Sec. 78.11. Procedures to be used for certificates of sale

(a) Procedure for 1972 or older model year vehicles and other vehicles not subject to Certificate of Title Law. Whenever a vehicle which is not subject to the Certificate of Title Law is sold, the following procedure will be used by the dealer:

(1) Certificates of sale must be issued in consecutive order.

(2) Certificates of sale must be prepared by typewriter, ink or indelible pencil; signatures must be written in ink or indelible pencil.

(3) Certificates of sale must contain a complete and correct description of the vehicle, the full name and address of the previous owner, the last registration plate number, the number of the dealer's plate loaned, the number of the temporary certificate of registration issued, the number of any registration plate issued by the dealer, the dates of purchase and sale, and the plate number of the applicant. The box entitled “Purchaser Information:” must contain the name and address of the purchaser or a designee of the purchaser. The Certificate of Title will show this name as the owner. The Certificate of sale must be signed in ink by the person named in the box entitled “Purchaser Information.”

(4) Dealers are required to enter on the certificate of sale the weight of the vehicle fully equipped and ready for use on the highway.

(5) Dealers shall sign certificates only at the time of issuing them to purchasers. The signing of certificates in advance of their use is forbidden. A person signing as a partner, corporate officer, or agent, must so indicate below his signature.

(6) The applicable portions of certificates of sale will be completely executed by the dealer and will contain the correct year of manufacture and the same motor, serial or identification number as appears on the vehicle which is to be sold. The dealer must place an entry in each block of the certificate of sale except those portions which are to be completed by the purchaser. In the event the information requested does not apply to the sale, the dealer will place the letters “NA” (not applicable) in that block.

(7) The certificate of sale must set forth the actual residence address of the purchaser. Use of a New York mailing address where the purchaser does not reside in the State at such an address is not permitted. When the purchaser is in military service and has only a military residence address, such address must be used.

(8) Certificates of sale issued for used house trailers need not contain inspection information if the trailers will not be registered. The dealer will mark “Vehicle not to be registered” across the face of all copies of the certificate of sale.

(9) [Reserved]

(10) When a certificate of sale is voided, all copies must be sent to the department.

(11) When a purchaser of a vehicle reports the loss, theft or destruction of a certificate of sale, the dealer is required to issue a replacement. The notation “To replace lost, stolen or destroyed (whichever is appropriate) MV-50 _____ must be placed on the top of the new MV-50. The dealer must immediately report the loss or theft of an MV-50 to the appropriate district office of the Department of Motor Vehicles on a form prescribed by the commissioner (MV-550).

(12) Upon transfer of ownership of a motor vehicle, the mileage shown on that vehicle's odometer must be placed on the certificate of sale in the space provided. If the dealer knows that the mileage indicated on the odometer is less than the mileage actually travelled by the motor vehicle because the odometer is or was broken, repaired, replaced or deliberately reset to a false number, the notation “NOT THE ACTUAL MILEAGE” must be checked. If the dealer knows that the mileage travelled by the vehicle is in excess of the mechanical limits of that odometer, the notation “EXCEEDS MECHANICAL LIMITS” must be checked.

(13) The original of the certificate of sale must be appropriately completed and signed by the retail purchaser after it has been completed by the dealer, except upon the sale of a vehicle included in a fleet sale of five or more vehicles, provided the notation “Fleet Sale” is placed upon each part of the certificate of sale by the dealer. The use of form MV-50.1 on and after June 1, 1991, is prohibited.

(14) This paragraph shall apply if a dealer acquires a motor vehicle by receiving a New York title with a print date earlier than August 1989 or if a dealer acquires a motor vehicle by receiving an out of state title which does not contain full odometer disclosure information.

(i) An odometer disclosure statement (sample form MV-103) must be prepared by the selling dealer for any transfer of ownership transaction for a motor vehicle, whether wholesale or retail. After the seller has completed and signed his portion of the statement, the buyer shall complete any applicable information and shall sign the odometer disclosure statement.

(ii) A dealer shall not acquire a motor vehicle unless a completed odometer disclosure statement (sample form MV-103) accompanies the transfer of ownership.

(iii) This paragraph shall not apply to a transfer of a motor vehicle manufactured in or before model year 2010 or a motor vehicle manufactured in or after the 2011 model year that is 20 or more model years old, but shall apply to every sale of a motor vehicle manufactured in or after the 2011 model year that is 19 or less model years old.

(iv) The Department of Motor Vehicles shall provide each dealer with a sample of the odometer disclosure statement (sample form MV-103). This sample is Appendix A of these regulations. It is the dealer's responsibility to print, photocopy or purchase the form. The size of the odometer disclosure statement should not exceed 7⅜ inches in width or 9¾inches in height. The New York State seal and the Department of Motor Vehicles logo are optional. Other seals and logos may be substituted.

(v) On a retail transaction, if the dealer submits the application for title or registration or both, the dealer shall submit one copy of the odometer disclosure statement (sample form MV-103) to the Department of Motor Vehicles, give one copy to the purchaser to keep and retain one copy in its records. On a retail transaction, if the ownership papers are given to the purchaser, the dealer shall give two copies of the odometer disclosure statement (sample form MV-103) to the purchaser and retain one copy in its records. On a wholesale transaction, the selling dealer shall give the purchaser one copy of the odometer disclosure statement (sample form MV-103) and retain one copy for its records.

(vi) Dealers shall retain a copy of all odometer disclosure statements (sample form MV-103) for five years and such records shall be available for inspection.

(15) If the odometer disclosure information is on the certificate of sale (form MV-50), then one or two copies of the certificate of sale must be given to the purchaser as follows:

(i) On a retail transaction, if the dealer submits the application for title or registration or both, the dealer shall give the customer copy of the certificate of sale to the purchaser to keep.

(ii) On a retail transaction, if the ownership papers are given to the purchaser, the dealer shall give the purchaser the original certificate of sale to submit with the application for title or registration or both and the customer copy of the certificate of sale to keep.

(iii) On a wholesale transaction, the selling dealer shall give the purchaser the original certificate of sale to be attached to the certificate of sale which the purchaser writes and the customer copy of the certificate of sale to keep.

(iv) The certificate of sale must be signed by both the dealer and the purchaser even if the purchaser does not take possession of the vehicle at the dealer's place of business. The dealer delivering the vehicle to the customer should bring the top three copies of a wholesale or retail certificate of sale to the purchaser for signature. The dealer shall write on the remaining copy of the certificate of sale: “original signed by purchaser.”

(b) Procedure for 1973 and later model year vehicles and other vehicles subject to the Certificate of Title Law. Whenever a 1973 and later model year vehicle and any other vehicle which is subject to the Certificate of Title Law is sold, the same procedure in subdivision (a) of this section shall be followed by the dealer with the following additions:

(1) In addition to the other material required to be placed on the MV-50, the number of lien holders, if any, must be placed on the lower left-hand corner of both copies of the MV-50. The following code should be used: “L0” if there are no liens; “L1” if there is one lienholder; “L2” if there are two lienholders; and so forth. Both copies of the MV-50 must be signed. However, if a dealer has completed and filed with the Department of Motor Vehicles an application for registration or title of a vehicle and, within 10 days thereafter, the dealer receives the appropriate filing fees and notification of the desire of the lender to have his lien recorded, the dealer shall, within 24 hours of such receipt, prepare and submit a notice of lien (form MV-900) properly completed, to the Title Bureau, Department of Motor Vehicles, Empire State Plaza, Albany, New York 12228, together with the appropriate recording fees and the dealer shall sign his name on behalf of the lienholder in the space provided in the notice of lien (form MV-900) for the lienholder's signature and shall state on such form, the date when the application for registration or title with the Department of Motor Vehicles.

(2) If a vehicle is eight model years old or newer on the date of loss, the dealer must receive from a retail owner a completed salvage disclosure statement. This statement must be either on the certificte of title or on form MV-103. If form MV-103 is used, it shall be stapled to the certificate of title. The commissioner will not register or title a vehicle which lacks a necessary salvage disclosure statement.

(c) Exceptions—sale of a wholesale vehicle.

When a vehicle is sold as a wholesale vehicle, the selling dealer need not deliver the certificate of sale, assigned title, or any other proofs of ownership required by regulations of the commissioner upon the transfer of a vehicle to the wholesale purchaser, unless payment is made by cash, certified check or money order, until payment to the selling dealer has been cleared. In lieu of issuing such documents, the selling dealer shall give to the wholesale purchaser a receipt on the letterhead of the selling dealer indicating the wholesale purchaser's right to possession of the vehicle until payment is cleared. Immediately upon clearance of payment, the necessary transfer documents must be delivered or mailed to the wholesale purchaser. If payment does not clear, the selling dealer is entitled to recover the vehicle and the receipt.

(d) Dealers who are also distributors, importers and manufacturers.

A dealer who is also a distributor, importer or manufacturer of a motor vehicle, and who is named as manufacturer or first assignee on the manufacturer's statement of origin, shall not be required to use a certificate of sale (form MV-50) in transferring the ownership of a vehicle described on such manufacturer's statement of origin to another registered dealer. The transfer of ownership may be made on the next assignment on the manufacturer's statement of origin. A vehicle so transferred shall not be required to be entered in the dealer's book of registry, but a record of acquisition and transfer must be maintained.

(e) Dealer-issued temporary registration.

The provisions of this section shall be applicable to the sale or transfer of a vehicle for which a dealer-issued temporary registration has been issued pursuant to section 420-a of the Vehicle and Traffic Law and section 78.23 of this Part, except that they shall be modified as may be provided in section 78.23 of this Part.

(f) Submission of certificate of sale and proofs of ownership.

(1) Upon the sale of a vehicle not subject to the Certificate of Title Law, a dealer must give the customer the choice of taking possession of the certificate of sale and ownership document or letting the dealer submit the paperwork for him. If the dealer is to submit the paperwork, he shall submit it within five- calendar days after delivery of the vehicle.

(2) Upon the sale of a vehicle subject to the Certificate of Title Law, which vehicle does not have a lien to be recorded against it, a dealer must give the customer the choice of taking possession of the certificate of sale and ownership document or letting the dealer submit the paperwork for him. If the dealer is to submit the paperwork, he shall submit it within five- calendar days after delivery of the vehicle.

(3) Vehicle and Traffic Law, section 2105(b) requires a dealer to submit the application for title if there is a lien to be recorded on the title. Therefore, upon the sale of a vehicle subject to the Certificate of Title Law, which vehicle has a lien to be recorded against it, the dealer shall submit all necessary and appropriate paperwork for the issuance of a certificate of title within five calendar days after delivery of the vehicle to the purchaser. The dealer may not appoint the customer as his agent for the filing of the required paperwork.

(4) If an application for registration or registration and title is being submitted by a dealer, it may be submitted at any motor vehicles issuing office. If an application for title only (title but no registration) is submitted by a dealer, it must be mailed to Title Bureau, Department of Motor Vehicles, Empire State Plaza, Albany, NY 12228.

(5) This subdivision shall not apply to a vehicle for which a dealer issues number plates and a temporary registration (see section 78.23 of this Part) or to a vehicle classified as “junk” (see section 78.45 of this Part).