Tex. Codes » Transportation Code · TITLE 7. VEHICLES AND TRAFFIC · SUBTITLE A. CERTIFICATES OF TITLE AND REGISTRATION OF VEHICLES · CHAPTER 501. CERTIFICATE OF TITLE ACT
Texas Codes

Tex. Transp. Code § 501.111 (2026)

Perfection Of Security Interest

✓ current as of May 2026
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Sec. 501.111. PERFECTION OF SECURITY INTEREST. (a) Except as provided by Subsection (b), a person may perfect a security interest in a motor vehicle that is the subject of a first or subsequent sale only by recording the security interest on the title as provided by this chapter.

(b) A person may perfect a security interest in a motor vehicle held as inventory by a person in the business of selling motor vehicles only by complying with Chapter 9, Business & Commerce Code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by:

Acts 2011, 82nd Leg., R.S., Ch. 1296 (H.B. 2357), Sec. 51, eff. January 1, 2012.

Notes of Decisions
Cited in 19 cases, 1997–2015 · leading case: In Re Sanders, 377 B.R. 836 (Bankr. W.D. Tex. 2007).
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In Re Sanders, 377 B.R. 836 (Bankr. W.D. Tex. 2007). · cites it 2× “See Tex. TRAnsp. Code § 501.111 *844 (Vernon 2007).”
Marriott Employees Fed. Credit Union v. Motor Veh. Admin., 697 A.2d 455 (Md. 1997). “See Tex. Transp. Code Ann. § 501.111 (a) (security interest in automobile perfected by notation on certificate of title).”
First Nat. Bank of El Campo, Texas v. Buss, 143 S.W.3d 915 (Tex. App. 2004). “See Tex. Transp. Code Ann. § 501.111 (b) (Vernon 1999).”
Lundy v. First Nat'l Bank (In Re Dota), 288 B.R. 448 (S.D. Tex. 2003). “Tex. Trans. Code § 501.111. Because the parties stipulated that Dota was in the *460 business of selling motor vehicles, the Bank could only perfect a security interest in Dota’s inventory by complying with the provisions of Chapter 9 of the Code.”
In Re Gray, 285 B.R. 379 (Bankr. N.D. Tex. 2002). “With exceptions not relevant here, a lien on a motor vehicle is perfected by retention by the lienholder of the certificate of title to the vehicle and reflection of the lien on the title.”
Hardy Rawls Enter. L.L.C. v. Cage (In Re Moye), 437 F. App'x 338 (5th Cir. 2011). “Texas Transportation Code § 501.111 states: (a) Except as provided by Subsection (b), a person may perfect a security interest in a motor vehicle that is the subject of a first or subsequent sale only by recording the security interest on the certificate of title as provided by…”
Mitchell Coach Mfg. Co. v. Stephens, 19 F. Supp. 2d 1227 (N.D. Okla. 1998). “Tex.Transp.Code § 501.111. The subject sale is a first sale.”
Gess v. Randolph Brooks Fed. Credit Union (In re Gess), 526 B.R. 798 (8th Cir. BAP 2015). “Tex. Transp. Code § 501.111 (2012). . In re Panther Mountain Land Dev.”
Wooten v. State, 331 S.W.3d 22 (Tex. App. 2010). “Tex. Transp. Code Ann. § 501.111 (a) (Vernon 2007).”
Weir v. Lubbock Telco Fed. Credit Union (In Re Weir), 209 B.R. 213 (Bankr. N.D. Tex. 1997). “Pursuant to Texas Transportation Code §§ 501.111 and 501.”
Brian E. Lee v. the Bank, N.A., 23 S.W.3d 129 (Tex. App. 2000). “See Certificate of Title Act, Tex. Transp. Code Ann. § 501.111 (a) (West 1999) & § 501.”
In re Thompson, 224 B.R. 360 (Bankr. N.D. Tex. 1998). “See Tex.Transp.Code Ann. § 501.111(a) (Vernon 1998); See also TexJBus.”
Show all 19 citing cases →
— Tex. Transp. Code § 501.111(a) — 2 cases
In re Thompson, 224 B.R. 360 (Bankr. N.D. Tex. 1998). “See Tex.Transp.Code Ann. § 501.111(a) (Vernon 1998); See also TexJBus.”
In Re Thompson, 224 B.R. 360 (Bankr. N.D. Tex. 1998).
— Tex. Transp. Code § 501.111(b) — 2 cases
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