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Montana

Title Reference Guide

The IAA Vehicle Alternate Method of Disposal 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 11/2014

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

DMV Title Fees .................................................................................................................................................. 4

Duplicate Title .................................................................................................................................................... 4

Other Information ................................................................................................................................................... 5

Deceased Owner Requirements .......................................................................................................................... 5

Name Changes .................................................................................................................................................... 5

Owner Retained .................................................................................................................................................. 5

Un-Recovered Theft............................................................................................................................................ 5

Alternate Disposal ............................................................................................................................................... 5

State Guidelines ...................................................................................................................................................... 6

Title Requirements by Vehicle Type .................................................................................................................. 6

Title Branding Guidelines ................................................................................................................................... 7

Determining the Correct Title Type .................................................................................................................... 8

Frequently Asked Questions ................................................................................................................................... 9

Is a copy of the written estimate needed to process the title? ............................................................................. 9

Can a title be processed without a lienholder’s release? ..................................................................................... 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? . Error! Bookmark

not defined. What paperwork is required when an owner is deceased? ................................................................................. 9

What do I do if the insured cannot locate the title? ............................................................................................ 9

What if my insured’s name is different than on the face of the title? ................................................................. 9

Example Documents ............................................................................................................................................. 10

Montana Title (Front) ....................................................................................................................................... 10

Montana Title (Back) ........................................................................................................................................ 11

Glossary ................................................................................................................................................................ 12

Index ..................................................................................................................................................................... 13

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]).

mailto:[email protected]






Contact Information

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

Title Questions: IAA – Title Solutions

7835 Woodland DriveSuite 200Indianapolis, IN 46278Toll Free: 888-698-4853

FAX: 855-598-5198

[email protected]

IAA Locations in Montana:

Billing 75 Cerise Road

Billings, MT 59101

Phone: 406-259-2377

Fax: 406-259-2302

Auction: Wednesday 9AM MT

Missoula 10131 Garrymore Lane

Missoula, MT 59808

Phone: 406-542-3442

Fax: 406-549-8933

Auction: Bi-Wednesday at 11:00 AM MT

Motor Vehicle Department:

Title and Registration Bureau

Motor Vehicle Division

Montana Department of Justice 1003 Buckskin Drive

Deer Lodge, MT 59722

Phone: 406-846-6000

http://doj.mt.gov/driving/default.asp

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

errors before the title paperwork goes to the auction can prevent title problems that will delay a vehicle’s sale by

http://www.iaai.com/

mailto:[email protected]

http://doj.mt.gov/driving/default.asp






weeks or even months.

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 provide the following documentation:

Properly Executed Title – Titles must be notarized. Montana is a title holding state for owners. Owners

must submit properly signed original title. For lien files, provider must submit a notarized signed

satisfaction of lien letter documenting vehicle VIN, year, make and model, along with owner’s name. An

unsigned title or mileage left blank requires a secured Power of Attorney.

Odometer Disclosure – Odometer disclosure is required for vehicles less than 15 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.

Lien Release (if applicable) – Lien satisfied and dated on the face of the title or separate lien termination

statement on lienholder letterhead, with a vehicle description and owner’s name(s)

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

required forms as outlined above to your coversheet, with your selling instructions noted, and forward to

the appropriate IAA Branch.

DMV Title Fees

Salvage title fee: $ 5.00

Clear title fee: $12.00

Duplicate title fee: $10.00

URT: $12.00

Duplicate Title

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

One (1) Notarized Generic Power of Attorney – Copies accepted

Copy of driver’s license for titled owner(s)

Lien release – if applicable. Copies are acceptable Statement of Fact on file for all claims






Other Information

Deceased Owner Requirements

JTROS or "OR" between owner names: Survivor signs and provides copy of Death Certificate and

MVT-12 (Application for Title of a Vehicle by Right of Survivorship).

If "and" between names, provide Certified copy of the Death Certificate and MVT-12 (Application for

Title of a Vehicle by Right of Survivorship).

Name Changes

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

instead of first name), a copy of the marriage license or court document stating legal name has changed

may be required in addition to the signed title. Please contact a Montana branch if questions arise.

If the name is completely different then this could be a situation where the owner purchased the vehicle

from someone and didn’t title it properly. In most cases the owner will be required to pay sales taxes

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

Solutions for assistance in resolving these situations

Owner Retained

If the vehicle is five (5) or fewer model years old, has been declared a total loss by the Provider, and has

been deemed repairable, the owner can retain the vehicle but must obtain a salvage title

Vehicles that have been deemed Non-repairable cannot be retained by the vehicle owner

The Provider is required to notify the DMV of the total loss owner retention

Vehicles that do not apply to salvage law can be retained with their original title

Un-Recovered Theft

The provider is required to obtain a title in their name because the provider will need proof of ownership

if the vehicle is recovered

Alternate Disposal

Parts Only






State Guidelines

Title Requirements by Vehicle Type

Vehicle Type Titled Note

Passenger vehicles Yes

ATVs Yes

Boats Yes Unless they are under 12 feet not powered by a motor

Commercial trucks (i.e. tractor trailers) Yes

Manufactured and mobile homes Yes

Mopeds No Sell on bill of sale

Motor Homes and RV’s Yes

Motorcycles Yes

Off-road vehicles Yes

Snowmobiles Yes

Trailers includes travel and utility Yes

Slide in Campers Yes






Title Branding Guidelines

Salvage Title

Salvage titles are required for vehicles five (5) model years of age or newer that have

been deemed uneconomical to repair by the provider.

Passenger vehicles 5 or more model years old at the date of the loss are exempt from the

salvage title process.

Recovered Theft or Reconstructed

If older than 5 years – clear title

Unrecovered – clear title

Clear Title

If the vehicle is more than 5 years old it can be sold with a clear title

Trailers are exempt from title branding and can be sold with a clear title or bill of

sale if they are less than 3,000 lbs GVWR






Determining the Correct Title Type

Vehicle is

declared a total

loss

Has the vehicle been

declared repairable

by the Provider?

Sell vehicle

with a clear

titleIs the vehicle more

than 10 years old?Yes

NoApply for and

sell vehicle

with a

Repairable

Salvage title

which carries

at least one

sub-brand of

collision, theft,

flood, fire, salt,

vandalism or

other

Apply for and

sell with a

Salvage-Parts

Only title

No

Yes






Frequently Asked Questions

Is a copy of the written estimate needed to process the title?

The state of Montana does not require a damage appraisal to process the title.

Can a title be processed without a lienholder’s release?

No. If a lien is listed on the face of the title, the lienholder must sign and date the release or provide a separate

notarized lien termination on lienholder letterhead. Either document must include a vehicle description and

owner’s name(s).

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

The state of Montana will accept a Generic Notarized Power of Attorney form to sign the title on behalf of the

owner.

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

If there is an error on the title please contact the branch to determine if an affidavit of correction will suffice or

if a duplicate title is required. If the title was assigned to the wrong purchaser a duplicate title will be required.

An affidavit of correction will not be sufficient. Please contact the branch for more specific situations.

What paperwork is required when an owner is deceased?

Please refer to the section entitled Other Information.

What do I do if the insured cannot locate the title?


What if my insured’s name is different than on the face of the title?







Example Documents

Montana Title (Front)






Montana Title (Back)






Glossary

Term Definition

Affidavit of Correction A notarized form that can correct certain errors made by an owner on 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 DMV. When a duplicate

title is issued the original title becomes void.

Electronic Title Some states are now using E-Titles especially when there’s a Lienholder listed. An E –

Title is held in the DMV system until the Lienholder releases the lien and then the title is

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 were

limited to 99,999.9 miles so if the vehicle had exceeded the odometers mechanical limits

when it had travelled 100,000.0 miles. 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 lienholder 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 lienholder sign and date

the face of the title or by providing a separate notarized lien termination statement on

lienholder letterhead. If a separate statement is used the statement should include a

description of the vehicle (including VIN, year, make and model) and the owner’s

name(s).

Not Actual Mileage

(NAM)

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

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.

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

accomplished on the title. 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 Retained An owner retained vehicle is any vehicle deemed a total loss by the provider that the

owner elects to maintain ownership of. Most states will require that the title is converted

into some form of salvage title. The rules regarding who is responsible for transferring

the title vary by state.






Glossary

Parts Only Title A “Junk Receipt” is issued with the sole intent of allowing the vehicle to be sold for

parts. Vehicles with a Junk Receipt can have a rebuilt title issued in the future.

Power of Attorney (POA) POA 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 LH has released lien if applicable.

Provider Provider, charity, or individual selling the vehicle through IAA.

Repair Estimate Written appraisal detailing damage and replacement costs 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, MV907A,

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

Salvage Title Titles are branded Salvage on vehicles 5 model years of age or newer that have been

deemed uneconomical to repair by the provider. 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 Innovative service provided by IAA that offers prompt solutions for your toughest title

problems.

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

Un-Recovered Theft Any vehicle that has been stolen and not recovered.

Index

A

Affidavit of Correction ......................................... 12

Appraisal ......................................................... 12, 13

B

Boats ....................................................................... 6

C

Commercial truck.................................................... 6

D

Deceased Owner ..................................................... 5

Duplicate Title .................................................. 4, 12

E

EML ...................................................................... 12

L

Lien release ....................................................... 4, 12

M

Manufactured and mobile homes ............................ 6

Mopeds .................................................................... 6

Motorcycles............................................................. 6

N

NAM ..................................................................... 12

Name changes ......................................................... 5

O

Odometer disclosure ......................................... 4, 12

Owner Retained ................................................ 5, 12

P

POA................................................................... 9, 13

T

Trailers ................................................................ 6, 7

U

Un-recovered Theft ........................................... 5, 13