1. (a) Place of application. The owner of a non-repairable or salvage motor vehicle who is required to obtain or voluntarily chooses to obtain a non-repairable or salvage vehicle title, as provided by §217.83 of this title (relating to Requirement for Non-repairable or Salvage Vehicle Title), shall apply for a non-repairable or salvage vehicle title by submitting an application, the required accompanying documentation, and the statutory fee to the department.

2. (b) Information on application. An applicant for a non-repairable or salvage vehicle title shall submit an application on a form prescribed by the department. A completed form, in addition to any other information required by the department, must include:

   1. (1) the name and current address of the owner;
   2. (2) a description of the motor vehicle, including the motor vehicle's model year, make, model, identification number, body style, manufacturer's rated carrying capacity in tons for commercial vehicles, and empty weight;

   3. (3) a statement describing whether the motor vehicle is a non-repairable or salvage motor vehicle; and

      1. (A) was the subject of a total loss claim paid by an insurance company under Transportation Code, §501.092 or §501.093;
      2. (B) is a self-insured motor vehicle under Transportation Code, §501.094;
      3. (C) is an export-only motor vehicle under Transportation Code, §501.099;
      4. (D) was sold, transferred, or released to the owner or former owner of the motor vehicle; or
      5. (E) was sold, transferred, or released to a buyer at casual sale by a salvage vehicle dealer, insurance company, or salvage pool operator;
   4. (4) whether the damage was caused exclusively by flood;
   5. (5) a description of the damage to the motor vehicle;
   6. (6) the odometer reading and brand, or the word "exempt" if the motor vehicle is exempt from federal and state odometer disclosure requirements, if the motor vehicle is a salvage motor vehicle;
   7. (7) the name, address, and city and state of residence of the previous owner;
   8. (8) the name and mailing address of any lienholder and the date of lien, as provided by subsection (e) of this section; and
   9. (9) the signature of the applicant or the applicant's authorized agent and the date the certificate of title application was signed.

3. (c) Accompanying documentation. A non-repairable or salvage vehicle title application must be supported, at a minimum, by:

   1. (1) evidence of ownership, as described by subsection (d)(1) or (3) of this section, if the applicant is an insurance company that is unable to locate one or more of the owners;
   2. (2) an odometer disclosure statement properly executed by the seller of the motor vehicle and acknowledged by the purchaser, if the motor vehicle is less than 10 model years old and the motor vehicle is a salvage motor vehicle; and
   3. (3) a release of any liens.

4. (d) Evidence of non-repairable or salvage motor vehicle ownership.

   1. (1) Evidence of non-repairable or salvage motor vehicle ownership properly assigned to the applicant must accompany the application for a non-repairable or salvage vehicle title, except as provided by paragraph (2) of this subsection. Evidence must include documentation sufficient to show ownership to the non-repairable or salvage motor vehicle, such as:

      1. (A) a Texas Certificate of Title;
      2. (B) a certified copy of a Texas Certificate of Title;
      3. (C) a manufacturer's certificate of origin;
      4. (D) a Texas Salvage Certificate;
      5. (E) a non-repairable vehicle title;
      6. (F) a salvage vehicle title;

      7. (G) a comparable ownership document issued by another jurisdiction, except that if the applicant is an insurance company, evidence must be provided indicating that the insurance company is:

         1. (i) licensed to do business in Texas; or
         2. (ii) not licensed to do business in Texas, but has paid a loss claim for the motor vehicle in this state; or
      8. (H) a photocopy of the inventory receipt or a title and registration verification evidencing surrender to the department of the negotiable evidence of ownership for a motor vehicle as provided by §217.86 of this title (relating to Dismantling, Scrapping, or Destruction of Motor Vehicles), and if the evidence of ownership surrendered was from another jurisdiction, a photocopy of the front and back of the surrendered evidence of ownership.

   2. (2) An insurance company that acquires ownership or possession of a non-repairable or salvage motor vehicle through payment of a claim may apply for a non-repairable or salvage vehicle title to be issued in the insurance company's name without obtaining an ownership document or if it received an ownership document without the proper assignment of the owner if the company is unable to obtain a title from the owner, in accordance with paragraph (1) of this subsection, and the application is not made earlier than the 30th day after the date of payment of the claim. The application must also include:

      1. (A) a statement that the insurance company has provided at least two written notices to the owner and any lienholder attempting to obtain the title or proper assignment of title for the motor vehicle;

      2. (B) a copy of a document:

         1. (i) indicating that payment has been made, including an electronic check, canceled check, or screen print from the insurance company's database that identifies the type of payment method; and
         2. (ii) reflecting the vehicle identification number, vehicle owner names, name of the person to whom payment was made if different from vehicle owners, payment amount, and date payment was issued; and
      3. (C) any unassigned or improperly assigned title in the insurance company's possession.

   3. (3) An insurance company that acquires, through payment of a claim, ownership or possession of a salvage motor vehicle or non-repairable motor vehicle covered by an out-of-state ownership document may obtain a salvage vehicle title or non-repairable vehicle title in accordance with paragraph (1) or (2) of this subsection if:

      1. (A) the motor vehicle was damaged, stolen, or recovered in this state; or
      2. (B) the motor vehicle owner from whom the company acquired ownership resides in this state.

   4. (4) A salvage pool operator may apply for title in the name of the salvage pool operator by providing to the department:

      1. (A) documentation from the insurance company that:

         1. (i) the salvage pool operator, on request of an insurance company, was asked to take possession of the motor vehicle subject to an insurance claim and the insurance company subsequently denied coverage or did not take ownership of the vehicle; and
         2. (ii) the name and address of the owner of the motor vehicle and the lienholder, if any; and

      2. (B) proof that the salvage pool operator, before the 31st day after receiving the information from the insurance company, sent a notice to the owner and any lienholder informing them that:

         1. (i) the motor vehicle must be removed from the location specified in the notice not later than the 30th day after the date the notice is mailed; and

         2. (ii) if the motor vehicle is not removed within the time specified in the notice, the salvage pool operator will sell the motor vehicle and retain from the proceeds any costs actually incurred by the operator in obtaining, handling, and disposing of the motor vehicle, except for charges:

            1. (I) that have been or are subject to being reimbursed by a third party; and
            2. (II) for storage or impoundment of the motor vehicle.

   5. (5) Proof of notice under this subsection consists of:

      1. (A) the validated receipts for registered or certified mail and return receipt or an electronic certified mail receipt, including signature receipt; and
      2. (B) any unopened certified letters returned by the post office as unclaimed, undeliverable, or with no forwarding address.
5. (e) Recordation of lien on non-repairable and salvage vehicle titles. If the motor vehicle is a salvage motor vehicle, a new lien or a currently recorded lien may be recorded on the salvage vehicle title. If the motor vehicle is a non-repairable motor vehicle, only a currently recorded lien may be recorded on the non-repairable vehicle title.

6. (f) Issuance. Upon receipt of a completed non-repairable or salvage vehicle title application, accompanied by the statutory application fee and the required documentation, the department will, before the sixth business day after the date of receipt, issue a non-repairable or salvage vehicle title, as appropriate.

   1. (1) If the condition of salvage is caused exclusively by flood, a "Flood Damage" notation will be reflected on the face of the document and will be carried forward upon subsequent title issuance.
   2. (2) If a lien is recorded on a non-repairable or salvage vehicle title, the vehicle title will be mailed to the lienholder. For proof of ownership purposes, the owner will be mailed a receipt or printout of the newly established motor vehicle record, indicating a lien has been recorded.

   3. (3) A non-repairable vehicle title will state on its face that the motor vehicle may:

      1. (A) not be repaired, rebuilt, or reconstructed;
      2. (B) not be issued a regular certificate of title or registered in this state;
      3. (C) not be operated on a public highway; and
      4. (D) may only be used as a source for used parts or scrap metal.

Source Note:The provisions of this §217.84 adopted to be effective March 12, 2015, 40 TexReg 1096.