Sec. 501.051. GROUNDS FOR REFUSAL TO ISSUE OR FOR REVOCATION OR SUSPENSION OF TITLE  


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  • (a) A title may be refused, canceled, suspended, or revoked by the department if:

    (1) the application contains a false or fraudulent statement;

    (2) the applicant failed to furnish required information requested by the department;

    (3) the applicant is not entitled to a title;

    (4) the department has reason to believe that the motor vehicle is stolen;

    (5) the department has reason to believe that the issuance of a title would defraud the owner or a lienholder of the motor vehicle;

    (6) the registration for the motor vehicle is suspended or revoked; or

    (7) the required fee has not been paid.

    (b) The department may rescind, cancel, or revoke an application for a title if a notarized affidavit is presented containing:

    (1) a statement that the vehicle involved was a new motor vehicle in the process of a first sale;

    (2) a statement that the dealer, the applicant, and any lienholder have canceled the sale;

    (3) a statement that the vehicle:

    (A) was never in the possession of the title applicant; or

    (B) was in the possession of the title applicant; and

    (4) the signatures of the dealer, the applicant, and any lienholder.

    (c) A rescission, cancellation, or revocation containing the statement authorized under Subsection (b)(3)(B) does not negate the fact that the vehicle has been the subject of a previous retail sale.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by: Acts 2011, 82nd Leg., R.S., Ch. 1296 , Sec. 28, eff. January 1, 2012.