The South Dakota Certificate of Title Paper Shortage
As a South Dealer Motor Vehicle Dealer, we was advised by the Division of Motor Vehicles of the paper shortage back in October of 2022. We were being advised to let our customers understand how the State is going to manage itself through this paper crisis.
This may not be as bad a problem as some may think it may be, knowing how the process works, it may actually work in the best interest as a State, let alone the people's interest in ensuring that all new buyers are able to get titles in the 45 transfer period.
The way I understand it, the S.D Dealers are getting preferential treatment due to the fact they are buying their inventory. Upon buying their inventory, they are being asked to keep the M.S.O let alone all S.D or Foreign Certificates in their Files.
By doing this, it is allowing the "STATE" to print fewer Paper Titles.
By Law - South Dakota Dealers may keep titles on file without placing them officially in their "Name". This allows them to assign the title to the purchaser within the 45 Day Period, let alone if the "Buyer" or the end user loses the title prior to the 45 days, it is now easier for the State to work through the Dealerships to obtain Duplicate Certificates, let alone control the process of having to reach out to Foreign States such as Minnesota, Wyoming, Iowa, Nebraska, etc.
"You" as the End User - are being asked to deliver the M.S.O, Foreign Certificates, let alone all S.D Titles You get from the Dealer within the 45 Day Period of Time.
Upon delivering that Paper Title to the County, paying your taxes, registering the title, plate your vehicle, the County then delivers that title to Pierre, of which records it by creating an Electronic Copy.
Instead of Giving You an Official Copy, it is Keeping the official electronic copy in Pierre. I would believe this process already has been used by other states, within the country.
The way I understand it - in the future as you wish to "Sell" that Vehicle, you by law must report that sale within 15 days, that is already a law, but going forward, the "State" will will then send you a S.D Certificate within 7-10 Days, so you can assign or transfer the Title from you to the New Purchaser within the 45 Days.
Folks, this is NOT a big deal - already, the State creates an electronic copy whereas LIENS are noted, and this is the same process used today upon selling vehicles, clearing liens upon sales.
IF, you the private owner do your job correctly, upon selling your vehicle, and legally reporting that sale within the 15 day period, you will receive the Paper Copy most likely within 7 days (10 at the most), meaning you will be able to deliver that title to your "purchaser" sometime around "Day 25" of which allows your purchaser to properly Regis.
IF, you the private owner do your job correctly, upon selling your vehicle, and legally reporting that sale within the 15 day period, you will receive the Paper Copy most likely within 7 days (10 at the most), meaning you will be able to deliver that title to your "purchaser" sometime around "Day 25" of which allows your purchaser to properly Register, Pay Taxes, Plate the Vehicle in 30 days, let alone the 45 Day Transfer Period.
As a dealer, I can attest that upon purchasing or selling used vehicles, the State is pretty good at getting us the title within 7-10 days. They do this, cause it allows the State to collect the taxes, the fees, as quickly as possible, which of course, those motor vehicle fees are then collected by the Counties, and apportioned out to Cities such as Sioux Falls, which gets roughly $3,500,000 per year according to public record request I did in 2021.
The only hiccup being, IF you had a FOREIGN TITLE in your possession, and your buyer lost that title, in most cases, knowing the process of applying for Lost Foreign Certificates, dealing with the likes of Minnesota or Wyoming for example, that process takes up to 10 weeks, in that case, by Law - you will be able to extend the "transfer period" out another 45 days, meaning by law, the State allows the purchaser to drive the car longer on temporary plates.
While this is related to the paper shortage, the process is really NOT a big deal as some are making it out to be.
What I recommend - When You Buy a New or Used Vehicle from the Manufacturer, the Dealer, or a Private Person, I suggest that you make COPIES of the original documents you obtain from the seller.
Yes, that means:
- Make a Copy of Front and Back of that Original M.S.O or Title;
- Maintain, and Make Copies of Your Bill of Sale from the Seller;
- Make Copies of Your Receipt of Payment of Taxes, the Registration, and any Other Supporting Documents;
- Obtain "Power Attorney Rights" from the Previous Owner (or seller) allowing you to assign, or obtain Duplicate Titles from South Dakota, or any Previous State of Record. Power Attorney, which can be attained on the D.O.R website, makes it easier for you to 'act' as the previous record owner, to assign, apply for duplicate titles, to sell the vehicle in the future.
- Keep All Official Records in Your Private Files Locked in a Safe File Drawer - this allows you to always Protect Yourself Legally.
Note: As Long as You have a "Copy" of Your Original Bill of Sale from the Previous Owner, you will always be able to present a Proof of Purchase (ownership) Claim to the Vehicle, even if the Previous Seller never gives you a Title. So long as you have the Original Bill of Sale - there is always a legal process of obtaining a TITLE in your name, the same process used by Tow Companies or Repair Facilities as they Apply for Abandoned or Unclaimed Vehicles.
When you purchase a Used Vehicle, the Backside of Your TITLE is NOT the bill of sale, it is simply an Assignment from you to the new buyer, in order to PROVE you bought the vehicle, thus presenting legal CLAIM to the vehicle, you are asked to keep the Original Bill of Sale in your Private Files.
Notice, when you deliver Titles to the County, the county always gives back to you, your Official Bill of Sale, this is for your own protection in the event the original title gets lost, or is not delivered to you. It allows you to utilize the legal process of presenting a legal claim of ownership, so the State can help you obtain a TITLE in your Name.