TITLE 40 MOTOR VEHICLES AND TRAFFIC

Section 3. Certificates of Title, Security Interests, and Liens, 40-3-1 through 40-3-95.

ARTICLE 2 CERTIFICATES OF TITLE

40-3-33. Transfer of vehicle to or from dealer; records to be kept by dealers; electronic filing; application for title where dealer located.

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. 1. 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.
  2. 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.
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.
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.
All applications for a certificate of title by a motor vehicle dealer 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.
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.

(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, §40-3-33, 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.)

The 2017 amendment, effective July 1, 2017, added subsection (d).

The 2018 amendment, effective May 8, 2018, substituted the present provisions of subsection (d) for the former provisions, which read: "On and after January 1, 2018, all applications for certificate of title by a motor vehicle dealer shall be submitted to the department electronically. The department may adopt rules and regulations to administer this subsection."; and added subsection (e).

Cross references.

- Regulation of used car dealers generally, T. 43, C. 47.

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).

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).

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).

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).

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, appeal dismissed, 227 Ga. 638, 182 S.E.2d 121 (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).

Cited in Rome Bank & Trust Co. v. Bradshaw, 143 Ga. App. 152, 237 S.E.2d 612 (1977); Blakely & Son v. Humphreys, 148 Ga. App. 281, 250 S.E.2d 826 (1978); McConnell v. Barrett, 154 Ga. App. 767, 270 S.E.2d 13 (1980); United Carolina Bank v. Sistrunk, 158 Ga. App. 107, 279 S.E.2d 272 (1981); State v. 1977 Pontiac, 163 Ga. App. 456, 294 S.E.2d 660 (1982); Cobb Ctr. Pawn & Jewelry Brokers, Inc. v. Gordon, 242 Ga. App. 73, 529 S.E.2d 138 (2000); Right Touch of Class, Inc. v. Superior Bank, FSB, 244 Ga. App. 473, 536 S.E.2d 181 (2000).

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 Op. Att'y Gen. p. 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. Ch. 3, T. 40) 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.

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