A title cancellation may only be performed if a Certificate of Title has been improperly issued. This does NOT include situations such as loss of financing, customer backing out of the purchase, customer returning the vehicle due to mechanical issues, etc.
If a Certificate of Title has been improperly issued, the appropriate procedure is cancellation of the title. In instances where title cancellation becomes necessary, only the Department of Motor Vehicles has this authority to perform the cancellation.
It is the responsibility of the dealership, lienholder, insurance company or private individual, whose action caused the error to submit the appropriate request for cancellation and supply the necessary documentation to the DMV. The DMV will make a determination regarding whether the circumstances presented meet the statutory requirements for title cancellation.
Required Documentation for Consideration of Cancellation
A request for cancellation of the title in question must meet the following criteria:
- The request must be on company letterhead and include:
- Correct date.
- Signature of the requestor.
- A detailed explanation of the circumstances surrounding the error.
- The vehicle year, make, model, and VIN.
- The name and phone number of an individual familiar with the situation who can provide additional information if necessary.
- The Certificate of Title to be cancelled.
- The title MUST be the original title. Duplicate titles will NOT be canceled if the error occurred in the issuance of the original.
- If the title is in electronic status – it does not have to be presented for cancellation.
- Unless the circumstances surrounding the error make it impossible, the request must include proof the correct Certificate of Title (and registration, if applicable) has been issued.
Upon approval of the request for cancellation the DMV will notify the appropriate county treasurer and any other person(s) directly affected by the cancellation.
If the canceled title was issued from an incorrect MSO the dealership must request a duplicate MSO from the manufacturer. The county treasurer is not required to return paperwork surrendered for issuance of the incorrect title.
The title issued in error is destroyed.
If, after reviewing the circumstances and documentation the cancellation request is denied, notification is sent to the requestor giving them the reason for the denial and advising the best method for correction of the issue. In the event of a denial all documents submitted for review are returned to the requestor.
Questions regarding Cancellation of a Certificate of Title may be addressed by email or by phone at (402) 471-3918.