New Jersey State Title Processing Procedures

1. What form of title must an insurer obtain in connection with the sale of a vehicle that has been acquired through the settlement of a claim?
2. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title?
3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Salvage Certificate of Title?
4. What documents must an insurer provide to CarBuyerUSA in order to sell a recovered theft vehicle recovered substantially intact with no substantial damage, where title is still in the name of the insured?
5. What steps must an insurer take in New Jersey to process an owner-retained vehicle?
6. What legal duties are imposed upon a lienholder following satisfaction of the lien?

1. What form of New Jersey title must an insurer obtain in connection with the sale of a vehicle that has been acquired through the settlement of a claim?
   
   There are four different types of title available to insurers in connection with the sale of a vehicle that has been acquired through the settlement of a claim:
   
   Salvage Title
   
   When a motor vehicle has been reported stolen or is damaged to such an extent that it is “economically impractical to repair”, the vehicle must be sold on a Salvage Title.
   
   Salvage Title with an “FS” designation
   
   When a motor vehicle is eight (8) or fewer model years old, and has suffered flood damage and structural damage so as to be “economically impractical to repair”, the vehicle must be sold on a Salvage Title with an “FS” designation.
   
   Certificate of Title (aka “Standard Title”)
   
   When the vehicle is a theft recovery, and the vehicle is not “economically impractical to repair” and does not have a missing, damaged or altered VIN, the vehicle may be sold on a Certificate of Title.
   
   When the vehicle is not a theft recovery, a flood-damaged vehicle or a “classic”, and the vehicle is older than eight (8) model years and had a New Jersey title prior to the loss, the vehicle may be sold on a Certificate of Title.
   
   Certificate of Title with an “F” designation
   
   When the vehicle is not a theft recovery or a “classic”, and the vehicle is a flooddamaged vehicle, and is not “economically impractical to repair”, the vehicle may be sold on a Certificate of Title with an “F” designation.
   
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   “Economically impractical to repair” means that the motor vehicle is damaged to such an extent that:
   
   1. for those motor vehicles manufactured eight or less model years from the current model year, the cost to repair such damaged motor vehicle, as determined by a bona fide repair estimate, equals or exceeds the fair market value of the motor vehicle immediately before it was damaged; OR
   
   2. for those other motor vehicles where the fair market value of such damaged motor vehicle immediately before it was damaged equals or exceeds the fair market value of a motor vehicle of the same make and model manufactured five years from the current model year, or similar make and model if the same make and model is no longer manufactured, if the motor vehicle has sustained damage to the extent that either:
   
   
   i. The cost to repair such damaged motor vehicle, as determined by a bona fide repair estimate, equals or exceeds the fair market value of the motor vehicle immediately before it was damaged; or
   ii. The insurer settles a total loss claim with the motor vehicle owner as a result of the damage to the motor vehicle. “Classic” means a vehicle 25 years or older.
   
   
    [New Jersey Administrative Code 13:21-22.3; 21-22.4; 22.15] back to top
   
   
2. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title (aka “Standard Title”)?
   
   The insurer shall provide CarBuyerUSA with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, an ACV, and a cost of repair.
   
   CarBuyerUSA will submit these documents along with a DMV Cover Sheet and the appropriate fee to the Division of Motor Vehicles for processing.
   
   Thereafter, the Division of Motor Vehicles shall issue a Certificate of Title in the name of the insurer. br />
   CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Certificate of Title to the purchaser. back to top


3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Salvage Certificate of Title (aka “Salvage Title”)?
   
   The insurer shall provide CarBuyerUSA with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, an ACV, and a cost of repair.
   
   CarBuyerUSA will submit these documents along with a DMV Cover Sheet and the appropriate fee to the Division of Motor Vehicles for processing.
   
   Thereafter, the Division of Motor Vehicles shall issue a Salvage Certificate of Title in the name of the insurer.
   
   CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Salvage Certificate of Title to the purchaser.
   
   [New Jersey Administrative Code 13:21-22.3; 21-22.4; 22.15]
   
   Insurance Company Unsuccessful in Getting Title from Owner/Policyholder When the insurance company is unsuccessful in getting the NJ Title from the owner/policyholder and has paid a claim for a total loss vehicle, the following procedure applies:
   
   The New Jersey Motor Vehicle Commission requires original notarized correspondence on insurance company letterhead to include:
   
   (1) a request that a NJ Salvage Title be issued in Insurance Company’s name because claim was settled with the policyholder, vehicle is in the possession of the insurance company or authorized salvage auction, but policyholder/owner did not remit NJ title (attach proof of total loss settlement that includes policyholder name, address and VIN).
   
   (2) Statement settlement payment was not returned undeliverable or proof payment was cashed.
   
   (3) The following statement completed with insurance company name and the VIN:
   
   “As an authorized representative of the __ insurance company, I certify that this company has legitimately obtained possession of the vehicle carrying VIN __ and that the New Jersey Motor Vehicle Commission will bear no financial responsibility for any errors or misrepresentations made by this company or authorized representative(s) in regard to the possession and future sale of this vehicle.”
   
   (4) Copy of the letter sent to the owner from the insurance company/salvage auction along with the copy of the certified mail receipt sent to the owner, requesting NJ title be signed over to insurance company.
   
   This policy does not apply to vehicles where the owner is not required to sign vehicle over to insurance company but voluntarily sells to auction after claim has been paid – the auction should not take the vehicle without the title.
   
   This policy applies to vehicles with a NJ title history only.
   
   (New Jersey Motor Vehicle Commission – Process for Salvage Title Issuance for a Vehicle in Insurance Company’s Possession – Claim Paid to Owner - Veh8icle is a Total Loss – Owner Has Not Complied with Official Request to Remit Title To Insurance Company – Lien Satisfied as Applicable - Policy Effective June 1, 2004) back to top


4. What documents must an insurer provide to CarBuyerUSA in order to sell a recovered theft vehicle recovered substantially intact with no substantial damage, where title is still in the name of the insured?
   
   When a vehicle has been stolen, the insurer shall provide CarBuyerUSA with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, and a copy of the police report.
   
   After receipt of these documents, CarBuyerUSA will submit these documents along with a DMV Cover Sheet and the appropriate fee to the Division of Motor Vehicles for processing.
   
   Thereafter, the Division of Motor Vehicles shall issue a Salvage Certificate of Title in the name of the insurer. Upon receipt, CarBuyerUSA will forward the Salvage Certificate of Title to the insurer for safekeeping.
   
   If the vehicle is recovered, the Salvage Certificate of Title will be returned along with an ACV, cost of repair, and police report to CarBuyerUSA by the insurer in order to obtain the appropriate title depending upon the year and damage of the vehicle. CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s appropriate title document to the purchaser.
   
   [New Jersey Administrative Code 13:21-22.15(b); New Jersey Statutes § 39:10- 32)] back to top


5. What steps must an insurer take in New Jersey to process an ownerretained vehicle?
   
   There are no specific requirements. back to top


6. What legal duties are imposed upon a lienholder following satisfaction of the lien?
   
   Pursuant to New Jersey Statutes § 39:10-10:
   
   When the contract or terms of the security agreement noted on the certificate of origin, or certificate of ownership have been performed the seller or secured party shall deliver to the buyer the certificate of ownership thereto, executed as provided in this chapter, with proper evidence of satisfaction of the contract or termination of the security interest. Within 15 days after the performance of the contract or termination of the security interest, the seller or secured party shall file with the director a notice, in such form as the director shall prescribe, containing evidence of such performance or termination. The director shall thereupon cause a notation to be made on his records of certificate of ownership of the motor vehicle that the contract has been satisfied or the security interest terminated. Any person violating the provisions of this section shall pay a fine of $25.00. back to top
   
   
   NEW JERSEY DMV