61-4-111. Used motor vehicles -- transfer to and from dealers. (1) Except as provided in 61-4-124(6), a licensed dealer, broker, or wholesaler who intends to resell a used motor vehicle and who operates the vehicle only for demonstration purposes:
     (a) is exempt from registration under 61-3-201(2) when applying for a certificate of title; and
     (b) may transfer or receive ownership of a motor vehicle by use of a dealer reassignment section on a certificate of title. However, when the allotted number of dealer reassignment sections on a certificate of title has been completed, ownership of the vehicle may not be transferred until an application for a certificate of title has been submitted by the dealer to the department and a new certificate of title has been issued.
     (2) Upon the transfer of a used motor vehicle to a person other than a licensed dealer, broker, or wholesaler, the following acts are required of the dealer on or before the times set forth in this subsection:
     (a) Prior to delivery of the vehicle to the purchaser, the dealer shall issue a temporary registration permit for the vehicle and affix the temporary registration permit to the vehicle in a manner prescribed by the department. The temporary registration permit issued by the dealer is valid for 20 days from the date of issuance. There must be imprinted on the temporary registration permit in bold letters the following statement: "IT IS UNLAWFUL TO PLACE LICENSE PLATES UPON THIS VEHICLE UNTIL REGISTERED AT THE OFFICE OF THE COUNTY TREASURER". Unless a durable license plate style placard is issued, one copy of the temporary registration permit must be delivered by the dealer to the county treasurer in the manner prescribed in subsection (2)(b), and a copy must be retained by the dealer for the dealer's file. If a durable placard is issued, the dealer shall create and retain the relevant records as prescribed by the department. It is unlawful for the dealer to issue more than one 20-day temporary registration permit for each vehicle sale.
     (b) Within 4 working days following the date of delivery of the vehicle, the dealer shall forward to the county treasurer of the county where the purchaser resides:
     (i) the assigned certificate of title or, if a certificate of title for the vehicle has not been issued in this state, a copy of the then-current registration receipt or certificate in the dealer's possession;
     (ii) an application for a certificate of title executed by the new owner in accordance with the provisions of 61-3-221 and 61-3-322; and
     (iii) a copy of the temporary registration permit affixed to the vehicle by the dealer.
     (c) Transmission of the documents by the dealer to the county treasurer may be accomplished either by personal delivery or by first-class mail, in which event they are considered to have been delivered at the time of mailing.
     (d) If the dealer is unable to forward the certificate of title or, if applicable, registration receipt within the time set forth in subsection (2)(b) because the certificate of title is lost, is in the possession of third parties, or is in the process of reissuance in this state or elsewhere, the dealer shall comply in all other respects with the provisions of subsection (2)(b) and shall forward the missing document or documents to the county treasurer, either personally or by first-class mail, within 3 days after receipt.
     (3) Upon compliance by the dealer with the requirements in this section, title to the motor vehicle is considered to have passed to the purchaser as of the date of the delivery of the vehicle to the purchaser by the dealer, and the dealer has no further liability or responsibility with respect to the processing of registration.
     (4) Upon receipt from the county treasurer of the documents required under subsection (2), the department shall:
     (a) update the electronic record of the title maintained by the department under 61-3-101; or
     (b) issue a certificate of title if requested under 61-3-216(2)(f); and
     (c) comply with the applicable provisions of Title 61, chapter 3, parts 1 through 3.
     (5) For purposes of this section, "motor vehicle" includes a trailer as defined in 61-1-111.

     History: En. Sec. 3, Ch. 138, L. 1971; amd. Sec 2, Ch. 399, L. 1977; R.C.M. 1947, 53-109.1; amd. Sec. 1, Ch. 118, L. 1981; amd. Sec. 1, Ch. 503, L. 1985; amd. Sec. 2, Ch. 342, L. 1995; amd. Sec. 8, Ch. 299, L. 2003; amd. Sec. 74, Ch. 477, L. 2003.