49 U.S.C. § 32705 : US Code - Section 32705: Disclosure requirements on transfer of motor vehicles

Search 49 U.S.C. § 32705 : US Code - Section 32705: Disclosure requirements on transfer of motor vehicles

      (a)(1) Disclosure Requirements. - Under regulations prescribed by
    the Secretary of Transportation that include the way in which
    information is disclosed and retained under this section, a person
    transferring ownership of a motor vehicle shall give the transferee
    the following written disclosure:
        (A) Disclosure of the cumulative mileage registered on the
      odometer.
        (B) Disclosure that the actual mileage is unknown, if the
      transferor knows that the odometer reading is different from the
      number of miles the vehicle has actually traveled.

      (2) A person transferring ownership of a motor vehicle may not
    violate a regulation prescribed under this section or give a false
    statement to the transferee in making the disclosure required by
    such a regulation.
      (3) A person acquiring a motor vehicle for resale may not accept
    a written disclosure under this section unless it is complete.
      (4)(A) This subsection shall apply to all transfers of motor
    vehicles (unless otherwise exempted by the Secretary by
    regulation), except in the case of transfers of new motor vehicles
    from a vehicle manufacturer jointly to a dealer and a person
    engaged in the business of renting or leasing vehicles for a period
    of 30 days or less.
      (B) For purposes of subparagraph (A), the term "new motor
    vehicle" means any motor vehicle driven with no more than the
    limited use necessary in moving, transporting, or road testing such
    vehicle prior to delivery from the vehicle manufacturer to a
    dealer, but in no event shall the odometer reading of such vehicle
    exceed 300 miles.
      (5) The Secretary may exempt such classes or categories of
    vehicles as the Secretary deems appropriate from these
    requirements. Until such time as the Secretary amends or modifies
    the regulations set forth in 49 CFR 580.6, such regulations shall
    have full force and effect.
      (b) Mileage Statement Requirement for Licensing. - (1) A motor
    vehicle the ownership of which is transferred may not be licensed
    for use in a State unless the transferee, in submitting an
    application to a State for the title on which the license will be
    issued, includes with the application the transferor's title and,
    if that title contains the space referred to in paragraph
    (3)(A)(iii) of this subsection, a statement, signed and dated by
    the transferor, of the mileage disclosure required under subsection
    (a) of this section. This paragraph does not apply to a transfer of
    ownership of a motor vehicle that has not been licensed before the
    transfer.
      (2)(A) Under regulations prescribed by the Secretary, if the
    title to a motor vehicle issued to a transferor by a State is in
    the possession of a lienholder when the transferor transfers
    ownership of the vehicle, the transferor may use a written power of
    attorney (if allowed by State law) in making the mileage disclosure
    required under subsection (a) of this section. Regulations
    prescribed under this paragraph - 
        (i) shall prescribe the form of the power of attorney;
        (ii) shall provide that the form be printed by means of a
      secure printing process (or other secure process);
        (iii) shall provide that the State issue the form to the
      transferee;
        (iv) shall provide that the person exercising the power of
      attorney retain a copy and submit the original to the State with
      a copy of the title showing the restatement of the mileage;
        (v) may require that the State retain the power of attorney and
      the copy of the title for an appropriate period or that the State
      adopt alternative measures consistent with section 32701(b) of
      this title, after considering the costs to the State;
        (vi) shall ensure that the mileage at the time of transfer be
      disclosed on the power of attorney document;
        (vii) shall ensure that the mileage be restated exactly by the
      person exercising the power of attorney in the space referred to
      in paragraph (3)(A)(iii) of this subsection;
        (viii) may not require that a motor vehicle be titled in the
      State in which the power of attorney was issued;
        (ix) shall consider the need to facilitate normal commercial
      transactions in the sale or exchange of motor vehicles; and
        (x) shall provide other conditions the Secretary considers
      appropriate.

      (B) Section 32709(a) and (b) applies to a person granting or
    granted a power of attorney under this paragraph.
      (3)(A) A motor vehicle the ownership of which is transferred may
    not be licensed for use in a State unless the title issued by the
    State to the transferee - 
        (i) is produced by means of a secure printing process (or other
      secure process);
        (ii) indicates the mileage disclosure required to be made under
      subsection (a) of this section; and
        (iii) contains a space for the transferee to disclose the
      mileage at the time of a future transfer and to sign and date the
      disclosure.

      (B) Subparagraph (A) of this paragraph does not require a State
    to verify, or preclude a State from verifying, the mileage
    information contained in the title.
      (c) Leased Motor Vehicles. - (1) For a leased motor vehicle, the
    regulations prescribed under subsection (a) of this section shall
    require written disclosure about mileage to be made by the lessee
    to the lessor when the lessor transfers ownership of that vehicle.
      (2) Under those regulations, the lessor shall provide written
    notice to the lessee of - 
        (A) the lessee's mileage disclosure requirements under
      paragraph (1) of this subsection; and
        (B) the penalties for failure to comply with those
      requirements.

      (3) The lessor shall retain the disclosures made by a lessee
    under paragraph (1) of this subsection for at least 4 years
    following the date the lessor transfers the leased motor vehicle.
      (4) If the lessor transfers ownership of a leased motor vehicle
    without obtaining possession of the vehicle, the lessor, in making
    the disclosure required by subsection (a) of this section, may
    indicate on the title the mileage disclosed by the lessee under
    paragraph (1) of this subsection unless the lessor has reason to
    believe that the disclosure by the lessee does not reflect the
    actual mileage of the vehicle.
      (d) State Alternate Vehicle Mileage Disclosure Requirements. -
    The requirements of subsections (b) and (c)(1) of this section on
    the disclosure of motor vehicle mileage when motor vehicles are
    transferred or leased apply in a State unless the State has in
    effect alternate motor vehicle mileage disclosure requirements
    approved by the Secretary. The Secretary shall approve alternate
    motor vehicle mileage disclosure requirements submitted by a State
    unless the Secretary decides that the requirements are not
    consistent with the purpose of the disclosure required by
    subsection (b) or (c), as the case may be.
      (e) Auction Sales. - If a motor vehicle is sold at an auction,
    the auction company conducting the auction shall maintain the
    following records for at least 4 years after the date of the sale:
        (1) the name of the most recent owner of the motor vehicle
      (except the auction company) and the name of the buyer of the
      motor vehicle.
        (2) the vehicle identification number required under chapter
      301 or 331 of this title.
        (3) the odometer reading on the date the auction company took
      possession of the motor vehicle.

      (f) Application and Revision of State Law. - (1) Except as
    provided in paragraph (2) of this subsection, subsections (b)-(e)
    of this section apply to the transfer of a motor vehicle after
    April 28, 1989.
      (2) If a State requests, the Secretary shall assist the State in
    revising its laws to comply with subsection (b) of this section. If
    a State requires time beyond April 28, 1989, to revise its laws to
    achieve compliance, the Secretary, on request of the State, may
    grant additional time that the Secretary considers reasonable by
    publishing a notice in the Federal Register. The notice shall
    include the reasons for granting the additional time. In granting
    additional time, the Secretary shall ensure that the State is
    making reasonable efforts to achieve compliance.