Registration by transferee — Title retention notes

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  1. (a)

    1. (1) The transferee of any new or used vehicle required by law to be registered shall apply for, or cause to be applied for, the registration thereof within thirty (30) days after the date of the release of lien by a prior lienholder, as provided in § 27-14-909, or thirty (30) days after the date of the transfer if no lien exists.

    2. (2) No vehicle shall be operated upon a public street or highway for more than thirty (30) days after the release of lien by a prior lienholder, as provided in § 27-14-909, or thirty (30) days after the transfer date if no lien exists, unless a valid registration plate is properly attached thereto.

  2. (b) A transferee shall at the same time present the certificate of title, endorsed and assigned as provided in § 27-14-902, to the Office of Motor Vehicle and make application for and obtain a new certificate of title for the vehicle, except as otherwise provided in §§ 27-14-904 and 27-14-907.

  3. (c)

    1. (1)

      1. (A) It shall be unlawful for a dealer or other person who sells or finances the purchase of a vehicle subject to registration in this state to use a title retention note to secure his or her interest in the vehicle.

      2. (B) As used in this section, a “title retention note” shall mean any instrument that grants the purchaser the right to possession and use of the vehicle, but withholds assignment of ownership on the existing certificate of title and its delivery to the purchaser, until full payment has been made by the purchaser, thereby thwarting the purchaser's ability to comply with subsection (b) of this section.

    2. (2) It shall be a Class C misdemeanor for a motor vehicle dealer or other seller to fail to comply with the provisions of this subsection.

  4. (d) This section is not intended to limit the rights of a lienholder to perfect or record his or her security interest in a motor vehicle pursuant to the provisions of §§ 27-14-802 and 27-14-806.


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