January 2017 Salvage/Nonrepairable Motor Vehicle Manual Update

Texas Department of Motor Vehicles

Please review and distribute as appropriate.

The latest update to the Salvage/Nonrepairable Motor Vehicle Manual (attached) is now available via Registration and Title System workstations and at www.txdmv.gov.

We welcome your feedback and encourage you to email any comments or suggestions to VTR_Title_Reg-Manual-Update@txdmv.gov (please note the underscores between VTR and Title and Title and Reg).

Updates for this release are marked with red change bars in the text. 

Changes have been made throughout the manual to reflect updated form names that resulted from the title forms initiative. Several Registration and Title Bulletins (RTBs) have been disseminated describing these changes in detail.

Additionally, the following are brief summaries of the chapters updated in the January 2017 revision:

Chapter 2 – Title Application and Issuance
Section 2.5, “Out of State Motor Vehicles,” was updated to reflect the revision made to the Application for Salvage or Nonrepairable Vehicle Title (Form VTR-441) to include a “Last Titled Outside of Texas” section, which facilitated the elimination of the Statement of Fact for Out-of-State Evidence (Form VTR-221) as detailed in RTB #005-16.

Section 2.9, “Application after Surrender of Ownership Evidence,” was updated to provide clarification on the procedures and required documents for obtaining a Texas Salvage Vehicle Title when the prior ownership evidence was surrendered to the department in error.

Chapter 3 – Transfer of Ownership
Section 3.2, “Assignment and Reassignment of Ownership Documents,” was updated to provide clarification on the use of a Dealer’s Reassignment of Title for a Motor Vehicle (Form VTR-41-A) when all reassignments on the back of the title are not complete as detailed in RTB #011-15.

Chapter 4 – Insurance Companies
Section 4.3, “Applications Without Proper Evidence of Ownership,” was updated as a result of RTB #005-16.  This RTB detailed the replacement of the secure Insurance Company Statement of Fact (Form VTR-331-A) with the non-secure Insurance Company Statement of Fact (VTR-331-INS).  Additionally, this RTB detailed the revision made to the Application for Salvage or Nonrepairable Vehicle Title (Form VTR-441) to include a “Last Titled Outside of Texas” section, which facilitated the elimination of the Statement of Fact for Out-of-State Evidence (Form VTR-221).

Chapter 5 – Salvage Dealers and Agents
Sections 5.5, “Dismantled, Scrapped, or Destroyed Vehicles,” was updated to clarify the requirements for salvage vehicle dealers and used automotive parts recyclers to surrender ownership evidence for vehicles they obtain for the purposes of dismantling, scrapping, or destroying. Further, clarification was added regarding subsequent reporting requirements and the use of transfer documents depending on whether or not the vehicle has been mechanically crushed.

Chapter 6 – Rebuilt Salvage Motor Vehicles
Section 6.3, “Application Procedures,” was updated to reflect changes made to the Texas Administrative Code, Chapter 221, Subchapter B, and detailed in RTB #013-16 requiring a salvage dealer who repairs a salvage vehicle, or uses a rebuilder to repair a salvage vehicle, to obtain a Texas Certificate of Title branded “Rebuilt Salvage” in the name of the dealership prior to further transfer of ownership.

Chapter 7 – Owners and Other Entities
Section 7.4, “Metal Recycler,” was updated to reflect updates regarding the use of the Salvage Vehicle Dealer Bill of Sale for a Junk Motor Vehicle (Form VTR-203) and the Surrendered Ownership Evidence for Vehicles Permanently Destroyed (Form VTR-340-M) as detailed in RTB #007-16. Further, clarification was added regarding subsequent reporting requirements and the use of transfer documents depending on whether or not the vehicle has been mechanically crushed.

Thank you,

Jeremiah Kuntz, Director
Vehicle Titles and Registration Division
Texas Department of Motor Vehicles

JK:TT:EG

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If you have any comments or suggestions concerning this VTR communication process, please contact your local TxDMV Regional Service Center.