Salvage or Rebuilt Title

23 V.S.A. § 2001 Definitions

(11) "Salvage dealer" means any person who, in a single year, purchases or in any manner acquires three motor vehicles as salvage or who scraps, dismantles, or destroys three motor vehicles in a single year.

(12) "Rebuilt motor vehicle" means a vehicle upon which a salvage certificate of title, parts-only certificate, or other document indicating the vehicle is not sold for re-registration purposes, has been issued and which has been rebuilt and restored for highway operation.

(13) "Salvaged motor vehicle" means a motor vehicle which has been purchased or otherwise acquired as salvage; scrapped, dismantled, or destroyed; or declared a total loss by an insurance company.

(14) "Totaled motor vehicle" means a motor vehicle which has been declared by an insurance company to be a total loss.

(17) "Salvage certificate of title" means a title that is stamped or otherwise branded to indicate that the vehicle described thereon is a salvaged motor vehicle.

23 V.S.A. § 2091 Salvage certificates of title; forwarding of plates and titles of crushed vehicles

(a) Except for vehicles for which no certificate of title is required pursuant to section 2012 of this title and for vehicles which are more than 15 years old, any person who purchases or in any manner acquires a vehicle as salvage; any person who scraps, dismantles, or destroys a motor vehicle; or any insurance company or representative thereof who declares a motor vehicle to be a total loss, shall apply to the Commissioner for a salvage certificate of title within 15 days of the time the vehicle is purchased or otherwise acquired as salvage; is scrapped, dismantled, or destroyed; or is declared a total loss. However, an insurance company or representative thereof proceeding under subsection (c) of this section may apply outside this 15-day window to the extent necessary to comply with the requirements of that subsection.

(b) Except as provided in subsection (c) of this section, the application shall be accompanied by:

(1) any certificate of title; and

(2) any other information or documents that the Commissioner may reasonably require to establish ownership of the vehicle and the existence or nonexistence of any security interest in the vehicle.

(c)(1) An insurer required to obtain a salvage certificate of title under this section for a vehicle declared a total loss, or a representative of the insurer, may obtain the title without satisfying the requirements of subsection (b) of this section if the application for the salvage certificate of title is accompanied by:

(A) the required fee;

(B) evidence that the insurer has made payment for the total loss of the vehicle, and evidence that the payment was made to any lienholder identified in the records of certificates of title of the Department and to the vehicle owner, if applicable; and

(C) a copy of the insurer's written request for the certificate of title sent at least 30 days prior to the application to the vehicle owner and to any lienholder identified in the records of certificates of title of the Department, proof that the request was sent by certified mail or was delivered by a courier service that provides proof of delivery, and copies of any responses from the vehicle owner or lienholder.

(2) If the Commissioner issues a salvage certificate of title to an eligible person under this subsection, the title shall be issued free and clear of all liens.

(d) Except for vehicles for which no certificate of title is required under this chapter, when a vehicle is destroyed by crushing for scrap, the person causing the destruction shall immediately mail or deliver to the Commissioner the certificate of title endorsed "crushed" and signed by the person, accompanied by the original plate showing the original vehicle identification number. The plate shall not be removed until such time as the vehicle is crushed.

(e) This section shall not apply to, and salvage certificates of title shall not be required for, unrecovered stolen vehicles or vehicles stolen and recovered in an undamaged condition, provided that the original vehicle identification number plate has not been removed, altered, or destroyed and the number thereon is identical with that on the original title certificate.

23 V.S.A. § 2093 Salvaged, totaled, and rebuilt vehicles

(a) If a vehicle upon which a salvage certificate of title, a parts-only certificate, or other document indicating the vehicle is not sold for re-registration purposes has been or should have been issued by the Commissioner or by any other jurisdiction or person, or a vehicle that has been declared a totaled motor vehicle is rebuilt and restored for highway operation, the owner thereof shall not apply for a certificate of title or registration, and none shall be issued until the vehicle has been inspected by the Commissioner or his or her authorized representative. The inspection of the vehicle shall be conducted in the manner prescribed by the Commissioner and shall include verification of the vehicle identification number and bills of sale or titles for major component parts used to rebuild the vehicle. When necessary, a new vehicle identification number shall be attached to the vehicle as provided by section 2003 of this title. Any new title issued for such vehicles shall contain the legend "rebuilt."

(b) Any person who sells, trades, or offers for sale or trade any interest in a salvaged, salvaged and rebuilt, or totaled vehicle shall disclose the fact that the vehicle has been salvaged, salvaged and rebuilt, or totaled to a prospective purchaser both orally and in writing before a sale, trade, or transfer is made. Written disclosure that the vehicle has been salvaged, salvaged and rebuilt, or totaled, in addition to being disclosed on the certificate of title as required by this subchapter, shall also be conspicuously disclosed on any bill of sale, transfer, purchase, or other agreement.

(c) Failure of the seller to provide the notices required by this section shall result in the seller being required, at the option of the buyer, to refund to the buyer the purchase price, including taxes, license fees, and similar governmental charges.

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Related Forms & Information
Title Sort descending	ID#	Description
Dealer Appraisal Form	VD-012	To apply for a lesser tax due at the time of registration when disagreeing with J. D. Power value.
Rebuilt/Salvage Title Application	VT-017	To apply for a Rebuilt/Salvage Vermont title.
Verification of VIN/HIN	VT-010	To verify the Vehicle Identification Number (VIN) or Hull Identification Number (HIN).

FAQs.

What if I buy a 1968 El Camino from someone who has it stored in their barn and there is NO record of it at all in NMVTIS

Complete the Affidavit of Non-titled Vehicle form (VT-025).
Have a VIN verification completed.
Provide copies of bills of sale.
The title will be branded with "undisclosed lien".

What if I buy a 1973 Monte Carlo from someone who has it stored in their barn and there is record of it in NMVTIS?

Use NMVTIS or carfax.com to determine where the vehicle was last registered/titled.

Obtain the title or the registration certificate from the other state and have bills of sale from the last registered/titled owner to you (the customer)

How can I tell what the ownership document for a vehicle is?

You can use NMVTIS or carfax.com to determine where the vehicle was last registered/titled.

You can contact us or visit an office, and we can check and advise what it is, what state it is from, and provide the title number.

I sold my 2009 or older vehicle to a person who wants to register out of state, and they say their state needs a title, can I receive a title?

Yes, as long as we can verify that you were the last registered owner of this vehicle in Vermont.

Can I sell my 2009 or older vehicle without a title if it was registered prior to the ACT 165 title change?

Yes, but you must provide the registration certificate to the new owner as proof of ownership.

I registered my 1971 VW Bus prior to the ACT 165 title law change. Do I have to get a title and/or can I get one?

You do not have to get a title, but you may do so by completing a registration application and submitting it to this department with the title fee and a copy of your registration.

How Can I Check Vehicle for Vermont Liens?

Go to mydmv.vermont.gov, and click the ‘Check Vehicle for Vermont Liens’ under the Vehicle Inquiry section. Select the vehicle type (Boat or Vehicle) and then enter the identification number. Check the checkbox to verify that you are not a robot, and click the ‘Search’ button.

The results of the vehicle search are displayed. Please note that liens held by individuals will not display personal information; you would need to contact the DMV for further information if needed.

If I need to appoint a Power of Attorney, can I use my own form?

No. You must use the Vermont DMV Vehicle Power of Attorney form (VN-101)

What Can a Bonded Title Be Used For?

The central use of Bonded Titles is to act as a form of financial protection for potentially harmed parties. However, it also holds benefits for the bondholder. It can allow the bondholder to possess proof of ownership instead of an incomplete, non-existent, or lost title bond.

This is essential, as proof of legal ownership is necessary for buying insurance or selling the vehicle, trailer, vessel, snowmobile, or all-terrain vehicle. The bond may also be passed between owners if the vehicle, trailer, vessel, snowmobile, or all-terrain vehicle is sold, in much the same way a title transfer occurs when an original title is present.

When Is a Bonded Title Required?

The exact circumstances in which owners must take out a Bonded Title vary case by case. However, in most cases, if you own or wish to buy a vehicle, trailer, vessel, snowmobile, or all-terrain vehicle that lacks a title or if that title is incomplete, then a Bonded Title is necessary.

What is a Bonded Title?

A bonded title, also known as a Certificate of Title Surety Bond or Lost Title Bond, is a document that establishes who owns a vehicle, trailer, vessel, snowmobile, or all-terrain vehicle. A bonded title can be used instead of a traditional title to register, get insurance for, or sell the vehicle, trailer, vessel, snowmobile, or all-terrain vehicle.

My registration, license or title has not arrived yet. What should I do?

You must notify the DMV within 60 days of issuance if you do not receive your registration/license/title. If DMV is not notified within this timeframe, the purchase of a replacement may be required.

Use our contact form here

March 22, 2023

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