Colorado § 42-6-110 - Certificate of title - transfer - department records - rules - definition.

§ 42-6-110. Certificate of title - transfer - department records - rules - definition.

(1) Upon the sale or transfer of a motor or off-highway vehicle for which a certificate of title has been issued or filed, the person in whose name the certificate of title is registered, if the person is not a dealer, shall execute a formal transfer of the vehicle described in the certificate. The person in whose name the certificate of title is registered or the person's agent or attorney shall affirm the sale or transfer, accompanied by a written declaration that the statement is made under the penalties of perjury in the second degree, as defined in section 18-8-503, C.R.S. The purchaser or transferee, within sixty days thereafter, shall present the certificate, together with an application for a new certificate of title, to the director or one of the authorized agents, accompanied by the fee required in section 42-6-137 to be paid for the filing of a new certificate of title; except that, if no title can be found and the motor vehicle is not roadworthy, the purchaser or transferee may wait until twenty-four months after the motor vehicle was purchased to apply for a certificate of title.

(1.5) (a) If an insurer, as defined in section 10-1-102 (13), a salvage pool authorized by an insurer, or an authorized agent of an insurer is unable to obtain the properly endorsed certificate of ownership or other evidence of ownership acceptable to the department within thirty days following oral or written acceptance by the owner of an offer of settlement of a total loss, that insurer, salvage pool, or agent may request, on a form provided by the department and signed under penalty of perjury, the department to issue a salvage or nonrepairable title for the vehicle. The request must include information declaring that the insurer, salvage pool, or agent has made at least two written attempts to obtain the certificate of ownership or other acceptable evidence of title and must include the fee for a duplicate title. The form requesting a salvage or nonrepairable title is the only evidence required to obtain a salvage or nonrepairable title.

(b) Upon receiving the fee for a duplicate title and the certificate of ownership, other evidence of title, or a properly executed request described in paragraph (a) of this subsection (1.5), the department shall issue the salvage or nonrepairable title for the vehicle.

(c) As used in this subsection (1.5), "authorized agent of an insurer" means a person who has been authorized on forms promulgated by the department to be an agent of the insurer for the purpose of disposing of a vehicle that has been declared a total loss.

(1.7) (a) The department shall allow an insurer, as defined in section 10-1-102 and that is regulated under title 10, an agent of the insurer, a salvage pool that is licensed as a used motor vehicle dealer, a motor vehicle dealer licensed under article 20 of title 44, a used motor vehicle dealer licensed under article 20 of title 44, or any person approved by the department to use the electronic systems created in section 42-4-2103 (3)(c)(III) to access owner and lienholder information of a motor vehicle in the department's records if:

(I) The motor vehicle is the subject of an insurance claim being processed by the insurer;

(II) The motor vehicle is possessed by a salvage pool;

(III) The access is related to a motor vehicle transaction with a motor vehicle dealer or used motor vehicle dealer; or

(IV) The access is authorized by section 24-72-204 (7).

(b) The department shall ensure that the information available to the insurer, the insurer's agent, the salvage pool, a motor vehicle dealer, a used motor vehicle dealer, or a person approved by the department is correct and is limited to the information needed to verify and contact the owner and lienholder of the motor vehicle.

(c) The department may charge the insurer, the insurer's agent, the salvage pool, a motor vehicle dealer, a used motor vehicle dealer, or a person approved by the department a fee in an amount not to exceed the lesser of five dollars or the direct and indirect costs of implementing this subsection (1.7). The department shall deposit the fee in the Colorado DRIVES vehicle services account created in section 42-1-211 (2).

(d) The department may promulgate rules establishing standards for verifying:

(I) The identity of the person accessing the records; and

(II) That the access is authorized by section 24-72-204 (7).

(e) In allowing access to the electronic system under this subsection (1.7), the department shall ensure that the addresses of program participants under part 21 of article 30 of title 24 are not released.

(2) A person who violates subsection (1) of this section commits a class A traffic infraction.

Source: L. 94: Entire title amended with relocations, p. 2453, § 1, effective January 1, 1995. L. 2000: (1) amended, p. 1658, § 5, effective July 1, 2001. L. 2005: Entire section amended, p. 812, § 8, effective August 8. L. 2009: (1) amended, (SB 09-107), ch. 143, p. 606, § 1, effective August 5. L. 2013: (1) amended, (SB 13-280), ch. 407, p. 2381, § 7, effective June 5. L. 2014: (1.5) added, (HB 14-1100), ch. 122, p. 434, § 4, effective August 6. L. 2017: (1.7) added, (SB 17-251), ch. 309, p. 1671, § 1, effective August 9. L. 2018: IP(1.7)(a), (1.7)(b), and (1.7)(c) amended, (SB 18-183), ch. 131, p. 856, § 1, effective April 12; (1.7) amended, (HB 18-1299), ch. 297, p. 1812, § 8, effective July 1, 2019. L. 2021: (1.5)(a) amended and (1.5)(c) added, (HB 21-1291), ch. 260, p. 1522, § 1, effective September 7; (2) amended, (SB 21-271), ch. 462, p. 3320, § 752, effective March 1, 2022. L. 2022: (1.7)(c) amended, (HB 22-1339), ch. 135, p. 915, § 19, effective July 1.

Editor's note: (1) This section is similar to former § 42-6-109 as it existed prior to 1994, and the former § 42-6-110 was relocated to § 42-6-111.

(2) Amendments to subsection (1.7) by HB 18-1299 and SB 18-183 were harmonized, effective July 1, 2019.

ANNOTATION

Law reviews. For article, "A Revision of Statutes for Colorado", see 28 Dicta 165 (1951). For comment on Codding v. Jackson, 132 Colo. 320, 287 P.2d 976 (1955), appearing below, see 28 Rocky Mt. L. Rev. 266 (1956).

Annotator's note. Since § 42-6-110 is similar to § 42-6-109 as it existed prior to the 1994 amending of title 42 as enacted by SB 94-1, relevant cases construing that provision have been included with the annotations to this section.

Purpose of section is to disclose rights of third persons. The purpose of this section and § 42-6-108 is to require the certification of title to motor vehicles so as to disclose the rights of third persons for enforceability purposes. Randall v. Carroll, 30 Colo. App. 45, 488 P.2d 250 (1971).

Provisions provide manner in which right, title, and interest may be transferred. The provisions of the motor vehicle code provide the sole and exclusive manner in which the legal title, as well as any right, title, or interest in a motor vehicle may be transferred, sold, or assigned. Codding v. Jackson, 132 Colo. 320, 287 P.2d 976 (1955).

The provisions of the statute governing transfer of title to motor vehicles are mandatory. Codding v. Jackson, 132 Colo. 320, 287 P.2d 976 (1955); Bill Dreiling Motor Co. v. St. Paul Fire & Marine Ins., 28 Colo. App. 318, 472 P.2d 153 (1970).

Unless strict compliance with the statute is made, no interest or right of any kind can be transferred. Codding v. Jackson, 132 Colo. 320, 287 P.2d 976 (1955); Bill Dreiling Motor Co. v. St. Paul Fire & Marine Ins., 28 Colo. App. 318, 472 P.2d 153 (1970).

Unless a purchaser complies with the statute, he cannot be considered a purchaser in good faith. Codding v. Jackson, 132 Colo. 320, 287 P.2d 976 (1955).

Because a method employed by a defendant in "jumping title" contrary to the statutes leaves him in no position to make a claim as an innocent purchaser for value. Codding v. Jackson, 132 Colo. 320, 287 P.2d 976 (1955).

Failure to deliver certificate of title does not prevent acquisition of ownership rights as between the parties to the transaction. Colorado Auto & Truck Wreckers Ass'n v. Dept. of Rev., 618 P.2d 646 (Colo. 1980).

A title to an automobile does not vest immediately upon an assignment of the old certificate. Codding v. Jackson, 132 Colo. 320, 287 P.2d 976 (1955).

Requirements for divestment of ownership and possession. Where a party executes a formal transfer of title by subscribing his name before a notary public at a bank, and then delivers the title and possession of the vehicle upon receipt of the funds, he completely divests himself of ownership of the vehicle and any right to possession thereof. People v. Armijo, 197 Colo. 91, 589 P.2d 935 (1979).

An endorsement in blank of a certificate of title to a motor vehicle gives an immediate transferee the implied authority to insert his name as the purchaser, and its transferability is limited to the surrender thereof to the proper licensing authority for the purpose of issuing a new certificate to such transferee. Codding v. Jackson, 132 Colo. 320, 287 P.2d 976 (1955).

Certificates of title not negotiable. To safeguard the rights and interests of owners against imposters, it is clear the general assembly intended to deprive certificates of title of negotiability in its accepted meaning. Codding v. Jackson, 132 Colo. 320, 287 P.2d 976 (1955).

Section 42-6-108 and this section do not control the results of an action brought for damages for breach of contract between the original parties to the transaction. Randall v. Carroll, 30 Colo. App. 45, 488 P.2d 250 (1971).

Exception to section. Section 42-6-134 is an exception to the title transfer requirements of this section and § 42-6-108. Colorado Auto & Truck Wreckers Ass'n v. Dept. of Rev., 618 P.2d 646 (Colo. 1980).

Applied in Morrison v. Droll, 41 Colo. App. 354, 588 P.2d 383 (1978).