How many types of vehicle registration documents are there?

You may know that a vehicle title is a legal document issued by the state that serves as proof of ownership, but you may not know how many types of vehicle titles there are. Knowing the different types of vehicle titles can be important to you as a current (or future) car owner in case you ever come across a vehicle title you are not so familiar with.

Different Types of Vehicle Titles

There are several different types of vehicle titles, but they can be broadly divided into three types based on what they specifically state:

The vehicle's ownership status: These titles are used to indicate legal ownership of the vehicle and possibly the vehicle's previous ownership history.

Vehicle's condition: These types of titles are typically used to determine a vehicle's roadworthy condition and legal ability to operate on the road.

Manufacturer's title: These titles are typically used by vehicle manufacturers to verify information such as a vehicle's make, model and VIN, or to legally clear a vehicle for export or import.

Breaking down vehicle titles into three categories (and the subcategories you'll see below) is helpful simply because of the variety of legal scenarios a car can go through during its lifetime. A single vehicle can be exported by a manufacturer for sale, financed through a lender, and then pass through multiple owners before reaching the end of its life - and each step can require its own unique type of title. With so many situations, it can be helpful to know whether a title indicates ownership status, the condition of the vehicle, or manufacturer-related status.

Examples of car titles

There are over a dozen types of car titles, and while you may not be concerned with a more obscure variety like an odometer reset title, it can still prove useful to have a basic understanding of the different titles:

property status title

• Clear or "clean" title: This is typically one of the most common title types and establishes that the car is fully owned by the person named in the title and there are no known liens on it. In some states, the lender may physically hold the paper copy of the title until the lien is released . In other cases, the title status is recorded electronically.
• Bonded title: This title type can come into play if you don't have the ownership documents for the vehicle. Perhaps you lost them, or a previous owner did n't properly sign the vehicle title when selling it. Instead, you can pay a bond or surety to your state's Department of Motor Vehicles (DMV) to establish legal ownership of the car. This is necessary in case someone comes forward and claims the vehicle is theirs. After a certain period of time passes with no claims against the vehicle (up to five years, depending on where you live), the DMV will typically exchange your bonded title for a free title.
• Affidavit Title: This refers to a notarized, legal document provided by the seller of a property that certifies ownership status and any potential legal issues related to the property and themselves. This type of title is designed to protect a buyer from potential legal liability related to the property and the seller. For example, an affidavit will outline whether there is a lien obligation associated with the vehicle that a seller may be required to satisfy before the sale.
• Memorandum Title: This sometimes indicates a temporary title that may be issued by state DMVs when a car crosses state lines, typically during an out-of-state sale . They are also issued in most states to buyers who have financed a car and have an outstanding loan (such as a lien) on the vehicle. In this case, after the loan is fully paid off, the buyer can replace the memorandum title with a clear title and gain full ownership of the vehicle. Usage may vary from state to state, as may the process for converting a temporary memorandum title to a permanent one.

condition of the car titles

• Salvage title: Insurance companies typically issue a salvage title to a car that they consider purely from an insurance perspective. If a car has a salvage title, it is usually not allowed to drive on public roads.
• Rebuilt or Rebuilt Title: A junk car that has been rebuilt, repaired, or otherwise restored to working condition can receive a rebuilt title if it passes state-required inspections to be considered drivable again.
• Parts-only title: This type of car title is often a sub-title of a salvage title, indicating that the vehicle cannot be rebuilt and that the car may only be sold for parts .
• Disassembled Title: This indicates a car that is missing (or was missing) a key component and is therefore no longer functional. Disassembled titles are sometimes used as a collective deed to indicate that the vehicle has been deemed permanently undriveable.
• Junk Title: This title is given to a vehicle that is deemed unsafe to drive on public roads due to its age or condition and is not allowed to be repaired. Junk titles differ from disassembled titles in that junk cars may still have all of their parts but are considered undriveable for other reasons.
• Retained title: These are similar to salvage titles in that both are issued for a vehicle that has been deemed a total loss by an insurance company. However, retained title titles can be issued if the vehicle is still drivable (unlike salvage titles) and the owner has chosen not to make any repairs to the vehicle. A retained title vehicle has an active registration and can be legally allowed to drive on the road.
• Flood or water damage title: This designation can be added to a vehicle's title if it has sustained significant water damage.
• Lemon titles: These are determined by the Lemon Law and are assigned to a vehicle that has been recalled to the dealer or manufacturer several times because a defect could not be satisfactorily remedied.
• Odometer reset titles: These can be used if evidence of odometer tampering is found.
• Certificate of Destruction: When an insurance company pays the damages for a damaged vehicle, they also take legal ownership of the car. At this point, they can issue a certificate of destruction, which states that the vehicle will never be registered on public roads again and is slated for destruction.

manufacturer title

• Certificate of Origin (CO): Sometimes referred to as the manufacturer's declaration of origin, it certifies the original ownership of the vehicle. The CO may be required by the DMV when titling a new car.
• Export/Import Titles: These are usually required for customs clearance for cross-border transportation of cars for sale.

Types of Car Titles: Other Things You Should Know

In addition to learning the types of car titles available, there are some terms surrounding car titles that you may not be familiar with, such as:

• Pink slip: Not to be confused with receiving a pink slip at work, car titles are colloquially referred to as pink slips because of the color of the paper they were traditionally printed on in many states.
• Car title colors: Some states use different colors to denote different title statuses, although color-coding conventions can vary widely between different states. For example, blue titles are often associated with salvage status in many states, but in Texas they indicate a unique title instead. Understanding your state's title laws and conventions can help avoid potential confusion.
• Electronic Liens and Titles (ELT): Many states are pursuing or already offer an electronic system (typically called an ELT system) for tracking titles and liens. If you are buying a used car, these systems may make it easier for you to check for things like a possible lien on a vehicle.

In summary

As you can see, there are several different types of car titles that cover a wide range of scenarios that you may or may not encounter in person. Still, it can prove useful to understand the basics of different types of car titles in case you come across any of the car title examples above.

source : How Many Types of Car Titles Are There? | Chase