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North 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?
  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 North Dakota 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?

    The department shall issue a salvage certificate of title for a salvaged or destroyed vehicle when the owner of the vehicle has returned the certificate of title for the vehicle to the department. The department shall prescribe the form and content of the salvage certificate of title. The certificate must include a prominent notation that it has been issued for a salvaged motor vehicle.

    [North Dakota Century Code § 39-05-20.1]

    The owner of a vehicle that is damaged in excess of seventy-five percent of its retail value as determined by the national automobile dealers association official used car guide, shall forward the title for that vehicle to the department within ten days and the department shall issue a salvage certificate of title.

    If a vehicle for which a salvage certificate of title has been issued is reconstructed, a regular certificate of title may be obtained by completing an application for the certificate. The applicant shall include with the application a certificate of inspection in the form required by the department, the salvage certificate of title, and a five dollar fee. The department shall place on the regular certificate of title and on all subsequent certificates of title issued for the vehicle the words "previously salvaged" and a notation that damage disclosure information is available from the department. The department may not issue a new certificate unless the vehicle identification number of the vehicle has been inspected and found to conform to the description given in the application or unless other proof of the identity of the vehicle has been provided to the satisfaction of the department.

    [North Dakota Century Code § 39-05-20.2]

      1. The department shall adopt rules relating to the manner and form of disclosing motor vehicle body damage on the certificate of title to a motor vehicle. The rules must provide for a damage disclosure statement from the transferor to the transferee at the time ownership of a motor vehicle is transferred and provide that the department may not transfer the title without the required damage disclosure statement.

      2. Motor vehicle body damage disclosure requirements apply only to the transfer of title on motor vehicles of a model year which have been released in the current calendar year and those motor vehicles of a model year which were released in the seven calendar years before the current calendar year. When a motor vehicle has been subject to this disclosure requirement and a motor vehicle of a model year has not been released in the current calendar year or the seven calendar years before the current calendar year, the holder of the certificate of title with the damage disclosure may have the disclosure removed and a new certificate of title issued for a fee of five dollars.

      3. As used in this section, "motor vehicle body damage" means a change in the body or structure of a motor vehicle, generally resulting from a vehicular crash or accident, including loss by fire, vandalism, weather, or submersion in water, resulting in damage to the motor vehicle which equals or exceeds the greater of eight thousand dollars or forty percent of the predamage retail value of the motor vehicle as determined by the national automobile dealers association official used car guide. The term does not include body or structural modifications, normal wear and tear, glass damage, hail damage, or items of normal maintenance and repair.

      4. A person repairing, replacing parts, or performing body work on a motor vehicle of a model year which was released in the current calendar year or the seven calendar years before the current calendar year shall provide a statement to the owner of the motor vehicle when the motor vehicle has sustained motor vehicle body damage requiring disclosure under this section. The owner shall disclose this damage when ownership of the motor vehicle is transferred. When a vehicle is damaged in excess of seventy-five percent of its retail value as determined by the national automobile dealers association official used car guide, the person repairing, replacing parts, or performing body work on the motor vehicle of a model year which has been released in the current calendar year or the seven calendar years before the current calendar year shall also advise the owner of the motor vehicle that the owner of the vehicle must comply with section 39-05- 20.2.

      5. The amount of damage to a motor vehicle is determined by adding the retail value of all labor, parts, and material used in repairing the damage. When the retail value of labor has not been determined by a purchase in the ordinary course of business, for example when the labor is performed by the owner of the vehicle, the retail value of the labor is presumed to be the product of the repair time, as provided in a generally accepted autobody repair flat rate manual, multiplied by thirty-five dollars.

      6. A person who violates this section or rules adopted pursuant to this section is guilty of a class A misdemeanor.

    [North Dakota Century Code § 39-05-17.2] 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 or accompanied by a power of attorney), an odometer disclosure statement, and a release of any liens.
    CarBuyerUSA will submit these documents along with an Application for Certificate of Title & Registration of a Vehicle and the appropriate fee to the Division of Motor Vehicle for processing.
    Thereafter, the Division of Motor Vehicle 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.
    [North Dakota Century Code §§ 39-05-05; 39-05-09] 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 or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, and a Damage Disclosure Statement.

    CarBuyerUSA will submit these documents along with an Application for Certificate of Title & Registration of a Vehicle, license plates, and the appropriate fee to the Division of Motor Vehicle for processing.

    Thereafter, the Division of Motor Vehicle 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.

    [North Dakota Century Code §§ 39-5-17.2; 39-05-20.1; 39-05-20.2] 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 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 an Application for Certificate of Title & Registration of a Vehicle and the appropriate fee to the Division of Motor Vehicle for processing.

    Thereafter, the Division of Motor Vehicle shall issue a Certificate of Title in the name of the insurer. Upon receipt, 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 Statement will be returned to CarBuyerUSA by the insurer in order to obtain the appropriate title depending upon 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 appropriate Title to the purchaser. back to top

  5. What steps must an insurer take in North Dakota to process an ownerretained vehicle?

    Per DMV, Insurance company isn't required to do anything. The owner is required to obtain the appropriate title. back to top

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

    1. Upon the satisfaction of a security interest in a vehicle for which the certificate of title is in the possession of the lienholder, the lienholder shall, within ten days after demand, and in any event within thirty days, execute a release of the lienholder's security interest as the department prescribes. The lienholder shall:

    1. Mail or deliver the certificate of title and release to the next lienholder named on the certificate of title, who shall, within thirty days of receipt, mail or deliver the certificate of title, release, and a fee of five dollars to the department. The department shall issue and mail or deliver a new certificate of title to the first lienholder named on the new certificate of title.
    2. If there are no other lienholders named on the certificate of title, mail or deliver the certificate of title and release to the owner or any other person who delivers to the lienholder an authorization from the owner to receive the certificate of title and release. The person receiving the certificate of title and release shall, within thirty days of receipt, mail or deliver the certificate of title, release, and a fee of five dollars to the department. The department may prescribe further application procedures and, upon determining that there has been a proper compliance with these procedures, shall issue a new certificate of title and mail or deliver it to the owner or any person the owner authorizes to receive it.

    2. Upon the satisfaction of a security interest in a vehicle for which the certificate of title is in the possession of a prior lienholder, the lienholder whose security interest is satisfied shall within ten days after demand and, in any event within thirty days, execute a release in the form the department prescribes and deliver the release to the owner or any person who delivers to the lienholder an authorization from the owner to receive it. The lienholder in possession of the certificate of title shall either deliver the certificate of title to the owner or the person authorized by the owner for delivery to the department; or, upon receipt of the release, mail or deliver it with the certificate of title to the department which shall, upon the payment of a five dollar fee, issue a new certificate.

    [North Dakota Century Code § 39-05-16.1] back to top

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