Tex.
Transp. Code Section 501.051
Grounds for Refusal to Issue or for Revocation or Suspension of Title
(a)
A title may be refused, canceled, suspended, or revoked by the department if:(1)
the application contains a false or fraudulent statement;(2)
the applicant failed to furnish required information requested by the department;(3)
the applicant is not entitled to a title;(4)
the department has reason to believe that the motor vehicle is stolen;(5)
the department has reason to believe that the issuance of a title would defraud the owner or a lienholder of the motor vehicle;(6)
the registration for the motor vehicle is suspended or revoked; or(7)
the required fee has not been paid.(b)
The department may rescind, cancel, or revoke an application for a title if a notarized or county-stamped affidavit is presented containing:(1)
a statement that the vehicle involved was a new motor vehicle in the process of a first sale;(2)
a statement that the dealer, the applicant, and any lienholder have canceled the sale;(3)
a statement that the vehicle:(A)
was never in the possession of the title applicant; or(B)
was in the possession of the title applicant; and(4)
the signatures of the dealer, the applicant, and any lienholder.(c)
A rescission, cancellation, or revocation containing the statement authorized under Subsection (b)(3)(B) does not negate the fact that the vehicle has been the subject of a previous retail sale.(d)
The department shall place a hold on processing a title application for a motor vehicle if the department receives a request for a hold accompanied by evidence of a legal action regarding ownership of or a lien interest in the motor vehicle. The hold shall continue until a final, nonappealable judgment is entered in the action or the party requesting the hold requests that the hold be removed.
Source:
Section 501.051 — Grounds for Refusal to Issue or for Revocation or Suspension of Title, https://statutes.capitol.texas.gov/Docs/TN/htm/TN.501.htm#501.051
(accessed Apr. 20, 2024).