Office Return Receipt for Certified Letter mailed to registered owner.

·        If owner reflected on vehicle inquiry does not match name(s) on the supporting documents, clerk shall provide the lien claimant with the name of the registered owner of record.  Lien claimant will have to start the process again by the notifying the owner of record.  If all documents are in order, process the Application for Title and Registration.  All required supporting documents must be included with your daily report.

·        If there is no buyer at the sale and the lien claimant buys the vehicle, the lien claimant must apply for Title in his name within 30 days of the date of the public sale.  Excise tax is not applicable.  Dealers applying for Title under these conditions must pay title and registration fees.  If the dealer wants a "Title Only", the application may indicate "Title Only" but the registration fee must be paid.

·        A late transfer penalty applies for failure to execute transfer of Title within 30 days from the date of the public sale.  If the vehicle is operable, a late registration penalty applies for failure to execute transfer of Title within 30 days from the date of the public sale.  An excise tax penalty of 4.5% of the sale price will apply for failure to execute transfer of Title within 90 days from the date of the public sale.

·        All documents must be originals, copies will not be accepted.  Inspect each document and reject the application if there are any erasures, alterations, strikeovers, additions or other discrepancies.

·        Persons in the business of repair, towing, storage, rental dwellings, or on whose property is left an abandoned vehicle, CANNOT obtain Title by surety bond process to circumvent lien process.

 


Section H.  Processing Title Owner is Deceased – WITH PROBATED WILL

 

If the owner of a vehicle dies and leaves a Will, and the Will is probated, the Probate Court may name a personal representative (may also be called "administrator", "executor" or "executrix") for the estate in order to dispose of the assets.

 

A Tribal Judge may also give an “Order of Appointment for Administrator” to an individual(s) for the estate in order to dispose of the assets.  This document must be issued within the tribal jurisdiction and signed by the Tribal Judge.  An original or certified copy must be provided.  The Motor Vehicle Division will accept the document to transact Titles.

 

1.  Documents Required

 

·        Certificate of Title – Current

 

·        Letter of Testamentary and Acceptance Issued by the Probate Court or District Court and signed by the Judge, naming a personal representative(s), administrator(s), executor(s) or executrix(s) of the estate.  The document must be a certified copy.  In situations where the judge has appointed more than one individual, signatures will be required depending on how appointees are joined (i.e. “and” all signatures required, “or” only one signature required).

 

·        Bill of Sale – The assignment of Title or MVD Form 10009, “Bill of Sale” properly completed to show transfer to new owner.

 

·        Odometer Disclosure Statement – Must be provided for motorized vehicles, except off-highway vehicles.

 

NOTE:  Field office shall make a photocopy of the “Letter of Testamentary and Acceptance” and then must indicate that the “original” certified copy has been viewed.

 

2.  Fees

 

All normal fees are applicable.  Excise tax will not be applicable if the applicant is named in the Will as the recipient of the vehicle.

 


Section I.  Processing Title Owner is Deceased NO WILL OR UNPROBATED WILL

 

When the estate is less than $30,000 the claiming successor may apply for Title.  “Transfer without Probate” from out of state is not accepted.  They must be converted to the out of state Title issued by that jurisdiction.

 

Documents Required

 

1.      Certificate of Title

 

2.      Certificate of Transfer without Probate or Affidavit of Claiming Successor

 

3.      Original or Certified Copy of Death Certificate

 

4.      Release of Lien, if lien is reflected

 

If Title is lost, claiming successor may apply for duplicate Title.  Clerk will process transaction as a title transfer and add in duplicate title fees.

 

NOTES:

·        Claimant does not need to be related to the deceased.

·        Field office personnel must certify on the copy, that they have viewed the original Death Certificate.


Section J.  Transfer through Court Adjudication of Probate

 

When a vehicle owner dies, with or without a Will, and the deceased's estate is challenged by an interested party, the Probate Court where the deceased lived will transfer the Adjudication of the Estate to District Court.  The court will then issue a Court Order indicating who will be the recipient of the vehicle(s).  To transfer the ownership of the vehicle, the Motor Vehicle Division will ONLY accept an original or certified copy of a Court Order.

 

Document Requirements

 

1.      Certificate of Title – The current Title must be surrendered.  In cases where the Title is lost, stolen, etc., the recipient may obtain a duplicate Title.  The transaction shall be processed as a Title transfer with the duplicate title fee being added in.  Begin transaction with a vehicle inquiry and print the vehicle record.

 

2.      Original or Certified Copy of Court Order, which names the recipient of the vehicle AND identifies the vehicle(s).  In cases where the Court Order has an error or errors in the identification of the vehicle(s), the recipient must obtain an Amended Court Order indicating the correct vehicle information.

 

3.      Release of Lien, if the Title shows a lien holder.

 

4.      Fees Normal registration and title fees are applicable.  If the applicant is the recipient named in a Will, no excise tax is applicable.

 

5.      Odometer Disclosure Statement – Must be provided for motorized vehicles except off-highway vehicles.

 

6.      Bill of Sale – The recipient of the vehicle may transfer ownership to another individual.  This transaction will be processed as a “double transfer”, assessing the title fee to the original recipient and another title fee to the new owner.  Tax and registration fees will be assessed as applicable to the new owner only.

 

SECTION K.  COURT ORDERS – JUDGEMENTS RENDERED

 

Court Orders are decisions by the courts establishing ownership of certain tangible properties including motor vehicles.  The Court Order awards ownership of a vehicle to an individual or business in cases such as divorces, ownership disputes, forfeitures, etc.

 

Documents Require

 

1.         Certificate of Title – The current Title must be surrendered.  In cases where the Title is lost, stolen, etc., the recipient may obtain a         

        duplicate title.  The transaction shall be processed as a title transfer with the duplicate title fee being added in. Begin transaction with a       

        vehicle inquiry and  print the vehicle record.

 

2.      Original or Certified Copy of Court Order – Which names the recipient of the vehicle AND identifies the vehicle(s).  In cases where the  

     Court Order has an error or errors in the identification of the vehicle(s), the recipient must obtain an Amended Court Order indicating the

     correct vehicle information.

 

3.      Release of Lien – If the Title shows a lien holder.

 

4.      Fees Normal registration and title fees are applicable.  If the applicant is the recipient named in a Will, no excise tax is applicable.

 

5.      Odometer Disclosure Statement – Must be provided for motorized vehicles except off-highway vehicles.

 

6.      Bill of Sale – The recipient of the vehicle may transfer ownership to another individual.  This transaction will be processed as a “double transfer”, assessing the title fee to the original recipient and another title fee to the new owner.  Tax and registration fees will be assessed as applicable to the new owner only.

 

NOTE:  Clerk will begin transaction with a vehicle inquiry, if there is an outstanding lien against the vehicle the title applicant must provide a "Release of Lien" or the court document must order Motor Vehicle Division to issue a “Lien-Free” Title.  If release of lien is not provided or Court Order does not order the issuance of a Lien-Free Title, carry the lien over to the new Title.


Section L.  Titling through a Sheriff's Sale (42-9-13)

           

A Sheriff's Sale is a sale by a Sheriff who has been directed by the courts to dispose of property to satisfy a debt. The sale of the vehicle at public auction must be advertised, before the sheriff can conduct the sale.

 

Documents Required

 

1.      Certified Copy of Court Order – A Writ of Execution issued by the court directing a county sheriff to seize and sell the vehicle owner's property to satisfy a debt.

 

2.      Sheriff’s Notice of Sale – Must be signed by the Sheriff, or other person appointed to conduct sale.  The notice must state the title of the cause in which judgment was obtained and the nature of the action.  It must indicate the date of the judgment and completely identify the vehicle, including the VIN.  It must state whose property is being sold, the amount of the judgment, accrued interest to the date of sale and state the date, time and place of sale.  The notice shall have been published for four weeks immediately proceeding said sale.  The “Notice of Sale” must be signed by the Sheriff and certify under penalty of perjury that Notice of Sale was given through publication in a newspaper.

 

3.      Bill of Sale Shall be issued by the Sheriff, or the person who conducted the sale, to the purchaser. (i.e. auctioneer).

 

4.      Vehicle Identification Number Inspection Conducted by a certified VIN inspector to verify that the VIN on the vehicle corresponds with that on the Motor Vehicle Division vehicle record and on all supporting documents.

 

5.      Odometer Disclosure Statement – Must be provided for motorized vehicles except off-highway vehicles.

 

Fees Registration and title fees apply upon transfer.  Applicant must apply for Title and Registration within 90 days.

 


SECTION M.  CERTIFICATE OF SALE OF SEIZED PROPERTY

 

The Department of Treasury, Internal Revenue Services, U.S. Customs Service, U.S. Marshal's Office, or local and state law enforcement agencies under its authority may confiscate vehicles from persons who neglect or refuse to pay taxes to the Federal Government, or who use their vehicles in illegal operations.

 

Disposal of those vehicles is handled by the issuance of government documents, which are equivalent to a Court Order.

 

1.  Internal Revenue Service

 

The Internal Revenue Service disposes of the vehicle with a Certificate of Sale of Seized Property - Form 2435.  (Authority is granted under Federal Statute Section 6339 (a-5).  This form serves as an ownership document, identifies the person or company from whom property was confiscated, and name of the successful bidder (purchaser).

 

2.  U.S. Customs Service

 

·        The U.S. Customs Service disposes of vehicles with a Report and Assignment of Voluntarily Abandoned and Forfeited Property, Customs Form 42 which the owner signed relinquishing his right to the vehicle.  If this form is not submitted then U.S. Customs must provide a Court Order.

 

·        Miscellaneous Non-expendable Property Transactions, Customs Form 37 must accompany the transaction.

 

·        U.S. Customs Service Disposition Order is used to identify the purchaser/recipient of the vehicle.

 

3.  United States Marshal's Service confiscates and disposes of vehicles with:

 

·        United States Marshal's Bill of Sale, which in itself is a Court Order (Comprehensive Crime Control Act of l984 - Public Law 98-473).  The United States Marshal's Bill of Sale must be signed by the U.S. Marshal, Deputy Marshal, or a designated representative, and must indicate the court case number.  All forms must contain Vehicle Identification Number, year model, make of vehicle and purchaser's name.

 

NOTE:  Any of the above government forms, if properly completed, supersede Titles issued by any licensing jurisdiction and recipient must convert document to a Title in his/her name.

 

1.      Documents Required for Title through Government Confiscation:

 

·        Government document for the respective transaction must contain:

 

a.      Complete Description of Vehicle; i.e. Vehicle Identification Number, year model and make.

b.      Odometer Mileage Reading.

c.      Purchaser's Name.

d.      Sale Price of Vehicle.

 

·        Vehicle Identification Number Inspection

 

All vehicles being titled after government seizure must be visually inspected to verify that the vehicle identification number on all documents corresponds with the 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.

 

A certified VIN inspector must conduct inspection of the vehicles.

 

If the Vehicle Identification Number on the government form does not correspond with the number on vehicle, form must be rejected.  Applicant shall obtain a corrected form from the issuing agency.

 

2.  Fees

 

Applicant shall pay tax, title and registration fees.  Excise tax is based on sale price indicated on the government form.

 

3.  Penalties

 

Penalty applies for failure to transfer ownership within 90 days from date of assignment.

 

NOTE:  Vehicles abandoned on Public Lands (City, County, State) can be removed with a Court Order or Authorized Order of Tow Away to a Licensed Dismantler.

 


SECTION N.  RECONSTRUCTED, REBUILT, HOMEMADE, OR SHOP BUILT-VEHICLES

 

Reconstructed, rebuilt, homemade or shop built vehicles may be titled, if the applicant has all the required documents and provided that the vehicle conforms to all vehicle equipment safety standards applicable to the particular vehicle being constructed.

 

Documents Required

 

1.      Manufacturer Certificate of Origin or Certificate of Title Required only for the factory chassis of the vehicle.  This does not apply when the chassis is “shop built” or homemade.

 

2.      Invoices and Bills of Sale – Must be surrendered for all parts purchased to build and bring into compliance the “constructed or reconstructed” motor vehicle.

 

3.      Affidavit of Constructed or Reconstructed Vehicle MVD Form 10015, shall be completed and signed by the applicant attesting to the fact that the vehicle has been constructed or reconstructed from factory chassis, homemade chassis or “shop built” chassis.  The affidavit also indicates whether vehicle was previously titled or registered in another state.

 

4.      Vehicle Equipment Affirmation MVD Form 10053, shall be completed and signed by the applicant.  Review document to ensure applicant has checked off all equipment required for the type of vehicle being registered.  Assembled vehicles must comply with federal standards for highway use (this is the owner's responsibility).  If applicant tells you that some of the equipment is still missing or not working, DO NOT process the transaction.

 

5.      Weight Certificate – Must be provided to accurately assess registration fees.

 

6.      NCIC Clearance – Required on the factory chassis, the cab and the engine.

 

7.      NM Assigned VIN  – Must be affixed to the vehicle by Motor Vehicle Division employee, or certified LEI Law Enforcement Officer. If giving number to law officer, note name and badge number in remarks.  When preparing to affix VIN plate to vehicle, if clerk can obviously see that the vehicle does not comply with vehicle equipment standards, do not attach VIN plate; instead VOID the transaction.

 

·        Factory-Made Chassis Determines Year Model – On vehicles that are reconstructed, the chassis (when the chassis, parts and equipment, including the frame, are standard factory equipment) will determine the year model of a vehicle.  Enter VIN from the Title of the chassis as the primary number and "NM"-prefix VIN is used as a secondary VIN number. The vehicle must be identified as "REBUILT" in the "brand" field, and the Title and the division copy (Title Application) are branded "REBUILT".

 

·        Shop-Built Chassis Determines Year Model – When the vehicle is built from scrap metal, “shop-built” parts, or parts from other vehicles, but the chassis and/or body is shop-built, the year in which the vehicle is built will determine the year model.  The vehicle make will be "HOMEMADE", and the constructed vehicle must comply with all current safety requirements for highway operation.  Assign a "NM"-prefix VIN as the primary VIN number.

 

Fees

 

Normal fees apply.  The excise tax will be based on the purchase price of the partially dismantled vehicle, other parts purchased, plus labor involved in rebuilding the vehicle.

 


SECTION O.  RECONSTRUCTED VEHICLES FROM GLIDERS

 

Glider Defined

 

A vehicle may be titled after reconstruction from a "GLIDER".  "Glider" means the front axle, frame rail, sleeper, cab and chassis of a large ("semi") truck.  It has everything except engine, transmission and rear axles.  Titles issued to reconstructed vehicles from a “Glider” will show the year model and make that are shown on the MCO of the “Glider”.

 

Documents Required

 

1.      Manufacturer's Certificate of Origin – With assignment completed to the applicant.

 

2.      Manufacturer or Dealer Invoice – Must be an original or certified copy and contain complete description of the “Glider” including the Vehicle Identification Number and indicate the sales price.

 

3.      Affidavit of Constructed or Reconstructed Vehicle MVD Form 10015, shall be completed and signed by the applicant attesting to the fact that the vehicle has been constructed or reconstructed from factory chassis, homemade chassis or “shop-built” chassis.  The affidavit also indicates whether vehicle was previously titled or registered in another state.

 

4.      Vehicle Equipment Affirmation MVD Form 10053, shall be completed and signed by the applicant.  Review document to ensure applicant has checked off all equipment required for the type of vehicle being registered.  Assembled vehicles must comply with federal standards for highway use (this is the owner's responsibility).  If applicant tells you that some of the equipment is still missing or not working, DO NOT process the transaction.

 

5.      Weight Certificate – Must be provided to accurately assess registration fees.

 

Fees Normal fees apply.  Excise tax is based on the sale price indicated on the invoice for the “Glider” (from a dealer or a manufacturer), receipts for parts, and labor cost to rebuild the vehicle.


SECTION P.  RECONSTRUCTED VEHICLES WITH KITS

 

Year Model and Make Determined by Chassis

 

The Title issued to a “reconstructed vehicle” using an existing factory-made chassis and a kit will indicate the make, year model, and VIN of the vehicle as identified on the outstanding Title.  The make identified on the kit will be indicated in the "body type" block and "Rebuilt" will be indicated under "brand" block.  If the MCO or Invoice for the kit shows an identification number, this number must be captured as the secondary identification number on the Title.

           

EXAMPLE:    A Mercedes kit placed over a 78 Ford chassis - Make of vehicle is “Ford”, series is “MRZ”, year model is “78”.  The Certificate of Title and Registration shall indicate in the “BRAND” field that it is a “REBUILT” vehicle.  In the “remarks” section of the Title Application indicate “kit car Mercedes Benz replica”.

 

Documents Required

 

1.      Certificate of Title – The current Title for the existing chassis.

 

2.      Manufacturer's Certificate of Origin for Kit – Must have assignment properly completed to the applicant.

 

3.      Invoice – Must be the original or a certified copy, indicating the identifying number(s), purchaser’s name and the sales price of the kit.

 

4.      Affidavit of Constructed or Reconstructed Vehicle MVD Form 10015, shall be completed and signed by the applicant attesting to the fact that the vehicle has been constructed using a factory chassis, homemade chassis or “shop-built” chassis and a kit.

 

5.      Vehicle Equipment Affirmation MVD Form 10053, shall be completed and signed by the applicant.  Review document to ensure applicant has checked off all equipment required for the type of vehicle being registered.  Vehicles must comply with federal standards for highway use (this is the owner's responsibility).  If applicant tells you that some of the equipment is still missing or not working, DO NOT process the transaction.  If the vehicle is an older model vehicle or a replica of one, which at the time of manufacturer did not require equipment mandatory now, the Motor Vehicle Division will not issue a Title until the vehicle conforms to the federal standards. 

 

6.      Weight Certificate – Must be provided to accurately assess registration fees.

 

7.      VIN Inspection – Must be conducted by a Certified VIN Inspector.

 

8.      NM Assigned VIN  – The NM assigned number will be the secondary number when vehicle is built from a factory chassis, the factory chassis will be the primary number.  If vehicle built has a homemade or shop built chassis the NM assigned VIN shall be the primary VIN.  A Motor Vehicle Division employee or certified LEI Law Enforcement Officer must affix the NM assigned Vin to the vehicle.  If giving number to law officer, note name and badge number in remarks.  When affixing VIN plate to vehicle, if clerk can obviously see that the vehicle does not comply with vehicle equipment standards, do not attach VIN plate; instead VOID the transaction.

 

Fees Normal fees apply.  Excise tax will be based on sale price indicated on invoice for vehicle chassis, kit and other parts purchased to construct the vehicle.

 

NOTE:  A horseless carriage plate may be issued if the chassis used is for a vehicle over 35 years old and looks like the vehicle described on Title.   A vehicle identified as a replica does not necessarily qualify it for a horseless carriage plate.


SECTION Q.  RECONSTRUCTED VEHICLE WITH DISMANTLER NOTIFICATION

 

Vehicle must be Branded "Salvage" (66-3-10.1)

 

Unless the Certificate of Title conveying ownership indicates the vehicle as “SALVAGE”, it shall be unlawful for any person to sell or otherwise convey ownership of any vehicle that has been damaged by collision or other occurrence to the extent that the cost of repairing the vehicle for safe operation on the highway exceeds its fair market value or that has been declared a total loss by an insurance company.

 

When the source document for an Application for Title is a New Mexico Dismantler Notification Form, the vehicle must be identified as “SALVAGE”.  Field offices that issue Titles over the counter must stamp the Title, as well as the department copy, in red letters with the word “SALVAGE” at a 45 degree angle on the empty space next to the "registered owner" block.  “SALVAGE” must be entered in the “brand” block on the Title Application.  The Motor Vehicle Division will assign an “NM” prefix identification number, which will be entered as a secondary number.  A department employee or certified LEI Law Enforcement Officer must affix the assigned VIN tag.

 

Documents Required:

 

1.      “Dismantler Notification”, MVD Form 10172 – This is surrendered as the “Title” would be when applying for title transfer and registration.

 

2.      Dealer's Bill of Sale Properly assigned from the dismantler to the purchaser.  A regular Bill of Sale may not be used.

 

3.      VIN Inspection Must be conducted by a Motor Vehicle Division Certified VIN Inspector.

 

4.      NCIC Clearance – The clearance must be the original, signed by the law enforcement officer who clears the vehicle and it CANNOT be over 30 days old.

 

5.      Dismantler Invoice – Must be an original or a certified copy, it must indicate the vehicle information including the VIN and reflect the sales price.

 

6.      “Affidavit of Reconstructed Vehicle”, MVD Form 10015 – Must be completed and signed by the applicant attesting that the vehicle has been reconstructed from an existing chassis.

 

7.      “Vehicle Equipment Affirmation”, MVD Form 10053 – Shall be completed and signed by the applicant.  Assembled vehicles must comply with federal standards for highway use (this is the owner's responsibility).  If owner states that parts are missing or not yet working you should not process the Title.

 

8.      Invoices – All parts or equipment purchased shall be added to the sales price (of the vehicle) for accurate computation of excise tax due.

 

9.      Weight Certificate – Must be provided for accurate computation of registration fees.

 

10.  New Mexico Assigned VIN The New Mexico assigned VIN shall be the secondary VIN on the Certificate of Title.  A Motor Vehicle Division employee or certified LEI Law Enforcement Officer must affix the New Mexico assigned VIN to the vehicle. If giving the number to a law officer, note name and badge number in remarks.  When affixing VIN plate to vehicle, if clerk can obviously see that the vehicle does not comply with vehicle equipment standards do not attach VIN plate, instead VOID the transaction.

 

NOTE:  When processing Title, enter "DISM" and the Dismantler Form Control Number in the Previous Title Field (example "DISM103456").

 

Fees

 

Excise tax is based on sale price of the partially dismantled vehicle, invoices for other parts purchased, and labor involved in rebuilding the vehicle. The vehicle type, empty weight or DGVW (if it is a truck or motor home) determines registration fees.

 

Penalties do not apply when processing these types of transactions involving dismantler notifications.  Excise tax is not increased to 4.5% if application date is 90 days past purchase date.  Late transfer fee does not apply even if applicant has exceeded the 30-day period from the date of purchase to the date of the Application for Title.

 

The Motor Vehicle Division does not issue a "Title Only" unless the vehicle has been repaired and satisfies the safety equipment requirements identified on MVD Form 10053, "Vehicle Equipment Affirmation".

 

SECTION V.  PROCESSING TRANSACTIONS FOR RECORDS WITH MULTIPLE VINS

 

When a vehicle, trailer or manufactured home has multiple records with the same VIN, clerk should view all records and match the VIN on the record to the VIN on the Title.  Transactions should be processed by assigning a “NM Vehicle Identification Number” as the primary number and entering the “Factory VIN” as the secondary VIN.

 

Documents Required

 

1.  Title Surrender current Title with “Factory VIN” and issue new Title with “NM Vehicle Identification Number and “Factory VIN” reflected.

 

2.      Assigned NM VIN – The NM assigned VIN must be affixed to vehicle or trailer by the clerk, unless it is a manufactured home.  If processing transaction for a manufactured home the “NM Vehicle Identification Number” sticker shall be given to applicant to affix to the manufactured home.

 

SECTION W.  PROCESSING TRANSACTIONS INVOLVING A TRUST

 

When a “Trust” is established there are legal documents that are recorded generally through a County Clerk’s Office.  These documents are used to manage the “Trust”. Most important these documents will state who is appointed as “Trustee”. Sometimes there is more than one “Trustee” and all “Trustees” appointed must manage the “Trust” together if the “Trust” indicates that they cannot act independently of each other.
Title transactions involving a “Trust” are handled the same way you would handle title transaction involving a “Court Order”. You will follow the same basic procedures when processing title transaction.

 

Documents Required

 

1. Mco or Certificate of Title – With assignment completed to the applicant.

 

2. Dealer Invoice – When purchased from a dealer.

 

3. Bill of sale – Assignment of title completed or Bill of sale form properly completed.

 

4. Odometer Mileage Disclosure Statement – As needed.

 

5. Release of Lien – As needed.

 

6. Lien holder Information – If applicable.

 

7. Proof of trade-in

 

8. Power of Attorney(POA) – As needed.

 

9. Affirmation of Insurance

 

10. Identification –(i.e. Motor Vehicle Division photo ID card or driver license) – If more than one person established as “Trustee” and their names are joined by the word “AND” then all signatures are required to process title transactions. If their names are joined by the word “OR” then only one signature is required.

 

11. Copy of the “Trust” (for verification of trustees, need not copy whole trust)

 

12. Notice of Additional Requirements – When needed.

 

13. VIN Inspection and N.C.I.C. Clearance – Required for all out of state titles.