(a) A person who sells at the first or a subsequent sale a motor vehicle and who holds a general distinguishing number issued under Chapter 503 of this code or Chapter 2301, Occupations Code, shall:
(1) except as provided by this section, in the time and manner provided by law, apply, in the name of the purchaser of the vehicle, for the registration of the vehicle, if the vehicle is to be registered, and a title for the vehicle and file with the appropriate designated agent each document necessary to transfer title to or register the vehicle; and at the same time
(2) remit any required motor vehicle sales tax.
(b) This section does not apply to a motor vehicle:
(1) that has been declared a total loss by an insurance company in the settlement or adjustment of a claim;
(2) for which the title has been surrendered in exchange for:
(A) a salvage vehicle title or salvage record of title issued under this chapter;
(B) a nonrepairable vehicle title or nonrepairable vehicle record of title issued under this chapter or Subchapter D, Chapter 683; or
(C) an ownership document issued by another state that is comparable to a document described by Paragraph (A) or (B);
(3) with a gross weight in excess of 11,000 pounds; or
(4) purchased by a commercial fleet buyer who:
(A) is a deputy authorized by rules adopted under § 520.0071;
(B) utilizes the dealer title application process developed to provide a method to submit title transactions to the county in which the commercial fleet buyer is a deputy; and
(C) has authority to accept an application for registration and application for title transfer that the county assessor-collector may accept.

Terms Used In Texas Transportation Code 501.0234

  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.

(c) Each duty imposed by this section on the seller of a motor vehicle is solely that of the seller.
(d) A seller who applies for the registration or a title for a motor vehicle under Subsection (a)(1) may apply:
(1) to the county assessor-collector of the county in which:
(A) the owner is domiciled; or
(B) the motor vehicle is purchased or encumbered; or
(2) to any county assessor-collector who is willing to accept the application.
(e) Repealed by Acts 2021, 87th Leg., R.S., Ch. 592 (S.B. 876), Sec. 11(2), eff. March 1, 2022.
(f) A seller has a reasonable time to comply with the terms of Subsection (a)(1) and is not in violation of that provision during the time the seller is making a good faith effort to comply. Notwithstanding compliance with this chapter, equitable title to a vehicle passes to the purchaser of the vehicle at the time the vehicle is the subject of a sale that is enforceable by either party.

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