O.C.G.A.

O.C.G.A. § 40-3-33 (2019)

Transfer of vehicle to or from dealer; records; application for certificate of title by dealer

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)

Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.

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(a)(1) Except as provided in paragraph (2) of this subsection, a dealer who buys a vehicle and holds it for resale need not apply to the commissioner for a new certificate of title but may retain the certificate delivered to him. Upon transferring the vehicle to another person other than by the creation of a security interest, such dealer shall promptly execute the assignment and warranty of title by a dealer. Such assignment and warranty shall show the names and addresses of the transferee and any holder of a security interest created or reserved at the time of the resale and the date of his security agreement, in the spaces provided therefor on the certificate or as the commissioner prescribes. Transfers of vehicles under this Code section shall otherwise conform with Code Section 40-3-32. A dealer selling a previously registered vehicle which under this

chapter need not have a certificate of title need not furnish a purchaser of such a vehicle a certificate of title. After a previously registered vehicle has been brought under the terms of this chapter, a dealer, when selling that vehicle, shall conform to all provisions of this chapter. (2)(A) As used in this paragraph, the term “franchise dealer” means a dealer who under a contract or franchise agreement with a manufacturer, distributor, wholesaler, or importer is authorized to sell new motor vehicles of or for such manufacturer, distributor, wholesaler, or importer and who is authorized to use trademarks or service marks associated with one or more makes of motor vehicles in connection with such sales. (B) A dealer who is not a franchise dealer who acquires a vehicle for which the original certificate of title has not been issued and who holds such vehicle for resale shall not be exempt from the requirement to obtain a certificate of title in such dealer’s name as provided in paragraph (1) of this subsection. Such dealer shall, as provided in Code Section 40-3-32, obtain a certificate of title in such dealer’s name prior to selling or otherwise transferring said vehicle to any other person or dealer. (b) Every dealer shall maintain a record, in the form the commissioner prescribes, of every vehicle bought, sold, or exchanged by him, or received by him for sale or exchange. Such record shall be kept for three years and shall be open to inspection by a representative of the commissioner during reasonable business hours. (c) Except as otherwise provided for in subsection (c) of Code Section 40-3-32, the dealer shall submit a properly completed certificate of title application and proper supporting documents to the commissioner or to the appropriate authorized county tag agent so that the application and supporting documents shall be submitted to the commissioner or the appropriate authorized county tag agent within 30 days from the date of the transfer of the vehicle. If the application and supporting documents are not submitted within that time, the dealer shall be required to pay a penalty of $10.00 in addition to the ordinary title fee as provided by this chapter. If the documents submitted in support of the title application are rejected, the dealer submitting the documents shall have 60 days from the date of initial rejection to resubmit the documents required by the commissioner for the issuance of title. If the documents are not properly resubmitted within 60 days, there shall be an additional penalty of $10.00 assessed against the dealer. The willful failure of a dealer to obtain a certificate of title for a purchaser shall be grounds for suspension or revocation of the dealer’s state issued license and registration for the sale of motor vehicles. (d) All applications for a certificate of title by a motor vehicle dealer

MOTOR VEHICLES & TRAFFIC

shall be submitted to the department electronically. Any motor vehicle dealer who sells no more than ten motor vehicles per month on average as certified by the commissioner may apply on a form prescribed by the commissioner for a waiver from mandatory electronic filing of title applications as required by this subsection. The department shall adopt rules and regulations to administer this subsection. (e) Any dealer which sells a motor vehicle to a person who is not a resident of the county in which the dealer is located may file an application for title for such motor vehicle with the county tag agent in the county in which the dealer is located.

History

Ga. L. 1961, p. 68, § 16; Ga. L. 1965, p. 304, § 4; Ga. L. 1981, p. 883, § 6; Code 1981, § 40-3-32; Ga. L. 1985, p. 149, § 40; Ga. L. 1986, p. 438, § 5; Code 1981, § 403-33, as redesignated by Ga. L. 1990, p. 2048, § 3; Ga. L. 1992, p. 2785, § 2; Ga. L.

2007, p. 652, § 10/HB 518; Ga. L. 2017, p. 742, § 5/HB 412; Ga. L. 2018, p. 1069, § 1/HB 761.

Annotations

Cross references. Regulation of used car dealers generally, § 43-47-1 et seq.

JUDICIAL DECISIONS Delivery of sworn assignment and warranty of title to transferee. - Upon transfer of ownership it is required that transferor deliver sworn assignment and warranty of title to transferee on the certificate of title and until this is done, except as between the parties, the transferee obtains no interest in the vehicle. Farmers & Merchants Bank v. Holloway, 159 Ga. App. 645, 284 S.E.2d 661, 1981 Ga. App. LEXIS 2785 (1981). No duty for dealer to secure title in own name. - Ga. L. 1961, p. 68, § 16 (see now O.C.G.A. § 40-3-33) relieves a dealer in automobiles of the duty imposed upon other transferees by Ga. L. 1961, p. 68, § 15 (see now O.C.G.A. § 40-3-32) of securing a new title certificate from the state revenue commissioner in the name of the dealer. Wreyford v. Peoples Loan & Fin. Corp., 111 Ga. App. 221, 141 S.E.2d 216, 1965 Ga. App. LEXIS 927 (1965). Necessity of complying with provisions. - While an automobile dealer, in the event of a purchase by the dealer of a vehicle which the dealer holds for resale, does not have to apply for and receive a title in the dealer’s name in order to be protected against an unperfected security interest, the transfer to the dealer shall otherwise conform with

the provisions of Ga. L. 1961, p. 68, § 15 (see now O.C.G.A. § 40-3-32). Frank Jackson Motors, Inc. v. Mortgage Enters., Inc., 124 Ga. App. 798, 186 S.E.2d 464, 1971 Ga. App. LEXIS 1109 (1971). Requirements for perfecting dealer’s title. - In order for the “title” of the dealer to be perfected the dealer must be in possession of a certificate of title upon which, or by separate paper, an assignment and warranty of title has been subscribed and sworn to by the transferor before an officer authorized by law to administer oaths in the state. Farmers & Merchants Bank v. Holloway, 159 Ga. App. 645, 284 S.E.2d 661, 1981 Ga. App. LEXIS 2785 (1981). Requirements for passing of title to purchaser. - When the dealer, at the time of delivery of the car, did not literally comply with the law by executing an assignment and warranty of title on the reverse of the certificate, but substantially complied by the execution of a bill of sale from the dealer to the purchaser, whereupon the purchaser executed an application for a new certificate of title in the purchaser’s name, and these documents (the existing certificate of title, the title application, and the bill of sale) were delivered on behalf of the purchaser

to the lienholder, who causes the documents to be mailed or delivered to the commissioner, title of the automobile passed to the purchaser, and the dealer’s subsequent purported transfer of ownership of the automobile was void. Cochran v. Harris, 123 Ga. App. 212, 180 S.E.2d 290, 1971 Ga. App. LEXIS 1167, dismissed, 227 Ga. 638, 182 S.E.2d 121, 1971 Ga. LEXIS 801 (1971). Sale held complete without actual passing of certificate. - While a buyer

of a motor home on consignment was entitled to summary judgment after the dealer never paid the consignors, when the consignors refused to execute an assignment and warranty of title when the buyer sought those documents the buyer was entitled to damages including reasonable attorney’s fees under O.C.G.A. § 40-3-32(a). Smith v. Hardeman, 281 Ga. App. 402, 636 S.E.2d 106, 2006 Ga. App. LEXIS 1119 (2006).

OPINIONS OF THE ATTORNEY GENERAL Older model vehicles. - Neither Ga. L. 1961, p. 68, § 15 (see now O.C.G.A. § 40-3-32) nor Ga. L. 1961, p. 68, § 16 (see now O.C.G.A. § 40-3-33) requires a certificate of title on older model vehicles. 1962 Ga. Op. Att’y Gen. 306. Transfer of salvage titles. - Licensed used motor vehicle parts dealer

can transfer salvage titles without being licensed as a used motor vehicle dealer provided that such dealer complies with Ga. L. 1961, p. 68 (see now O.C.G.A. § 40-3-31 et seq.) and rules and regulations of the State Revenue Commissioner relating to salvage vehicles. 1998 Op. Att’y Gen. No. 98-14.

RESEARCH REFERENCES Am. Jur. 2d. 7A Am. Jur. 2d, Automobiles and Highway Traffic, §§ 35 et seq., 49, 51. C.J.S. 60 C.J.S., Motor Vehicles, §§ 75 et seq., 96 et seq. U.L.A. Uniform Motor Vehicle Certification of Title and Anti-Theft Act (U.L.A.) § 15.

ALR. Civil rights and liabilities as affected by failure to comply with statute upon sale of motor vehicle, 52 A.L.R. 701; 63 A.L.R. 688; 94 A.L.R. 948; 58 A.L.R.2d 1351.

Notes of Decisions

Cited in 8 cases (1 in the last 5 years), 1987–2025 · leading case: Bank South, N.A. v. Zweig, 456 S.E.2d 257 (Ga. Ct. App. 1995).

Sort: Relevance Newest Treatment

Bank South, N.A. v. Zweig, 456 S.E.2d 257 (Ga. Ct. App. 1995). · cites it 8× “§ 40-3-32(d) provides that "[e]xcept as provided in Code Section 40-3-33 and as between the parties, a transfer by an owner is not effective until this Code section and Code Section 40-3-33 have been complied with; and no purchaser or transferee shall acquire any right, title,…”

Mimick Motor Co. v. Moore, 546 S.E.2d 533 (Ga. Ct. App. 2001). · cites it 4× “2 OCGA § 40-3-32 (d) provides [ejxcept as provided in Code Section 40-3-33 and as between the parties, a transfer by an owner is not effective until this Code section and Code Section 40-3-33 have been complied with; and no purchaser or transferee shall acquire any right, title,…”

State of Ga. v. Banks, 452 S.E.2d 533 (Ga. Ct. App. 1994). · cites it 4× “between the parties, a transfer [of an interest in a motor vehicle] by an owner is not effective until this Code section and Code Section 40-3-33 have been complied with; and no purchaser or transferee shall acquire any right, title, or interest in and to a vehicle purchased by…”

Smith v. Hardeman, 636 S.E.2d 106 (Ga. Ct. App. 2006). · cites it 8× “3 4 For its part, OCGA§ 40-3-33 (a) (1) provides that “[u]pon transferring the vehicle to another person other than by the creation of a security interest, [a] dealer shall promptly execute the assignment and warranty of title.”

Sunnyland Employees' Fed. Credit Union v. Fort Wayne Mortg. Co., 354 S.E.2d 645 (Ga. Ct. App. 1987). · cites it 2× “See the last sentence of OCGA § 40-3-33 (b). Alternatively, Sunnyland contends that the transaction is governed by OCGA § 11-2-403 (2) (3) which provides that: “(2) Any entrusting of possession of goods to a merchant who deals in goods of that kind gives him power to transfer…”

Wenco Indus., Inc. v. Stalzer (In re Davis), 165 B.R. 327 (D. Ga. 1994). · cites it 8× “(d) Except as provided in Code Section 40-3-33 and as between the parties, a transfer by an owner is not effective until this Code section and Code Section 40-3-33 have been complied with; and no purchaser or transferee shall acquire any right, title, or interest in and to a…”

Cobb Ctr. Pawn & Jewelry Brokers, Inc. v. Gordon, 529 S.E.2d 138 (Ga. Ct. App. 2000). · cites it 2× “) Moreover, the pawnbroker incorrectly relies on OCGA § 40-3-33 (a) (1) for the proposition that as a used car dealer, it is not required to record a lien in order to take priority over innocent third parties.”

Andros v. Tinsley (M.D. Ga. 2025). · cites it 6× “” O.C.G.A. § 40-3-33. Yet, April Tinsley stated in her Affidavits that: While the mere possession of a document detailing an acquisition, transfer, transport, sale or disposition is not in itself evidence that Andros knowingly and willingly did such with the white 2020 Chevrolet…”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.