12 Common Mistakes Made in Commercial Equipment Ownership Titling
Buying new equipment is a major investment for commercial motor carriers. Time is always of the essence to get that equipment on the road, earning money, and paying for the heavy costs involved.
In most States, prior to being able to get that equipment on the road, the Certificate of Title must be transferred into your name with your home state. Depending upon the State, this is done through agencies with names like Department of Motor Vehicles (DMV), Department of Licensing (DOL), Department of Revenue (DOR) or Department of Transportation (DOT).
No matter the agency name, the process can be filled with pitfalls that can delay the process and add additional costs.
Forget about the time it takes to stand in line for your turn at the window or the days and weeks involved in the processing if you mail it in. The paperwork can be the biggest hurdle with States oftentimes requiring obscure rules that can turn what should be just a simple process of collecting fees to a nightmare that will frustrate even the seasoned title processor.
Common titling mistakes that can prevent the transfer from being completed and commonly made are:
Failing to get the original Title or Certificate of Origin
On used equipment, not obtaining an original signature from the previous owner on the title relinquishing their ownership
When the previous owner was a company, the previous owner signoff does not include company name, signature and title of the individual
Not listing the lessee, lessor, and/or lean holder correctly or in the correct place within the form
The new owner name the name on the title is incorrectly listed. Some states require that the name on the title exactly match the name listed on its Commercial Motor Carrier Account. (even forgetting to add the entity type such as “Inc.” after the name can cause a mismatch and disqualify the transaction from being completed)
For States that require Notary, failure to have the paperwork notarized properly
Failure to provide any required supporting documents which can include such things as scale receipts, bill of sale, proof of residency, insurance information, odometer declaration, proof of sales tax paid, and more.
Copies of leases when in a lessee/lessor arrangement
Vin inspections not performed as required in some states
Emissions testing was not completed as required in some states
Not having a properly documented Power of Attorney when signing on behalf of someone else
Not signing the document properly as the Power of Attorney
* Bonus Tip: Erasing or using white-out on a title (instead of drawing a line through or strikeout) the mistake which will void the form, if obvious
With the many pitfalls, it’s no wonder why many outsource the process of transferring ownership to experts who handle these issues every day. An expert can typically get the process completed within 24 hours of receiving the required paperwork.
Should you need help with a title transfer, give us a call (503-607-1088) or learn more here! We are the Oregon and Washington title transfer experts and serve clients nationwide!