Ohio 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 vehicle for parts-only?
5. 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?
6. What steps must an insurer take in Ohio to process an owner-retained vehicle?
7. 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?
   
   Pursuant to Ohio Revised Code § 4505.11(C):
   
   (1) When an insurance company declares it economically impractical to repair such a motor vehicle and has paid an agreed price for the purchase of the motor vehicle to any insured or claimant owner, the insurance company shall receive the certificate of title and the motor vehicle and proceed as follows. Within thirty days the insurance company shall deliver the certificate of title to the clerk of the court of common pleas and shall make application for a salvage certificate of title. The clerk shall issue the salvage certificate of title on a form, prescribed by the registrar, that shall be easily distinguishable from the original certificate of title and shall bear the same number and information as the original certificate of title. Except as provided in division (C)(2) of this section, the salvage certificate of title shall be assigned by the insurance company to a salvage dealer or any other person for use as evidence of ownership upon the sale or other disposition of the motor vehicle, and the salvage certificate of title shall be transferrable to any other person. The clerk shall charge a fee of four dollars for the cost of processing each salvage certificate of title.
   
   (2) If an insurance company considers a motor vehicle as described in division (C)(1) of this section to be impossible to restore for highway operation, the insurance company may assign the certificate of title to the motor vehicle to a salvage dealer or scrap metal processing facility and send the assigned certificate of title to the clerk of the court of common pleas of the county in which the salvage dealer or scrap metal processing facility is located. The insurance company shall mark the face of the certificate of title "FOR DESTRUCTION" and shall deliver a photocopy of the certificate of title to the salvage dealer or scrap metal processing facility for its records. back to top


2. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of 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 by insured or endorsed by insurer accompanied by a power of attorney from insured to insurer), an odometer disclosure statement, a release of any liens, and an ACV. (Note: when submitting an Ohio Certificate of Title, the odometer disclosure is located on the back of the title). If the original certificate of title is not available the insurer will need to provide CarBuyerUSA with the registered owner’s social security number.
   
   CarBuyerUSA will submit these documents along with an Application for Certificate of Title filled out on the back of the Certificate of Title and the appropriate fee to the Bureau of Motor Vehicles for processing.
   
   Thereafter, the Bureau of Motor Vehicles shall issue a 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 Certificate of Title to the purchaser. [Ohio Revised Code § 4505.06] back to top


3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Salvage Certificate of 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 by insured or endorsed by insurer accompanied by a power of attorney from insured to insurer), an odometer disclosure statement, a release of any liens, and an ACV. (Note: when submitting an Ohio Certificate of Title, the odometer disclosure is located on the back of the title). If the original certificate of title is not available the insurer will need to provide CarBuyerUSA with the registered owner’s social security number. CarBuyerUSA will submit these documents along with an Application for Certificate of Title filled out on the back of the Certificate of Title and the appropriate fee to the Bureau of Motor Vehicles for processing. Thereafter, the Bureau 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.[Ohio Revised Code § 4505.11] back to top


4. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle for parts-only?
   
   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 by insured or endorsed by insurer accompanied by a power of attorney from insured to insurer), an odometer disclosure statement, a release of any liens, and an ACV. (Note: when submitting an Ohio Certificate of Title, the odometer disclosure is located on the back of the title). If the original certificate of title is not available the insurer will need to provide CarBuyerUSA with the registered owner’s social security number. Thereafter, CarBuyerUSA will mark the Certificate of Title “FOR DESTRUCTION”, and acting under a power of attorney for the insurer, will then sell the vehicle at auction. A copy of the Certificate of Title will be given to the purchaser. [Ohio Revised Code § 4505.11] back to top


5. 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 recovered, 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 by insured or endorsed by insurer accompanied by a power of attorney from insured to insurer), an odometer disclosure statement, a release of any liens, and an ACV. (Note: when submitting an Ohio Certificate of Title, the odometer disclosure is located on the back of the title). If the original certificate of title is not available the insurer will need to provide CarBuyerUSA with the registered owner’s social security number.
   
   After receipt of these documents, CarBuyerUSA will submit these documents along with an Application for Certificate of Title filled out on the back of the Certificate of Title and the appropriate fee to the Bureau of Motor Vehicles for in order to obtain the appropriate title depending upon the condition of the vehicle.
   
   CarBuyerUSA, acting upon a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s title to the purchaser. back to top


6. What steps must an insurer take in Ohio to process an owner-retained vehicle?
   
   Pursuant to Ohio Revised Code § 4505.11(C)(3):
   
   If an insurance company declares it economically impractical to repair a motor vehicle, agrees to pay to the insured or claimant owner an amount in settlement of a claim against a policy of motor vehicle insurance covering the motor vehicle, and agrees to permit the insured or claimant owner to retain possession of the motor vehicle, the insurance company shall not pay the insured or claimant owner any amount in settlement of the insurance claim until the owner obtains a salvage certificate of title to the vehicle and furnishes a copy of the salvage certificate of title to the insurance company. back to top


7. What legal duties are imposed upon a lienholder following satisfaction of the lien?
   
   Pursuant to Ohio Revised Code § 4505.13(B):
   
   
   If a security interest is fully discharged as a result of its holder's receipt of good funds in the correct amount and if the holder holds a physical certificate of title, the holder shall note the discharge of the security interest on the face of the certificate of title over the holder's signature, or over the holder's signature on a form prescribed by the registrar of motor vehicles when there is no space for the discharge on the face of the certificate of title. Except as otherwise provided in this section, prior to delivering the certificate of title to the owner, the holder or the holder's agent shall convey the certificate of title or a separate sworn statement of the discharge of the security interest to a clerk. The conveyance shall occur not more than seven business days after the date good funds in the correct amount to fully discharge the security interest have been credited to an account of the holder, provided the holder has been provided accurate information concerning the motor vehicle. Conveyance of the certificate of title or separate sworn statement of the discharge within the required seven business days may be indicated by postmark or receipt by a clerk within that period. If the discharge of the security interest appears to be genuine, the clerk shall note the cancellation of the security interest on the face of the certificate of title, if it was so conveyed, and note it in the automated title processing system and upon the records of the clerk.
   Pursuant to Ohio Revised Code § 4505.99, whoever violates section 4505.13 shall be fined not more than two hundred dollars, or imprisoned not more than ninety days, or both. back to top