Chapter 8 – Special Title Situations

Section A.  Title Only Transactions
Section B.  Adding Vehicles Back into the System
Section C.  Title After Repossession
Section D.  Registration Valid after Death of Owner
Section E.  Deceased Owner/Court-Appointed Personal Representative
Section F.  Deceased Owner, No Will or Unprobated Will – Claiming Successor
Section G.  Deceased Owner, No Will or Unprobated Will – Transfer Without Probate
Section H.  Transfer through Court Adjudication of Probate
Section I.  Transfer through Court Order
Section J.  Transfer in the Event of Divorce
Section K.  Processing with a Trust
Section L.  Vehicles Purchased at Auction
Section M.  Transfer of Equity/Lien
Section N.  Double and Multiple Transfers
Section O.  Re-Issuance of Title after Non-Receipt
Section P.  Titling upon Sale of Government-Seized Property  
Section Q.  Titling Through a Sheriff’s Sale
Section R.  Stolen and Unrecovered Vehicles – Salvage Brand not Required
Section S.  Duplicate Certificate of Title
Section T.  Duplicate Title on a Stolen/Recovered Vehicle
Section U:  Foreign-Manufactured Vehicle Transactions Titles stamped “For Export Only”
Section V:  Transfer of Existing Lease to New Lessee
Section W:  Vehicles Obtained by Law Enforcement through Forfeiture

Section A: Title Only Transactions

Revised December 1, 2017

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.

The following are examples of “Title Only” transactions:

1. Non-Franchised Dealers Selling a New Car (§66-3-118(C))A non-franchised dealer who wishes to sell a new vehicle must convert the Manufacturer’s Certificate of Origin (MCO) to a Certificate of Title and pay both the title and the registration fees. However, they are not required to pay the excise tax. The Title Application should specify in the “Remarks” field: “For dealer re-sale only.”
2. Isolated Cases Involving DealersWhen the transferee of a vehicle is a dealer who holds the vehicle for resale and does not drive the vehicle or permit it to be driven upon the highways, the dealer shall not be required to obtain transfer of registration of the vehicle or forward the certificate of title to the department. However, a dealer may have a title with various assignments which prevents him from assigning the title to a buyer, or may want to provide a clean title to the buyer. In these cases the dealer may obtain a title. Payment of the title fees is required. Registration fees and excise tax are not collected.
3. Vehicles transferred to Nonresidents (§66-3-10)Whenever a vehicle owner transfers the vehicle to a nonresident who wishes to title the vehicle in the nonresident’s state of residence, the division upon receiving application and the payment of the proper fee shall issue a Certificate of Title only and record on the certificate all liens and encumbrances.
4. Inoperable VehiclesAn 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 may register the vehicle, upon affirming insurance and payment of the registration fee.
5. Vehicles to be Traded-InA vehicle that is received as a gift, which the new owner wishes to trade in on another vehicle, may be titled with a title only transaction. The applicant pays the title fee. The Title Application should specify in the “Remarks” field “Vehicle to be traded-in.”
6. Stolen and Unrecovered Vehicles, Titled to Insurance CompanyThe Motor Vehicle Division will issue a title only Certificate of Title to an insurance company for a stolen and unrecovered vehicle. The insurance company pays only the title fee.
7. Vehicles that are Not InsuredA vehicle 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 may subsequently register the vehicle, upon affirming insurance and payment of the registration fee.
8. Titling in Name of RepossessorVehicle titles from all states, which are accompanied by repossession documents, shall be accepted for transfer and registration without requiring that the repossessor title in his name before resale. However, if a repossessor wishes to title the vehicle in his name, he may acquire a title only. (See also ??Chapter 8 Section C, Title after Repossession)
9. Commercial Vehicles with DGVW Greater than 26,000 poundsA commercial vehicle with a declared gross vehicle weight (DGVW) of more than 26,000 pounds, whose owner or operator chooses to Apportion (IRP) 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.

   Note: Registration of vehicles with a DGVW exceeding 26,000 pounds (except motor homes) is done solely by the Commercial Vehicle Bureau (CVB) in Santa Fe. Local field offices WILL NOT issue IRP registration, temporary permits or license plates for any IRP registrations.

 

Section B: Adding Vehicles Back into the System

Revised August 21, 2018

How to add a vehicle back into the system if it has fallen off.

There are times when customers come into the office and want to do a title transfer and/or register a vehicle that at one time was titled and registered in New Mexico, but we are unable to locate the vehicle’s information in our system.

What you need to do to get the vehicle entered back into the system: titling a vehicle after repossession:

Scenario #1: Customer has New Mexico title in hand.

• Obtain title.
• Conduct a VIN inspection.
• Run as a First Time out-of-state and select NM and enter the title number.
• Contact Error Resolution Unit if you get a hard stop.

Scenario #2: Customer has no title but has proof of registration and is not changing ownership.

• Obtain Proof of Registration.
• Conduct a VIN inspection.
• Customer completes Affirmation Certifying Ownership (MVD10010).
• Contact Error Resolution Unit if you get a hard stop.?

Scenario #3: No proof of ownership.

• Follow the surety bond process.

Section C: Title After Repossession

Revised November 27, 2017

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 that the repossessor title in their name before resale. However, if a repossessor wishes to title the vehicle in their name, they may acquire a “Title Only.”

Requirements for titling a vehicle after repossession:

1. Original Certificate of TitleThis document must indicate the lien of the repossessor on the face of the title.
2. Affidavit of RepossessionThe applicant must submit the Affidavit of Repossession (MVD-10012) completed by the repossessor.
3. Release of LienThe lien holder reflected on the title must sign a release of lien before the title can be transferred.
4. Odometer Disclosure Statement (MVD-10187)Whoever has the legal ability to transfer title also has the ability to complete the odometer statement, including the ability to assert actual mileage (“to the best of my knowledge”). Accordingly, the repossessor may assert actual mileage (AM) as well as other odometer information.?

   An odometer reading is not required for off-highway motor vehicles (OHVs).

5. Bill of SaleIf the applicant has purchased the vehicle from the repossessor, the assignment on the back of the title or a “Bill of Sale” form (MVD-10009) must be completed.

   Note: In situations where the lien holder has undergone a name change (example from Bank of America to Norwest Bank) a letter of explanation is required.

 

Section D: Registration Valid After Death of Owner

Revised November 27, 2017

Registration Continues to be Valid after Death of Owner (§66-3-122)

Upon the death of a vehicle’s registered owner, the vehicle’s registration continues to be valid

1. until the end of the current registration period; or
2. until ownership of the vehicle is transferred by the personal representative of the deceased owner’s estate or by a legatee or distributee of the estate; or
3. until ownership is transferred by the survivor of two joint owners of the vehicle.

Transfer of Title to the Personal Representative

If the vehicle is transferred into the name of the personal representative (administrator, executor, executrix), with a title only transaction, the personal representative will pay title but not registration fees. No excise tax is applicable. If the personal representative also registers the vehicle in their name, they may be liable for late registration fees if the vehicle was operated after the registration in the name of the deceased expired.

Transfer Other Than to the Personal Representative or Beneficiary of the Estate

If the vehicle is transferred to a party other than a beneficiary of the estate or the estate’s personal representative, the new owner must pay title fees and excise tax. The new owner may register the vehicle and may also be liable for late registration and transfer penalties as evidenced by documents showing assignment information.

Actual Mileage or Not Actual Mileage

Whoever has the legal ability to transfer title also has the ability to complete the odometer statement, including the ability to assert actual mileage (“to the best of my knowledge”). Accordingly, the personal representative, beneficiary or other transferee may assert actual mileage (AM) as well as other odometer information.

Specific Title Transfer Requirements

For specific title transfer requirements when a vehicle’s registered owner is deceased, see Section E (Deceased Owner/Court Appointed Personal Representative), Section F (Deceased Owner with No Will or Unprobated Will – Claiming Successor), Section G (Deceased Owner, No Will or Unprobated Will – Transfer Without Probate) or Section H (Transfer through Court Adjudication of Probate) of this chapter.

 

Section E: Deceased Owner/Court-Appointed Personal Representative

Revised November 27, 2017

If the owner of a vehicle dies, with or without a will, the District Court or Probate Court may name a personal representative (who may also be called “administrator,” “executor” or “executrix”) to dispose of the estate’s assets.

A Tribal Judge may also give an “Order of Appointment for Administrator” to one or more individuals 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 as authority for the personal representative to transact Titles.

Requirements

• Certificate of Title – Current
• Order Appointing Personal Representative and Acceptance of Appointment of Personal Representative – Issued by the Probate Court or District Court and signed by the Judge, naming the personal representative(s), administrator(s), executor(s) or executrix(es) of the estate; (or) an Order of Appointment for Administrator issued within a tribal jurisdiction and signed by the Tribal Judge.The document must be a certified copy showing that it has been filed with the clerk of the court. 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 Bill of Sale (MVD-10009) properly completed to show transfer to new owner.
• Odometer Disclosure Statement (MVD-10187) – Must be provided for all motor vehicles, except off-highway vehicles.Whoever has the legal ability to transfer title also has the ability to complete the odometer statement, including the ability to assert actual mileage (“to the best of my knowledge”). Accordingly, the court appointed personal representative may assert actual mileage (AM) as well as other odometer information.

  NOTE: Field office shall make a photocopy of the Order Appointing Personal Representative and Acceptance of Appointment of Personal Representative, or Order of Appointment for Administrator, and then must indicate that the “original” certified copy has been viewed.

Fees

All normal fees are applicable. The Motor Vehicle Excise tax is not due if the applicant is named in the Will as the recipient of the vehicle, or otherwise receives the vehicle, for no consideration, as a beneficiary of the estate.

 

Section F: Deceased Owner, No Will or Unprobated Will – Claiming Successor

Revised November 27, 2017

If the owner of a vehicle or vessel dies and leaves no will, or the will has not been probated, there are two ways to accomplish a transfer of title: Claiming Successor and Transfer Without Probate (Section G).

Claiming Successor (§§ 45-3-1201(A) and 66-3-105(C))

Thirty days after the death of a decedent, any person … having possession of tangible personal property … belonging to the decedent shall … deliver the tangible personal property … to a person claiming to be the successor of the decedent upon being presented an affidavit made by or on behalf of the successor stating that:

1. the value of the entire estate, wherever located, less liens and encumbrances, does not exceed $50,000;
2. 30 days have elapsed since the death of the decedent;
3. no application or petition for the appointment of a personal representative is pending or has been granted in any jurisdiction; and
4. the claiming successor is entitled to payment or delivery of the property.

The claiming successor may then apply to register and title the vehicle in their name.

Requirements

• Certificate of Title
• Affidavit of Claiming Successor (MVD-10013)
• Original or Certified Copy of Death Certificate or, for military personnel, DD Form 1300 Report of Casualty
• Release of Lien, if a lien is reflected
• Odometer Disclosure Statement (MVD-10187) – Must be provided for all motor vehicles, except off-highway vehicles.Whoever has the legal ability to transfer title also has the ability to complete the odometer statement, including the ability to assert actual mileage (“to the best of my knowledge”). Accordingly, the claiming successor may assert actual mileage (AM) as well as other odometer information.

If the Certificate of Title is lost, the claiming successor may apply for a duplicate title. Clerk will process transaction as a title transfer.

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 or a certified copy of the Death Certificate or DD Form 1300.

 

Section G: Deceased Owner, No Will or Unprobated Will – Transfer Without Probate

Revised November 27, 2017

If the owner of a vehicle dies and leaves no will, or the will has not been probated, there are two ways to accomplish a transfer of title: Claiming Successor (Section F) and Transfer Without Probate.

Transfer Without Probate

A legal heir or spouse of the deceased owner of a vehicle or vessel may use the Transfer Without Probate process to receive title to the vehicle or vessel.

The following conditions must be met:

1. The vehicle or vessel has not been devised by will to anyone else;
2. no application for petition for the appointment of a personal representative is pending or has been granted in any jurisdiction;
3. 30 days have elapsed since the death of the deceased; and
4. the applicant is entitled to the vehicle or vessel by operation of law.

Note: A “Transfer without Probate” from out of state can not be accepted. The Transfer Without Probate process can only be completed in the jurisdiction in which the vehicle or vessel was previously titled.

Requirements

• Certificate of Title
• Certificate of Transfer Without Probate (MVD-10011)
• Original or Certified Copy of Death Certificate or, for military personnel, DD Form 1300 Report of Casualty
• Release of Lien, if a lien is reflected
• Odometer Disclosure Statement (MVD-10187) – Must be provided for all motor vehicles, except off-highway vehicles.Whoever has the legal ability to transfer title also has the ability to complete the odometer statement, including the ability to assert actual mileage (“to the best of my knowledge”). Accordingly, the transferee may assert actual mileage (AM) as well as other odometer information.

If the Certificate of Title is lost, the heir or spouse may apply for a duplicate title. Clerk will process transaction as a title transfer.

NOTE:
Field office personnel must affirm on the retained copy of the death certificate, that they have viewed the original or a certified copy of the Death Certificate or DD Form 1300.

 

Section H: Transfer through Court Adjudication of Probate

Revised November 27, 2017

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 the 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 pursuant to a Court Order, the Motor Vehicle Division will ONLY accept an original or certified copy of a Court Order.

Requirements

• 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. Begin the transaction with a vehicle inquiry and print the vehicle record.
• Original or Certified Copy of Court Order, which names the recipient of the vehicle AND identifies the vehicle(s) by vehicle identification number (VIN). 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.
• Release of Lien, if the title shows a lien holder.
• Fees – Normal registration and title fees are applicable. If the applicant takes ownership of the vehicle, for no consideration, as a beneficiary of the estate, no excise tax is applicable.
• Odometer Disclosure Statement (MVD-10187) – Must be provided for all motor vehicles, except off-highway vehicles.Whoever has the legal ability to transfer title also has the ability to complete the odometer statement, including the ability to assert actual mileage (“to the best of my knowledge”). Accordingly, the recipient of the vehicle may assert actual mileage (AM) as well as other odometer information.
• The recipient of the vehicle must title the vehicle in their name before it can be sold.

 

Section I: Transfer through Court Order

Revised November 27, 2017

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.

Requirements

• 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. Begin transaction with a vehicle inquiry and print the vehicle record.
• Original or Certified Copy of Court Order, which names the recipient of the vehicle AND identifies the vehicle(s) by vehicle identification number (VIN). 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.
• Release of Lien, if the title shows a lien holder, unless the court orders MVD to issue a “lien-free” title. Otherwise, carry the lien over to the new title.
• Fees – Normal registration and title fees are applicable, as is the excise tax unless specifically exempted by the Motor Vehicle Excise Tax Act or unless the vehicle came into the possession of the applicant as a voluntary transfer without consideration or as a transfer by operation of law (§7-14-3).
• Odometer Disclosure Statement (motor vehicles, except off-highway vehicles)Whoever has the legal ability to transfer title also has the ability to complete the odometer statement, including the ability to assert actual mileage (“to the best of my knowledge”). Accordingly, the court-ordered recipient of the vehicle may assert actual mileage (AM) as well as other odometer information.
• The recipient of the vehicle must title the vehicle in their name before it can be sold.

 

Section J: Transfers in the Event of Divorce

Revised November 22, 2017

In the event of a divorce, transfer of title can be accomplished on the strength of the final divorce decree, issued by the court.

The decree must be a certified copy and must stipulate that the described vehicle was awarded to the title applicant. The decree must contain the court seal. The description of the vehicle must include the VIN.

The license plate goes with the individual declared by the court to be the legal owner, but only if their name is already on the title as an owner. If the plate is a special plate, the new sole owner must also meet any special requirements for issuance of the plate. Example: if the plate is a POW plate, the new sole owner may only keep the plate if he or she is a qualifying POW.

 

Section K: Processing with a Trust

Revised December 1, 2017

A trust is both a document and a relationship in which one or more trustees hold property for the benefit of one or more beneficiaries. Such property is said to be “held in trust” by the trustee for the benefit of the beneficiaries. A trust is established by one or more grantors. The trust may be for the benefit of the grantor or for other beneficiaries. A trust will always name one or more trustees, and will typically also name one or more “successor trustees.“

For example, a “family trust” might be established by Mr. and Mrs. Smith (as grantors) for the benefit of themselves and the Smith children (as beneficiaries), with Mr. and Mrs. Smith acting as trustees. The trust might also name Mr. and Mrs. Smith’s siblings, children, a friend or a corporate trustee (e.g. a trust company) as “successor” trustee(s) to step into the trustee role at such time as neither Mr. nor Mrs. Smith is available, willing or competent to serve as trustee.

A trustee has a fiduciary responsibility to act according to the terms of the trust for the benefit of the beneficiaries. As such he or she is, in a very real legal sense, a different person when acting as trustee than when acting as an individual. In the example above, Mr. Smith, when acting as Trustee of the Smith Family Trust, has a different identity and a different set of responsibilities and obligations than he would when acting on his own behalf.

Multiple trustees

When there is more than one trustee, the trust document will state, somewhere in the body of the trust, whether the trustees must manage the trust together or if any one trustee can act independently of the other(s).

Requirements

Follow the requirements in Chapter 3 Section A or Chapter 4 Section A for titling and registering a new or used vehicle. Also required specifically for trust transactions:

1. A copy of the trust document pages (including the first and signature pages) that name the trust, the effective date of the trust, and the trustee(s) and, if there is more than one trustee, indicate how many trustees’ signatures are required to act on behalf of the trust. Neither an original document nor a certified copy is required.
2. Unless the trust document clearly states otherwise, a general rule is that:
   a) If more than one person is named as trustee and the trustees’ names are joined by the word “AND” all of the trustees’ signatures are required to process a title transaction.
   b) If the trustees’ names are joined by the word “OR” only one signature is required.
   c) If the trustees’ names are not joined by “AND” or “OR” all of the trustees’ signatures are required to process a title transaction.

 

Section L: Vehicles Purchased at Auction

Created December 1, 2017

New Mexico Auctions

• If the first assignment on a New Mexico title shows a New Mexico dealer and there are subsequent assignments to a New Mexico auctioneer, the auctioneer can assign the New Mexico title to an individual purchaser. The auction firm does not have to apply for a Certificate of Title in the name of the auction.
• The auction firm also does not have to apply for a Certificate of Title in the name of the auction if the auctioneer is acting on behalf of the owner or representative of an estate and has documentation signed by the owner or representative authorizing the sale.

Out-of-State Auctions

• An out-of-state auctioneer may also assign the out-of-state title to a New Mexico individual purchaser without converting title into the auction name. The New Mexico purchaser shall then apply for a New Mexico title.

Requirements

Follow the requirements in Chapter 3 Section A or Chapter 4 Section A for titling and registering a new or used vehicle. Also required specifically for auction-to-buyer title transactions:

• If the auctioneer/seller is acting on behalf of the owner or representative of an estate, documentation signed by the owner or representative authorizing the sale is required.

 

Section M: Transfer of Equity/Lien

Revised November 22, 2017

A “transfer of equity” is an inter-party agreement between:

• the registered owner of a vehicle or vessel;
• the person who will take over loan payments; and
• a financial (lending) institution, the lienholder.

The purpose of a transfer of equity is to allow title to a vehicle or vessel to be transferred to a new owner subject to an existing loan, with the agreement of the lender.

The “Change of Equity Certification” form (MVD-10044) is generally used in lieu of both the Bill of Sale and Release of Lien. Because the lienholder is a party to the transaction, a separate release of lien is not required.

If, however, there is consideration paid for the vehicle or vessel over and above the buyer’s agreement to take responsibility for the unpaid lien balance, a bill of sale is required and must reflect the correct total amount paid (i.e. the unpaid balance plus the amount of additional consideration).

Excise tax

• If there is no additional consideration paid over and above the unpaid lien balance, excise tax is due from the buyer based on the amount of the assumed unpaid lien balance or, if higher, 80% of the N.A.D.A. average trade-in or wholesale value of the vehicle (see Chapter 6 Section D).
• If there is additional consideration paid over and above the unpaid lien balance, excise tax is due on the total amount paid (i.e. the unpaid balance plus the amount of additional consideration) or, if higher, 80% of the N.A.D.A. average trade-in or wholesale value of the vehicle (see Chapter 6 Section D).

 

Section N: Double and Multiple Transfers

Revised November 22, 2017

Any individual who purchases a vehicle, whether in New Mexico or any other state, must generally obtain title in their own name before selling the vehicle.

Exception: Double Transfer or multiple transfers

An exception to that general rule may be made when the previous owner or owners failed to transfer the title into their own name(s). In that case a “double transfer” (two transfers) or “multiple transfers” (more than two transfers) may be required.

Double or multiple transfers can be accomplished in a single transaction, with two (double transfer) or more (multiple transfers) complete sets of documents, as follows:

All documents, including consecutive bills of sale, odometer statements and proper assignments must be obtained. If all documents are not provided, a surety bond process will be required.

Taxes must be paid on both or all transfers, as well as late title transfer fees (if any) on the last transfer.

The Application for Vehicle Title and Registration (MVD-10002) is to be completed in the name of the current purchaser. Only one application is processed in a double transfer or multiple transfers. Complete the title application as follows:

• Calculate “sale price” as the sum of the amounts paid by the buyers in both or all transfers.Tapestry will now perform the calculations once users have entered the purchase price and dates indicated for each transfer involved in the transaction. Tapestry will calculate and indicate the total fees due.

• Note: Do not include the price paid for those transfers that should have been taxed in another jurisdiction. This will generally be the case if the transfer(s) took place in another state, as should be clear upon the transfers or bills of sale.
• Only one registration fee is assessed.

 

Section O: Re-Issuance of Title after Non-Receipt

Revised November 22, 2017

This procedure for re-issuance after non-receipt applies only to registered owners and lien holders when the address on record is incorrect (due to clerk error), so that the title was sent to the wrong address and was never received by the owner or lienholder.

Replacement Title, No-Fee

A replacement title, with the correct address, will be issued at no fee if the applicant meets all of the following requirements:

1. The Motor Vehicle Division must have mailed the “Certificate of Title” to the registered owner or lienholder. 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 or lienholder must make the request for re-issuance within 90 days from the date of original issuance.
4. The applicant must complete the “Affidavit of Non-Receipt” form (MVD-10022).
5. The applicant must provide identification (i.e. driver’s license). When application is made by mail, applicant should send a photocopy of the driver’s license.

 

Section P: Titling upon Sale of Government-Seized Property

Revised November 27, 2017

The Department of Treasury, Internal Revenue Service, U.S. Customs and Border Protection, and the U.S. Marshals Service 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 agency-specific government documents, which are equivalent to a court order. They include:

1. Internal Revenue ServiceThe 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, and identifies the person or company from whom property was confiscated and the name of the successful bidder (purchaser).
2. U.S. Customs and Border Protection (CBP)Once CBP sells a vehicle at auction, the buyer will be issued a Standard Form 97 “The United States Government Certificate to Obtain Title to a Vehicle” through the national contractor. The “Transferor’s” name and signature shall already be executed by the responsible U.S. Government official before issuance to the buyer.  It is the buyer’s responsibility to fill out all applicable sections of the SF97 and present it to the state Department of Motor Vehicles to transfer the title.
3. United States Marshal’s ServiceThe United States Marshals Service confiscates and disposes of vehicles with the United States Marshals Bill of Sale, which in itself is a Court Order (Comprehensive Crime Control Act of l984 – Public Law 98-473). The United States Marshals 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. The new owner/recipient must convert the document to a title in his/her name.

Requirements for Titling through Government Confiscation

The government document(s) submitted for titling after a government confiscation transaction must include the following information:

1. Complete Description of Vehicle; i.e. Vehicle Identification Number, year, make and model.
2. Odometer Mileage Reading.Note: Whoever has the legal ability to transfer title also has the ability to complete the odometer statement, including the ability to assert actual mileage (“to the best of my knowledge”) as well as other odometer information.
3. Purchaser’s Name.
4. Sale Price of Vehicle.
5. Vehicle Identification Number (VIN) inspectionAll 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 to 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 VIN on the government form does not correspond with the number on thr vehicle, the form must be rejected. Applicant shall obtain a corrected form from the issuing agency.

Fees

The title applicant shall pay tax, title and registration fees. Excise tax is based on the sale price indicated on the government form. A late transfer penalty may apply for failure to transfer ownership within 90 days from date of assignment.

 

Section Q: Titling Through a Sheriff’s Sale

Revised November 22, 2017

A Sheriff’s Sale is a sale by a county 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.

Requirements

• 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.
• Sheriff’s Notice of SaleA Sheriff’s Notice of Sale states the title of the cause in which judgment was obtained and the nature of the action. It also indicates the date of the judgment and identifies the vehicle and VIN. And it states whose property is being sold, the amount of the judgment, accrued interest to the date of sale, and the date, time and place of sale.

  A Sheriff’s Notice of Sale is published for four weeks immediately proceeding the sale. it must be signed by the Sheriff, or other person appointed by the Sheriff to conduct the sale, and it must certify that notice was given through publication in a newspaper.

• Bill of Sale – issued by the Sheriff or the auctioneer.
• VIN Inspection
• Odometer Disclosure Statement (motor vehicles, except off-highway vehicles)Whoever has the legal ability to transfer title also has the ability to complete the odometer statement, including the ability to assert actual mileage (“to the best of my knowledge”) as well as other odometer information.
• The recipient of the vehicle must title the vehicle in their name before it can be sold.

 

Section R:

Stolen and Unrecovered Vehicles – Salvage Brand not Required

Revised December 1, 2017

“Title Only” for stolen and unrecovered vehicles

The Motor Vehicle Division may issue a “Title Only” to an insurance company for a stolen and unrecovered vehicle. The insurance company pays only the title fee.

For issuance to an insurance company of a title only for a stolen and unrecovered vehicle, the following documents are required:

• Certificate of Title – current title with the assignment properly filled out.
• Release of Lien – as needed.
• Police Report – a copy of the stolen vehicle report from law enforcement agency.
• Written Statement – from the insurance company that the vehicle is unrecovered.
• Title Only – process transaction as “Title Only” with only the title fee assessed.

To justify title-only issuance, make a notation in “Remarks” that the “Vehicle is a stolen and unrecovered vehicle.”

Salvage brand not required for stolen and unrecovered vehicles (18.19.3.51 NMAC)

A salvage-branded title need not be issued to a stolen but unrecovered vehicle.

However, if the vehicle is subsequently recovered and found to meet the statutory definition of a salvage or non-repairable motor vehicle, the owner must then obtain a salvage title or a non-repairable certificate.

Salvage-titled stolen vehicles later recovered

It was previously required that vehicles that were stolen and unrecovered be branded as salvage vehicles.

If a stolen and unrecovered vehicle for which a salvage-branded title was issued is recovered at a later date, and the insurance company wants MVD to issue a title without the salvage brand, the following documents are required:

• Certificate of Title – applicant must surrender the salvage-branded title
• Statement from a licensed auto repair mechanic – that the vehicle has minimal damage, or does not have chassis damage, undercarriage damage, or damage to the running gear
• Statement from the insurance company – that the vehicle was “Stolen and Unrecovered” but has now been recovered, and that there was no damage, or that damage did not exceed the vehicle’s retail value
• Police report – indicating that the stolen vehicle has been recovered
• Fees – Process as a “Title Change”

In any such situation, when the salvage brand needs to be removed because a previously stolen and unrecovered vehicle has been recovered, the title transaction must be processed by the Vehicle Services Unit in Santa Fe. All documentation should be delivered or mailed to Vehicle Services at the following address:

Vehicle Services, Attn: Supervisor
?Motor Vehicle Division
Joseph M. Montoya Building
1100 S. St. Francis Drive
P.O. Box 1028
?Santa Fe, NM 87504-1028

 

Section S:

Duplicate Certificate of Title

Revised November 22, 2017

Requirements for a Duplicate Certificate of Title

The Motor Vehicle Division will issue a duplicate Certificate of Title provided that all requirements have been met. A duplicate is an exact copy of the original. The only changes made are the title number and address if necessary. No other changes are made (name, lien holder etc.).

A duplicate title will not be issued on the strength of a Bill of Sale. The only exception will be when both parties are present (buyer and seller) and proper identification is presented.

• The “Application for Duplicate Certificate of Title” (MVD-10901) must be completed and signed by the applicant.
• Begin transaction with a “Vehicle Inquiry” and print out the vehicle record.
• Verify the current owner and if there are any liens reflected on the vehicle record.
• The applicant for duplicate title must be the registered owner, successor in interest, or legal representative. If applicant is a legal representative, they must provide a Power of Attorney, Letter of Testamentary, Court Order, Affidavit of Claiming Successor, or Certificate of Transfer Without Probate (originals or certified copies).
• If there is a lien, check the maturity date. If the lien has matured by a year or more, a lien release will not be required.
• When there is a current lien reflected against the vehicle (lien maturity date has not matured by one year), the applicant must provide a release of lien.
• If the original title has a hand signed release of lien on the title, the new title will still shows the lienholder, but the lienholder signature will (of course) not be on the duplicate title. Instead, make a photocopy of the original lien release and return it to the applicant.
• When applicant is the lien holder, the person applying on behalf of the lien holder must have written authorization to show that they are authorized by the financial institution to obtain the duplicate title. Applications signed must include the printed title or position of the person representing the lien holder.
• The applicant must provide proper identification
• When application for duplicate title is submitted by mail, the applicant must send in a photocopy of his/her identification, original lien release, or certified copies of documents empowering a legal representative to obtain the duplicate title. If the applicants’ address of record is different from the current address, the applicant must send a self-addressed envelope so that the duplicate will be mailed to the correct address.

Requirements for a Duplicate Title with Lien Release

There will be cases in which the original title that was lost, stolen or mutilated had a lien filed on it and the lien has been satisfied. In these cases a duplicate, “lien-free” title will be issued provided that all requirements are met.

This type of transaction must be processed using the Filing/Release Lien Function. Requirements for a duplicate, “lien-free” title include:

• The “Application for Duplicate Certificate of Title” (MVD-10901) must be completed and signed by the applicant.
• Begin transaction with a “vehicle inquiry” and print out the vehicle record. Verify the current owner and if there are any liens reflected on the vehicle record. Check the lien maturity date. If lien has matured by a year or more, a lien release will not be required.
• The applicant for duplicate title must be the registered owner, successor in interest, or legal representative. If applicant is a legal representative, he must provide the division with a Power of Attorney, Letter of Testamentary, Court Order, Affidavit of Claiming Successor, or Certificate of Transfer Without Probate (original or certified copies).
• An original “Release of Lien” must be surrendered when the lien maturity date has not matured by one year.
• The applicant must provide proper identification
• In the “remarks” section of the Title Application indicate that the transaction processed is a duplicate title with lien release.

Requirements for a Duplicate Title with Lien Filing

There will be cases in which the applicant applying for a duplicate title will also want to record a current lien.

Requirements include:

• The “Application for Duplicate Certificate of Title” (MVD-10901) must be completed and signed by the applicant.
• Begin transaction with a “vehicle inquiry” and print out the vehicle record. Verify the current owner and if there are any liens reflected on the vehicle record. Check the lien maturity date. If lien has matured by a year or more, a lien release will not be required.
• The applicant for duplicate title must be the registered owner, successor in interest, or legal representative. If applicant is a legal representative, they must provide the division with a Power of Attorney, Letter of Testamentary, Court Order, Affidavit of Claiming Successor, or Certificate of Transfer Without Probate (original or certified copies).
• An original “Release of Lien” must be surrendered when the lien maturity date has not matured by one year.
• The applicant must provide the new lien holder information (name, address, file and maturity date).
• The applicant must provide proper identification
• In the “remarks” section of the Title Application indicate that the transaction processed is a duplicate title with a “lien filing.” The newly processed title and lien holder copy of title application will be mailed to the lien holder and the applicant shall be given the “owner” copy as evidence of the lien being filed.

Requirements for Adding or Deleting a Name

There will be cases in which the applicant applying for a duplicate title will also want to add or delete a name or names.

Requirements:

• The “Application for Duplicate Certificate of Title” (MVD-10901) must be completed and signed by the applicant.
• Begin transaction with a “vehicle inquiry” and print out the vehicle record. Verify the current owner and if there are any liens reflected on the vehicle record. Check the lien maturity date. If lien has matured by a year or more, a lien release will not be required.
• The applicant for duplicate title must be the registered owner, successor in interest, or legal representative. If applicant is a legal representative, they must provide the division with a Power of Attorney, Letter of Testamentary, Court Order, an Affidavit of Claiming Successor or Certificate of Transfer Without Probate (original or a certified copy).
• An original “Release of Lien” must be surrendered when the lien maturity date has not matured by one year.
• The applicant must complete a Bill of Sale indicating “adding name(s),” “deleting name(s)” or even “adding and deleting name(s).”
• The applicant must provide proper identification.
• In the “remarks” section of the Title Application indicate that the transaction processed is a duplicate title and whether you are adding a name, deleting a name or both. If this type of process is being done for a manufactured home the applicant must provide a current tax release before names can be added or deleted, and a registration fee shall be assessed.

 

Section T: Duplicate Title on a Stolen/Recovered Vehicle

Created December 1, 2017

There are only three exceptions to the general rule that an NCIC hit cannot be overridden when the vehicle’s VIN is an exact match to a stolen vehicle VIN. They are described below. In all three exception situations, when a stolen NCIC Record is over-ridden, all comments must be included in the notes. The Stolen Flag will not be removed from the NCIC Record.

In every case described below, the requirements listed in Chapter 8 Section S?, Duplicate Certificate of Title, also apply.

Stolen/Recovered Vehicle – Insurance Company Requests Duplicate Title

When an insurance company wants to obtain a Duplicate Title on a Stolen/Recovered Vehicle,  the following documentation is required:

• The Application for Duplicate Certificate of Title (MVD-10901) must be signed by the registered owner or by the insurance company with power of attorney (POA) from the registered owner (the original POA must be attached).
• A letter is required from the insurance company itating that the vehicle in question is stolen/recovered, with a copy of the police report.

Stolen/Recovered Vehicle – Lien Holder Requests Duplicate Title

When a lien holder wants to obtain a Duplicate Title on a Stolen/Recovered Vehicle,  the following documentation is required:

• The Application for Duplicate Certificate of Title (MVD-10901) must be signed by the lien holder or the registered owner.
• A letter is required from the lien holder, insurance company or registered owner stating that the vehicle in question is stolen/recovered, with a copy of the police report.

Stolen/Recovered Vehicle – Owner Requests Duplicate Title

When the registered owner wants to obtain a Duplicate Title on a Stolen/Recovered Vehicle,  the following documentation is required:

• The Application for Duplicate Certificate of Title (MVD-10901) must be signed by the registered owner.
• A letter is required from the registered owner stating that the vehicle in question is stolen/recovered, with a copy of the police report.
• A copy of the registered owner’s Driver’s License is also required.

 

Section U: Foreign-Manufactured Vehicle Transactions – Titles stamped “For Export Only”

Revised May 9, 2018

General Information

There are two types of foreign manufactured vehicles.

The first are those that were manufactured outside of the United States to be sold in the United States. These vehicles were manufactured conforming to all standards required by the Federal Department of Transportation (USDOT) and the Environmental Protection Agency (EPA).

The second type of foreign-manufactured vehicles are those manufactured outside of the United States, to be sold outside of the United States. These vehicles do not meet the federal standards. Upon importing foreign manufactured vehicles, owners must conform to safety and emission standards established by the USDOT and the EPA prior to applying for New Mexico Title and Registration. The applicant must provide a vehicle release from U.S. Customs and Border Protection (CBP), indicating the vehicle has met the following requirements:

• Vehicle meets Department of Transportation requirements per DOT HS-7 Declaration form.
• Vehicles must be held for at least 30 days from the import date and include a NHTSA Bond Release letter confirming the vehicle safety.
• Vehicle meets EPA standards.
• Vehicle meets U.S. Customs and Border Protection (CBP) requirements

The two common acceptable port of entry documents are CBP7501 and DD1252. Call CBP for clearance on other documents in question. The VIN must be on these documents in addition to a VIN inspection and NCIC clearance.

You may contact U.S. Customs and Border Protection with questions in Albuquerque at:

2200 Sunport Boulevard S.E., Albuquerque, NM 87106
(Located in the Private Aviation area, Cutter Aviation Building
at the Albuquerque International Sunport)
Phone (505) 346-6992; Fax (505) 346-6995
Hours of operation 8:30 AM to 5:00 PM Monday-Friday

Or, for those customers closer to El Paso than Albuquerque, you may contact the El Paso CBP Office at:

3600 East Paisano El Paso, TX 79905
Phone (915) 872-3407

Titles stamped “For Export Only”

Sometimes vehicles are purchased for the purpose of exporting them to a different country. These vehicles are usually exempt from excise tax and may have had alterations made to them so they no longer conform to federal standards. When processing a transaction with a title stamped “For Export Only” the following requirements apply including the Vehicle Release from the US CBP showing the vehicle meets DOT, EPA, and CBP requirements for use in the US, and excise tax is paid.

Title and Registration Requirements

An applicant who is applying for Title and Registration of his/her vehicle in this state must be able to provide acceptable ownership documents that correspond to the country of vehicle origin. The document showing ownership may not be a Certificate of Title as we know it. Be on the alert for copies of ownership documents rather than the originals.

At times a European or military registration will be included as part of the required documentation along with country-of-origin documents. The European or military documents may be replacing country-of-origin documents or used along with them when these vehicles are imported into the United States, depending on the make of the vehicle, country of export, etc. If you have any questions regarding the utilization of these documents, when they are or are not acceptable, refer to a R. L. Polk Foreign Vehicle Registration Manual or call the Albuquerque Customs office for guidance.

Note: A certified translation is required of foreign documents that are in a language other than English.

Documents Required:

• Certificate of Title
• ?Bill of Sale (as needed)

The Bill of Sale must state the sale price of the vehicle. If Bill of Sale does not state price or if the seller is not available, the NADA Pricing Index Guide will determine the vehicle value to assess the excise tax. You are to use the retail value of the vehicle in determining the tax rate. If NADA value not available, use certified appraisal.

• Dealer’s Invoice (as needed)
• ?VIN Inspection (by certified inspector)
• ??Affirmation Certifying Ownership (ACO)

The Affirmation Certifying Ownership (ACO) (MVD-10010) must be completed and signed by the current owner reflected on the ownership document (or transferee, the person title is assigned to). This is to attest that vehicle has no outstanding lien(s).

• Odometer Statement (on transfers)
• Vehicle Release

The Department of the Treasury, U.S. Customs and Border Protection issues a “Vehicle Release” for vehicles imported into the United States. The Vehicle Release must indicate that the vehicle meets USDOT requirements, EPA standards,  U.S. customs requirements and applicable waiting period.

Do not process imported vehicle transactions without a Vehicle Release.

Note re METRIC ODOMETERS (18.19.3.15 NMAC): When federal law or regulation requires that an odometer displaying kilometers be replaced by an odometer displaying miles, the seller must attach to the application a document stating that the odometer displaying miles has been set at the mileage shown by the conversion of kilometers to miles (one kilometer equals 0.6214 miles) at the time the odometer was replaced. The document must be notarized.

• Excise Tax (unless customer can provide proof they have paid excise tax) Use greater of NADA value or purchase price.

Requirements for processing registration-only for NATO members

• US DOT Declaration form HS-7 (For vehicles brought in from a foreign country)
• Proof of NATO member
• Proof of ownership (All foreign documents must be translated into English by a certified translator.)
• VIN inspection
• Proof of residence
• Affirmation of insurance.
• Collect registration fees only (no excise tax).
• Make copies of all documents and certify them (except VIN inspection, send original).
• Return all original documents to customer (including any title, make copy of front and back; DO NOT STAMP CANCELLED).
• Mail documents and fees (no cash) to Alamogordo Field Office, and inform customer that the plate and registration will be mailed. A temporary permit may be issued if necessary. Permit fee applies. If mailing address is different than residence address, be sure to include it with documents sent in.)
• Alamogordo Office will complete transaction and mail plate and registration.
• If a NATO member wishes to obtain a Certificate of Title for a foreign vehicle, you will follow the procedures above for title and registration of a foreign-manufactured vehicle (same as all other foreign vehicles titled in NM; excise tax included when applicable). This type of transaction may be done in any MVD Office. If a NATO member wishes to obtain a Certificate of Title for a vehicle purchased in the United States, you follow the normal procedures for title and registration of a new or used vehicle (Chapter 3 or Chapter 4) (same as all other vehicles titled in NM; excise tax included when applicable). This type of transaction may be done in any MVD Office.

Section V: Transfer of Existing Lease to New Lessee

November 22, 2017

Background information

The transfer of an existing lease to a new lessee happens so rarely that it may easily cause confusion, compounded by the fact that both lessor and lessee are technically owners of the vehicle under the Motor Vehicle Code. The questions that arise include:

• Is a new title required?
• Is a new registration required, with a new registration plate?
• Must new title and registration fees be paid?

The simple answer to all three questions is “yes.”

Statutory cites and reasoning (§§ 66-1-4.13(F) and 66-3-101(A))

§66-1-4.13(F) defines “owner” to mean “a person who holds the legal title of a vehicle and may include a conservator, guardian, personal representative, executor or similar fiduciary, or, in the event that a vehicle is the subject of an agreement for conditional sale or lease with the right of purchase upon performance of the conditions stated in the agreement and with an immediate right of possession vested in the conditional vendee or lessee, or, in the event that a mortgagor of a vehicle is entitled to possession, then such conditional vendee or lessee or mortgagor.”

Simply stated, if a vehicle lease has a purchase option (as most if not all do), the lessee is considered, along with the lessor, to be an owner of the vehicle.

And §66-3-101(A) provides that, “When the owner of a registered vehicle sells, transfers or assigns the owner’s title to or interest in, and delivers the possession of, the vehicle to another, the registration of the vehicle shall expire.”

It seems clear that the lessee who transfers his interest to another lessee is transferring or assigning his ownership interest to the new lessee, along with possession of the vehicle, so that the old registration must expire and a new registration must be issued. Because both the lessor and the lessee are listed as owners on the certificate of title, a new title must also be issued on which the new lessee is listed in place of the former lessee.

Does the Motor Vehicle Excise Tax (MVET) Apply?

No. The vehicle is still a leased vehicle, with the same lessor, and the Leased Vehicle Gross Receipts Tax would apply. There is no price paid to which the MVET would apply.

 

Section W: Vehicles Obtained by Law Enforcement through Forfeiture

November 22, 2017

Vehicles can be obtained by various New Mexico law enforcement agencies through forfeiture, as authorized by state or local statutes or ordinances.

The law enforcement agency can then title the forfeited vehicle in the name of the law enforcement agency (or the state, county or municipality, as may be appropriate) by sending a title application packet to the MVD Vehicle Services Bureau at P.O. Box 1028, Santa Fe NM 87504.

The packet should include:

1. copy of the first letter sent to the owner,
2. the Declaration of Forfeiture document,
3. the Advertising Affidavit,
4. VIN Inspection,
5. Title Application, and
6. if there is a lien on the vehicle, either the Release of Lien or documentation showing the agency’s attempt to notify the lienholder and the results of that attempt.

There will be no fees charged for processing these transactions.