New York 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 1972 or older vehicle?
3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Salvage Certificate (1973 or newer vehicle)?
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 York to process an owner-retained vehicle?
6. What legal duties are imposed upon a lienholder following satisfaction of the lien?
   
   
   

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?
   
   [W]henever a person acquires a junk and salvage vehicle, other than by receiving a properly endorsed MV-907A (transfer copy), such person shall properly complete an MV-907A in accordance with the instructions on the form and submit the DMV copy to the Department of Motor Vehicles within 15 business days of the date such vehicle was acquired, together with the title certificate or other proof of ownership for such vehicle. If the title certificate indicates there is a lien or liens on the vehicle, and if any such lien or liens are satisfied, "Satisfaction of Lien," form MV-901 should also be submitted. The person who acquired the junk and salvage vehicle retains the other two parts of form MV-907A. The transfer copy serves as proof of ownership for the vehicle and may be used to transfer the vehicle. This subdivision does not apply to scrap processors.
   
   If an insurance company is required to file an MV- 907A, either an appraisal report or two pictures of the vehicle, taken from two different points, showing the major damage to the vehicle, if any, shall be filed with the DMV copy of the MV- 907A. This provision shall not apply to an MV-907A filed with respect to an unrecovered stolen vehicle. If an out-of-state insurance company uses an adjustor in New York to settle a total loss claim, then the adjustor shall file form MV- 907A. If an insurance company authorizes a salvage pool or a vehicle dismantler to possess a vehicle, but is unable to promptly deliver the MV-907A for that vehicle, it shall deliver or mail within four days a written document authorizing the salvage pool or vehicle dismantler to possess the vehicle. The written document must identify the vehicle by year, make, vehicle identification number and, if appropriate, insurance company file number. More than one vehicle may be identified on a single letter or other written document.
   
   A person who has filed form MV-907A with the Department of Motor Vehicles may transfer such vehicle by delivering the corresponding and properly completed MV-907A (transfer copy) to the buyer. [See New York Comp. Codes Rules & Regulations, Title 15, § 81.8. Also see New York State Consolidated Laws, Vehicle & Traffic, §§ 429 and 430]
   
   A junk and salvage vehicle is any 1973 or later model year vehicle which has been transferred to an insurance company in settlement of a claim for damage thereto or theft thereof and any 1973 or later model vehicle which has been sold or otherwise disposed of as junk or salvage. [See New York Comp. Codes Rules & Regulations, Title 15, § 81.1(b)(6)] back to top
   
   
2. What documents must an insurer provide to CarBuyerUSA in order to sell a 1972 or older vehicle?
   
   The insurer shall provide CarBuyerUSA with the New York Registration Card (note: no titles existed on 1972 or older vehicles), either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, and a Bill of Sale.
   
   CarBuyerUSA, acting as agent for the insurer, will sign over the registration card to the insurer.
   
   CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and provide the Registration Card and Bill of Sale to the purchaser. [See New York Comp. Codes Rules & Regulations Title 15, § 81.1(b)(6)] back to top
   
   
3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Salvage Certificate?
   
   The insurer shall provide CarBuyerUSA with a Certificate of Title (either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, and two photos of the car or a damage estimate to CarBuyerUSA. If a vehicle has been stolen and not recovered, the two photos of the car or a damage estimate is not required.
   
   After receiving these documents, CarBuyerUSA or the insurer will fill out a form MV- 907A (Salvage Certificate) in triplicate on behalf of the insurer. The Department of Motor Vehicles’ copy of the MV-907A along with the above documents and the appropriate fee will be forwarded to the Department of Motor Vehicles for processing.
   
   CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the transfer copy of the MV-907A (Salvage Certificate) to the purchaser. [See New York Comp. Codes Rules & Regulations, Title 15, § 81.8. Also see New York State Consolidated Laws, Vehicle & Traffic, § 429] 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, and a release of any liens. After receiving these documents, CarBuyerUSA will fill out a MV-907A (Salvage Certificate) in triplicate on behalf of the insurer and check the stolen vehicle box. The Department of Motor Vehicles’ copy of this form along with the above documents and the appropriate fee will be forwarded to the Department of Motor Vehicles for processing.
   
   CarBuyerUSA will forward the insurer’s copy of the MV-907A (Salvage Certificate) to the insurer for safekeeping.
   
   If that vehicle is recovered, the insurer will do the following:
   
   If the vehicle has less than 75% of ACV in damages, the insurance company can return the MV-907A (Salvage Certificate) along with a “Brand Waiver Letter” and two photos of the car or damage estimate is not required. CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the transfer copy of the MV-907A (Salvage Certificate) to the purchaser along with the “Brand Waiver Letter” attached. (Note: The “Brand Waiver Letter” allows the buyer to convert the title to a New York Certificate of Title after the car is taken through the inspection process and if the vehicle has less than 75% of ACV in damages.)
   
   If the vehicle has less than $1,000 in damage or the damage does not exceed onefourth of the amount paid by the insurance company in settlement of the claim, and no major component part of the motor vehicle has been replaced since the theft of such vehicle, and the VIN plates are intact and undamaged, the insurance company can return the MV-907A (Salvage Certificate) along with a “Regular Waiver Letter” and two photos of the care or damage estimate is not required. CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the transfer copy of the MV-907A (Salvage Certificate) to the purchaser along with the Regular Waiver Letter attached. (Note: The “Regular Waiver Letter” allows the buyer to convert the title to a New York Certificate of Title without further inspection if the vehicle has less than $1,000 in damage, or the damage does not exceed one-fourth of the amount paid by the insurance company in settlement of the claim, and no major component part of the motor vehicle has been replaced since the theft of such vehicle, and the VIN plates are intact and undamaged.)
   
   Otherwise, the insurance company will return the MV-907A (Salvage Certificate) to CarBuyerUSA. CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the transfer copy of the MV-907A (Salvage Certificate) to the purchaser. [See New York Vehicle and Traffic Law, §§ 429, 430] back to top
   
   
5. What steps must an insurer take in New York 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?
   
   
Upon the satisfaction of a security interest in a vehicle the lienholder shall immediately upon clearance of payment execute a release of his security interest in a manner prescribed by the commissioner and mail or deliver the release to the owner or any person who delivers to the lienholder an authorization from the owner to receive the certificate. Payment sufficient to satisfy the security interest by an insurer of the owner shall be deemed an authorization by the owner for the delivery of the release of the security interest to the insurer. If the payment in satisfaction of the security interest is in cash, certified check, intra-bank transfer of funds or an uncertified check or draft issued by an insurance company authorized to do business in this state, the payment shall be deemed to be cleared immediately upon receipt. The owner, other than a dealer holding the vehicle for resale, may cause the certificate and release to be mailed or delivered to the commissioner, who shall release the lienholder's rights on the certificate or issue a new certificate. Pursuant to New York Vehicle and Traffic Law 2130, it is a misdemeanor if a person fails to mail or deliver a certificate of title or application therefore to the department within ten days after time required. [See New York Vehicle and Traffic Law, §2121; 2130] back to top


NEW YORK DMV