The Expert Podcast

If you're a car collector or automotive enthusiast, you may purchase vehicles from places like Craigslist or discover barn finds. Occasionally, you could come across vehicles that don’t have a title. For many years, there was a Vermont loophole that people used to obtain titles, which has been featured on sites like Hagerty, Car and Driver, Jalopnik, and even on our website, Car Titles, where we've discussed the Vermont title loophole. This loophole was available for nearly 20 years as a way to get a title if you were missing documents.

However, in June of 2023, the state of Vermont, under pressure from various states' Departments of Motor Vehicles, canceled and closed that loophole. This means you can no longer use it to obtain a title when you’re missing paperwork. So, what’s the new process? The alternative method for obtaining a title isn’t new; it’s been around for a while and, in most cases, is a better option than the Vermont process. It’s faster, cheaper, and often yields better results.

Let’s take a look at this alternative process for those who need to obtain a legal title certificate when they’re missing title paperwork. The title certificate is the end result you’re looking for – a legal document issued by a government agency that proves you are the legal owner of a vehicle. It’s an official document that shows the vehicle exists and is in your name. You can’t buy one from a company or download it from the internet; it must be issued by a state government agency, usually the Department of Motor Vehicles or a similar entity.

DMVs don’t issue titles based on verbal requests or bills of sale alone. You need something proving that the legal owner transferred the vehicle to you. In some states, you can pursue a bonded title, which involves purchasing a surety bond from a bonding agency, though there are downsides to this. Today, we’re discussing the alternative process to the Vermont loophole, known as a court-ordered title.

The way this process works is straightforward. You file several documents in the county court where you reside. The first document is a petition – an example from Pennsylvania would be a petition for involuntary transfer of a vehicle. In this petition, you ask the court to declare you the owner and transfer the vehicle from the current owner to you based on the evidence provided. Evidence could include a bill of sale, proof of payment, or even text messages or emails from the seller.

The second document is an affidavit of facts, which narrates how you obtained the vehicle. This might include details like purchasing the vehicle on Craigslist and the seller not having a title but providing a bill of sale. You’ll need to include specifics about the vehicle, such as its year, make, model, and VIN number. Each county may have different procedures for filing these forms; some even have pre-prepared forms for such cases.

Most counties don’t offer ready-made forms, so you’ll have to create these documents yourself. You might need to include a declaration of no interest, stating that, to your knowledge, no one else has a claim on the vehicle. If there is someone else who may have a claim, you must disclose this to the court, as failing to do so could be considered providing false information. This disclosure doesn’t necessarily mean the court will give the vehicle to another party, but it allows them to consider all claims fairly.

The fourth document is a title application, which, once signed, can be submitted to the DMV. This is typically an administrative process rather than a formal court hearing. In Pennsylvania, for instance, the prothonotary’s office reviews the application, performs a background check to confirm the vehicle isn’t stolen or has no liens or salvage history, and, if all is in order, signs the declaration of ownership. You can then present this to the DMV or titling division to obtain your title.

Sometimes, the DMV may ask for additional information, like a photo of the VIN number, a copy of your license, or an oath swearing that the information provided is true. Remember, we’re not attorneys and this isn’t legal advice; it’s simply guidance on how the process works. Our website, CarTitles.com, has videos and examples of forms if you’d like additional guidance. We also offer a title service where we can help prepare these documents based on your information.

A court-ordered title is a powerful method because a court’s decision overrides that of the DMV. The DMV isn’t allowed to issue a title based on a bill of sale or verbal statement alone, as they require documented proof of ownership transfer. Only the court has the authority to make legal ownership decisions, which the DMV must then honor.

If you’re looking to file a court-ordered title request, you might need to complete some administrative forms, like civil cover sheets or docket requests. Our website has resources for those who wish to file on their own. In counties where pre-created forms aren’t available, you can use a similar format from unrelated cases, like small claims, to ensure your documents meet county standards.

Seeking help from a title service can be beneficial if you’re unsure about the process. Be cautious, however, about how the title is obtained – if you grant someone power of attorney or ownership rights, they can control the process and could act in ways that might jeopardize your title. Improperly obtained titles can be revoked, so make sure any assistance is transparent and legitimate.

If you have questions, visit CarTitles.com. We offer live consultations to answer questions without any obligation to purchase services. We’re here to assist and provide guidance throughout the title acquisition process.