§ 32:705 — Acceptance and delivery of certificate

Louisiana § 32:705

• Jurisdiction: Louisiana
• Title 32: Levees

Text

§705. Acceptance and delivery of certificate
A. No person shall sell a vehicle without delivery to the purchaser thereof, whether
such purchaser be a dealer or otherwise, a certificate of title issued under this Chapter in the
name of the seller with such signed endorsement of sale and assignment thereon as may be
necessary to show title in the purchaser; provided:
(1) A bonded dealer shall provide the purchaser the certificate of title within twenty
days.
(2) A dealer who is reselling a vehicle that he purchased for stock purposes from an
owner who, at the time of such purchase, delivered to the dealer an existing certificate of title
issued under this Chapter in the name of such owner, properly endorsed, may, in lieu of
applying for and obtaining a new certificate of title in his own, the dealer's, name, and
delivering the same to the purchaser, instead execute a resale and reassignment of such
existing certificate of title, with warranty of title.
(3) A dealer who is reselling a vehicle that he purchased for stock purposes, and for
which no certificate of title exists under this Chapter shall, in lieu of applying for and
obtaining a certificate of title in his own, the dealer's, name, and delivering same to the
purchaser, note the fact of nonexistence and the reasons therefor, including name and address
of the party, whether factory, distributor, or other person, from whom the vehicle was
obtained, on a form to be prescribed and furnished by the commissioner, and deliver said
form duly signed to such purchaser at the time of sale; however, as to vehicles of the model
year 1957 or any later model year, the dealer shall, if the vehicle is of the model year current
at the time, in lieu of furnishing said form, deliver to such purchaser at the time of sale a
"manufacturer's certificate" duly endorsed to the applicant.
(4) A dealer who is selling a vehicle that was consigned to him for sale by the
registered owner may, in lieu of applying for and obtaining a new certificate of title in the
dealer's own name, and delivering the same to the purchaser, execute a sale and reassignment
of such existing certificate of title, with warranty of title if:
(a) There is a written agreement between the dealer and the consignor, executed on
a form provided or approved by the commissioner, as to the terms and conditions of the
consignment.
(b) Pursuant to the consignment agreement, the consignor has assigned title to the
dealer.
(c) There are no liens or encumbrances affecting the vehicle except those about
which the purchaser is actually and specifically informed.
B. For purposes of this Section, an "endorsement" means one of the following:
(1) The signature of the seller in the presence of a notary who shall subscribe his
name thereon.
(2) The signature of the seller in the presence of two witnesses who shall subscribe
their names thereon, which signature shall be acknowledged by a subscribing witness in
substantially the following manner:
State of Louisiana
Parish of ___________
Before me, personally came and appeared the undersigned, who, after being duly
sworn, said that he subscribed his name to the certificate of title as a witness to the
signature(s) of seller(s) and he saw seller(s) sign his name as his voluntary act and deed.
__________________________ _____________________________
(Witness) Notary Public
(3) The signature of the seller if the certificate of title or other document transferring
ownership to an insurance company is for a motor vehicle which is subject to an insurance
settlement or has been declared a total loss by that insurance company.
(4) The signature of the seller if the certificate of title or other document is
transferring ownership to a dealer licensed by the Louisiana Motor Vehicle Commission or
Louisiana Used Motor Vehicle Commission, or when transferring ownership from a licensed
dealer to a purchaser.
(5)(a) The signature of the seller in the presence of an authorized officer, as defined
in R.S. 32:702, who shall verify the identity of the seller and who shall subscribe his name
as a witness thereon, when the seller is transferring ownership to a purchaser who is granting
a security interest in the vehicle to the federally insured financial institution that is making
a secured loan to the purchaser.
(b) The federally insured financial institution shall provide the Department of Public
Safety and Corrections, office of motor vehicles, with a separate document identifying the
name and job title of the authorized officer for the purpose of verifying that the person
signing as a witness is an authorized officer of that particular financial institution. This
document or a copy thereof shall be attached to or included with each title presented to the
department that is endorsed in the manner described in this Paragraph.
C. All new certificates of title issued by the Department of Public Safety and
Corrections, office of motor vehicles, shall include thereon language not inconsistent with
the provisions of Subsection B hereof.
D.(1) For purposes of this Section, an "endorsement" shall also mean a written
statement signed by an authorized person acting on behalf of the Louisiana Used Motor
Vehicle Commission that the certificate of title was obtained by the commission from a used
motor vehicle dealer, or a floor plan financier or other similar holder of a security interest
relative to a used motor vehicle, pursuant to the commission's authority in R.S. 32:783(F)(8).
Such written statement required by this Paragraph shall state the reason the commission was
unable to obtain the endorsement defined in Subsection B of this Section. In lieu of the
written statement, the office of motor vehicles and the commission may establish a system
for the electronic submission of the statement directly to the office of motor vehicles.
(2) Nothing in this Paragraph shall exempt the rightful owner or bona fide retail
purchaser from paying any sales or use taxes that may be due pursuant to R.S. 47:303(B).
(3) In the event the previously issued title indicates that a lien was recorded with the
office of motor vehicles, the rightful owner or bona fide retail purchaser shall submit proof
that demand to release the lien was made on the lienholder of record by certified mail at the
address indicated on that vehicle record, and that thirty days after receipt, the office of motor
vehicles is authorized to cancel the lien unless the lienholder sends an objection in writing
to both the office of motor vehicles and the owner or purchaser making the demand.
E. (1) Notwithstanding any law to the contrary, the following errors in an assignment
of title shall not preclude the Department of Public Safety and Corrections, office of motor
vehicles, from accepting the assignment of title when submitted with a document transferring
ownership and properly endorsed pursuant to Subsection B of this Section:
(a) Spelling of seller or purchaser's name is in error or illegible.
(b) The seller signed their name incorrectly.
(c) The seller assigned the title to himself in error.
(d) The seller or purchaser's name is misspelled and corrected with a strikeover.
(e) An error in the address.
(f) An error in the date of sale, provided that the error does not impact fees or
penalties.
(2) The office of motor vehicles and licensed public tag agents shall be held harmless
for relying upon information on a properly endorsed agreement to sell a vehicle.
(3) The Department of Public Safety and Corrections shall promulgate rules as
necessary for the implementation of this Subsection.

Legislative History

Acts 1983, No. 177, §1; Acts 1983, No. 186, §1; Acts 1987, No. 353, §1, eff. July 6, 1987; Acts 1992, No. 1082, §1, eff. July 1, 1993; Acts 2016, No. 288, §1; Acts 2016, No. 456, §1; Acts 2017, No. 305, §1; Acts 2022, No. 343, §1; Acts 2024, No. 99, §1.