Transportation Code § 501.0236

Sec. 501.0236. ISSUANCE OF TITLE AND PERMITS WHEN DEALER GOES OUT OF BUSINESS. (a) This section applies only to a person who is the purchaser of a motor vehicle for which the dealer: (1) is required to apply for a title for the vehicle under Section 501.0234; and (2) does not apply for the title because the dealer has gone out of business. (b) A purchaser to whom this section applies may apply for a title in the manner prescribed by the department by rule. (c) An application for a title under this section must include a release of any recorded lien on the motor vehicle unless the only recorded lienholder is a dealer described by Subsection (a). (d) The department shall waive the payment of fees for a title issued to a purchaser described by this section if the purchaser can show that fees for a title were paid to the dealer. (e) Notwithstanding Section 503.033(e), the department may recover against the surety bond executed by the dealer under Section 503.033 the amount of any fee waived for a title or permit issued under this section. (f) The department shall adopt the rules necessary to implement this section. Added by Acts 2019, 86th Leg., R.S., Ch. 1309 (H.B. 3842), Sec. 1, eff. September 1, 2019. Amended by: Acts 2023, 88th Leg., R.S., Ch. 668 (H.B. 718), Sec. 5, eff. July 1, 2025.