41-1a-1004.  Certificate of title — Salvage vehicles — Buyer notification of salvage or total loss vehicle.

(1)  If the division is able to ascertain the fact, at the time application is made for initial registration or transfer of ownership of a salvage vehicle, the title shall be branded:

Terms Used In Utah Code 41-1a-1004

  • Branded title: means a title certificate that is labeled:
(a) rebuilt and restored to operation;
(b) flooded and restored to operation; or
(c) not restored to operation. See Utah Code 41-1a-102
  • Dealer: means a person engaged or licensed to engage in the business of buying, selling, or exchanging new or used vehicles, vessels, or outboard motors either outright or on conditional sale, bailment, lease, chattel mortgage, or otherwise or who has an established place of business for the sale, lease, trade, or display of vehicles, vessels, or outboard motors. See Utah Code 41-1a-102
  • Division: means the Motor Vehicle Division of the commission, created in Section 41-1a-106. See Utah Code 41-1a-102
  • Motor vehicle: means a self-propelled vehicle intended primarily for use and operation on the highways. See Utah Code 41-1a-102
  • Registration: means a document issued by a jurisdiction that allows operation of a vehicle or vessel on the highways or waters of this state for the time period for which the registration is valid and that is evidence of compliance with the registration requirements of the jurisdiction. See Utah Code 41-1a-102
  • 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.
  • Title: means the right to or ownership of a vehicle, vessel, or outboard motor. See Utah Code 41-1a-102
  • Vehicle: includes a motor vehicle, trailer, semitrailer, off-highway vehicle, camper, park model recreational vehicle, manufactured home, and mobile home. See Utah Code 41-1a-102
  • (a)  rebuilt and restored to operation;

    (b)  in a flood and restored to operation; or

    (c)  not restored to operation.

    (2) 

    (a) 

    (i)  Except as provided in Subsection (2)(b), before the sale of a vehicle for which a salvage certificate or branded title has been knowingly issued or knowingly declared a total loss by an insurance company, the seller shall provide the prospective purchaser with written notification that a salvage certificate or a branded title has been issued for the vehicle.

    (ii)  If the vehicle is a salvage vehicle or if the vehicle has been declared a total loss by an insurance company, the notification shall be as required in Section 41-1a-1005.3.

    (b)  The requirement to provide written notification under Subsection (2)(a) does not apply if:

    (i)  the prospective purchaser, motor vehicle auction, or seller is:

    (A)  a licensed motor vehicle dealer whose primary business is auctioning salvage motor vehicles to licensed salvage vehicle buyers; or

    (B)  an insurance company, if the sale of the vehicle is the result of a total loss settlement; or

    (ii)  the vehicle has been stolen, recovered, and declared a total loss by an insurance company but does not meet the definition of a salvage vehicle.

    (3) 

    (a)  An advertisement for the sale of a vehicle for which a salvage certificate or branded title has been issued shall disclose that a salvage certificate or branded title has been issued for the vehicle.

    (b) 

    (i)  Except as provided in Subsection (3)(b)(ii), an advertisement for a vehicle declared a total loss by an insurance company shall disclose that the vehicle has been declared a total loss by an insurance company.

    (ii)  A vehicle that has been stolen, recovered, and declared a total loss by an insurance company but does not meet the definition of a salvage vehicle is exempted from the advertising requirement described in Subsection (3)(b)(i).

    (iii)  Subsections (3)(a), (3)(b)(i), and (3)(b)(ii) do not apply to a motor vehicle auction or a consigner to a motor vehicle auction if no disclosure is required under Section 41-1a-1005.3.

    (c)  The advertisement disclosure under Subsection (3)(a) or (b)(i) shall:

    (i)  be displayed at least as prominently as the description of the advertised vehicle is displayed; and

    (ii)  if a salvage certificate or branded title has been issued or the vehicle has been declared a total loss by an insurance company:

    (A)  use the words “salvage certificate” or “branded title” in the advertisement; or

    (B)  use the words “insurer declared total loss.”

    Amended by Chapter 267, 2020 General Session