Archive July 2019
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About That Mistake on the Title: Can I Make an Alteration?All vehicle transactions are not seamless and sometimes mistakes happen when titling or registering a vehicle. Did you know you can often correct an error after the fact without having to unwind a deal? Texas Administrative Code, §217.5 outlines the process regarding alterations:
What to Do when Exported Vehicles ReturnMost dealers know how to process sales of a vehicle that will be registered someplace other than Texas, whether that place is Mexico, New Mexico, or New Zealand. Fewer know what to do when that exported vehicle returns to Texas. Can the dealer simply place the car in its inventory and proceed with selling? Not so fast.
The 60 Day Rule. Be Careful With Deferred Sales TaxOne of the greatest legislative achievements of TIADA was the passage of deferred sales tax. It allows buy-here-pay-here dealers to pay sales tax from the income stream received from buyers (as opposed to fronting the entire sales tax amount at the time of transfer). Additionally, it eliminates the payment of tax on any portion of the sales price not paid by the buyer. Be careful not to lose the benefits of deferred sales tax. Here is a summary of two of the issues regarding deferred sales tax.
Filing Claims Against a Surety Bond
All licensed dealers – including motor vehicles, motorcycles, wholesale only, wholesale motor vehicle auction and independent mobility motor vehicle licensees- in Texas are required to maintain a $25,000 surety bond. The bond is supposed to guarantee that the dealer will pay all valid bank drafts and checks drawn by her/him to purchase vehicles, as well as transfer valid titles for all vehicles that s/he plans to sell. If someone suffers a financial loss as a result of a dealer's failure to do certain things, then the full amount of the bond is available to offset that loss.