1.065 Signature by Relative of Military Owner (VC §1651)

Leased vehicle registration application requirements are:

• The names of both the lessor and the lessee must be shown. The lessor is required to provide the lessee’s name and address.

• The vehicle must be located in California to be registered here. The lessee’s address must be in California if the lessor’s address is not. An application with a lessee’s address in another state or country is not acceptable.

• The lessor’s name is followed by LSR and the lessee’s name is followed by LSE. The names are not joined by “and” or “or”.

Example: Jay Street Leasing, LSR
                 John Doe, LSE

• The lessor is the registered owner and must sign the application as such. The lessee’s signature is optional.

A repossession fee is not due for a leased vehicle repossessed by the lessor and then leased to another lessee.

1.060 Junk or Salvage Vehicle VIN Inspections (VC §§5505 and 11519)

Prior to being registered for on-highway use, a vehicle previously junked or salvaged in California or another state (nonresident vehicle) must be inspected by an authorized DMV employee or referred to the California Highway Patrol (CHP) for inspection.

• All revived junk or salvage applications are subject to the CHP Inspection Fee.
• CHP normally issues a Certificate of Inspection (CHP 97C) after the inspection is completed, which must be submitted with the vehicle registration application.
  • Additional verification is not required.
  • If appropriate, the CHP may complete a Verification of Vehicle (REG 31) (PDF) form or an Application for Assigned VIN Plate (REG 124) form in lieu of the CHP 97C.

1.050 Electronic Lien and Title (ELT) Program

The ELT program provides an electronic ownership record on the DMV database in lieu of a paper title to the ELT lienholder and a (paper) registration card is issued to the registered owner.

ELT program lienholders are assigned specific name and address abbreviations which must be used to generate a paperless title.

Enter the ELT lienholder information exactly as shown in the latest DMV ELT listing. If the ELT information is entered incorrectly:

• A paper title will be issued when an ELT lienholder’s name and address do not exactly match.

• The paper title must be returned to DMV for correction, which delays issuance of a title record to the lienholder and may delay subsequent title transfers.

New ELT participants are added to the program quarterly. The current ELT listing is available on DMV website by clicking Vehicle Industry Services, then click on Electronic Lien and Titling Program.

Changes are transmitted electronically to DMV headquarters by the ELT lienholder and the information is processed as explained below:

When the	Then DMV
When theLien is satisfied by a dealer (upon trade-in for example)	Then DMVIssues and mails a paper title to the dealer showing the dealer as the “legal owner”.
When theLien/contract is purchased by a nonparticipating lienholder	Then DMVIssues and mails a paper title to the new lienholder.
When theLien/contract is purchased by another ELT lienholder	Then DMVCreates and transmits a new ELT record to the new ELT lienholder.
When theLien satisfied by the registered owner or record	Then DMVIssues and mails a sole-owner paper title to the registered owner.
When theELT lienholder requires a paper title	Then DMVIssues and mails a paper title to the ELT lienholder upon completion of an Application for Replacement or Transfer of Title  (REG 227) form.

The average time to receive a paper title from an electronic transaction is eight days. An existing record status such as a pending report of deposit of fees (RDF) or suspense transactions prevents issuance of the title in the automated process. These are processed manually by DMV.

DMV’s ELT automated system allows ELT lienholders, also known as legal owners (LO), to:

• Obtain a paper title and/or release interest when there is an RDF on a vehicle’s record.
• Change a registered owner’s (RO) address when releasing interest in a vehicle to the RO.

ELT transactions generate a title and/or registration card and update the vehicle’s record with the new information. It will not clear the pending RDF from the system.

1.055 Highlighters on Documents

Highlighters may be used on documents; however, they should be used sparingly:

• If it is necessary to mark a document or form to clarify to the customer where a signature or information is required, highlight the “X” beside the signature line or the area underneath or above, not the entire space.

1.045 Designating Legal Ownership (VC §§4150, 4150.2, and 4450)

The name of the legal owner/lienholder or the word “none” and the initials of the person making the entry should be shown in the legal owner/lienholder information section on all registration applications.

Dealer Transactions– Dealer transactions must show the legal owner’s name or “none” with the initials of the person making the entry or the application will be returned to the dealer.

1.040 Definitions for Clearing, Suspense, and Incomplete Applications (RDF)

Clearing Item—an application that contains all required documents and fees and can be processed without further handling or verification by DMV headquarters.

Suspense Item—an application that needs further processing in DMV headquarters, such as issuance of special interest license plates or verification against the DMV headquarters record.

If submitting an application that requires further processing, include a screen print or Statement of Facts (REG 256) (PDF) form explaining why.

Incomplete Application, also known as report of deposit of fees (RDF) (VC §1651)– transaction used by DMV to collect fees on an incomplete application.

The requirements are:

• All the documents and the receipt for the fees paid (RDF) are returned to the applicant, except:
  • Dealer and registration service transactions, which are returned to the dealer or registration service.
  • Applications submitted by a financial institution, which are returned to the financial institution.
• Full registration/renewal fees must be deposited on an incomplete application to avoid penalties; however, use tax may be paid when the application is cleared.
• If an applicant chooses to pay the use tax due when the application is cleared rather than when the registration fees are paid, no additional penalties accrue on the tax.
• License plates and stickers are never issued on an RDF.
• A Temporary Operating Permit (REG 19) is not issued, except as shown in Chapter 25.

1.035 Co-Owners (VC §§4150.5 and 9852.5)

A vehicle or vessel may be owned by two or more co-owners. Co-owner names may be joined by “and”, “and/or”, or “or”. All owners must endorse the title or registration application to register the vehicle/vessel, but the requirements for releasing ownership vary. Refer to Chapter 11.

Note Certificates issued for applications not indicating “and” or “or” between the names will show “and” as represented by a slash (/) between the names.

• The signatures of all owners are required to transfer ownership when the co-owner names are joined by “and”. Ownership passes to the surviving co-owner upon the death of a co-owner or, with the surviving co-owner’s release, to a new owner. A deceased co-owner’s interest may only be released by one of the following:
  • Heir of the deceased with an Affidavit for Transfer Without Probate California Titled Vehicle or Vessels Only (REG 5) (PDF) form.
  • Administrator with Letters of Administration.
  • Executor with Letters Testamentary.
• The signature of only one owner is required to transfer ownership when the co-owner names are joined by “and/or” or “or”. A surviving co-owner’s signature on the title releases all owners’ interest unless “Tenants in Common” or “COMPRO” follows the co-owner’s names.
• A REG 5 cannot be used to circumvent the interest of a surviving owner when the vehicles are jointly owned by two or more persons and one of the owners is deceased. However, the surviving owner (if they are the heir) may complete a REG 5 to release the interest of the deceased owner. The California Certificate of Title must be signed twice, once by surviving owner and once for the deceased owner countersigned by the heir. If owned jointly by two or more deceased owners, a REG 5 for the most recently deceased owner and a death certificate for each owner is required.

Tenants in Common—When “Tenants in Common” follows the names of co-owners, the interest of a deceased co-owner reverts to the deceased co-owner’s estate, not to the surviving co-owner. Ownership may be transferred with Letters Testamentary, Letters of Administration, or an Affidavit for Transfer Without Probate California Titled Vehicle or Vessels Only (REG 5) (PDF) form.

COMPRO—When “COMPRO” (community property) follows the names of co-owners, ownership passes to the surviving owner after the deceased co-owner’s interest is executed by the:

• Heir of the deceased with a REG 5, if the estate was not probated.
• Administrator of the estate with Letters of Administration.
• Executor of the estate with Letters Testamentary.

Ownership may be transferred to a new owner with the surviving co-owner’s release.

JTRS—When “JTRS” (joint tenants with right of survivorship) follows the names
of co-owners:

• All owners must release interest during the lifetime of the co-owners.
• Upon the death of an owner, interest is released by the surviving co-owner.
• A copy of the deceased owner’s death certificate must accompany the application.
• The signature of the surviving co-owner(s) on the title releases all owner interests.

TOD (Transfer on Death)—Refer to Chapter 11.

1.025 Branded Titles (VC §§4453, 9255.1)

DMV records and documents issued for a California or nonresident vehicle previously classified as a junk, salvage, police, grey market, taxi, warranty return, or currently classified as a park trailer must be marked with one of the following brands:

Grey Market (Non-USA)—Vehicles manufactured for use and sale outside the United States which have been converted to meet federal and California safety and emissions standards.

Original Police or Prior Police—Vehicles formerly used by law enforcement and which usually have high mileage.

Original Taxi or Prior Taxi—Vehicles formerly used “for hire” which usually have high mileage.

Park Trailer—Vehicles classified as park trailers, as defined in the California Health & Safety Code §18009.3.

Remanufactured—Vehicles constructed by a licensed remanufacturer and consisting of used or reconditioned parts. These vehicles may be sold under a distinctive trade name.

Salvaged—Vehicles marked with a “Salvaged” brand were involved in an accident or incurred considerable damage from another source, such as a flood or vandalism. This brand also includes previously dismantled (junk) vehicles.

Warranty Return (Lemon Law Buyback)—Vehicles which have been returned to the manufacturer under California’s Lemon Law.

A prior history service fee is collected only for initial issuance of branded documents. Refer to Appendix 1F for fees.

1.030 Confidentiality of Home Address (VC §§1808.2, 1808.4, 1808.6, and PC §830)

California statutes authorize home address confidentiality, when requested, for designated persons, spouses, and children on any vehicle, vessel, off-highway vehicle, driver’s license, or identification card (DL/ID) for DMV records reflecting the qualified person’s name.

• The requester must submit a properly completed Request for Confidentiality of Home Address (INV 32) form to the employing agencies, for the DL/ID and each vehicle/vessel (newly purchased or transferred to) that contains the qualified person’s name as the registered or legal owner.
• A new INV 32 is required every time a qualified person’s name is added to or deleted from a registration record.

The employing agency is responsible for submitting the INV 32 to DMV and for notifying DMV when an employee retires, resigns, is dismissed, or leaves the agency’s employment. Retired peace officers’ home addresses are permanently withheld, upon request, at the time when the confidential status would otherwise be removed.

1.020 Bill of Sale (VC §1652)

A bill of sale, as referenced in this manual generally refers to a DMV form, but any bill of sale that identifies the vehicle/vessel is acceptable. For convenience, a bill of sale section was included on the Vehicle/Vessel Transfer and Reassignment Form (REG 262) available from the supply warehouse and not online. This does not prevent use of the Bill of Sale (REG 135) (PDF) form, available on DMV website only and not from the supply warehouse. A bill of sale must accurately establish the chain of ownership and is:

• Not required to be notarized or witnessed.
• Not required for sales between California-licensed dealers.
• Not required for dealer sales to a retail purchaser when the title is properly endorsed.
• Acceptable in lieu of the registered owner’s release signature on the title. Print “B/S” on the registered owner release line.
• Acceptable on multiple transfers in lieu of an in-between buyer’s signature on the title. The printed name of the in-between buyer must appear on the title.