                                 CODE OF VIRGINIA

TEMPORARY REGISTRATION (§ 46.2-1542)

A. Notwithstanding &#xA7;&#xA7; 46.2-617 and 46.2-628, whenever a dealer
licensed by the Board sells or conditionally sells and delivers to a purchaser a
motor vehicle, the dealer may issue temporary license plates and a certificate
of temporary registration. The temporary license plates and the certificates for
temporary registration shall be obtained from the Commissioner or may be printed
according to terms set by the Commissioner and may be issued if (i) the dealer
has the title or the certificate of origin for the vehicle or (ii) is unable at
the time of the sale to deliver to the purchaser the certificate of title or
certificate of origin for the vehicle because the certificate of title or
certificate of origin is lost or is being detained by another in possession or
for any other reason beyond the dealer&#8217;s control. The temporary
registration certificate shall bear its date of issuance, the name and address
of the purchaser, the identification number of the vehicle, the registration
number to be used temporarily on the vehicle, the name of the state in which the
vehicle is to be registered, the name and address of the person from whom the
dealer acquired the vehicle, and whatever other information may be required by
the Commissioner. A copy of the temporary registration certificate and a bona
fide buyer&#8217;s order shall be delivered to the purchaser and shall be in the
possession of the purchaser at all times when operating the vehicle. One copy of
the certificate shall be retained by the dealer, which copy may be retained in
electronic format under terms set by the Commissioner, and shall be subject to
inspection at any time by the Department&#8217;s agents. The original of the
certificate shall be forwarded by the dealer to the Department directly on
issuance to the purchaser if the vehicle is to be titled outside the
Commonwealth, along with the physical or electronic application for title. The
issuance of a temporary certificate of registration to a purchaser pursuant to
this section shall have the effect of vesting sufficient interest in the vehicle
in the purchaser for the period that the certificate remains effective for
purposes of allowing the purchaser (a) to obtain and provide insurance coverage
for the vehicle, including insurance indemnifying the purchaser against
liability or providing for recovery for damage to or loss of the vehicle and (b)
to operate the vehicle as if the purchaser had full rights of ownership, all
subject to cancellation by applicable law or agreement between the dealer and
the purchaser prior to the time the dealer submits an application for title
along with all required fees. If the dealer or purchaser exercises the statutory
or contractual rights to cancel a purchaser&#8217;s contract to buy a vehicle
before application for title to the vehicle has been submitted to the Department
in the name of the purchaser, the dealer shall have the right to possession of
the vehicle without claim of possession by the purchaser within 24 hours of
written or oral notice to the purchaser and without regard to the provision of
Title 8.9A, provided the dealer&#8217;s right to possession is enforced
otherwise in accordance with law and without breach of the peace. In the event
the dealer regains possession of the vehicle, in the same condition, normal wear
and tear excepted, as delivered to the purchaser, the purchaser shall have the
right to possession of any trade-in and return of any down payment, and if the
dealer fails to return the trade-in and/or down payment the dealer may be held
liable under &#xA7; 59.1-200 of the Virginia Consumer Protection Act (&#xA7;
59.1-196), in addition to any other rights and remedies available by statute or
contract.

B. A temporary certificate of registration issued by a dealer to a purchaser
pursuant to this section shall expire when the certificate of title to the
vehicle is issued by the Department in the name of the purchaser or vehicle
ownership is transferred in accordance with &#xA7; 46.2-603.1 and the permanent
license plates have been affixed to the vehicle, but in no event shall any
temporary certificate of registration issued under this section be effective for
more than 30 days from the date of its issuance. In the event that the dealer
fails to produce the old certificate of title or certificate of origin to the
vehicle, fails to transfer vehicle ownership in accordance with &#xA7;
46.2-603.1, or fails to apply for a replacement certificate of title pursuant to
&#xA7; 46.2-632, thereby preventing delivery to the Department or purchaser
before the expiration of the temporary certificate of registration, the
purchaser&#8217;s temporary rights may terminate and the purchaser shall have
the right to return the vehicle to the dealer and obtain a full refund of all
payments made toward the purchase of the vehicle, provided the purchaser
provides notice to the dealer of a decision to return the vehicle before
issuance of a title for the vehicle by the Department, less any damage to the
vehicle incurred while ownership was vested in the purchaser, and less a
reasonable amount for use not to exceed one-half the amount allowed per mile by
the Internal Revenue Service, as provided by regulation, revenue procedure, or
revenue ruling promulgated pursuant to &#xA7; 162 of the Internal Revenue Code,
for use of a personal vehicle for business purposes.

C. Notwithstanding subsection B, if the dealer fails to deliver the certificate
of title or certificate of origin to the purchaser or fails to transfer vehicle
ownership in accordance with &#xA7; 46.2-603.1 within 30 days, a second
temporary certificate of registration may be issued. However, the dealer shall,
not later than the expiration of the first temporary certificate, deliver to the
Department an application for title, copy of the bill of sale, all required fees
and a written statement of facts describing the dealer&#8217;s efforts to secure
the certificate of title or certificate of origin to the vehicle. On receipt of
the title application with attachments as described herein, the Department shall
record the purchaser&#8217;s rights hereunder to the vehicle and may authorize
the dealer to issue a second 30-day temporary certificate of registration. If
the dealer does not produce the certificate of title or certificate of origin to
the vehicle before the expiration of the second temporary certificate, the
purchaser&#8217;s rights to the vehicle under this section may terminate and he
shall have the right to return the vehicle as provided in subsection B.

D. If the dealer is unable to produce the certificate of title or certificate of
origin to the vehicle or transfer vehicle ownership in accordance with &#xA7;
46.2-603.1 within the 60-day period from the date of issuance of the first
temporary certificate, the Department may extend temporary registration for an
additional period of up to 90 days, provided the dealer makes application in the
format required by the Department. If the dealer does not produce the
certificate of title or certificate of origin to the vehicle or transfer vehicle
ownership in accordance with &#xA7; 46.2-603.1 before the expiration of the
additional 90-day period, the purchaser&#8217;s rights hereunder to the vehicle
may terminate and he shall have the right to return the vehicle as provided in
subsection B.

E. The Commissioner, on determining that the provisions of this section or the
directions of the Department are not being complied with by a dealer, may
suspend, after a hearing, the right of the dealer to issue temporary
certificates of registration.
			The provisions of this section shall also apply to watercraft trailers and
watercraft trailer dealers but shall not apply to all-terrain vehicles and
off-road motorcycles.

HISTORY: 1988, c. 865, § 46.1-550.5:1; 1989, cc. 364, 727; 1995, cc. 767, 816;
2006, cc. 835, 897; 2009, c. 783; 2012, c. 650; 2015, c. 615.