Section 21 of 38
Chapter 20: Replacements and Substitutes
20.015 Certificates of Title for Dealer to Auto Auction Sales
A dealer may request a title in the dealership name for any dealer inventory vehicle being sold to an auto auction that will not accept a REG 227. The basic transfer requirements listed in Chapter 11 apply, except when the REG 227 is submitted in
lieu of the California title, the following must be submitted:
- A REG 227 with the “New Owner” and “Dealer” sections completed.
- A REG 256 explaining the vehicle is to be sold by an auction.
- A REG 262 to report the odometer mileage. Refer to Chapter 11.
- Fees due. Use tax is not due and a smog certification is not required.
Note: The process in this section cannot be used for other types of applications, such as lien sales, etc. A REG 166 and any other types of lien releases for California titled vehicles two model years old or newer are not acceptable.
An out-of-state dealer may request a transfer of title to their dealership name when a used vehicle is purchased from an auto auction and their home state will not accept a REG 227.
When processing a REG 227 from an out-of-state dealer or registration service representing the out-of-state dealer, follow the chart below:
| If the Out-of-State Dealer Is Requesting | Then | And the Vehicle Must Be |
|---|---|---|
| If the Out-of-State Dealer Is Requesting
A transfer of title to the dealership name, for a vehicle purchased at an auto auction using a REG 227 Note If evidence that the vehicle is registered in another state is presented to waive fees, this process is not allowed. Process as a “Nonresident” following current procedures, if the vehicle is located in California | Then
The transfer is allowed | And the Vehicle Must Be
Last titled and registered in California (expired registration is okay). The following must be submitted:
|
| If the Out-of-State Dealer Is Requesting
The use of an alternate address for the LO of record from their main business address | Then
The RO and LO of record will remain the same, but the alternate address will be used for the LO | And the Vehicle Must Be
Last titled in California. The following must be submitted:
|
| If the Out-of-State Dealer Is Requesting
A replacement title for a vehicle they accepted in trade in the other state and there is no LO on the vehicle record | Then
RO of record will remain the same and the out-of-state dealer may be recorded as the new LO | And the Vehicle Must Be
Last titled in California. The following must be submitted: • A copy of the current out-of-state dealer license issued in the name of the dealer requesting the title. • The REG 227 properly endorsed by the RO on line 2 with the dealer as the new LO in the appropriate section of the REG 227. • A REG 256 explaining the vehicle was accepted as a trade-in and a title is being requested because the dealer’s home state will not accept a REG 227. • All current and past due California registration fees must be paid, if due. Use tax and smog certification are not required. |
| If the Out-of-State Dealer Is Requesting
A replacement title for a vehicle they accepted in trade in the other state and there is a LO | Then
Last titled in California. The following must be submitted: • The same requirement as in the previous section. • The lien release on the REG 227 or REG 166 must be notarized. |