Chapter 5 – Processing the Title Application

Section A.  Prescreen Documents
Section B.  Title and Registration Requirements of Two or More Owners
Section C.  Vehicle Title Lien Processes
Section D.  Name Change
Section E.  Vehicle Make Abbreviations
Section F.  Vehicle Body Type Abbreviations
Section G.  Vehicle Color Abbreviations

Section A: Prescreen Documents

Revised December 1, 2017

Review Each Document for:

1. Errors on vehicle identification number (VIN) (All vehicles model year 1981 and newer must have 17 characters.)
2. Errors in Assignment
3. Any HighlightingReject any document that has been highlighted if the highlighted area compromises the document’s integrity and our ability to capture required information in DMS.When documents have highlighting on them, any information in the highlighted area is lost when scanned into the Document Management System (DMS). Never highlight documents for any reason. Customers may, understandably, become angry when documents are rejected or they are asked to get clean copies of documents. Please, always, make every effort to address customer concerns sympathetically, and inform the customer that rejecting the document protects the customer.?
4. Dates on DocumentsVehicles must be titled and registered within 30 days (§66-3-103(B)). Failure to apply for transfer of registration and issuance of a new certificate of title within 30 days from the date of transfer subjects the transferee to a penalty (see Vehicles ?Chapter 6 Section C, Penalties). The date of sale of a vehicle and the beginning of the 30-day registration requirement period is established by the date of assignment on the (earlier date of the) MCO, title or bill of sale, or dealer invoice.
5. Proper entry of Purchaser Name(s)Do not accept a document if there are any additions of names with a different color ink, erasures, alterations, type-overs, changes or discrepancies in the names of sellers or purchasers. In some situations such documents may be accepted with Manager approval and/or an Affidavit of One and the Same Name or an Affidavit of Correction.
6. Release of Lien
7. Odometer ReadingVerify that the seller and purchaser acknowledge the accuracy of the odometer reading and that the appropriate mileage option was checked off (AM actual mileage, EL exceeds mechanical limits, NM not actual mileage or EX exempt).
8. Proper Lien InformationLien holder information is required to be complete upon application for title and registration. Applications submitted lacking any of the following information may be rejected and returned to the applicant for completion:a. The lien file and maturity date
   b. the lien holder’s name and mailing address

   Missing information can be obtained without mailing all paperwork back, if an authorized agent for the lien holder is able to submit the completed application by fax or email.

9. Sale PriceVerify that the sale price indicated on the dealer’s invoice includes trade-in allowance (if any).
10. Branding of Certificate of TitleAny branding from New Mexico or another jurisdiction must be noted and carried over to the new Certificate of Title. Other states’ salvage-equivalent brands (e.g. salvage, flood or hail damage) will be salvage branded.Note: A “Salvage Certificate” that does not include the word “Title” is not and cannot be accepted as a Certificate of Title.
11. Titles with StickersDo not ever accept titles with stickers.Stickers placed on titles may be little bar codes strips or white labels. Most are placed on out-of-state titles. Some are placed strategically over words such as “SALVAGE” or “EXPORT ONLY.” Regardless, MVD agents may not accept any title with a sticker on the front or back. Nor should an MVD agent attempt to remove a sticker. Instead, return any title with a sticker to the customer. If the customer is able to remove the sticker and resubmit an acceptable, undamaged title, you can then proceed with the transaction. Do not, however, accept the title if it appears that any important information on the certificate of title has been removed or altered in the slightest degree.

Notice of Additional Requirements

While processing Vehicle related transactions in Tapestry, if ANY of the required documents are missing, you must prepare and generate MVD Form 10282 “Notice of Additional Requirements for completion of Vehicle Transaction.” Tapestry will generate this letter to document all requirements that have been met and especially to document everything that is missing or incorrect. Customer Service Representatives can include additional notations to the letter to ensure that customers are notified of everything they will need to have for a successful outcome on their next visit. Key-entered additional notations will also be visible to all other users from the CRM tab.

When reviewing all the documents submitted by the applicant(s), keep in mind that transactions should be rejected if documents lack any necessary information, do not have all signatures, or are incorrect or missing information. Any discrepancies found shall be explained to the applicant. Be sure to review the documents carefully and note all additional requirements necessary to complete the transaction. Generate the “Notice of Additional Requirements for Completion of Vehicle Transaction” letter, give it to the applicant and advise them that all required documents must be returned within 10 days of the date on the form to avoid late registration.

Section B: Titling a Vehicle in the Names of Two or More Owners

Revised November 20, 2017

When an applicant for a vehicle title wishes to title the vehicle in the names of two or more owners:

1. The owners’ names must appear on the Original Title exactly as they do on the Assignment.The names listed in the dealer’s assignment of the MCO, Certificate of Title or Bill of Sale MUST be the same names listed when issuing the original New Mexico Certificate of Title. AND the words used to connect two or more names on the MCO assignment must be those used when issuing the Title. Exception: As noted below, substitute “and” for “and/or.”
2. An individual may add their spouse’s name with Bill of Sale.If an owner to whom the dealer’s assignment is made on the MCO or Certificate of Title wants to add the name of a spouse, they may do so at the time of the original title transaction. A bill of sale from the purchaser to the name of the purchaser and spouse must be completed. The bill of sale should state “adding name of spouse.” The lien holder, if any, must give written permission. There is no additional charge to add the name of spouse as long it is done before the title is issued in only one name.
3. Adding a name other than a spouse.If a purchaser to whom the dealer’s assignment is made on the MCO or Certificate of Title wants to add another person’s name, they may do so at the time of the original title transaction. A bill of sale must be completed from the purchaser to the name of the purchaser and the other person. The bill of sale should state “adding another name to title.” The lien holder, if any, must give written permission. There is no additional charge to add the name of the other person, so long it is done before the title is issued in only one name.
4. A lien holder’s permission is required to add names to Title.If a vehicle is encumbered, the owner must obtain the written permission of the lien holder to add any names to the Title or to change the words used to connect the names of owners on the Title.
5. Owners’ names joined by the word “or”When the owners’ names on the Title are joined by the word “or,” only one signature is required to apply for, assign or encumber the vehicle.
6. Owners’ names joined by the word “and” or by “and/or”When the owners’ names shown on the Certificate of Title are joined by the word “and” or by “and/or,” BOTH owners must sign the Application for Title, to assign the title or to encumber the vehicle.
7. Never not use “and/or.”Never use “and/or” in combination when preparing a vehicle Certificate of Title, even if the names are connected that way on the MCO assignment or on an out-of-state title. Use the word “and.” Do not use any other form to connect the names of two or more registered owners.Note: If the names of the registered owners shown on the assignment on the MCO are not joined by the word “and” or the word “or,” indicate joint ownership with the word “and” on the Title Application.
8. Changing the ConnectiveA bill of sale indicating the change is required to change the connective of registered owners.When changing the connective from “and” to “or” all signatures joined by the word “and” are required. Indicate on the bill of sale “changing connective.”

   To change the connective from “or” to “and” only one of the registered owners must sign the bill of sale; however, all signatures of owners to be joined by “and” are required on the Title Application.

9. Two owners with “or” connectivity and one wants out (no lien)The owner who wants his name removed from a title must have the other owner process the title change. The title application must be signed by the person whose name will be on the new title.
10. Two owners with “and” connectivity and one wants out (no lien)The current title re-assignment will show both persons as sellers and the person keeping the vehicle as the buyer. If they do not both agree to this process then it becomes a legal matter outside of MVD.

Section C: Vehicle Title Lien Processes

Revised December 1, 2017

FilingSecurity Interests (Liens) on Vehicles, Except Manufactured Homes|

• Filing security interests (§66-3-201)  A security interest (lien) in a vehicle of a type required to be titled and registered in New Mexico is not valid unless perfected (processed at time of application) as provided by §66-3-201. This provision does not apply to liens dependent upon possession or to property tax liens on manufactured homes.The Certificate of Title last issued shall contain the name and address of any lien holder, the date the security agreement was executed and the maturity date of the agreement.
• Filing effective to give notice (§66-3-202) The filing of an application with the division and the issuance of a new Certificate of Title by the division constitutes constructive notice of all security interests in the vehicle described in the application.Except for a manufactured home or recreational vehicle, if the application is received by the division within 10 days after the date the security agreement was executed (60 days in the case of a manufactured home or recreational vehicle), constructive notice is effective on the execution date of the security agreement. The security interest is deemed to have been filed and perfected on that date and shall have priority over other liens subsequently attached or filed, except for tax liens filed by the state, county or federal governments.

  In all other cases, constructive notice is effective on the date of receipt noted on the title application. The constructive notice provided for in this section terminates 12 months after the lien’s maturity date. Unless re-filed within 12 months after the lien’s maturity date, the division may ignore the lien in the issuance of all subsequent certificates of title.?

  Note: Tapestry offers customers the ability to initiate lien requests online and save themselves a trip to an office.

Vehicle Lien situations

• TRD lien on a title TRD may be the first or second lien holder on a vehicle in our database because of taxes owed to the state. The title presented may not show the lien and is not the most current title. The state holds the most current title.The customer must contact TRD at 1-866-285-2996 to negotiate a release of lien. In most cases the customer must satisfy the amount of the lien in order to take possession of the vehicle. It is possible that the lien may be more than the value of the vehicle. TRD can update our database to release the lien.

  Note: If a TRD lien has matured plus one year the lien is no longer valid. TRD uses 10 years as the life of a lien if the maturity date is not recorded.

• First lien left off of title (never recorded) and a second lien filed It may happen that the first lien on a vehicle was never recorded (perfected). If the customer then gets another lien, and the first lien holder finds out, the second lien holder (who did not know that the first lien existed, because it was never recorded) is under no obligation to surrender the vehicle or title to the first lien holder.The first lien holder will have to convince the court that the first lien is superior to the second. Both may accuse MVD of negligence, and the vehicle owner may have taken advantage of an MVD error to defraud both lenders.

  It is a felony to dispose of encumbered property without the secured party’s consent. The first lien holder should file a police report.

• Title application with a lien holder not signed by owner A title application with a lien holder may not be processed because the vehicle owner has not signed the application and is not available. The customer has the vehicle. In that case, the lien holder can request a title. The lien holder must provide proof of loan documents and an affidavit stating that the customer reneged on his agreement to sign the title application (or other reason). The lien holder must agree to pay title fee and excise tax. With a legal title in hand the lien holder can then repossess the vehicle.
• Lien holder wants to extend the maturity date Extension of a maturity date requires the registered owner’s signature on a Title and Registration Application for processing.
• Court ordered lien A court may place a first or second lien on a vehicle. If it is a second lien MVD will send a letter to the first lien holder directing them to remit their title in exchange for the new title. Scan the letter with the other new title documents.
• Individual moving to New Mexico from out of state – title held by lien holderWhen an individual moving to New Mexico from out of state seeks to title a vehicle, but does not have the title in his possession because it is being held by a lien holder, use the Request for Lien Holder Title form (MVD-10234 rev. 8/94). The system generates the request that is sent to the lienholder with a copy for the customer. The customer copy is a 30-day temporary permit to operate the vehicle while we wait for the title to be sent to us. The original white copy of this three-ply form is sent to the lien holder. The pink copy is retained by the customer/owner and serves as a temporary permit. MVD retains the yellow copy.

Section D: Name Change

Revised November 20, 2017

Applicants requesting a name change on a vehicle title or registration must present proof of the name change. If there is a lien, the lienholder must acknowledge/agree to the name change.

Name Change Requirements – Individual Owner

The documents presented must be the original or certified copies. The following are acceptable documents for changing a name:

• Marriage License
• Court Order
• Divorce Decree
• Birth Certificate

NOTE: Generally, the Birth Certificate is used when someone is correcting an error in the way his or her name appears on a vehicle registration or title. Example: Current title shows name as “Daniel J. Martinez.” Applicant is requesting that name appear as on Birth Certificate, “Jose Daniel Martinez.”

Name Change Requirements – Corporate Owner

If the vehicle is owned by a corporate entity, a different set of documents is required, as follows, to accomplish a name change:

• Title
• Bill of Sale (if needed)
• Title Application

Section E: Vehicle Make Abbreviations

Revised November 22, 2017

Vehicle Make Abbreviations

Note: Geo is a Chevrolet. Neon may be a Dodge or a Plymouth – verify make by VIN.

Vehicle Body Type Abbreviations

Revised November 20, 2017

Vehicle Body Types, Classes and Abbreviations

Vehicle Color Abbreviations

Revised November 20, 2017

Vehicle Colors and Abbreviations