(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.
Source: L. 94: Entire title amended with relocations, p. 2453, � 1, effective January 1, 1995. L. 2000: Entire section amended, p. 1658, � 4, effective July 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.
Editor's note: (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.
Cross references: For the legislative declaration in the 2012 act amending this section, see section 1 of chapter 112, Session Laws of Colorado 2012.
42-6-110. Certificate of title - transfer - department records - rules - definition. (1) Upon the sale or transfer of a motor or off-highway vehicle for which a certificate of title has been issued or filed, the person in whose name the certificate of title is registered, if the person is not a dealer, shall execute a formal transfer of the vehicle described in the certificate. The person in whose name the certificate of title is registered or the person's agent or attorney shall affirm the sale or transfer, accompanied by a written declaration that the statement is made under the penalties of perjury in the second degree, as defined in section 18-8-503, C.R.S. The purchaser or transferee, within sixty days thereafter, shall present the certificate, together with an application for a new certificate of title, to the director or one of the authorized agents, accompanied by the fee required in section 42-6-137 to be paid for the filing of a new certificate of title; except that, if no title can be found and the motor vehicle is not roadworthy, the purchaser or transferee may wait until twenty-four months after the motor vehicle was purchased to apply for a certificate of title.
(1.5) (a) If an insurer, as defined in section 10-1-102 (13), a salvage pool authorized by an insurer, or an authorized agent of an insurer is unable to obtain the properly endorsed certificate of ownership or other evidence of ownership acceptable to the department within thirty days following oral or written acceptance by the owner of an offer of settlement of a total loss, that insurer, salvage pool, or agent may request, on a form provided by the department and signed under penalty of perjury, the department to issue a salvage or nonrepairable title for the vehicle. The request must include information declaring that the insurer, salvage pool, or agent has made at least two written attempts to obtain the certificate of ownership or other acceptable evidence of title and must include the fee for a duplicate title. The form requesting a salvage or nonrepairable title is the only evidence required to obtain a salvage or nonrepairable title.
(b) Upon receiving the fee for a duplicate title and the certificate of ownership, other evidence of title, or a properly executed request described in paragraph (a) of this subsection (1.5), the department shall issue the salvage or nonrepairable title for the vehicle.
(c) As used in this subsection (1.5), authorized agent of an insurer means a person who has been authorized on forms promulgated by the department to be an agent of the insurer for the purpose of disposing of a vehicle that has been declared a total loss.
(1.7) (a) The department shall allow an insurer, as defined in section 10-1-102 and that is regulated under title 10, an agent of the insurer, a salvage pool that is licensed as a used motor vehicle dealer, a motor vehicle dealer licensed under article 20 of title 44, a used motor vehicle dealer licensed under article 20 of title 44, or any person approved by the department to use the electronic systems created in section 42-4-2103 (3)(c)(III) to access owner and lienholder information of a motor vehicle in the department's records if:
(I) The motor vehicle is the subject of an insurance claim being processed by the insurer;
(II) The motor vehicle is possessed by a salvage pool;
(III) The access is related to a motor vehicle transaction with a motor vehicle dealer or used motor vehicle dealer; or
(IV) The access is authorized by section 24-72-204 (7).
(b) The department shall ensure that the information available to the insurer, the insurer's agent, the salvage pool, a motor vehicle dealer, a used motor vehicle dealer, or a person approved by the department is correct and is limited to the information needed to verify and contact the owner and lienholder of the motor vehicle.
(c) The department may charge the insurer, the insurer's agent, the salvage pool, a motor vehicle dealer, a used motor vehicle dealer, or a person approved by the department a fee in an amount not to exceed the lesser of five dollars or the direct and indirect costs of implementing this subsection (1.7). The department shall deposit the fee in the Colorado DRIVES vehicle services account created in section 42-1-211 (2).
(d) The department may promulgate rules establishing standards for verifying:
(I) The identity of the person accessing the records; and
(II) That the access is authorized by section 24-72-204 (7).
(e) In allowing access to the electronic system under this subsection (1.7), the department shall ensure that the addresses of program participants under part 21 of article 30 of title 24 are not released.
(2) A person who violates subsection (1) of this section commits a class A traffic infraction.
Source: L. 94: Entire title amended with relocations, p. 2453, � 1, effective January 1, 1995. L. 2000: (1) amended, p. 1658, � 5, effective July 1, 2001. L. 2005: Entire section amended, p. 812, � 8, effective August 8. L. 2009: (1) amended, (SB 09-107), ch. 143, p. 606, � 1, effective August 5. L. 2013: (1) amended, (SB 13-280), ch. 407, p. 2381, � 7, effective June 5. L. 2014: (1.5) added, (HB 14-1100), ch. 122, p. 434, � 4, effective August 6. L. 2017: (1.7) added, (SB 17-251), ch. 309, p. 1671, � 1, effective August 9. L. 2018: IP(1.7)(a), (1.7)(b), and (1.7)(c) amended, (SB 18-183), ch. 131, p. 856, � 1, effective April 12; (1.7) amended, (HB 18-1299), ch. 297, p. 1812, � 8, effective July 1, 2019. L. 2021: (1.5)(a) amended and (1.5)(c) added, (HB 21-1291), ch. 260, p. 1522, � 1, effective September 7; (2) amended, (SB 21-271), ch. 462, p. 3320, � 752, effective March 1, 2022. L. 2022: (1.7)(c) amended, (HB 22-1339), ch. 135, p. 915, � 19, effective July 1.
Editor's note: (1) This section is similar to former � 42-6-109 as it existed prior to 1994, and the former � 42-6-110 was relocated to � 42-6-111.
(2) Amendments to subsection (1.7) by HB 18-1299 and SB 18-183 were harmonized, effective July 1, 2019.
42-6-110.5. Certificates of title - arrangements for transfer of title upon death - beneficiary designation forms - definitions. (1) (a) On and after August 10, 2016, the division shall make available a beneficiary designation form that allows the owner or joint owners of a vehicle to arrange for the transfer of the vehicle's title to a named beneficiary upon the death of the owner or upon the death of all joint owners of the vehicle. At a minimum, the form must include fields for the following information:
(I) The manufacturer, model, year, and vehicle identification number of the vehicle;
(II) The name of the owner or every joint owner of the vehicle;
(III) The words transfer on death to, or the abbreviation TOD, followed by the name of the beneficiary; and
(IV) The signature of the owner of the vehicle or of each joint owner of the vehicle.
(V) Repealed.
(b) The division shall make beneficiary designation forms available:
(I) In each office of the division that is open to the public for conducting business relating to motor vehicles and driver's licenses; and
(II) On the division's public website.
(2) (a) Upon the death of the owner, or of the last surviving joint owner, of a vehicle for which a beneficiary designation form has been properly executed, as described in subsection (1)(a) of this section, the beneficiary shall present the form to the division and request a new title of ownership of the vehicle in the beneficiary's name. The form must be accompanied by:
(I) Proof of the death of the vehicle's owner or proof of the death of the last surviving joint owner of the vehicle; and
(II) The fee for an application for a certificate of title, as described in section 42-6-137 (1).
(b) Upon the presentation of a properly executed beneficiary designation form and accompanying documents, as described in subsection (2)(a) of this section, the division, subject to any security interest, shall issue a new certificate of title to the beneficiary. For the purposes of this subsection (2)(b), the division may rely on a death certificate, record, or report that constitutes prima facie evidence of death.
(2.4) The personal representative, as defined in section 15-10-201 (39), of the estate of a deceased vehicle owner is not liable for obtaining a new certificate of title or for transferring title to the vehicle if the personal representative does not have actual knowledge of the existence of a valid, unrevoked beneficiary designation form.
(2.6) A successor, as defined in section 15-10-201 (51), of a decedent, or a person acting on behalf of a successor, is not liable for obtaining a new certificate of title or transferring title to the vehicle by an affidavit executed in accordance with section 15-12-1201 if the person does not have actual knowledge of the existence of a valid, unrevoked beneficiary designation form.
(3) During the lifetime of the owner of a vehicle for which a beneficiary designation form has been properly executed or before the death of the last surviving joint owner of such a vehicle:
(a) The signature or consent of the beneficiary is not required for any transaction relating to the vehicle; and
(b) The owner or surviving joint owners of the vehicle may revoke the beneficiary designation form or change the beneficiary of the beneficiary designation form at any time by:
(I) Selling the vehicle with proper assignment and delivery of the certificate of title to another person; or
(II) Properly executing a subsequent beneficiary designation form that designates a new beneficiary.
(4) Upon the death of the owner or upon the death of the last surviving joint owner of a vehicle for which a beneficiary designation form has been properly executed, the interest of the beneficiary in the vehicle is subject to any contract of sale, assignment, or ownership or security interest to which the owner or joint owners of the vehicle were subject during their lifetime.
(5) Except as provided in paragraph (b) of subsection (3) of this section, the designation of a beneficiary in a beneficiary designation form may not be changed or revoked by will or by any other instrument or by a change in circumstances.
(6) The transfer on death of a vehicle pursuant to this section is a nonprobate transfer pursuant to the Colorado Probate Code, articles 10 to 17 of title 15.
(7) As used in this section, unless the context otherwise requires:
(a) Beneficiary means one or more specifically named persons or entities designated to receive title to a vehicle upon the death of the preceding owner or joint owners.
(b) Beneficiary designation form means a form that indicates the intention of a present owner or joint owners of a vehicle to transfer ownership of the vehicle to a named beneficiary upon the death of the owner or last surviving joint owner of the vehicle.
(c) Division means the division of motor vehicles in the department of revenue.
(d) Joint owner means an individual who owns a vehicle with one or more other individuals as joint tenants with rights of survivorship. Joint owner does not include an individual who owns a vehicle with one or more other individuals as tenants in common.
(e) Owner means an individual who owns a vehicle.
(f) Vehicle includes any motor vehicle, motorcycle, motor home, trailer, or other item for which a certificate of title is issued by the division.
Source: L. 2016: Entire section added, (HB 16-1051), ch. 47, p. 111, � 1, effective August 10. L. 2017: IP(1)(a), (1)(b), IP(2)(a), (2)(b), (6), and (7)(a) amended and (2.4), (2.6), (7)(c), (7)(d), (7)(e), and (7)(f) added, (HB 17-1213), ch. 184, p. 674, � 1, effective August 9. L. 2018: (1)(a)(V)(B) added by revision, (HB 18-1299), ch. 297, pp. 1813, 1815, �� 9, 15; IP(2)(a), (2)(b), IP(3), and (4) amended, (HB 18-1299), ch. 297, p. 1813, � 9, effective July 1, 2019.
Editor's note: Subsection (1)(a)(V)(B) provided for the repeal of subsection (1)(a)(V), effective July 1, 2019. (See L. 2018, pp. 1813, 1815.)