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Developed and maintained by the Division of Legislative Automated Systems.
2006 SESSION
068831848Be it enacted by the General Assembly of Virginia:
1. That § 46.2-1542 of the Code of Virginia is amended and reenacted as follows:
§ 46.2-1542. Temporary registration.
A. Notwithstanding §§
46.2-617 and 46.2-628, whenever Whenever
a dealer licensed by the Board sells or conditionally sells
and delivers to a purchaser a motor vehicle and,
the dealer may issue temporary license plates and a certificate of temporary
registration. The temporary license plates and the certificates
for temporary registration shall be obtained from the Commissioner or may be
printed according to terms set by the
Commissioner and may be issued if
(i) the dealer has the
title or the certificate of origin for the vehicle or (ii) is
unable at the time of the sale to deliver to the purchaser the certificate of
title or certificate of origin for the vehicle because the certificate of title
or certificate of origin is lost or is being detained by another in possession
or for any other reason beyond the dealer's control, the dealer shall
execute, on forms provided by the Commissioner, a temporary certificate of
ownership. The temporary registration certificate
shall bear its date of issuance, the name and address of the purchaser, the
identification number of the vehicle, the registration number to be used
temporarily on the vehicle, the name of the state in which the vehicle is to be
registered, the name and address of the person from whom the dealer acquired the
vehicle, and whatever other information may be required by the Commissioner. A
copy of the temporary registration certificate and a bona
fide bill of sale buyer's order shall be delivered to the purchaser and shall be in
the possession of the purchaser at all times when operating the vehicle. One
copy of the certificate shall be retained by the dealer, which copy may be
retained in electronic format under terms set by
the Commissioner, and shall be subject to inspection at any time
by the Department's agents. The original of the certificate shall be forwarded
by the dealer to the Department directly on issuance to the purchaser if the
vehicle is to be titled outside the Commonwealth, along with the
physical or electronic application for title. The issuance of a
temporary certificate of ownership registration to a purchaser pursuant to this section shall have
the effect of vesting ownership to sufficient interest in the vehicle in the purchaser for the period
that the certificate remains effective for purposes of
allowing the purchaser (a) to
obtain and provide insurance coverage for the vehicle, including
but not limited to insurance indemnifying the purchaser against liability or providing
for recovery for damage to or loss of the vehicle and
(b) to operate the vehicle
as if the purchaser had full rights of ownership, all subject to cancellation
by applicable law or agreement between the dealer and the purchaser prior to
the time the dealer submits an application for title along with all required
fees.
B. A temporary certificate of ownership registration issued by a dealer to a purchaser pursuant to this
section shall expire on receipt by the
purchaser of a when the certificate of title to the
vehicle is issued by the Department in the
name of the purchaser and the permanent license plates have been affixed
to the vehicle, but in no event shall any temporary certificate of ownership registration issued under this section be effective for more than
thirty days from the date of its issuance. In the event that the dealer fails
to produce the old certificate of title or certificate of origin to the vehicle
or fails to apply for a replacement certificate of title pursuant to §
46.2-632, thereby preventing delivery to the Department or purchaser before the
expiration of the temporary certificate of ownership registration, the purchaser's ownership of the
vehicle temporary rights may terminate and
the purchaser shall have the right to return the vehicle to the dealer and
obtain a full refund of all payments made toward the purchase of the vehicle, provided
the purchaser provides written notice to the dealer of a decision to return the
vehicle before issuance of a title for the vehicle by the Department, less
any damage to the vehicle incurred while ownership was vested in the purchaser,
and less a reasonable amount for use not to exceed one-half the amount allowed
per mile by the Internal Revenue Service, as provided by regulation, revenue
procedure, or revenue ruling promulgated pursuant to § 162 of the Internal Revenue
Code, for use of a personal vehicle for business purposes.
C. Notwithstanding subsection B of this section, if the dealer
fails to deliver the certificate of title or certificate of origin to the
purchaser within thirty days, a second temporary certificate of ownership registration may be issued. However, the dealer shall, not later
than the expiration of the first temporary certificate, deliver to the
Department an application for title, copy of the bill of sale, all required
fees and a written statement of facts describing the dealer's efforts to secure
the certificate of title or certificate of origin to the vehicle. On receipt of
the title application with attachments as described herein, the Department
shall record the purchaser's ownership of rights hereunder to the
vehicle and may authorize the dealer to issue a second thirty-day temporary
certificate of ownership registration. If the dealer does not produce the certificate of
title or certificate of origin to the vehicle before the expiration of the
second temporary certificate, the purchaser's ownership
of rights to the vehicle under
this section may terminate and he shall have the right to return
the vehicle as provided in subsection B of this section.
D. If the dealer is unable to produce the certificate of title
or certificate of origin to the vehicle within the sixty-day period from the
date of issuance of the first temporary certificate, the Department may extend
temporary ownership registration for an additional period of up to ninety days, provided
the dealer makes application in the format required by the Department. If the
dealer does not produce the certificate of title or certificate of origin to
the vehicle before the expiration of the additional ninety-day period, the
purchaser's ownership of rights hereunder to the vehicle may terminate and he shall have
the right to return the vehicle as provided in subsection B of this section.
E. The Commissioner, on determining that the provisions of
this section or the directions of the Department are not being complied with by
a dealer, may suspend, after a hearing, the right of the dealer to issue
temporary certificates of ownership registration.