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LONG: Titles

To: mgs@Autox.Team.Net
Subject: LONG: Titles
From: richard.arnold@juno.com (Richard D. Arnold)
Date: Sun, 10 May 1998 13:04:56 EDT
Standard Disclaimer:  I am still not a lawyer, nor do I play on on TV,
thus my opinion is just that -- my opinion only -- it should not be
accorded any particular weight; to find out how this applies to your
particular situation, you must contact an attorney of your choice who is
licensed to practice in the state which has jurisdiction over the car.

The thread started out with the question as to whether or not it was
generally legal to sell a hulk with a title for the purpose of supplying
a VIN and title for a vehicle that lacked one.  It then became a
discussion as to how far one could go in replacing parts or rebuilding a
vehicle, and whether or not and under what conditions one could replace
VIN plates.

It all is a matter of intent:

*****
1.
Question:  A wants to sell Vehicle A to B so that B can use the title and
VIN from Vehicle A to title, license, and register Vehicle B.  Is this
legal?

Answer:  This is probably illegal because Vehicle A is being sold for the
purpose of circumventing the motor vehicle registration code, a
fraudulent act, and it is known to both A and B.  In other words, B is
not intending to rebuild or repair Vehicle A using parts from Vehicle B,
but rather is intending to use the identity of Vehicle A to get Vehicle B
titled, licensed, and registered.  Because A knows of B's plans, A is
probably assisting B in committing a violation of the motor vehicle code.

*****
2.
Question:  C owns two vehicles, Vehicle D and Vehicle E.  Vehicle D is a
project car, Vehicle E is a parts car.  C has titles to and owns both
vehicles, and wants to rebuild Vehicle D using extensive parts from
Vehicle E.  Will using parts from Vehicle E change the identity of
Vehicle D such that it will be necessary to register the completed
vehicle using Vehicle E's title?

Answer:  Grey area.  Probably not, but it depends on the extent to which,
and the intent with which, the parts from Vehicle E were used. 
Generally, we can consider the vehicle that is the platform for the
rebuild is the vehicle whose title should be used:  if it is the actual
intent of C to rebuild Vehicle D using parts from Vehicle E and that is
the purpose for which the parts are being used, then C would be justified
using the title from Vehicle D.  This contrasts with justifying using the
title from Vehicle D by swapping parts from Vehicle E onto Vehicle D (for
example, swapping in late model parts into an early model chassis in
order to circumvent smog or safety requirements) to the extent that the
vehicle is essentially more Vehicle E than Vehicle D.  Essentially, the
title that should be used is the one for the vehicle that served as the
platform for the rebuild (the actual platform, not the one on paper).

*****
3.
Question:  F owns Vehicle G which has a horrible body shell, so F buys a
replacement shell from a manufacturer of body parts.  Can F use the shell
without causing title difficulties?

Answer:  Yes, F can use the shell.  Because the shell is only a
replacement part and never had a separate identity of its own, F is
simply replacing a part (a large part) of Vehicle G.

*****
4.
Question:  H owns Vehicle I, a rusted hulk with a good drivetrain and
chassis, and Vehicle J, whose drivetrain and frame are toast but whose
body is good.  If H builds a complete vehicle by placing the body from
Vehicle J onto the frame and drivetrain of Vehicle I, which title should
H use for the vehicle?

Answer:  Vehicle I's title should be used, because it served as the
platform for the rebuild.

*****
5.
Question:  K owns Vehicle L and MOWOG drops a tree branch right across
the cowl, necessitating the replacement of the cowl section (which
contains the VIN plate).  K obtains a replacement cowl and sundry
necessary parts from the junkyard.  Does K use the VIN from the
replacement part, or continue to use the VIN for Vehicle L?

Answer:  K continues to use the VIN for Vehicle L because K only replaced
a part of Vehicle L.  K can have a new VIN plate made up using Vehicle
L's VIN to be placed on the cowl.

*****
6.
Question:  M is restoring Vehicle N, and wants bright shiny new VIN
plates to replace the old grungy ones.  Can M replace the original plates
on Vehicle N with reproduction plates having Vehicle N's VIN stamped on
them?

Answer:  Yes.  M is not intending to alter the identity of Vehicle N and
is only replacing a part on Vehicle N.

*****
7.
Question:  O owns Vehicle P and Vehicle Q .  O wants to swap parts
between the vehicles so that Vehicle P is a titled, licensed, and
registered vehicle used on the roads for transportation, and Vehicle Q is
used for racing and will no longer be titled, registered or driven on
public roads.  Can O do this without creating title problems?

Answer:  Yes, provided the title for Vehicle P remains with the vehicle
(it cannot be licensed as Vehicle Q).  In this instance, the identities
of the cars remained separate, and only parts were replaced.

*****

In all the scenarios but the first one the intent was simply to replace
parts or rebuild a car and only one person was involved; in the first
scenario, there was no intent to do so, but rather, the intent was to
title a vehicle using the paperwork and VIN from another vehicle in order
to circumvent department of motor vehicle procedures.

I think the biggest concern is this:  Which part of the vehicle gives it
its legal identity (VIN)?  In my humble opinion, it depends.

You can remove and replace any part of any car, given the appropriate
tools and resources.  For example, if my engine, tranny, and rear end all
go out tomorrow, I can replace all three with units from any number of
vehicles, but that doesn't mean that I've changed the identity of my car.
 If I'm broadsided the day after I replace all those parts, and I have to
replace the body shell with a repro, I still haven't changed the identity
of my car.

But, if instead of replacing the shell, I swap my suspension, engine,
tranny, rear end, interior, etc, into the shell of another car, then I
have probably reached the point where I am no longer repairing my
original car, but am probably repairing another vehicle that has a
separate identity.  At this point, I would want to find out what the
requirements are in my state.

The test might be:  To what extent was the identity of the original
vehicle mingled the identity of another vehicle?  I would argue that a
vehicle that mostly the major components of one vehicle could be titled
with that one vehicle's title, but that doesn't mean that the government
would agree with me....

Could I just go ahead and swap VIN plates?  Sure -- done all the time. 
Doesn't mean it's legal, nor does it mean it's right -- to paraphrase an
saying, a hundred people breaking the law are still breaking the law."

Some reasons not to buy a title:

        Could be a lien against it.
        Could be a forged document.
        Could be from a stolen vehicle.
        Could be from someone else's currently titled vehicle.
        Etc.

Some reasons not to sell a title:

        Could be used to title a stolen vehicle.
        Could make you an accessory to fraud.
        Etc.

Call up the DMV and ask what the procedures are for a vehicle that is
without a title.  Generally, the benefits exceed the costs, and you are
protected from charges that you fraudulently obtained the title to the
vehicle.  If that can't be done (prohibitive cost, perhaps), then there
are any number of places that can legally create a title for you.  If
there is no reason why the vehicle cannot be licensed under its VIN (such
as being stolen) then this is a viable alternative.  This just makes good
sense, avoids later (and potentially expensive) hassles, and protects
other LBC owners.

The best protection, of course, is to check with an attorney in your
state for legal advice on your specific situation.

My apologies for the length!

Rich


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