VA DMV Changes Policy on Titling Out-of State Repossessed Vehicles
The Virginia Department of Motor Vehicles issued the following advisory last month on titling out-of-state vehicles that had been repossessed:
It has come to DMV’s attention that out-of-state repossessed vehicle titles may have previously been processed inaccurately. This letter serves as notice of an upcoming DMV policy change that affects the titling of out-of-state repossessed vehicles. As a result of this policy change, effective August 15, 2008, all out-of-state repossessed vehicles must be titled in the name of the lien holder before the lien holder may transfer title to a subsequent purchaser.
The sale of repossessed out-of-state vehicles is governed by Virginia Code _ 46.2-633.This section specifically relates to vehicles acquired through the “operation of law” such as bankruptcy, repossession, legatees, or surviving joint owners.Under current titling law, a person acquiring a vehicle title must acquire a title in their name before they can transfer title to another party. Similarly, in accordance with Section 46.2-633 and DMV’s revised policy, a lien holder must obtain a repossessed vehicle title in the lien holder’s name before they can dispose of that vehicle at auction, regardless of whether they have a Virginia title or an out-of-state title.
Not only does this updated policy comply with the law, it also supports the integrity of the titling process and promotes consistency in DMV’s handling of repossessed vehicles. The updated policy supports the integrity of vehicle titling records by including the lien holder in the title ownership chain as an owner. Accordingly, beginning August 15, 2008, regardless of whether the vehicle was titled in Virginia or another state, the lien holder must first apply for a Virginia repossessed vehicle title before selling the vehicle.
The August 15th effective date is to accommodate those vehicles that were purchased under the “old” procedure and not yet titled. Since Virginia law requires all vehicles to be titled within 30 days of purchase and DMV is effectively providing notice of this change as of July 14, 2008, this date will not be extended.
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