A qualifying vehicle seller must apply for title and registration documents and pay any required motor vehicle sales tax, unless a stated exception applies.
Sec. 501.0234. DUTY OF VEHICLE DEALER ON SALE OF CERTAIN VEHICLES. (a) A person who sells at the first or a subsequent sale a motor vehicle and who holds a general distinguishing number issued under Chapter 503 of this code or Chapter 2301, Occupations Code, shall: (1) except as provided by this section, in the time and manner provided by law, apply, in the name of the purchaser of the vehicle, for the registration of the vehicle, if the vehicle is to be registered, and a title for the vehicle and file with the appropriate designated agent each document necessary to transfer title to or register the vehicle; and at the same time (2) remit any required motor vehicle sales tax. (b) This section does not apply to a motor vehicle: (1) that has been declared a total loss by an insurance company in the settlement or adjustment of a claim; (2) for which the title has been surrendered in exchange for: (A) a salvage vehicle title or salvage record of title issued under this chapter; (B) a nonrepairable vehicle title or nonrepairable vehicle record of title issued under this chapter or Subchapter D, Chapter 683; or (C) an ownership document issued by another state that is comparable to a document described by Paragraph (A) or (B); (3) with a gross weight in excess of 11,000 pounds; or (4) purchased by a commercial fleet buyer who: (A) is a deputy authorized by rules adopted under Section 520.0071; (B) utilizes the dealer title application process developed to provide a method to submit title transactions to the county in which the commercial fleet buyer is a deputy; and (C) has authority to accept an application for registration and application for title transfer that the county assessor-collector may accept. (c) Each duty imposed by this section on the seller of a motor vehicle is solely that of the seller. (d) A seller who applies for the registration or a title for a motor vehicle under Subsection (a)(1) may apply: (1) to the county assessor-collector of the county in which: (A) the owner is domiciled; or (B) the motor vehicle is purchased or encumbered; or (2) to any county assessor-collector who is willing to accept the application. (e) Repealed by Acts 2021, 87th Leg., R.S., Ch. 592 (S.B. 876), Sec. 11(2), eff. March 1, 2022. (f) A seller has a reasonable time to comply with the terms of Subsection (a)(1) and is not in violation of that provision during the time the seller is making a good faith effort to comply. Notwithstanding compliance with this chapter, equitable title to a vehicle passes to the purchaser of the vehicle at the time the vehicle is the subject of a sale that is enforceable by either party. Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.37(a), eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 1423, Sec. 3, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 76, Sec. 1, eff. May 14, 2001; Acts 2003, 78th Leg., ch. 1325, Sec. 17.01, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.822, eff. Sept. 1, 2003. Amended by: Acts 2005, 79th Leg., Ch. 1023 (H.B. 988), Sec. 1, eff. September 1, 2005. Acts 2009, 81st Leg., R.S., Ch. 1173 (H.B. 3433), Sec. 3, eff. September 1, 2009. Acts 2009, 81st Leg., R.S., Ch. 1232 (S.B. 1759), Sec. 3, eff. September 1, 2009. Acts 2011, 82nd Leg., R.S., Ch. 1296 (H.B. 2357), Sec. 11, eff. January 1, 2012. Acts 2013, 83rd Leg., R.S., Ch. 1135 (H.B. 2741), Sec. 44, eff. September 1, 2013. Acts 2013, 83rd Leg., R.S., Ch. 1287 (H.B. 2202), Sec. 6, eff. September 1, 2013. Acts 2021, 87th Leg., R.S., Ch. 592 (S.B. 876), Sec. 2, eff. March 1, 2022. Acts 2021, 87th Leg., R.S., Ch. 592 (S.B. 876), Sec. 11(2), eff. March 1, 2022.