Tex. Transp. Code Section 501.0234
Duty of Vehicle Dealer on Sale of Certain Vehicles

(a)

A person who sells at the first or a subsequent sale a motor vehicle and who holds a general distinguishing number issued under Chapter 503 (Dealer’s and Manufacturer’s Vehicle License Plates) of this code or Chapter 2301 (Sale or Lease of Motor Vehicles), Occupations Code, shall:

(1)

except as provided by this section, in the time and manner provided by law, apply, in the name of the purchaser of the vehicle, for the registration of the vehicle, if the vehicle is to be registered, and a title for the vehicle and file with the appropriate designated agent each document necessary to transfer title to or register the vehicle; and at the same time

(2)

remit any required motor vehicle sales tax.

(b)

This section does not apply to a motor vehicle:

(1)

that has been declared a total loss by an insurance company in the settlement or adjustment of a claim;

(2)

for which the title has been surrendered in exchange for:

(A)

a salvage vehicle title or salvage record of title issued under this chapter;

(B)

a nonrepairable vehicle title or nonrepairable vehicle record of title issued under this chapter or Subchapter D (Application for Authorization to Dispose of Certain Motor Vehicles), Chapter 683 (Abandoned Motor Vehicles); or

(C)

an ownership document issued by another state that is comparable to a document described by Paragraph (A) or (B);

(3)

with a gross weight in excess of 11,000 pounds; or

(4)

purchased by a commercial fleet buyer who:

(A)

is a deputy authorized by rules adopted under Section 520.0071 (Deputies);

(B)

utilizes the dealer title application process developed to provide a method to submit title transactions to the county in which the commercial fleet buyer is a deputy; and

(C)

has authority to accept an application for registration and application for title transfer that the county assessor-collector may accept.

(c)

Each duty imposed by this section on the seller of a motor vehicle is solely that of the seller.

(d)

A seller who applies for the registration or a title for a motor vehicle under Subsection (a)(1) may apply:

(1)

to the county assessor-collector of the county in which:

(A)

the owner is domiciled; or

(B)

the motor vehicle is purchased or encumbered; or

(2)

to any county assessor-collector who is willing to accept the application.

(e)

Repealed by Acts 2021, 87th Leg., R.S., Ch. 592 (S.B. 876), Sec. 11(2), eff. March 1, 2022.

(f)

A seller has a reasonable time to comply with the terms of Subsection (a)(1) and is not in violation of that provision during the time the seller is making a good faith effort to comply. Notwithstanding compliance with this chapter, equitable title to a vehicle passes to the purchaser of the vehicle at the time the vehicle is the subject of a sale that is enforceable by either party.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.37(a), eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 1423, Sec. 3, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 76, Sec. 1, eff. May 14, 2001; Acts 2003, 78th Leg., ch. 1325, Sec. 17.01, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.822, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 1023 (H.B. 988), Sec. 1, eff. September 1, 2005.
Acts 2009, 81st Leg., R.S., Ch. 1173 (H.B. 3433), Sec. 3, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1232 (S.B. 1759), Sec. 3, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 1296 (H.B. 2357), Sec. 11, eff. January 1, 2012.
Acts 2013, 83rd Leg., R.S., Ch. 1135 (H.B. 2741), Sec. 44, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 1287 (H.B. 2202), Sec. 6, eff. September 1, 2013.
Acts 2021, 87th Leg., R.S., Ch. 592 (S.B. 876), Sec. 2, eff. March 1, 2022.
Acts 2021, 87th Leg., R.S., Ch. 592 (S.B. 876), Sec. 11(2), eff. March 1, 2022.

Source: Section 501.0234 — Duty of Vehicle Dealer on Sale of Certain Vehicles, https://statutes.­capitol.­texas.­gov/Docs/TN/htm/TN.­501.­htm#501.­0234 (accessed Jun. 5, 2024).

501.001
Short Title 501.002
Definitions 501.003
Purpose 501.004
Applicability 501.006
Alias Title 501.008
Title for Autocycle 501.021
Title for Motor Vehicle 501.022
Motor Vehicle Title Required 501.023
Application for Title 501.024
Title Receipt 501.025
Manufacturer’s Certificate Required on First Sale 501.027
Issuance of Title 501.028
Signatures 501.029
Acceptable Proof of Ownership 501.030
Motor Vehicles Brought into State 501.031
Rights of Survivorship Agreement 501.032
Identification Number Inspection Required 501.033
Assignment and Reassignment of Identification Number by Department 501.034
Issuance of Title to Government Agency 501.035
Title for Former Military Vehicle 501.036
Title for Farm Trailer or Farm Semitrailer 501.037
Title for Trailers or Semitrailers 501.038
Certificate of Title for Custom Vehicle or Street Rod 501.0041
Rules 501.051
Grounds for Refusal to Issue or for Revocation or Suspension of Title 501.052
Hearing on Refusal to Issue or Revocation or Suspension of Title 501.053
Filing of Bond as Alternative to Hearing 501.071
Sale of Vehicle 501.072
Odometer Disclosure Statement 501.073
Sales in Violation of Chapter 501.074
Transfer of Vehicle by Operation of Law 501.076
Limited Power of Attorney 501.091
Definitions 501.095
Sale, Transfer, or Release 501.097
Application for Nonrepairable Vehicle Title or Salvage Vehicle Title 501.099
Sale of Export-only Motor Vehicles 501.100
Application for Regular Certificate of Title for Salvage Vehicle 501.104
Rebuilder to Possess Title or Other Documentation 501.107
Applicability of Subchapter to Recycler 501.108
Record Retention 501.109
Offenses 501.110
Enforcement of Subchapter 501.111
Perfection of Security Interest 501.112
Sale or Security Interest Not Created by Certain Vehicle Leases 501.113
Recordation of Security Interest 501.114
Assignment of Lien 501.115
Discharge of Lien 501.116
Cancellation of Discharged Lien 501.117
Electronic Lien System 501.132
Duplicate Title Receipt 501.134
Certified Copy of Lost or Destroyed Certificate of Title 501.135
Record of Stolen or Concealed Motor Vehicle 501.138
Collection and Disposition of Fees 501.139
Electronic Funds Transfer 501.145
Filing by Purchaser 501.146
Title Transfer 501.147
Vehicle Transfer Notification 501.148
Allocation of Fees 501.151
Placement of Serial Number with Intent to Change Identity 501.152
Sale or Offer Without Title Receipt or Title 501.153
Application for Title for Stolen or Concealed Vehicle 501.154
Alteration of Certificate or Receipt 501.155
False Name, False Information, and Forgery 501.156
Duty of Transporters to Determine Right of Possession 501.157
Penalties 501.158
Seizure of Stolen Vehicle or Vehicle with Altered Vehicle Identification Number 501.161
Execution of Transfer Documents 501.162
Motor Number Required for Registration 501.163
Application for Motor Number Record 501.171
Application of Subchapter 501.172
Definitions 501.173
Electronic Titling System 501.174
Validity of Electronic Documents 501.175
Recording of Documents 501.176
Payment of Fees by Electronic Funds Transfer or Credit Card 501.177
Service Charge 501.178
Disposition of Fees 501.179
Relation to Electronic Signatures in Global and National Commerce Act 501.0234
Duty of Vehicle Dealer on Sale of Certain Vehicles 501.0235
Personal Identification Information for Obtaining Title 501.0236
Issuance of Title and Permits When Dealer Goes out of Business 501.0275
Issuance of Title for Unregistered Vehicle 501.0276
Denial of Title Receipt, Title, or Record of Title for Failure to Provide Proof of Emissions Testing 501.0301
Certain Off-highway Vehicles Purchased Outside This State 501.0315
Beneficiary Designation 501.0321
Identification Number Inspection 501.0322
Alternative Identification Number Inspection 501.0331
Motor Number Required for Registration 501.0332
Application for Motor Number Record 501.0341
Issuance of Title to Government Agency for Travel Trailer 501.0521
Court Ordered Title Changes 501.0721
Delivery of Receipt and Title to Purchaser of Used Motor Vehicle 501.0925
Insurance Company Not Required to Surrender Certificates of Title in Certain Situations 501.0935
Issuance of Title to Salvage Pool Operator 501.1001
Salvage Motor Vehicles or Nonrepairable Motor Vehicles for Insurance Companies or Self-insured Persons 501.1002
Owner-retained Vehicles 501.1003
Salvage Dealer Responsibilities 501.09111
Rights and Limitations of Nonrepairable Vehicle Title, Nonrepairable Record of Title, Salvage Vehicle Title, or Salvage Record of Title 501.09112
Appearance of Nonrepairable Vehicle Title or Salvage Vehicle Title 501.09113
Out-of-state Salvage or Rebuilt Salvage Vehicle
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 501.0234’s source at texas​.gov