Involuntary Transfer | Liens

Vehicle ownership may be transferred by court order. A court order is usually the result of, but not limited to, the following:

BANKRUPTCY

The Court appoints a trustee to dispose of assets, including motor vehicles, acquired through a bankruptcy. The trustee signs the title or affidavit of lost title for transfer. A certified copy of the order appointing a trustee is required.

*NOTE: If title(s) is lost the trustee must obtain a duplicate before a title may be transferred.

DIVORCE

The Court may award a motor vehicle to a spouse who is not listed on the title or is listed with another owner with the conjunction "AND". A certified copy of the divorce decree must be provided with the vehicle description, including the vehicle identification number.

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INVOLUNTARY TITLE TRANSFER

The court may determine legal ownership of a vehicle when:

• there is a dispute regarding legal ownership of a vehicle
• there is a failure to comply with terms of a loan agreement
• there is a civil action that results in the award of property

In the case of an involuntary transfer the court order may be accepted in place of a vehicle title. In a case where the title has not been released or has been improperly released the court order must be a part of the supporting documentation for transfer. Whenever possible the title should be collected.

A court order should identify all vehicles by vehicle identification number or license plate number. If this is omitted but it is still possible to positively identify the vehicle in the court order, the transaction may be completed.

EXAMPLE: The court order may authorize a trustee to sell "all vehicles owned by the Arrow Products Company." The transaction may be completed provided the vehicle record shows the previous owner to be the Arrow Products Company.

NOTE: IF A COURT ORDERS A TITLE TRANSFER FOR A VEHICLE WITH A RECORDED LIEN A LIEN RELEASE IS NOT REQUIRED.

HISTORY:

7/1/06 - Regulation change from 13 AAC 70.040 to 02 AAC 92.040.

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