§ 39-05-20 — Transferee may obtain new certificate of title upon inability to obtain old certificate - Proof of ownership - Valuation on transfer - Appeal

certificate - Proof of ownership - Valuation on transfer - Appeal.
1. When the transferee of a vehicle is unable to obtain a properly assigned certificate of
title for a vehicle, and makes application for a new certificate and presents satisfactory
proof of ownership, the department may cancel the old certificate and issue a new
certificate to the transferee, provided the department may not issue a certificate of title
for a manufactured home with respect to which there has been recorded an affidavit of
affixation under section 47-10-27. Except as otherwise provided by this subsection,
satisfactory proof of ownership must include compliance by the transferee with the
procedures outlined in title 35.
a. If the transferee is an insurer that has paid a total loss claim on a vehicle but the
payment has not satisfied all liens of record on the vehicle, the transferee is not
required to comply with the procedures outlined in title 35 to establish satisfactory
proof of ownership and the department may cancel the old certificate of title and
issue a new certificate to the insurer free and clear of all liens and claims of
ownership.
b. If the transferee is a tax exempt organization under section 501(c)(3) of the
Internal Revenue Code [26 U.S.C. 501(c)(3)] to which a vehicle has been
donated, the transferee shall provide an affidavit providing proof the vehicle was
donated.
c. If the transferee is a licensed motor vehicle dealer that, at the request of an
insurer, took possession of a vehicle that is the subject of an insurance claim but
for which a total loss claim is not paid by the insurer and the vehicle has been in
the possession of the dealer for more than thirty days, the necessary satisfactory
proof of ownership includes only proof the dealer made at least two written
attempts by certified mail with return receipt addressed to the owner of record
and any known lienholder to have the vehicle removed from the dealer's facility,
upon payment of applicable charges. If satisfactory proof of ownership is
established, the department may cancel the old certificate of title and issue a new
certificate to the licensed motor vehicle dealer free and clear of all liens and
claims of ownership.
d. If the transferee is a person and the vehicle is less than forty years old at the time
of the application, satisfactory proof of ownership must include that the transferee
has paid for the vehicle, and that the transferee made at least two written
attempts by certified mail with return receipt addressed to the owner of record
and any known lienholder to obtain the certificate of title. If satisfactory proof of
ownership is established, the department shall cancel the old certificate of title
and issue a new certificate to the person, subject to any existing lien.
e. If the transferee is a person and the vehicle is more than forty years old at the
time of the application, satisfactory proof of ownership is established by a bill of
sale or affidavit of ownership. An affidavit of ownership created by the department
under this section must have the option for an applicant to provide a vehicle
purchase price. If satisfactory proof of ownership is established, the department
shall cancel the old certificate of title and issue a new certificate to the person,

subject to any existing lien. When valuing a vehicle transferred under this
subdivision, the department shall use the sale price on the bill of sale if a bill of
sale is presented. The department may only request an appraisal of the vehicle if
a bill of sale is not presented to the department. A transfer under this subdivision
is exempt from subsection 1 of section 39-04-36.
2. The department may establish procedures for determining satisfactory proof of
ownership of a vehicle in those cases when the department is unable to determine the
legal owner of record. The procedures may include determining the validity of any liens
on a certificate of title. Any person aggrieved by a decision of the department as to
ownership of a vehicle may appeal that decision to the district court under chapter
28-32.
3. A person holding a certificate of title whose interests in the vehicle have been
extinguished or transferred other than by voluntary transfer shall mail or deliver the
certificate to the department upon request of the department. The delivery of the
certificate pursuant to the request of the department does not affect the rights of the
person surrendering the certificate. The action of the department in issuing a new
certificate of title as provided herein is not conclusive upon the rights of the owner or
lienholder listed in the old certificate.
4. If the department can verify the ownership of a vehicle and the vehicle has a vehicle
identification number, the vehicle may be transferred under this section regardless of
the condition of the vehicle.