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When a Title Defect or Bad Lien Needs a Court Order

TIADA receives numerous compliance inquires in which a customer records an unauthorized lien or release of lien via fraud or forgery which is often followed by a title loan....or two.  Cleaning up bogus liens is not an easy task and you may need an attorney to assist unwinding such defects. Certain changes to motor vehicle titles will require a court order from a Texas county court at law or district court ordering TxDMV to cancel and rescind a title or issue a title. In most cases, an order issued by a Justice of the Peace is not acceptable.
 
Please note that a recent statutory change to Texas Transportation Code, § 501.033 authorizes the department to reassign the manufacturer's VIN to a vehicle if law enforcement is able to determine the original manufacturer's identification number and an applicant is able to provide ownership evidence.  Please contact a TxDMV Regional Service Center for details. 
 
Please also note that pursuant to Texas Transportation Code, § 501.0521, a judge may not order the department to change the type of title for a nonrepairable vehicle titled after 2003 or a vehicle that has been issued a certificate of authority to demolish. 

In addition, recent statutory changes to Transportation Code, § 501.091 added the following to the definition of "nonrepairable motor vehicle":
  • a vehicle that has been sold for "export only"
  • a vehicle that a salvage vehicle dealer has reported to the department will be dismantled, scrapped, or destroyed
The most common scenarios that require a court order include, but are not limited to, the following:
  • You wish to appeal the determination of a tax assessor-collector after a hearing on whether the department correctly refused to issue or correctly rescinded, canceled, revoked, or suspended a title.
  • You believe someone improperly transferred your title into his or her name, or improperly placed a lien on your title or removed your lien, and law enforcement is unable to resolve the matter.
  • You sold a vehicle and the paperwork involves an incorrect name or incorrect Vehicle Identification Number (VIN) and the 5-day deadline for correction has passed.
  • You sold a vehicle and transferred title, but the purchaser changed his or her mind and no longer wants the vehicle. Title is pending issuance or has already issued in the purchaser's name, but the deadline for a sale-rescind has passed (21 days from the date of sale).
  • You need a VIN assignment for your vehicle but do not have required ownership evidence.
  • You do not qualify for a bonded title and have otherwise been unable to get title.
 
For more information, please visit the Texas Department of Motor Vehicles website

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