2023 Colorado Revised Statutes › Title 42 - VEHICLES AND TRAFFIC (§§ 42-1-101 — 42-21-106) › CERTIFICATES OF TITLE (§§ 42-6-101 — 42-6-206) › Article 6 - CERTIFICATES OF TITLE - USED MOTOR VEHICLE SALES (§§ 42-6-101 — 42-6-206) › Part 1 - CERTIFICATES OF TITLE (§§ 42-6-101 — 42-6-148) › Section 42-6-109 - Sale or transfer of vehicle - program

(1)
Except as provided in section
42-6-113
, a person shall not sell or otherwise transfer a motor or off-highway vehicle to a purchaser or transferee without delivering to the purchaser or transferee a certificate of title to the vehicle duly transferred in the manner prescribed in section
42-6-110
. Except as provided in subsection (2) of this section, the certificate of title may be in an electronic format. Except as provided in section
42-6-115
, a purchaser or transferee does not acquire any right, title, or interest in and to a motor or off-highway vehicle purchased by the purchaser or transferee unless and until he or she obtains from the transferor the certificate of title duly transferred in accordance with this part 1. A lienholder may request either a paper or electronic version of a certificate of title.
(2)
Except as provided in section
42-6-115
, a paper copy of a certificate of title is necessary for a transaction in which:
(a)
Either party to the transaction is located outside Colorado; or
(b)
The purchaser pays for a motor or off-highway vehicle entirely with cash.
(3)
(a)
Beginning January 1, 2019, the department shall implement a voluntary program for an owner of a motor vehicle to notify the department or an authorized agent after ownership of the motor vehicle is transferred to another person in accordance with subsections (1) and (2) of this section.
(b)
A report of ownership transfer is properly filed if the report is made in a manner, which may include by electronic means, approved by the department and received by the department or authorized agent within five business days after the transfer of ownership, and includes the following:
(I)
The date and time of sale or transfer;
(II)
The full name of the owner of the motor vehicle before the transfer;
(III)
The vehicle identification number of the motor vehicle; and
(IV)
An affidavit, signed under penalty of perjury, that the requirements for the transfer of ownership in subsections (1) and (2) of this section have been satisfied.
(c)
The department shall:
(I)
Provide or approve one or more methods for reporting the transfer of ownership;
(II)
Notify, with the owner's registration renewal information, the owner of a motor vehicle of the option to report the transfer of ownership of a motor vehicle;
(III)
Notify the public of the option to report a transfer of ownership of a motor vehicle;
(IV)
Place instructions on each certificate of title document issued on or after August 8, 2018, for reporting the transfer of ownership of a motor vehicle; and
(V)
Forward a copy of the report to each lienholder of record.
(d)
(I)
If an owner reports a bona fide transfer of ownership of a motor vehicle in accordance with this section, the owner is not liable in or subject to any civil or criminal action brought against the following after the motor vehicle was transferred:
(A)
The operator of the motor vehicle, arising from the use of the motor vehicle; and
(B)
The motor vehicle.
(II)
This subsection (3)(d) does not apply to a civil or criminal action if the action is brought against the owner for the owner's:
(A)
Negligence in permitting the purchaser to drive the motor vehicle at the time of sale;
(B)
Failure to comply with any law governing the sale of the motor vehicle;
(C)
Negligence in selling the motor vehicle;
(D)
Material misstatement or omission about the condition of the motor vehicle; or
(E)
Failure to make any disclosure required by law.
(e)
A report filed under this subsection (3) does not extinguish or impair the rights of any lienholder.
(f)
This subsection (3) does not require the owner who transfers a motor vehicle to another person to report the sale to the department in accordance with this subsection (3).
(4)
(a)
A record covered by this article 6, including a certificate of title, a document necessary to issue a certificate of title, or a signature on the record or document may not be denied legal effect, validity, or enforceability solely because it is in the form of an electronic record, document, or signature. Except as otherwise provided in this article 6, if a rule of law requires a record to be in writing or provides consequences if it is not, an electronic record satisfies that rule of law.
(b)
For a record, document, or signature to be legally effective, valid, or enforceable, a person need not obtain a written power of attorney solely because the record, document, or signature is in an electronic form.
(c)
This subsection (4) applies to and in a court of law.
(d)
This subsection (4) does not require the department to implement a system to electronically accept records, documents, or signatures.
Amended by 2018 Ch. 405, § 2, eff. 8/8/2018.
Amended by 2018 Ch. 83, § 1, eff. 8/8/2018 and applicable to motor vehicles sold on or before 1/1/2019.
Amended by 2013 Ch. 407, § 6, eff. 6/5/2013 and applicable to acts committed on or after 7/1/2014.
L. 94: Entire title amended with relocations, p. 2453, § 1, effective 1/1/1995. L. 2000: Entire section amended, p. 1658, § 4, effective 7/1/2001. L. 2005: Entire section amended, p. 811, § 7, effective August 8. L. 2012: Entire section amended, (SB 12-095), ch. 112, p. 388, § 2, effective August 8. L. 2013: (1), IP(2), and (2)(b) amended, (SB 13-280), ch. 407, p. 2380, § 6, effective June 5. L. 2018: (3) added, (SB 18-073), ch. 83, p. 680, § 1, effective August 8; (4) added with relocations, (SB 18-255), ch. 405, p. 2386, § 2, effective August 8.
(1) This section is similar to former § 42-6-108 as it existed prior to 1994, and the former § 42-6-109 was relocated to §
42-6-110
.
(2) Subsection (4) is similar to §
42-6-102(5)(b)
as it existed prior to 2018.
For the legislative declaration in the 2012 act amending this section, see section 1 of chapter 112, Session Laws of Colorado 2012.