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South Dakota 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 ("clean title")?
  3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Salvage Vehicle Certificate of Title?
  4. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Junking Certificate of Title?
  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 South Dakota to process an ownerretained 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?

    If an insurer, in settlement of a total loss insurance claim, or self insurer acquires the ownership of any salvage vehicle as defined in section 2 of this Act that does not have a salvage vehicle title, the insurer shall within thirty days following acquisition of the certificate of title of that vehicle, surrender the certificate of title for such vehicle to the department. The department shall promptly issue a title indicating it is a salvage vehicle to the insurer or self insurer. Once a vehicle has been branded a salvage vehicle, nothing in this section prohibits a person from obtaining a rebuilt title pursuant to Section 32-3-53.

    [South Dakota Codified Laws Section 32-3-51.20]

    If an insurer or self insurer declares a vehicle to be a total loss but does not acquire ownership of the vehicle, the owner shall obtain a salvage title for the vehicle. The insurer or self insurer shall, in writing, notify the owner of the obligation to obtain a salvage title before the owner sells or transfers the title. If the owner sells or transfers the ownership of the vehicle without first obtaining a salvage title, the owner is guilty of a Class 1 misdemeanor. This section does not apply to any motor vehicle more than six model years old or with a gross vehicle weight rating of more than sixteen thousand pounds.

    [South Dakota Codified Laws Section 32-3-51.21]

    Each certificate of title issued by the department shall contain the following phrase: South Dakota state law requires the disclosure of damage on motor vehicles. This information is available upon written request from the Department of Revenue, Division of Motor Vehicles. Each certificate of title shall also contain on its front a statement as to whether previous damage disclosure statements indicate the motor vehicle had been damaged at one time in excess of five thousand dollars as provided by § 32-3-51.8.

    [South Dakota Codified Laws Section 32-3-51.7]

    Upon the sale, transfer, or trade-in of a motor vehicle, or if licensing a motor vehicle in South Dakota which is titled in another state or jurisdiction, the seller, transferor, trader, or person wishing to license in South Dakota the motor vehicle which is titled in another state or jurisdiction shall submit an accurately completed damage disclosure statement when applying for a certificate of title pursuant to § 32-3-18. The completed damage disclosure statement may be on the back of the certificate of title or on a separate document that has been approved for use by the department. Except as otherwise provided by this section, no certificate of title may be issued by the department unless the damage disclosure statement accompanies the application. It is a Class 1 misdemeanor to intentionally falsify any information on the damage disclosure statement. No person or dealer is liable to a subsequent owner of a vehicle because a prior owner of the vehicle failed to disclose that the vehicle had previously been damaged and repaired. This section does not apply to motor vehicles more than six model years old or with a gross vehicle weight rating of more than sixteen thousand pounds and does not apply if a rebuilt title or junking certificate is sought.

    This section does apply to all other motor vehicles, but only damage in excess of five thousand dollars shall be disclosed in the statement. If the motor vehicle has incurred damages more than once, only those damages which occurred at one time would be considered in determining whether the damages exceeded five thousand dollars.

    [South Dakota Codified Laws Section 32-3-51.8]

    For the purposes of the damage disclosure statement provided by Section 32-3-51.8, the term, damage, is damage to the motor vehicle caused by fire, vandalism, collision, weather, submersion in water, or flood, and does not include normal wear and tear, glass damage, mechanical repairs, or electrical repairs that have not been caused by fire, vandalism, collision, weather, submersion in water, or flood.

    [South Dakota Codified Laws Section 32-3-51.9]

    Any motor vehicle, trailer, or semitrailer whose title has been marked as nonrebuildable, parts only or whose owner has designated that the vehicle should not be placed upon the roads and highways, shall receive a junking certificate.

    [South Dakota Codified Laws Section 32-3-51-17] back to top

  2. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title ("clean title")?

    South Dakota only requires that a Damage Disclosure Statement (Form DMV- 610) be filled out on the back of the title if the vehicle is damaged in excess of five thousand dollars. Per DMV, some insurance companies always fill out the damage disclosure for liability purposes without regard for the amount of damage. 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, and a Damage Disclosure Statement (Form DMV-610).

    CarBuyerUSA will submit these documents along with Application for a Motor Vehicle Title (MV-608) to the Division of Motor Vehicles for processing.

    Thereafter, the Motor Vehicle Division 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.

    [South Dakota Codified Laws Section 32-3-51.7; 32-3-51.8; 32-3-51.9]back to top

  3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Salvage Vehicle Certificate of Title?

    South Dakota only requires that a Damage Disclosure Statement (Form DMV- 610) be filled out on the back of the title if the vehicle is damaged in excess of five thousand dollars. Per DMV, some insurance companies always fill out the damage disclosure for liability purposes without regard for the amount of damage. 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 Damage Disclosure Statement (Form DMV-610).

    CarBuyerUSA will submit these documents along with Application for a Motor Vehicle Title (MV-608) to the Division of Motor Vehicles for processing.

    Thereafter, the Motor Vehicle Division shall issue a Salvage Vehicle 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 Vehicle Certificate of Title to the purchaser.

    [South Dakota Codified Laws Section 32-3-51.7; 32-3-51.8; 32-3-51.9] back to top

  4. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Junking 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 or accompanied by a power of attorney if there is a lien holder), an odometer disclosure statement, a release of any liens, and a Damage Disclosure Statement (Form DMV-610).

    CarBuyerUSA will submit these documents along with Application for a Motor Vehicle Title (MV-608) to the Division of Motor Vehicles for processing.

    Thereafter, the Motor Vehicle Division shall issue a Junking 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. Note: A vehicle with a Junking Certificate of Title can never be issued a regular title.

    [South Dakota Codified Laws Section 32-3-51-17; 32-3-1(5)] 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 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 with last known mileage, and a release of any liens.

    After receipt of these documents, CarBuyerUSA will submit these documents along with Application for a Motor Vehicle Title (MV-608) to the Division of Motor Vehicles for processing.

    Thereafter, the Motor Vehicle Division shall issue a Certificate of Title in the name of the insurer. CarBuyerUSA will forward the Certificate of Title to the insurer for safekeeping.

    If the vehicle is recovered, the Certificate of Title along with a damage disclosure will be returned to CarBuyerUSA by the insurer in order to obtain the appropriate title depending upon the year of the vehicle and the damage to the vehicle.

    CarBuyerUSA, acting upon 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

  6. What steps must an insurer take in South Dakota to process an owner-retained vehicle?

    Per DMV, some insurance companies submit a statement stating that the vehicle has been determined a total loss and the insured has decided to keep the vehicle. Submission of this statement is not required and is kept on microfilm by the DMV.

  7. What legal duties are imposed upon a lienholder following satisfaction of the lien?

    If a lien is discharged, the lien holder shall execute a release within twenty days after final payment is received, the release shall contain the certificate of title number and the date of the notation. The lien holder shall deliver the release (and certificate of title if held by him) to any county treasurer. The treasurer shall note the cancellation of the lien on the face of the certificate of title and on the same day shall notify the secretary. The secretary shall cancel the lien on the state's computer system, if the county treasurer has not done so. If the certificate of title is lost as set forth in § 32-3-29, application for duplicate title may be forwarded along with the release to the department. The department shall cancel the lien. For failure to comply with these provisions relating to releasing a lien, the lien holder shall be liable to the owner for all damages sustained by the owner. The county treasurer shall mail or deliver the certificate of title to the owner, or as otherwise directed by the owner. Upon the satisfaction of a security interest in a motor vehicle, trailer or semitrailer for which the certificate of title is in the possession of the owner, the secured party shall within twenty days after final payment is received, execute a release of security interest on the form prescribed by the department and mail or deliver such release to the owner or as otherwise directed by the owner.

    [South Dakota Codified Laws Section 32-3-44] back to top

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