alabama title reference guide - iaa csatoday · montgomery, al 36132-7610 phone: 334-242-9000...

Alabama

Title Reference Guide

The IAA Title Guide is a proprietary document prepared solely for internal use by Insurance Auto Auctions, Inc., its

subsidiaries and affiliated entities (“IAA”). No part of this document is to be photocopied, reproduced, stored in a retrieval

system, transmitted electronically, or disclosed to a third party without prior written consent of Diversified Services

Administration or IAA Executive Management.

© 2013. Insurance Auto Auctions, Inc.

I N S U R A N C E A U T O A U C T I O N S

Last Updated 042014

Please direct any questions, comments, or corrections to IAA’s Title Solutions Team.

[email protected] Toll Free - 888-MY-TITLE (888-698-4853)


Table of Contents Contact Information 3

Title and Disposal Information 4

Standard Title Processing 4

MVD Title Fees 4

Duplicate Title 5

Additional Information 5

Deceased Owner Requirements 5

Repossessed Vehicle 5

Name Changes 5

Owner Retain 5

Unrecovered Theft 6

Alternate Disposal 6

State Guidelines 6

Title Requirements by Vehicle Type 6

Title Branding Guidelines 7

Determining the Correct Title Type 8

Frequently Asked Questions 9

What type of PoA is required if the title is not signed? 9

What is required to correct a mistake that is made by the owner on the back of the title? 9

If an owner’s full name is listed, does he/she need to sign as listed on the face of the title? 9

Example Documents 10

Alabama Title (Front) 10

Alabama Title (Back) 11

Alabama Affidavit for Assignment of Title for a Vehicle From 12

Alabama Power of Attorney 13

Alabama Secure Power of Attorney 14

Glossary 15

Index 17

mailto:[email protected]


Last Updated 042014




Please note - This document is intended to cover most requirements for obtaining a negotiable, lien-free title. It

is not intended to replace motor vehicle department regulations or rulings. If you have title questions please

contact IAA’s Title Solutions Department ([email protected]).

Contact Information

IAA Website: http://www.iaai.com

Title Questions: IAA – Title Solutions 13085 Hamilton Crossing Blvd

Carmel, IN 46032

Toll Free: 888-698-4853

FAX: 855-584-5198

[email protected]

IAA Locations in Alabama:

Birmingham

1600 Highway 150

P.O. Box 691

Bessemer, AL 35022

Phone: 205-426-2300

Fax: 205-428-5332

Auction: Every Wednesday at 9:00AM CT

Dothan 15994 US Highway 431

Headland, AL 36345

Phone: 334-693-4910

Fax: 334-693-4920

Auction: Every Wednesdays at 11:30AM CT

Huntsville 16326 Ennis Road

Athens, AL 35613

Phone: 256-233-5899

Fax: 256-233-2366

Auction: Every Wednesday at 1:00 PM CT

Motor Vehicle Department:



http://www.iaai.com/



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MVD, Title and Records

P.O. Box 327610

Montgomery, AL 36132-7610

Phone: 334-242-9000

Alabama DMV

Title and Disposal Information

Standard Title Processing

IAA will apply for the appropriate title in the Provider’s name. In order to initiate this process the vehicle

provider must supply the following documentation:

Properly Executed Title - If the owner held the title at the time of loss, then the provider must send a

title that has been properly executed by the owner, or the title including the correctly executed Power of

Attorney (PoA.) If the Lienholder possessed the title at the time of the loss, then the provider must send

the unsigned title with a lien release if applicable or Lienholder signed off on title, and a notarized

Power of Attorney signed by the owner.

Lien Release (if applicable) – Lien to be satisfied and dated on the face, or include separate notarized

lien termination statement with a vehicle description and owner’s name(s). If on letterhead, notary not

required.

Odometer Disclosure – Odometer disclosure is required for vehicles less than 10 model years. This

can be accomplished on the title or with a separate odometer statement, signed by the owner. Mileage

should be stated with a verified reading and should not be an estimate or guess.

If IAA is not processing the title, please attach the properly executed sale document and any additional

required forms as outlined above to a coversheet with your selling instructions noted. Forward these

documents to the appropriate IAA Branch.

MVD Title Fees

Please contact your local IAA Branch or MVD for up-to-date fees.

Salvage title fee: $15.00

Duplicate title fee: $15.00

Title mistakes can be costly and significantly delay the processing and sale of salvage vehicles. Catching

potential errors before the title paperwork goes to auction prevents title problems that delay a vehicle’s

sale by weeks or even months.


http://www.ador.state.al.us/motorvehicle/index.html


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Duplicate Title

With the owner’s cooperation, IAA can apply for a duplicate title. IAA will need:

If vehicle is >/ 12 years, LR not required if greater than 4 years

Two (2) notarized Power of Attorneys.

Notarized Lien Release. (if applicable)

Duplicate Title Application MVT12-1

Additional Information

Deceased Owner Requirements

Copy of the Will (if there is one). Will only require if surviving kin is named in will as receiving

vehicle

Copy of the Death Certificate.

Not probated – Affidavit of Transfer Surviving Kin MVT5-6 signed and notarized original. Must be

typed document. Copy of Death Certificate

Probated will – Letters of Testamentary and copy of death certificate

Repossessed Vehicle

Title with lienholder signed off as seller

Lien can be released or not

Original Affidavit of Repossession (MVT-15-1) – must be notarized

Name Changes

If the insured’s name is different than the name that appears on the title (i.e. different last name or

nickname instead of first name), a copy of the marriage license, divorce decree, or court document

stating legal name has changed may be required in addition to the signed title. Please contact an

Alabama branch if questions arise.

If name on title is completely different, this could be a situation where the owner purchased the vehicle

from someone and did not title it properly. In this scenario the owner will be required to pay sales taxes

and have the vehicle titled properly before it can be sold. Contact your local IAA branch or Title

Solutions for assistance in resolving these situations. Title Solutions requires written approval via email

or fax from provider before providing assistance.

Owner Retain

If the vehicle has been declared a total loss by the provider and deemed repairable, the owner may retain

the vehicle but must obtain a salvage title.

By law, the owner must provide proof of salvage before payment can be issued or they must relinquish

title to the insurance company to apply for a salvage title on their behalf.



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Unrecovered Theft

The provider is required to obtain an Unrecovered Theft title in their name

A Police Report with the vehicle information on it is also required

Electronic title issued for URT. Upon recovery, paper title issued and type (salvage or clear)

Alternate Disposal

Abandonment - If the Provider is unable to obtain a negotiable title, they can abandon the vehicle to

IAA via a letter releasing their interest. IAA will file all necessary paperwork to sell the vehicle on an

Affidavit of Abandonment. Without proceeds

Required - Written notification on provider letterhead

State Guidelines

Title Requirements by Vehicle Type

Vehicle Type Titled Note

Passenger vehicles Yes <35 years

ATVs No Sell on bill of sale

Boats No Sell on bill of sale

Commercial trucks (i.e. tractor trailers) Yes

Farm Equipment Yes

Manufactured and mobile homes Yes

Mopeds No </ 5 brake horsepower, <150 cc, and weighs <200 lbs

Motor Homes and RV’s Yes

Motorcycles Yes

Off-road vehicles No Sell on bill of sale

Snowmobiles No Sell on bill of sale

Utility trailers No <20 years

Trailers with GVWR 3000 lbs or less No <20 years



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Title Branding Guidelines

Salvage Title

Salvage titles are required for any vehicles <35 years that have an estimated cost of

repair >/75% ACV. Flood title needed on all flood claims.

Vehicles >35 years are exempt from the salvage title process.

Salvage Repairable – A Salvage-Repairable title is for vehicles that have been declared

a total loss but are repairable. This type of title requires at least one sub-brand.

Collision

Theft

Fire

Vandalism

Salt

Flood

Other

Clear Title

If estimated cost of repair <75% ACV, the vehicle does not have any flood damage,

apply for clear title.



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Vehicle is declared

a total loss

Is vehicle older

than 1975?

Title can stay clearIs this a trailer?

Is the trailer

older than

1990?

Is vehicle a

flood claim

Apply for flood title

Is vehicle

damaged 75%

of ACV or

more?

Is vehicle an

unrecovered

theft?

Hold on to title.

State will not

process

unrecovered theft

title.

Apply for salvage

title.

Apply for salvage

title.

Y Y

NN

Y

N

Y

N

Y

N

N

Y

ALABAMA FLOW CHART

DETERMINING THE CORRECT TITLE TYPE

Determining the Correct Title Type



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Frequently Asked Questions

What type of PoA is required if the title is not signed?

A Secure AL-PoA MVT 8-4 must be used if the provider is paying off the Lienholder. For an owner retain, non

lien, generic notarized PoA Owner Retain- MVT 5-13. Only the MVT 5-13 form requires notarization.

What is required to correct a mistake that is made by the owner on the back of the title?

If an error is made on the title please contact IAA to determine if an affidavit of correction will suffice or if a

duplicate title is required. Please contact the branch for more specific situations.

If an owner’s full name is listed, does he/she need to sign as listed on the face of the title?

The signature should match exactly as the name is listed on the face of the title.

Example: John P. Doe is signed as John P Doe. Note that this is NOT signed John Doe or J. Doe or Mr. Doe.



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Example Documents

Alabama Title (Front)



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Alabama Title (Back)



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Alabama Affidavit for Assignment of Title for a Vehicle From

A Deceased Owner Whose Estate Does Not Require Probate



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Alabama Power of Attorney



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Alabama Secure Power of Attorney



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Glossary

Affidavit of Correction A notarized form that can correct certain errors made by an owner on the title.

Appraisal Written estimate detailing damage and replacement costs for a vehicle. Also known

as an Estimate of Repair.

Date of Loss Date accident occurred or vehicle was stolen.

Duplicate Title A duplicate title is a replacement title obtained through the state title processing

agency (Ex. DMV, MVD, BMV). When a duplicate title is issued the original title

becomes void.

Electronic Title

Some states are now using E-Titles especially when there is a Lien Holder listed. An

E-Title is held in the title possessing agency’s system until the Lien Holder releases

the lien. The title is then printed and mailed out to the specified party.

Exceeds Mechanical

Limits (EML)

Exceeds Mechanical Limits is an option on most titles that is selected when the

vehicle has travelled more miles than the odometer can register. Many older

vehicles are limited to 99,999.9 mile odometer reading. When the vehicle exceeds

the odometer’s mechanical limits traveling past 100,000.0 miles, the vehicle has

exceeded its mechanical limit for the odometer. This option is rarely selected on

newer vehicles since most odometers now register up to 999,999 miles.

Lien Release When a lien has been perfected on a vehicle the state requires the lien holder to

release the lien indicating that the lien has been satisfied before ownership of the

vehicle can be transferred. Lien releases are typically executed by having the lien

holder sign and date the face of the title or by providing a separate notarized lien

termination statement on the lien holder’s letterhead. If a separate statement is used

the statement should include a description of the vehicle including; VIN, year, make,

model, and the owner’s name(s). Lien holder can also add or remove electronic liens

by accessing the state’s database. A paper title will automatically be mailed to

address of the lien holder’s discretion if the lien is active or to the vehicle owner if it

is a title holding state.

Not Actual Mileage (NAM) Not Actual Mileage is an option on most titles that allows the owner to indicate that

mileage shown on the odometer is not a true representation of the mileage of the

vehicle. This can happen on some vehicles when the odometer or the vehicles

engine control unit (ECU) is replaced, or when the odometer or its related systems

are damaged or inoperable.



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Glossary

Odometer Disclosure Odometer disclosure is required for vehicles less than 10 model years. This can be

accomplished on the title or with a separate odometer statement signed by the owner.

Mileage should be stated with a verified reading and should not be an estimate or

guess.

Owner The name listed on the front of the title. It usually states Owner or Legal Owner.

Owner Retain Any vehicle deemed a total loss by the provider that the owner elects to retain

ownership of. Most states will require that the title is converted into some form of

salvage title. Rules regarding who is responsible for transferring the title vary by

state.

Power of Attorney (POA) Legal document that allows the appointed person/Provider to sign title, application,

or any other documents related to the vehicle listed on the form on behalf of the

owner.

Properly Executed Title Title that is properly signed by owner and lien holder, which has released lien if

applicable.

Provider Insurance company, charity, or individual selling the vehicle through IAA

Repair Estimate Written appraisal detailing estimated repair cost of damage and replacement cost for

a vehicle. Also known as a Damage Appraisal

Sale Document Document that was used to sell the vehicle at an IAA auction. (bill of sale, clear title,

salvage title, certificate of destruction, junk title, scrap title etc.)

Salvage Title Titles are branded Salvage on ANY vehicles that fall into the salvage branding

criteria for each specific state. Most states consider a vehicle to be deemed salvage if

it is 10 model years of age or newer that has been stolen or has been deemed

uneconomical to repair by the insurance company. (S.) These vehicles are issued a

salvage title and may be subject to repair and re-inspection.

Title Problems Title paperwork received by IAA that is not correct or incomplete and requires

additional documents or information before the title can be processed and vehicle

can be sold.

Title Solutions A specialized and exceptionally knowledgeable service by IAA that provides

innovative and prompt solutions for your toughest title problems.

Total Loss Any vehicle that has been deemed uneconomical to repair by the insurance company.

Unrecovered Theft Any vehicle that has been stolen and not recovered.



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Index

A

Affidavit of correction 15 Affidavit of Correction 15 Alternate disposal 5 Appraisal 15, 16 ATV 6

B

Boat 6 Boats 6

C

Commercial truck 6

D

Death certificate 5 Deceased owner 5, 12 Deceased Owner 5 Duplicate title 4, 15 Duplicate Title 4, 15

E

EML 15 Estate 12 Exceeds mechanical limits (EML) 15

F

Farm equipment 6 Farm Equipment 6

L

Lien release 4, 15

M

Manufactured and mobile homes 6 Moped 6 Mopeds 6 Motorcycle 6 Motorcycles 6

N

NAM 15 Name changes 5

O

Odometer disclosure 4, 16 Owner Retained 16

P

POA 9, 16 Power of attorney (POA) 4, 9, 13, 14, 16

S

Secure power of attorney (SPOA) 9, 14

T

Title fees 4 Trailers 6

U

Unrecovered theft 5, 16 Un-recovered Theft 16

W

Will 5
