Dealer Closures
Unfortunately, when a dealer unexpectedly closes you may find your vehicle registration and title paperwork and fees were never transferred to the county tax office. This leaves you without the proper credentials for ownership.
Dealer Status
The first thing you need to do if the dealership closed is determine the business' official status. Did the dealer just go on an extended vacation or permanently close? Did the dealer file for bankruptcy in court? The official status of the dealership determines your course of action.
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If your vehicle dealer closed and did not file for bankruptcy
To title and register your vehicle, take the following to your county tax office:
- Evidence of ownership, such as a Manufacturer's Certificate of Origin or title assigned to you by the dealer. If you do not have this document, you have the
option of applying for a bonded title through one of our
Vehicle Titles and Registration Regional Service Centers or
contacting your county tax office for more alternatives.
- Completed Application for Texas Certificate of Title, Form VTR 130-U, and
- Payment documents, such as a dealer sales contract, a bill of sale, 31-RTS receipt (Receipt for Texas Title Application/Registration/Motor Vehicle Tax) or an invoice.
If these documents itemize tax, title and registration, and show you paid the proper fees you will not be charged again. If the amounts are not itemized, or payment documents are not available, you will need to pay your sales tax, registration and titling fees, including any title penalties for late application, at your local county tax office
If you purchased your vehicle through a cash sale, you must provide a written statement when you apply for the title that states there is no lien on the vehicle.
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If your vehicle dealer permanently closed and filed for bankruptcy
First determine whether your vehicle is covered by a court order releasing the vehicle as an asset and awarding ownership to you. Your lienholder may be able
to help you with this determination. The Court Order or attached Exhibit must specify the VIN, and preferably the name of the title applicant(s) and any known
lienholder.
Your situation may fall in one of these three basic Court Orders scenarios:
- Scenario 1: You may be asked to provide all required title transfer documents properly completed. If a required document is not available, you will need to contact the bankruptcy attorney to obtain it.
- Scenario 2: You may use the court order as a substitute for one or all ownership documents if the court order specifically eliminates the requirement of the seller's signature on items such as the form 130-U, odometer statement, etc.
- Scenario 3: Your vehicle may not be listed individually in the court order, in which case you must supply a copy of the court order releasing all vehicles (providing there is one). Provide the court order with the other documents to allow you a waiver for any fees that you already paid.
To title and register your vehicle when a dealer files for bankruptcy without completing the proper paperwork, take the following to your
county tax office:
- Original Bankruptcy Court Order, a certified copy of the court order, or an electronic copy of the court order, including the court exhibit that specifies the title applicant and vehicle, providing there is one for your vehicle,
- Evidence of ownership, such as a Manufacturer's Certificate of Origin or title assigned to you by the dealer
- Completed Application for Texas Certificate of Title, Form VTR 130-U,
- Any other supporting document required in a standard title transfer (Power of Attorney, odometer statement, etc.), and
- Payment documents, such as a dealer sales contract, a bill of sale, 31-RTS receipt (Receipt for Texas Title Application/Registration/Motor Vehicle Tax) or an invoice.
If these documents itemize tax, title and registration, and show you paid the proper fees you will not be charged again. If the amounts are not itemized, or payment documents are not available, you will need to pay your sales tax, registration and titling fees, including any title penalties for late application, at your local county tax office.
If you purchased your vehicle through a cash sale, you must provide a written statement when you apply for the title that states there is no lien on the vehicle.
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If your vehicle dealer is open and filed for bankruptcy
If your dealership filed for bankruptcy but remains open for business, these do not apply to you as title and registration transactions are still processed normally.
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More Information
Complaint
To file a dealer complaint with the Enforcement Division, complete and submit a
complaint form.
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