§ 42-6-109 — Sale or transfer of vehicle - program

Colorado § 42-6-109

• Jurisdiction: Colorado
• Title 42: Vehicles and
• Art.: Certificates of Title -

Text

(1) Except as provided in
section 42-6-113, a person shall not sell or otherwise transfer a motor or off-highway vehicle to a purchaser or transferee without delivering to the purchaser or
transferee a certificate of title to the vehicle duly transferred in the manner
prescribed in section 42-6-110. Except as provided in subsection (2) of this section,
the certificate of title may be in an electronic format. Except as provided in section
42-6-115, a purchaser or transferee does not acquire any right, title, or interest in
and to a motor or off-highway vehicle purchased by the purchaser or transferee
unless and until he or she obtains from the transferor the certificate of title duly
transferred in accordance with this part 1. A lienholder may request either a paper
or electronic version of a certificate of title.

(2) Except as provided in section 42-6-115, a paper copy of a certificate of
title is necessary for a transaction in which:

(a) Either party to the transaction is located outside Colorado; or

(b) The purchaser pays for a motor or off-highway vehicle entirely with cash.

(3) (a) Beginning January 1, 2019, the department shall implement a voluntary
program for an owner of a motor vehicle to notify the department or an authorized
agent after ownership of the motor vehicle is transferred to another person in
accordance with subsections (1) and (2) of this section.

(b) A report of ownership transfer is properly filed if the report is made in a
manner, which may include by electronic means, approved by the department and
received by the department or authorized agent within five business days after the
transfer of ownership, and includes the following:

(I) The date and time of sale or transfer;

(II) The full name of the owner of the motor vehicle before the transfer;

(III) The vehicle identification number of the motor vehicle; and

(IV) An affidavit, signed under penalty of perjury, that the requirements for
the transfer of ownership in subsections (1) and (2) of this section have been
satisfied.

(c) The department shall:

(I) Provide or approve one or more methods for reporting the transfer of
ownership;

(II) Notify, with the owner's registration renewal information, the owner of a
motor vehicle of the option to report the transfer of ownership of a motor vehicle;

(III) Notify the public of the option to report a transfer of ownership of a
motor vehicle;

(IV) Place instructions on each certificate of title document issued on or
after August 8, 2018, for reporting the transfer of ownership of a motor vehicle; and

(V) Forward a copy of the report to each lienholder of record.

(d) (I) If an owner reports a bona fide transfer of ownership of a motor vehicle
in accordance with this section, the owner is not liable in or subject to any civil or
criminal action brought against the following after the motor vehicle was
transferred:

(A) The operator of the motor vehicle, arising from the use of the motor
vehicle; and

(B) The motor vehicle.

(II) This subsection (3)(d) does not apply to a civil or criminal action if the
action is brought against the owner for the owner's:

(A) Negligence in permitting the purchaser to drive the motor vehicle at the
time of sale;

(B) Failure to comply with any law governing the sale of the motor vehicle;

(C) Negligence in selling the motor vehicle;

(D) Material misstatement or omission about the condition of the motor
vehicle; or

(E) Failure to make any disclosure required by law.

(e) A report filed under this subsection (3) does not extinguish or impair the
rights of any lienholder.

(f) This subsection (3) does not require the owner who transfers a motor
vehicle to another person to report the sale to the department in accordance with
this subsection (3).

(4) (a) A record covered by this article 6, including a certificate of title, a
document necessary to issue a certificate of title, or a signature on the record or
document may not be denied legal effect, validity, or enforceability solely because
it is in the form of an electronic record, document, or signature. Except as otherwise
provided in this article 6, if a rule of law requires a record to be in writing or
provides consequences if it is not, an electronic record satisfies that rule of law.

(b) For a record, document, or signature to be legally effective, valid, or
enforceable, a person need not obtain a written power of attorney solely because
the record, document, or signature is in an electronic form.

(c) This subsection (4) applies to and in a court of law.

(d) This subsection (4) does not require the department to implement a
system to electronically accept records, documents, or signatures.

Legislative History

Source: L. 94: Entire title amended with relocations, p. 2453, � 1, effective January 1, 1995. L. 2000: Entire section amended, p. 1658, � 4, effective July 1, 2001. L. 2005: Entire section amended, p. 811, � 7, effective August 8. L. 2012: Entire section amended, (SB 12-095), ch. 112, p. 388, � 2, effective August 8. L. 2013: (1), IP(2), and (2)(b) amended, (SB 13-280), ch. 407, p. 2380, � 6, effective June 5. L. 2018: (3) added, (SB 18-073), ch. 83, p. 680, � 1, effective August 8; (4) added with relocations, (SB 18-255), ch. 405, p. 2386, � 2, effective August 8.