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Utah 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 Utah 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?

    Portions of relevant Utah Code addressing titling requirements for salvage vehicles are set forth below:

    Utah Code § 41-1a-1001:

      (b) A salvage certificate is not valid for registration purposes. (6) "Salvage vehicle" means any vehicle:
      (a) damaged by collision, flood, or other occurrence to the extent that the cost of repairing the vehicle for safe operation exceeds its fair market value; or
      (b) that has been declared a salvage vehicle by an insurer or other state or jurisdiction, but is not precluded from further registration and titling.

    Utah Code § 41-1a-1005:

      (b) (i) through (iv) [omitted]
      (c) (i) through (ii) [omitted]
      (d) (i) through (ii) [omitted]
      (2) Any person, insurance company, or dealer licensed under Title 41, Chapter 3, Part 2, Licensing, who fails to obtain a salvage certificate as required in this section or who sells a salvage vehicle without first obtaining a salvage certificate is guilty of a class B misdemeanor.
      (3) This section does not apply to a vehicle:
      (a) that has an undamaged, wholesale value of $2,000 or less; or
      (b) if a salvage certificate has been issued by another state or jurisdiction for the salvage vehicle.
      (4) Upon sale or disposal of a salvage vehicle, the seller shall deliver to the purchaser the properly endorsed salvage certificate within 48 hours as required in Section 41-1a-1310, or if the selleris a dealer licensed under Title 41, Chapter 3, Part 2, Licensing, the dealer shall comply with Section 41-3-301.
       (5) Except as provided in Subsection (1), this chapter does not apply to a motor vehicle that has been stolen or taken without the consent of the owner until the motor vehicle has been recovered, and then it applies only if the motor vehicle is a salvage vehicle. 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, a release of any liens, an ACV, and a cost of repair.

    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. [See Utah Code § 41-1a-702] 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, an ACV, and a cost of repair.

    CarBuyerUSA will submit these documents along with an Application for Utah Title marked Salvage Title (Form TC-656, 7-01) and the appropriate fee to the Utah State Tax Commission - Motor Vehicle Division for processing.

    Thereafter, the Utah State Tax Commission – Motor Vehicle Division shall send CarBuyerUSA the 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. [See Utah Code §§ 41-1a-1001, 1004, 1005] 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 with last known mileage, and a release of any liens.

    After receipt of these documents, CarBuyerUSA will submit these documents along with Application for Utah Title marked Salvage Title (Form TC-656, 7-01) and the appropriate fee to the Utah State Tax Commission – Motor Vehicle Division for processing.

    Thereafter, the Utah State Tax Commission – Motor Vehicle Division shall send CarBuyerUSA the 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 along with an ACV, cost of repair, and a Combined Affidavit stating vehicle was stolen and recovered 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 Title to the purchaser. [Utah Code §§ 41-1a- 1001, 1004, 1401] back to top

  5. What steps must an insurer take in Utah to process an owner-retained vehicle?

  6. Pursuant to Utah Code § 41-1a-1005:

      (ii) The insurance company shall notify the owner of the vehicle of his responsibility to comply with this section.

      (iii) The owner shall within ten days from the settlement of the loss surrender to the division the properly endorsed certificate of title or other evidence of ownership acceptable to the division.

      (iv) The division shall then issue a salvage certificate in the owner's name. back to top
  7. What legal duties are imposed upon a lienholder following satisfaction of the lien?

    Pursuant to Utah Code § 41-1a-608(1):

    (1) A person holding a lien or encumbrance as shown upon a certificate of title upon a vehicle or vessel may release the lien or encumbrance or assign his interest to the owner without affecting the registration of the vehicle or vessel.

    (2) The division shall issue a new certificate of title without a lien previously recorded upon receiving:

      (i) upon which a lienholder has released or assigned his interest to the owner; or
      (ii) not so endorsed but accompanied by a legal release from a lienholder of his interest in or to a vehicle, vessel, or outboard motor;
      (b) an application properly completed; and
      (c) the proper fee.
      back to top

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