Louisiana Revised Statutes 32:705 – Delivery of certificate to purchaser of vehicle
Terms Used In Louisiana Revised Statutes 32:705
- Authorized officer: means any officer of a federally insured financial institution operating in Louisiana who is designated to witness the endorsement of a seller, on behalf of a federally insured financial institution, for the purpose of executing the transfer of a titled motor vehicle or titled vehicle in accordance with the requirements of this Chapter. See Louisiana Revised Statutes 32:702
- Commissioner: shall mean the director of public safety as provided for in Louisiana Revised Statutes 32:702
- Dealer: shall mean any person engaged in the business of buying, selling or exchanging motor vehicles which are subject to license under Chapter 4 of the Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950. See Louisiana Revised Statutes 32:702
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: shall mean any individual, firm, corporation, partnership or association. See Louisiana Revised Statutes 32:702
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Total loss: means a motor vehicle which has sustained damages equivalent to seventy-five percent or more of the market value as determined by the most current National Automobile Dealers Association Handbook. See Louisiana Revised Statutes 32:702
- Vehicle: shall include those devices sometimes referred to as mobile homes as defined in Louisiana Revised Statutes 32:702
A. No person shall sell a vehicle without delivery to the purchaser thereof, whether such purchaser be a dealer or otherwise, a certificate of title issued under this Chapter in the name of the seller with such signed endorsement of sale and assignment thereon as may be necessary to show title in the purchaser; provided:
(1) A bonded dealer shall provide the purchaser the certificate of title within twenty days.
(2) A dealer who is reselling a vehicle that he purchased for stock purposes from an owner who, at the time of such purchase, delivered to the dealer an existing certificate of title issued under this Chapter in the name of such owner, properly endorsed, may, in lieu of applying for and obtaining a new certificate of title in his own, the dealer’s, name, and delivering the same to the purchaser, instead execute a resale and reassignment of such existing certificate of title, with warranty of title.
(3) A dealer who is reselling a vehicle that he purchased for stock purposes, and for which no certificate of title exists under this Chapter shall, in lieu of applying for and obtaining a certificate of title in his own, the dealer’s, name, and delivering same to the purchaser, note the fact of nonexistence and the reasons therefor, including name and address of the party, whether factory, distributor, or other person, from whom the vehicle was obtained, on a form to be prescribed and furnished by the commissioner, and deliver said form duly signed to such purchaser at the time of sale; however, as to vehicles of the model year 1957 or any later model year, the dealer shall, if the vehicle is of the model year current at the time, in lieu of furnishing said form, deliver to such purchaser at the time of sale a “manufacturer’s certificate” duly endorsed to the applicant.
(4) A dealer who is selling a vehicle that was consigned to him for sale by the registered owner may, in lieu of applying for and obtaining a new certificate of title in the dealer’s own name, and delivering the same to the purchaser, execute a sale and reassignment of such existing certificate of title, with warranty of title if:
(a) There is a written agreement between the dealer and the consignor, executed on a form provided or approved by the commissioner, as to the terms and conditions of the consignment.
(b) Pursuant to the consignment agreement, the consignor has assigned title to the dealer.
(c) There are no liens or encumbrances affecting the vehicle except those about which the purchaser is actually and specifically informed.
B. For purposes of this Section, an “endorsement” means one of the following:
(1) The signature of the seller in the presence of a notary who shall subscribe his name thereon.
(2) The signature of the seller in the presence of two witnesses who shall subscribe their names thereon, which signature shall be acknowledged by a subscribing witness in substantially the following manner:
ACKNOWLEDGMENT OF WITNESS
State of Louisiana
Parish of ___________
Before me, personally came and appeared the undersigned, who, after being duly sworn, said that he subscribed his name to the certificate of title as a witness to the signature(s) of seller(s) and he saw seller(s) sign his name as his voluntary act and deed.
__________________________ _____________________________
(Witness) Notary Public
(3) The signature of the seller if the certificate of title or other document transferring ownership to an insurance company is for a motor vehicle which is subject to an insurance settlement or has been declared a total loss by that insurance company.
(4) The signature of the seller if the certificate of title or other document is transferring ownership to a dealer licensed by the Louisiana Motor Vehicle Commission or Louisiana Used Motor Vehicle Commission, or when transferring ownership from a licensed dealer to a purchaser.
(5)(a) The signature of the seller in the presence of an authorized officer, as defined in La. Rev. Stat. 32:702, who shall verify the identity of the seller and who shall subscribe his name as a witness thereon, when the seller is transferring ownership to a purchaser who is granting a security interest in the vehicle to the federally insured financial institution that is making a secured loan to the purchaser.
(b) The federally insured financial institution shall provide the Department of Public Safety and Corrections, office of motor vehicles, with a separate document identifying the name and job title of the authorized officer for the purpose of verifying that the person signing as a witness is an authorized officer of that particular financial institution. This document or a copy thereof shall be attached to or included with each title presented to the department that is endorsed in the manner described in this Paragraph.
C. All new certificates of title issued by the Department of Public Safety and Corrections, office of motor vehicles, shall include thereon language not inconsistent with the provisions of Subsection B hereof.
D.(1) For purposes of this Section, an “endorsement” shall also mean a written statement signed by an authorized person acting on behalf of the Louisiana Used Motor Vehicle Commission that the certificate of title was obtained by the commission from a used motor vehicle dealer, or a floor plan financier or other similar holder of a security interest relative to a used motor vehicle, pursuant to the commission’s authority in La. Rev. Stat. 32:783(F)(8). Such written statement required by this Paragraph shall state the reason the commission was unable to obtain the endorsement defined in Subsection B of this Section. In lieu of the written statement, the office of motor vehicles and the commission may establish a system for the electronic submission of the statement directly to the office of motor vehicles.
(2) Nothing in this Paragraph shall exempt the rightful owner or bona fide retail purchaser from paying any sales or use taxes that may be due pursuant to La. Rev. Stat. 47:303(B).
(3) In the event the previously issued title indicates that a lien was recorded with the office of motor vehicles, the rightful owner or bona fide retail purchaser shall submit proof that demand to release the lien was made on the lienholder of record by certified mail at the address indicated on that vehicle record, and that thirty days after receipt, the office of motor vehicles is authorized to cancel the lien unless the lienholder sends an objection in writing to both the office of motor vehicles and the owner or purchaser making the demand.
Acts 1983, No. 177, §1; Acts 1983, No. 186, §1; Acts 1987, No. 353, §1, eff. July 6, 1987; Acts 1992, No. 1082, §1, eff. July 1, 1993; Acts 2016, No. 288, §1; Acts 2016, No. 456, §1; Acts 2017, No. 305, §1; Acts 2022, No. 343, §1.