Buy/Sell Procedures for New Vehicle Dealers

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Occupational licensing (OL) inspectors are usually available to assist businesses during ownership transitions. However, when one is not available, contact a region supervising inspector to confirm the email address (for sending scanned documents) or fax number and to proceed with the following instructions:

BuyerSeller
5 to 10 business days prior to closing – Call the region supervising inspector and fax or scan the following documents:

Application for Original Occupational License, Part C (OL 12)
Original Application for Occupational Licensing, Part A (OL 21A)
Surety Bond (OL 25)
Application for Occupational License – Personnel History Questionnaire, Part B (OL 29B) by each person listed on OL 12
– Evidence of Livescan fingerprints if not previously licensed in California
– Copy of State Board of Equalization Resale Permit

On the date of sale – Fax the following documents:

Certificate of Proposed Franchise (OL 124)
– Picture showing new sign if there is a name change

Within 10 business days after the date of sale submit the complete original licensing package to the local licensing inspector.
On the date of sale – Fax or scan the following documents:

Notification by Licensee Out of Business Report (OL 79C)
– Termination Certification Letter – On company letterhead, signed by owner of record.

Before escrow, submit the OL 79C, license, special plates, and pay all outstanding fees to the local licensing inspector.

Completed report of sales may be required by the State Board of Equalization or DMV and must be retained and available as required by law.
OL will:
Upon receipt of forms from the buyer and seller, OL will issue temporary operating and special plate permits to the buyer that will expire within 30 days. If the buyer fails to provide the department with an application (complete with original signatures) within 30 days, the department may refuse to issue a permanent license and will cancel the previously issued permits.

(REV. 12/2012)

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