DEPARTMENT OF REVENUE - Colorado

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DEPARTMENT OF REVENUE

Division of Motor Vehicles – Title and Registration Sections

1 CCR 204-10

RULE 10. OBTAINING TITILE FOR MOTOR VEHICLES ABANDONED AT MOTOR VEHICLE REPAIR SHOPS

Basis: The statutory bases for this regulation are 38-20-116(2.5)(a) and (c), 42-1-204, 42-1-206(2)(a)(b), 42-6-102(15), 42-6-102(16), 42-6-104, 42-6-115, 42-6-136, 42-9-102(1.5), 42-9-102(6), and 42-9-104(1)(c) C.R.S.

Purpose: The purpose of this regulation is to establish requirements for applications of Colorado certificates of title for motor vehicles that have been abandoned at a repair shop.

1. Definitions

1. “Abandoned Motor Vehicle” means a motor vehicle that:

a. Has been left at a repair shop by the motor vehicle’s owner, the owner’s agent, or an operator hired by the owner or owner’s agent; and,

b. The repair shop has offered to repair and for which the repair shop has prepared an estimate of repair costs; and,

c. The owner or the owner’s agent has refused to authorize repairs, has refused to remove from the repair shop upon request, or has refused to pay for authorized and completed repairs to the motor vehicle. If a repair shop does not, receive a response from the owner or the owner’s agent regarding the authorization of repairs, payment for authorized and completed repairs, or the removal of a motor vehicle within thirty calendar days from the postmark date of the certified letter, constituting the repair shop's good faith effort to contact the owner or owner's agent, then the owner or owner’s agent shall be deemed to have refused to grant authorization, make payment, or remove the motor vehicle; and,

d. Is not the subject of sale negotiations or a sales agreement between the owner or the owner’s agent and the repair shop.

2. “Department” for the purpose of this regulation means the Department of Revenue, Division of Motor Vehicles, Title and Registration Section.

3. “Director” for the purpose of this regulation means the Executive Director of the Department of Revenue.

4. “Good Faith Effort” means mailing a certified letter, that includes a copy of the repair shop order and notification that if the repair shop, or its agent, does not receive a response within thirty calendar days from the certified letter postmark date, the vehicle will be considered abandoned and will be subject to sale.

5. “Operator” means a person or firm licensed by the Colorado Public Utilities Commission (PUC), Department of Regulatory Agencies as a towing carrier.

6. “Person” means a natural person, estate, trust, firm, co-partnership, association, corporation, or business entity.

7. “Repair Shop” means a person that is licensed to offer vehicle repair services to the public on a commercial basis.

8. “Repair Shop Order” means a document used by a repair shop to indicate repairs that will be or that have been performed on the vehicle and for the purpose of this regulation; to be used in lieu of the Certified VIN Inspection as proof of the vehicle being in possession of the Repair Shop. The repair shop order pursuant must include:

a. Owner’s name or person requesting the repairs on the vehicle

b. The vehicle identification number

c. The model year of the vehicle

d. The make of the vehicle

e. The model of the vehicle

f. The business name of the Repair Shop

g. The address of the Repair Shop

9. “Retail Fair Market Value” means the value of an abandoned motor vehicle in its current condition as determined by one of the following methods:

a. Sources generally accepted within the insurance industry including price guidebooks, dealer quotations, computerized valuation services, newspaper advertisements, and certified appraisals; or,

b. Licensed automobile dealers.

10. “Roadworthy” means a condition in which a motor vehicle has sufficient power and is fit to operate on the roads and highways of this state after visual inspection by appropriate law enforcement authorities. In order to be roadworthy, such vehicle, in accord with its design and use, shall have all major parts and systems permanently attached and functioning and shall not be repaired in such a manner as to make the vehicle unsafe. “Major parts and systems” shall include, but not be limited to, the body of a motor vehicle with related component parts, engine, transmission, tires, wheels, seats, exhaust, brakes, and all other equipment required by Colorado law for the particular vehicle.

11. “Salvage Vehicle” means a vehicle that is damaged by collision, fire, flood, accident, trespass, or other occurrence excluding hail damage, to the extent that the cost of repairing the vehicle to a roadworthy condition and for legal operation on the highways exceeds the vehicle’s retail fair market value immediately prior to such damage, as determined by the person who owns the vehicle at the time of such occurrence or by the insurer or other person acting on behalf of such owner.

12. “Salvage Title or Salvage Certificate of Title” means a Colorado certificate of title as defined in 42-6-102(16), C.R.S., that reflects the words “SALVAGE TITLE” on its face.

2. Requirements

1. Repair shops that have an abandoned motor vehicle at their place of business and desire to obtain title in the repair shop's name must complete the process below. The individual steps in each group are the preferred order for completion of the process. However, a repair shop, or its agent, must complete the group 1 steps (a – c) prior to completion of group 2 steps (d – i). A repair shop, or its agent, must complete all steps (a- i) in group 1 and in group 2 to be able to obtain title in the repair shop's name.

Group 1 Steps

a. Complete a Colorado title record search

1. By submitting a DR 2489A Motor Vehicle Record Search Request form to the Department with a copy of the repair shop order.

A) A certified VIN inspection may be used in lieu of the repair shop order when a repair shop order is not available.

2. If the abandoned motor vehicle is an out-of-state vehicle the repair shop, or its agent, shall include the results of a title and lien search from the state in which the vehicle is titled on the application for title.

A) Indications that the vehicle is an out-of-state vehicle are::

i. License plates from another state; or

ii. Registration from another state in the vehicle; or

iii. Title from another state in the vehicle.

b. Complete a certified mail notification to the owner and all lienholder(s) of record. Notifications must be mailed to the owner, including an out of state owner and all lienholders disclosed from a search of Colorado title records or from a title and lien search from the state in which the vehicle is titled. The repair shop, or its agent, must keep the notification on file for one year from the date of mailing. A repair shop, or its agent, must allow the owner thirty calendar days to reply to the certified mail notification. A repair shop, or its agent, may complete the abandoned motor vehicle process if neither an owner nor a lienholder(s) has responded within thirty days from the postmark date of the certified letter. Notification must contain the information below:

1. Location of the repair shop

2. A statement indicating, “Motor vehicle is subject to sale if not claimed within thirty calendar days after the postmark date.” Section 38-20-116(2.5)(c)(IV), C.R.S.

3. Vehicle’s year, make, model and vehicle identification number.

c. Obtain a certified VIN inspection conducted by a P.O.S.T. (Peace Officer Standardized Training) certified inspector on the DR 2704 Colorado Certified VIN Inspection form that was completed less than one year from the date of the application for title.

1. A repair shop, or its agent, shall terminate the abandoned motor vehicle process if the motor vehicle has been deemed stolen.

2. At the discretion of the Department, the DR 2704 Colorado Certified VIN Inspection form may be accepted with minor mistakes in non-critical fields. An application with mistakes in critical fields will not be accepted and is cause for rejection of the application. Refer to the DR 2704 Colorado Certified VIN Inspection form with critical and non-critical fields identified at the end of this regulation.

Group 2 Steps

d. Establish the retail fair market value of the abandoned motor vehicle, pursuant to § 38-20-116(2.5)(c)(I), C.R.S., fifteen days after the motor vehicle becomes abandoned..

1. Abandoned motor vehicles with a retail fair market value of less than $200.00 can only be sold for the purposes of junking, scrapping, or dismantling. Sale by the repair shop, or its agent, shall be executed and delivered to the purchaser on a bill of sale. Under no circumstances shall a purchaser of an abandoned motor vehicle sold for the purposes of junking, scrapping, or dismantling be entitled to a Colorado certificate of title. The repair shop shall inform the purchaser on the bill of sale that a Colorado certificate of title will not be issued upon execution of the abandoned motor vehicle bill of sale. Section 38-20-116(2.5)(c)((VII)(B), C.R.S.

e. Purchase a surety bond at least twice the retail fair market value of the abandoned motor vehicle. The surety bond must be signed by an agent for the repair shop, in the repair shop’s name and indicate the abandoned motor vehicle’s year, make, and VIN. All surety bond requirement in C.R.S. 42-6-115(3)(a) must be met when completing the surety bond.

1. If the vehicle is twenty-five years old or older, and has had a certified vehicle identification number inspection performed on the vehicle, and the repair shop, or it agent, presents a notarized bill of sale within twenty-four months after the sale with the title application , the repair shop, or its agent, need not furnish a surety bond. To be excepted from the surety requirement, a repair shop, or its agent, must submit an affidavit to the Department that is sworn to under penalty of perjury and that state that the required documents submitted are true and correct.

f. Salvage Disclosure – Repair shop, or its agent, shall disclose current or previous salvage information.

1. If the Colorado title record search indicates a motor vehicle has a current salvage status, then DR 2704 Colorado Certified VIN Inspection form must indicate the motor vehicle is “not roadworthy."

A. If the salvage vehicle has been repaired to a roadworthy condition, then the repair shop may apply for a Colorado certificate of title by following the DR 2415 Title Established by Salvage Title Checklist and DR 2424 Salvage Title Statement of Fact forms indicating what repairs were made to the salvage motor vehicle to bring it to a roadworthy condition.

i. After making repairs a new DR 2704 Colorado Certified VIN Inspection form will be required.

B. If the salvage vehicle is not repaired to a roadworthy condition, then the repair shop, or its agent, may apply for a salvage title using the DR 2410 Application for Salvage Title form.

C. If the Colorado title record search indicates that a vehicle was “Previous Salvage” (Rebuilt from Salvage) status and the DR 2704 Colorado Certified VIN Inspection indicates that the vehicle is roadworthy, the repair shop, or its agent, shall request a salvage history from the Department.

I. Upon determination of the reason for salvage, the repair shop shall complete the DR 2710 Rebuilt From Salvage Disclosure form.

II. If the reason for salvage is indeterminate, the repair shop, or its agent, must complete the DR 2710 Rebuilt From Salvage Disclosure form by marking the “Other” box on the form stating “Purchased as an abandoned vehicle, unable to obtain a salvage history, reason for salvage unknown."

g. Complete a DR 2438 Mechanic and Storage Lien Bond Statement Guide form or a written statement on the DR 2444 Statement of Fact form including all of the following information:

1. That the repair shop, or its agent completed a certified mail notification to all owners and any lienholder(s) of record of the abandoned motor vehicle and that neither the owner(s) nor any lienholder(s) have responded within thirty days of the postmark date of the certified mail notification; and,

2. Business name and address of the repair shop; and,

3. Abandoned motor vehicle's year, make, model, and VIN; and,

4. Date when the vehicle was left at the repair shop for repair; and,

5. Name of the person who left the vehicle at the repair shop; and,

6. Whether the vehicle is roadworthy; and,

7. A copy of any written assessment or work order, as defined in 42-9-102(1.5), 42-9-102(6), or 42-9-104(1)(c), C.R.S.

h. After completion of 2.1 a through 2.1 g above, the repair shop, or its agent, may apply for a Colorado certificate of title or salvage title, and the application must be made in the name of the repair shop, in the county where the repair shop is located.

i. After the repair shop, or its agent, has obtained a certificate of title for the abandoned motor vehicle, the repair shop, or its agent, shall sell the motor vehicle in a commercially reasonable manner at a public or private sale.

0. General Information

1. Agents acting on behalf of a repair shop to obtain title in the repair shop’s name for motor vehicles abandoned at the repair shop may use the below as proof of the repair shop authorizing an agent to act on behalf of the repair shop.

a. Power of Attorney; or

b. Permission Letter

2. If using a permission letter, the letter shall be formatted and contain the information as indicated on the DR 2444 Statement of Fact form at the end of this regulation. If the permission letter is signed under penalty of perjury it is not required to be notarized. If a permission letter is not signed under penalty of perjury, then the permission letter must be notarized.

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