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.
Refer to Chapter 11 if Rush Title expedite processing is requested.
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 |
|---|---|---|
| A transfer of title to the dealership name, for a vehicle purchased at an auto auction using a REG 227 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 | The transfer is allowed |
Last titled and registered in California (expired registration is okay). The following must be submitted:
|
| The use of an alternate address for the LO of record from their main business address | The RO and LO of record will remain the same, but the alternate address will be used for the LO | Last titled in California. The following must be submitted:
|
| A replacement title for a vehicle they accepted in trade in the other state and there is no LO on the vehicle record | RO of record will remain the same and the out-of-state dealer may be recorded as the new LO | 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. |
| A replacement title for a vehicle they accepted in trade in the other state and there is a LO | 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. |