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when applying for a certificate of title.

Well, the purpose is so that we can actually own our vehicles, so that we can have the real title, not a certificate of title.

Exactly, Deborah. That's the key to that whole thing about why the certificate of title exists.

Well, they are now, Randy, because they're requiring a driver's license in order for you to get a certificate of title, so now they are.

Let's take a look, for instance, at the certificate of title.

license and he did have a title in his name, a certificate of title.

register title, to register certificate of title to the vehicle now.

You can't register it in your name unless you go and get a certificate of title or insurance

But one of the things that makes it interesting is, is without that certificate of title,

Well, the certificate of title is an interesting animal.

It tells you in 502.152, certificate of title required for registration.

So if we find out what a certificate of title is and we go look it up, it tells us in section

501.004, applicability for a certificate of title and it says in subsection A, this chapter

These are the only vehicles required by law to have a certificate of title.

Now, if you are not required to have a certificate of title, logic follows that you can't be

But when you get right down to it, since a certificate of title does not apply to a private

We looked at several sections that deal with the certificate of title and we know that

according to the transportation code a certificate of title is needed only in 501.004.

And when presented with an application for certificate of title showing on appropriate forms prescribed by the department each subsequent transfer between distributor and dealer, dealer and dealer, and dealer and owner

So the MCO is no longer being used to track the transfers from person to person. They have instead, in violation of the statutes, started using the certificate of title strictly for this purpose

What happens every time you sell a vehicle to someone else? You have to take the certificate of title, they have to sign the back of it, you take it down, you get a new one issued in your name

They have actually replaced the MCO with a certificate of title. The occupations code says certificate of title is nothing more than an issuance of legal title to show who is the actual lien holder on the vehicle

shall apply for a Texas Certificate of Title

without the Certificate of Title under 501.

One of those things is that it must have a certificate of title.

The certificate of title. Now, the certificate of title is specifically addressed in chapter 501, right above 502.

501.004 specifically states applicability. The certificate of title applies to any motor vehicle owned by the state or a political subdivision of the state.

If it's not owned by them, it doesn't apply anyway. 501.004 has already laid that ground rule. Therefore, 502 that says you must have a certificate of title in order to register a vehicle,

means it's got to be a government owned vehicle to require to be registered because only government owned vehicles can be required to have a certificate of title.

Well, certificate of title has replaced the certificate of origin for the intended purpose of the certificate of origin.

What they've done is the certificate of title has now become the original bill of sale, which is the true title, true owner title to the vehicle in question.

That State Transportation Department will take that certificate of title, microfish it, and they will destroy the original.

You remember what we discussed a moment or a little bit ago on the term legal title? That's what a certificate of title is.

The certificate of title is the piece of paper that says, hey, there is a legal title out there somewhere,

The motor vehicle cannot be registered without a certificate of title

unless that motor or because that motor vehicle must be owned by a government entity in order to get a certificate of title.

you're not in a motor vehicle, you don't have to have a certificate of title because it doesn't apply to anyone but the government,

So right there you have a direct tie in dealing with certificates of title back to the commerce code because 501.00 is the certificate of title act in the transportation code.

Sub-item A, a lease, although subject to this chapter, is also subject to any applicable. Sub-item 1, certificate of title statute of this state, including chapter 501 transportation code,

Sub-item 2, certificate of title statute of another jurisdiction, section 2A.105, or consumer law of this state, both decisional and statutory,

and you go down to sub-item 10, certificate of title means a certificate of title with respect to which a statute provides for the security interest in question to be indicated on the certificate

What this is dealing with is the fact that the certificate of title is being used, as we talked about in another show, to denote who has a lien against the property as chattel.

That's what the certificate of title is doing. Now, if you actually go back and look at these, it refers to the term goods in these, okay?

Right there is your dead-on tie-in between the certificate of title and the commerce code.

But 501.005 gives you the direct link to the UCC code for Texas, and that direct link leads you right down the yellow brick road of what a certificate of title is, which is also utilized to determine what the term goods is as it ties into the certificate of title as to what it represents.

And therefore, you can show that the certificate of title is applicable to collateral goods that are part of a contract for storage or transportation.

Now, for those of you that are listening that don't know where I came up with the link of goods to the certificate of title, I'll fill that in for you real quick.

Section 2A.105, Business and Commerce Code, Territorial Application of Chapter to Goods Covered by Certificate of Title, subject to the provisions of Sections 2A.304C and 2A.305C with respect to goods covered by a certificate of title issued under a statute of this state

or of another jurisdiction, compliance and the effect of compliance or noncompliance with a certificate of title statute are governed by the law,

Okay. The last part of it just says, four months after the goods are removed from that jurisdiction and thereafter until a new certificate of title is issued by another jurisdiction.

So that is your tie-in of the term goods to the certificate of title.

So when you start going through that and you start looking up what a certificate of title is within the chapters of the Business and Commerce Code, then you start to see that it is a lien instrument that is used to denote commercial activity upon the purchase, sale, or use of a motor vehicle.

Certificate of Title Act, 502, Registration of Vehicles, 521, Driver's Licenses, 522, Commercial Driver's Licenses, 543, our favorite section, Randy,

And if it's not a state-owned vehicle with a certificate of title,

a certificate of title applies to.

And the certificate of title is mandatory for registration here.

In Texas transportation code chapter 501, it deals with a certificate of title which

a certificate of title.

It specifically states that a certificate of title, which is a required item for registering

that can be required to be set up with a certificate of title at the moment of sale are those that

No other vehicle is required to have a certificate of title.

That section specifically states that a certificate of title is required, proof of insurance or

vehicle, therefore no certificate of title, no insurance requirement.

it for a certificate of title.

A certificate of title is nothing more than legal title to a piece of property.

501 deals with the certificate of title, 502 deals with registration of motor vehicles,

certificate of title cannot be made to apply.

However, there is no reason, but that is so that the certificate of title, which is the

That's right, but that's what a certificate of title is.

But the fact of the matter is when you look up certificate of title, certificate of title

Okay, you have a certificate of title, correct?

Did you get a bill of sale in addition to your certificate of title?

1, 501.021, Certificate of Title A. A motor vehicle certificate of title is an instrument

number B, Certificate of Title requirements, 501.021, Certificate of Title, we scroll down

And your certificate of title is more like a rental agreement.

regarding some of the questions that, Eddie, you were talking about, about the certificate of title and who it applies to and the registration.

And the fact that when you get a certificate of title, it's not really ownership because it's a certificate and technically the state has got your manufacturer's statement of origin.

I mean, I got the certificate of title when it was paid off, but we all know what that's for.

about certificate of title and all that stuff.

that a private motor vehicle must obtain a certificate of title and register.

It's kind of like the certificate of title to your automobile

This possessory interest is basically like the certificate of title on a car

501 deals with your certificate of title.

501.004 specifically states the certificate of title only applies to a motor vehicle owned by the state or political subdivision of the state.

Nowhere in the code does the word private automobile, private vehicle, or private anything pop up in relation to a certificate of title.

Now, as we talked about, 501 deals with the certificate of title, 502 deals with registration, 548 deals with inspection.

vehicles must have a certificate of title and if you check vehicle registration in 502,

you will see you cannot register that vehicle without a certificate of title.

And 501.004 says the certificate of title applies only to state-owned and political

Because you must have the certificate of title and yet the certificate of title specifically

to procure a certificate of title.

under this act to procure a certificate of title.

Okay, well then if our friend wants to show like a deed to the house or a title, certificate of title to his car and things like that, well then that's acceptable.

the basis for allowing registration to occur which is a certificate of title is in 501,

Yeah. Previous owner had a certificate of title which was given to me and attached

attached to a certified copy of the certificate of title

as a motor vehicle in the state of Texas is that it must have a certificate of title.

And under Chapter 501 that deals specifically with the certificate of title,

of our property such as our automobiles and they give a certificate of title and so when

you look, when a person looks at that certificate of title in about every state in the union,

When you turn over that MCO or MSO to the state and get a certificate of title, the

law is very clear about what a certificate of title is.

In that case, a certificate of title is a negotiable instrument.

a certificate of title, then yes, you

And in Texas, a certificate of title

So a certificate of title does not convey true ownership.

is a certificate of title.

that the requirement for a certificate of title

I just have a couple questions on the certificate of title for the vehicle.

That certificate of title, number one, does that give the state the authority to have the owner pay

or whatever, and actually rescinding that certificate of title and then creating some sort of a,

and get back the actual title, mainly because it was destroyed the moment the certificate of title

Now, the problem here is the certificate of title was meant to prevent the trade

and if so, where's the original instrument instead of a certificate of title

Did we enter into a contract then as far as accepting the certificate of title?

And every time they demanded that I show them proof of ownership, I produced a certified copy of the certificate of title.

I never, ever let them get their hands on the certificate of title and a certified copy of that notarized bill of sale.

In order to title a vehicle, it must be required to be a certificate of title, and the transportation

It tells you exactly what a certificate of title applies to, and a private automobile

Do you have a certificate of title or do you have an MSOMCO?

I've probably just got a certificate of title or whatever when I pay for it.

The way I did it on my car was I simply took the original plates from the state, from the state it was originally registered in, even though I still have the sign certificate of title.

I sent them a copy of the notarized bill of sale and the certificate of title signed off that I have attached to that bill of sale.

What you need to do is take the certificate of title, send it to the secretary of state for whatever state that certificate of title belongs to,

And then demand that the secretary of state sign off on the certificate of title stating that the state no longer has any financial or viable interest in this car.

And there's a place right on the back of the certificate of title for the secretary of state to do that.

That certificate of title with that signature now serves as your MSO MCO.

Sign this certificate of title.

Because the deed to a piece of property is exactly the same thing as a certificate of title is to a car

That's how they get the certificate of title issue to protect the lien holder.

This chapter is 501 and it is titled certificate of title act sub chapter A general provisions.

Now the very first definition given here is for certificate of title and it reads certificate

We have a second one in the term itself certificate of title.

Now this creates a quandary in the area of a certificate of title and the reason for

This information is not on a certificate of title.

and we apply that definition to a certificate of title they don't match up because the certificate

certificate of title actually records.

Let's see what it says the certificate of title is in relation to a secured transaction.

Now this is out of section 9.102 sub-item 10 certificate of title means a certificate

Everything relating to the certificate of title directly goes to the fact that there

vehicle and that lien is evidenced on the certificate of title.

But the certificate of title itself is not a negotiable instrument because it does not

So the certificate of title is not a negotiable instrument, a negotiable instrument, again

The conditions of the agreement, none of which the certificate of title does.

That being said, the certificate of title by that definition as we follow through each

Now that we know what the certificate of title is and what it isn't, we now know the certificate

this certificate of title would do under the lien.

off of the certificate of title.

Okay, now we've looked at the legal definitions of instrument, negotiable instrument, certificate of title

In 502.152, this section is titled Certificate of Title Required for Registration

for which a certificate of title is required under chapter 501

unless the owner, one, obtains a certificate of title for the vehicle

or two, presents satisfactory evidence that a certificate of title was previously issued to the owner

Now, I don't see anything here that would allow them to register a car absent a certificate of title

which a certificate of title is required under chapter 501

unless the owner gets the certificate of title for the vehicle

So they're saying that you cannot register without a certificate of title

When we went back to 501, which is titled Certificate of Title Act

and we looked at the definition of certificate of title

This is what it says about the certificate of title

Subsection A, a motor vehicle certificate of title is an instrument issued by the department

Now, in the certificate of title

the motor vehicle certificate of title is an instrument issued by the department that includes one

but they're telling you you can't register the car without a certificate of title

then you have to put that on the certificate of title

but you can't register it to get the plates until you have the certificate of title

you're not creating a new one requiring a reissuance of a certificate of title

The certificate of title is not a sign of ownership, we just covered that

The certificate of title does not convey or substitute for proof of ownership

the odometer reading indicated by the application for the certificate of title

So this is what a certificate of title is and how it's used

and what it's for does not allow ownership to be transferred through the medium of the certificate of title

because they only gave right of possession to you, the person named on the certificate of title

So this creates a problem of ownership of the property when it's only identified through a certificate of title

Now, we have one other little problem with this certificate of title issue

they're telling you you can't register a car without a motor vehicle without a certificate of title

So if you must have the certificate of title

They have to use it in order to apply for the certificate of title

I'm sorry, they get you the certificate of title with this information

Right now I'm gonna finish up this information on the certificate of title regarding registration of a motor vehicle versus an automobile

Where it specifically states a certificate of title is required for registration

Okay, now, when you do that, and it says that you have to have the certificate of title that is identified in chapter 501

Let's see what the Texas legislature said that the Certificate of Title Act actually applies to

Now remember, no certificate of title, the county tax assessor cannot register the motor vehicle

Joined it to him. No certificate of title, no registration

So who does the Certificate of Title Act apply to? Section 501.004, applicability, subsection A

Not even if they are a commercial enterprise, does this act obligate them in any way to get a certificate of title for the purpose of registration

Why in heaven's name was certificate of title apply to a tire, radio, or heater to begin with?

Where in that is your car? Where is my car? Where is the general population's private automobile in regard to being applicable to the certificate of title act?

Is if it involves property the state purchased because remember that's all that's on the certificate of title is evidence of a lien against the property

The state in order to issue the certificate of title the MSO or MCO must be sent to the state

Then and only then will the state issue a certificate of title

But the point here being that they destroy that original ownership document and they issue that certificate of title in its place

But the certificate of title only applies to vehicles that are owned by the state or political subdivision of the state

Because a certificate of title cannot be issued to a private owner

It's right here in the code a certificate of title doesn't apply to a private owner

Who owns my motor vehicle? I have a certificate of title, it's paid for, there is no lien

Technically speaking, they would be the owner because as I just went through this tonight, the certificate of title does not make a conveyance of ownership

However, what the plan is to try to make this fly, and we believe this ought to work, is you send the certificate of title into the Secretary of State

Now, the Secretary of State will run a check, make sure there's no outstanding liens or anything that are signified by that certificate of title

They then should either sign off on a different type of certificate of title that does show conveyance of ownership

Okay, if you currently have the certificate of title and there is no lien on the automobile any longer,

Okay, what you need to do is take the certificate of title for the car.

Now once you get that copy made, take that original certificate of title you're holding,

See, if you actually read the certificate of title act,

And only that 501.004 specifically says the certificate of title act

if it doesn't have a certificate of title.

Since the certificate of title according to law applies only to motor vehicles

But you can't register it at all unless there's a certificate of title obtained for it.

And like I said, the entire chapter 501.00 which is the certificate of title act

So the documents that I would receive were a mechanics lien, storage lien, affirmation sheet, and something called certificate of title that is also filled out by law enforcement.

So the certificate of title is filled out by law enforcement at this point?

The county is the one that issued certificate of title for automobiles?

Right, and that's the same way it is here as the tax assessor collector will fill out the application for the certificate of title and forward it to the state.

And then they have to go through the Sheriff's Department to get a county law enforcement public servant to sign off on the certificate of title.

And then they send it to the state in order for the tow truck company to get the certificate of title.

Without that certificate of title or a salvage title or the actual MSO,

Because the certificate of title has got to set up as a motor vehicle.

that certificate of title has to be signed over to whoever allegedly buys it as a motor vehicle.

Then what you need besides that certificate of title is a bill of sale.

I'm not worried about the sticker, I'm worried about the certificate of title.

That certificate of title is what gives the state the illusion of having a financial interest in the automobile.

You take the certificate of title with a certified mail return receipt requested, notarized letter stating that you intend to remove the automobile from the territorial boundaries and jurisdiction of this state.

You need the certificate of title signed, converted or changed to whatever is necessary to give you clear title to the car and remove any illusion of interest by the state in the property.

Maybe, maybe not. It really depends upon the paperwork. They may actually change it to a different type, a certificate of title with a different declaration on it.

There are actually several different forms of a certificate of title. So it is possible that you may get one that is actually physically different in what it contains as far as information.

Look, it won't. If you sold me a car with a bill of sale, that's not a certificate of title, is it?

And if I turn around and take it to where I live and then register it, and I have your own certificate of title and this new bill of sale, will the state I'm in now let me register the car?

Are you talking about the certificate of title to the car?

for which you only possess a certificate of title rather than an MSO or an MCO.

The moment a certificate of title is applied for, you will never see that document again.

you take the certificate of title that you possess.

You get a certified copy front and back of that certificate of title.

wherever the certificate of title is from.

The secretary of state will either sign and stamp the back of the certificate of title you sent and return it to you,

The other possible outcome is they take that certificate of title,

transfer the information to a different type of certificate of title,

that the requirement to register and obtain a certificate of title for an automobile

what a certificate of title is and why it is being used and who it actually applies to.

certificate of title can be issued to?

and can get the certificate of title issued for the car and make it a motor vehicle.

So if you actually get a certificate of title and it doesn't apply to you,

the argument could conceivably be made that you're fictitiously obtaining that certificate of title

a motor vehicle in this state without a certificate of title.

We've been led to believe that the certificate of title applies to every car.

that shows you that you cannot register a car in Texas without a certificate of title.

without the certificate of title. Let's see. Yeah, there we go.

Okay. Now, in 502.152 of the Texas Transportation Code, that section is titled Certificate of Title Required

for which a certificate of title is required under Chapter 501 unless the owner, one,

obtains a certificate of title for the vehicle, or two, presents satisfactory evidence

that a certificate of title was previously issued to the owner by the department of another jurisdiction,

without the certificate of title. That is issued under Chapter 501.

What we're going to do now is look at 501 and see how this certificate of title actually applies.

Now, there are some certain things we need to know about this certificate of title.

This chapter may be cited as the certificate of title acts. 501.002 definitions in this chapter,

One, certificate of title means an instrument issued under Section 501.021.

Alright, now that is the purpose of this act. The certificate of title act is to lessen the theft or trade of stolen or lien encumbered vehicles and motor vehicles. That's all this act applies to.

But, who does the Certificate of Title Act actually apply to? We find the answer to that question in Section 501.004. That section is titled, Applicability.

Subsection A, this chapter, meaning all of Chapter 501, the Certificate of Title Act in its entirety, this chapter applies to a motor vehicle owned by the state or a political subdivision of the state.

Those are the people that must get a Certificate of Title. This is why the state takes the Certificate of Title when it's sold as a motor vehicle.

Only the state can have a motor vehicle under the Certificate of Title Act.

So, there's no wonder that when you send them the Certificate of Title or the MSO or MCO from the dealership, they have a right to presume they're being given ownership of the car.

They're taking the Certificate of Title and issuing it in place of the actual ownership papers. Then what are they doing? Destroying the actual ownership papers after they make a microfish copy of it.

So, once they get their hands on the MSO or MCO, the presumption becomes that if you're applying for a Certificate of Title, then this motor vehicle belongs to the state or political subdivision of the state.

This is where we find out what a certificate of title actually does.

Now, if this is about a certificate of title for the purpose of registering motor vehicles, where does the business and commerce code come into play?

Well, let me tell you, it comes into play through those previous terms we looked at where it identified the certificate of title as an instrument.

The certificate of title is in fact a negotiable instrument.

A, in this chapter, Number 10 Definitions, Certificate of Title.

Certificate of Title means a certificate of title with respect to which a statute provides for the security interest in question

Alright folks, there you have all the necessary definitions to see what a certificate of title actually does.

The certificate of title does not grant the possessor ownership rights to the car.

So the question becomes, what document actually grants ownership rights rather than legal title like the certificate of title does?

The certificate of title may give you a right of possession, but it does not give you a right of ownership.

If that is the case, how can a certificate of title create a right of ownership?

There is no nothing, no conveyance of any kind in this entire chapter that is designated as being required to have the certificate of title if it's not owned by the state or political subdivision of the state.

When a certificate of title is issued for that property and the state seizes the MSO or MCO, that is a taking people.

When they sell you a car and you have to get a lien on it, who should be holding the certificate of title?

The moment the certificate of title is issued, the law written the way it is says the state is the only one that needs that document.

In this chapter number 10 definitions certificate of title

Certificate of title means a certificate of title with respect to which a statute provides

What a certificate of title actually does

The certificate of title does not grant the possessor

Rather than legal title like the certificate of title does and remember

The certificate of title may give you a right of possession

How can a certificate of title create a right of ownership?

That is designated as being required to have the certificate of title

When a certificate of title is issued for that property and the state seizes the mso or mco

The moment the certificate of title is issued the law written the way it is says the state is the only one that needs that document

But in this particular case, what you do is you take the certificate of title, you send it with a certified affidavit stating that there are no outstanding leads on the certificate of title, and you have it signed off to that effect, which you can do because you already

you take it you send the certificate of title to the secretary of state where it's registered

this if you're still using plates on it then you have a certificate of title you couldn't have got

issue a new certificate of title and add them to it.

guys say, because a certificate of title doesn't necessarily prove ownership.

A certificate of title does not prove ownership at all.

By definition, a certificate of title is an instrument that shows that the

And then all he has to do is sign the certificate of title and give that to you with the notarized signed bill of sale.

That's when you take the certificate of title and a copy, a certified copy of the bill of sale.

You make a certified copy front and back of the certificate of title,

but you're going to have to send the original certificate of title to the Secretary of State.

The certificate of title, whatever process and procedure is done to relinquish any claims of the state to the property via the certificate of title.

On the certificate of title you send in or they will send you a brand new document, a testing to no financial interest of the state is in the property,

501 is the certificate of title.

He had never heard this before, how things are based in a certificate of title, et cetera.

What you get in lieu of the MSO or MCO is what's known as a certificate of title, which is

The certificate of title returned to the Secretary of State, they're supposed to return

But what I thought I heard you say earlier, I'll take an example of an MSO on a car that if you were to purchase an automobile, and then that MSO is surrendered to the state, and you now have your certificate of title as you travel around in your state-owned vehicle and such,

No, no, no. There's legal title. That's what the certificate of title is, but that's not equitable title.

Okay. The certificate of title is a negotiable financial instrument. The only thing a certificate of title does is record all outstanding liens and claims against the property.

That's all a certificate of title does. It does not convey ownership of any kind. It conveys use rights.

And a certificate of title is a legal title, it is not an equitable title.

It's just like a certificate of title to a car.

a copy or you send them in the certificate of title and what they will do is they

and they give us a certificate of title,

and they're just issuing us a use permit called a certificate of title,

The reason you have to get a certificate of title is because the state has to make sure that both

that. So they issue the certificate of title to signify that there is an outstanding lien agreement.

Vehicle, every device in, upon, or by which any person or property is or may be transported or drawn upon a highway or requiring a certificate of title under Section 3 of blah, blah, blah code.

that certificate of title. Okay hold on hold on hold on Becca how did the

Okay. Now after we had that hearing where I stated that it was required to have an evidentiary hearing, three days later I get this letter that the plaintiff filed a motion to direct the clerk to issue a certificate of title on that sale.

Well, if they follow through to get certificate of title, it would be for wrongful foreclosure.

I mean, like you said, file a list pending, but if they go and get certificate of title,

So even though they go and get the certificate of title like you said,

The process we're going through attempting to see how well it works is to file, send the certificate of title to the Secretary of State for the state in which the car was registered

Because August 13th is when I've got the hearing coming up where they want to issue certificate of title on the property.

that's basically their motion is for the judge to give them issue certificate of title on the property.

Well, because they have set on Wednesday is this motion for the certificate of title on

certificate of title. Therefore, registration applies only to who when you must have the

certificate of title in order to register. It applies to the state. Exactly. If only

state-owned vehicles are required to obtain and have a certificate of title, which is

how it's written right into 501, then the certificate of title is a requirement of

a color of law certificate of title.

And they send you the certificate of title.

They get a certificate of title called a warranty deed.

they never sent me a certificate of title.

Do you even know what a certificate of title is?

I'm asking have you looked at the actual statutes to see what a certificate of title actually is?

Here in Texas, the certificate of title is a negotiable instrument.

A certificate of title can only invest the party in possession of that certificate with legal ownership.

All right, Radar, the difference here, the legal ownership that is transferred by a certificate of title

is the problem with a certificate of title.

or to transfer it to someone else by any means other than that certificate of title, okay?

So what the certificate of title is is exactly the same thing for a car

What was supposed to happen with the certificate of title was it was issued

the certificate of title was supposed to be traded back in for the actual deed to the vehicle,

Yeah, when you look up the certificate of title here in Texas statutes in the business code,

the business of commerce code, that's exactly what it will tell you the certificate of title is.

Now what this article dealt with was that you get the certificate of title for the MSO.

state in any way, nor does getting the certificate of title.

But the certificate of title, unlike the MSO in relation to ownership or at least possession,

The certificate of title is a negotiable instrument just like a mortgage deed on a house.

And just like a mortgage deed, the purpose of the certificate of title is to signify

for a certificate of title, at least not as far as private ownership of the car goes.

a certificate of title for it.

Now, they're telling you the certificate of title is because you registered the car,

and they've given us a certificate of title?

The certificate of title never creates an equity owner.

or they would have to replace that certificate of title with something else.

And that's what we're allowing the state to do with that certificate of title.

So this misinformation about what the MSO is, what the certificate of title is, is going to get folks in trouble.

Now notice that chapters 521 and 522 and 501 and 502 and 601, which are registration, certificate of title, driver's licenses, commercial driver's licenses and proof and financial responsibility

This goes into what I was saying the other day and what the certificate of title to the

car actually is when it's issued by the Department of Public Safety. The certificate of title

do that simply by endorsing the back of the certificate of title.

in Pennsylvania and right now we are talking about the certificate of titles and stuff

instrument in the form of the certificate of title. And every time that car changes

hands, it's endorsed on that certificate of title.

The certificate of title, according to the Business and Commerce Code, is a representation

Understand that? And you cause that effect to be applicable when you apply for a license, or you register your car, or you get a certificate of title or ownership from the state for your car.

That's what a certificate of title is.

If you look it up in the Business and Occupations Code, at least that's where it is here in Texas, if you look up the definition of certificate of title, it tells you straight up.

This comes down to the issue of what a certificate of title actually is.

it says specifically that a certificate of title is a negotiable instrument,

That's what the certificate of title actually is.

So because there is a lien represented by the certificate of title and liens have to be filed with the state, guess what?

Do you have it registered and the only proof that you own it is a certificate of title?

The first thing you do is get a certified copy of your certificate of title made so that you can send the original title that you have in your possession to the Secretary of State

If there is not, then you wish for the Secretary of State to certify that the certificate of title no longer represents a valid lien or an outstanding loan or any other type of encumbrance against that property.

that the Secretary of State can give you a different kind of title in place of that certificate of title certifying that the property is completely unencumbered and owned by you.

Another way to short circuit all of that was to get the certificate of title with a signed bill of sale stating that the car had been paid for in full and had no encumbrances attached to it.

But again, regardless of what your agreement with the lender says, the certificate of title is something that stands apart and it represents a lien.

You endorse the certificate of title and you give it to them at the time of sale, correct?

You don't write a letter, you ask them to determine with a copy that original certificate of title that you have to check their records and see if they have 80 filed outstanding liens or encumbrances against the property that is listed in that certificate of title.

of the certificate of title and hand it over to the purchaser.

Because the certificate of title is not evidence of ownership except for legal ownership.

The reason for that is because your state business and commerce code defines a certificate of title as a negotiable instrument,

That's exactly why when people sell a car, the only thing they have to do is sign the back of that certificate of title just like they're endorsing a check

You're doing exactly the same thing with a certificate of title except what you're exchanging isn't money, it's the car.

You can't transfer it to someone else because that certificate of title is operating, in essence, just like a lease.

He talked about titling your vehicle and getting the original certificate of title shredded or something.

into it or not, I've always wondered a lot, whether or not your certificate of title and

that being given basically over to the B and VN then they give you a certificate of title,

They go read it and it says, refers to demand for presentment of the certificate of title by an officer or employee of the department.

What happens when you register? Two things. Certificate of title, license plates, license plates.

They do the enforcement of the registration and certificate of titles unless there's some specific law providing that for someone else.

Yeah, well, I went and read the Certificate of Title Act, and that's one of the things you have to have to register a motor vehicle.

They've tried to change the purpose of that specific chapter, the Certificate of Title Act, to impact things that were not in the original law, and they're trying to do that by amendment,

The original purpose of the registration act and the Certificate of Title Act was to prevent theft of cars.

This is why there is only a certificate of title originally issued when a lien exists

Okay? Inside of chapter 502, which deals with registration or certificate of title act, and guess what? There is no definition for the term person.

You're referring to the certificate of title when you say title?

It actually belongs to the state because it has a certificate of title.

A certificate of title generally indicates a claim on the part of the state.

When it says certificate of title, certificate of this, certificate of that, dealing with title

The party doesn't get a title, the party gets a certificate of title

And then when that certificate of manufacturer is traded at the state level for the certificate of title

And the only beneficiary at that time was the state where the last certificate of title was issued