DMV TITLE AND REGISTRATION HANDBOOK
Chapter G: Operation of Law/Trusts
08/01/24 G1
Chapter G
Operation of Law & Trusts
Operation of law
A vehicle title transfer by operation of law means that a legal process, other than the
person’s voluntary act, transfers a person’s interest.
Fee for operation of law title transfer
DMV charges a title fee for a title transfer by operation of law. The fee is based on vehicle
type and weight.
The title must be submitted, if available. If the title is unavailable when the operation of law
title transfer is submitted, DMV does not charge a replacement title fee.
Divorce
Decree or property settlement
The applicant must submit a copy of the final divorce decree. The decree must fully
describe the vehicle. If the decree includes only a partial description, DMV accepts the
document for review. If the vehicle named in the decree does not match the title, it is not
acceptable. The decree must indicate to whom the vehicle was awarded.
The final decree must have been filed with the court, which may be shown by:
• The judge’s signature,
• S/s, /s/ or ss on the signature line (indicates the judge has seen the decree),
or
• Simply the words “filed” and the court name on the front of the decree.
The owner may have an approved property settlement instead of a divorce decree. The
property settlement must be filed with the courts in the same way as the decree.
In addition to the divorce decree or property settlement, DMV must receive releases from
anyone listed on the vehicle record and not mentioned in the decree, unless these owners
are also on the new application for title.
Title and releases
The title must be submitted if available.
If the title is lost or otherwise unavailable, and there is no security interest holder shown on
the DMV record, DMV will accept a completed application for title/registration, the divorce
decree, and other supporting documents needed to transfer title.
If there is a security interest holder shown on the current DMV record, DMV requires either
a lien release or the title from the security interest holder.
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Odometer
DMV requires an odometer disclosure if the party applying for title was not shown on the
previous title as an owner and the vehicle is subject to federal requirements. See Chapter
H, Odometer Disclosure Requirements for more information.
If the party that was awarded the vehicle sold it, they must disclose odometer as seller. If
the title is available, the seller and buyer must disclose odometer on the title itself. If the
title is not available, the seller and buyer must complete a separate secure odometer
disclosure/reassignment form.
Survivorship
Survivorship means there are joint owners with right of survivorship of personal property.
The front of Oregon titles shows survivorship information.
When DMV issued a title with survivorship and one of the owners is deceased, the
surviving owner(s) may transfer with proof of death of the deceased owner.
Applicants for title can request survivorship:
• By submitting an application for title and checking the box in the survivorship
section, or
• With a written request with an application for title, or
• By a written request with the current title.
Proof of death
Proof of death may be a copy of the death certificate, an obituary notice, a funeral notice,
or a newspaper article that clearly names the owner on record and states they are
deceased.
If all owners deceased
If all owners are deceased, determine who died last.
If the estate of the person who died last is being probated, DMV requires copies of court-
issued Letters of Testamentary or equivalent documents appointing the personal
representative, and a release of interest from the personal representative.
If the estate of the person who died last is not being probated, DMV can accept an
Inheritance Affidavit, or a Small Estate Certification, Form 6797. For the other owner(s)
who did not die last, DMV requires proof of death.
If all owners died at the same time, review the death certificates to determine when the
deaths occurred.
• If the owners died fewer than 120 hours apart, follow probate, Small Estate,
or Inheritance Affidavit procedures for all deceased owners.
• If owners died 120 hours or more apart, follow probate, Small Estate, or
Inheritance Affidavit procedures for the party who died last.
If you have questions about Small Estate requirements, contact DMV Customer
Assistance.
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Title and releases
The title is required, if available.
If the title is lost or otherwise unavailable, and the DMV record does not show a security
interest holder, DMV will accept a completed application for title and registration, the proof
of death, any other supporting documents needed to transfer title, and the proper fee.
If the current DMV record shows a security interest holder, you must either submit a lien
release or obtain the title from the security interest holder.
Odometer
When one of the registered owners is deceased and the survivor has sold the vehicle to a
new owner, the survivor must disclose odometer reading unless the vehicle is a model
year 2010 or older.
If the title is available, the seller and buyer must disclose odometer reading on the title
itself. If the title is not available, the seller and buyer must complete a separate secure
odometer disclosure/reassignment form.
If both owners are deceased, the personal representative must make the seller’s
disclosure.
Inheritance
Estate is probated
Follow these procedures if the title was issued without showing survivorship.
If the estate of the deceased is being probated, DMV requires copies of the court-issued
Letters of Testamentary or equivalent documents appointing the personal representative of
the estate.
The person appointed as shown in the court order must release the interest of the
deceased on the title or on a separate bill of sale. If the court appointed more than one
person, each person must sign to release the interest of the deceased.
If the estate was probated but has been closed, DMV requires a copy of the Decree of
Final Distribution issued by the court indicating the disposition of the vehicle.
Estate is not probated
If the estate is not being probated, DMV will accept a fully completed Inheritance Affidavit,
Form 516 (see Example). All heirs of the estate must sign it. The signatures must be
notarized. The form must show to whom the heirs awarded the vehicle. Oregon DMV may
accept another state’s inheritance affidavit form for estates settled in Oregon. The out-of-
state form is acceptable if it does not refer to another state’s laws and contains all the
information required on Oregon’s form.
If the heirs are minors under 18 years of age, a parent or guardian must sign on their
behalf. An example of a parent or guardian signature is: John Doe, 10, by John Doe,
parent. If a guardian signs for a child, DMV needs a copy of the papers showing
guardianship. An emancipated child under 18 years may sign the Form 516. A copy of
their emancipation papers must be submitted with the Form 516.
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If the heirs sell the vehicle, they may release on the title, a separate bill of sale, or secure
odometer disclosure. The heirs may assign their interest to a buyer by naming that person
on Form 516. Evidence must be presented showing that all security interests have been
satisfied, or that the security interest holder has given consent to transfer title to a new
owner.
Title and releases
The title is required, if available.
If the title is lost or otherwise unavailable, and there is no security interest holder shown on
the DMV record, DMV accepts a completed application for title and registration, the
inheritance affidavit or probate document, any other supporting documents needed to
transfer title, and the proper fee. If there is a security interest holder shown on the current
DMV record, you must either submit a lien release or obtain the title from the security
interest holder.
If the current DMV record shows a security interest holder, you must either submit a lien
release or obtain the title from the security interest holder.
DMV will also accept an application for title when vehicle ownership is settled by a small
estate affidavit filed with the applicable county. Contact DMV Customer Assistance for
more information.
Odometer
In inheritance situations, the party awarded the vehicle pursuant to operation of law
discloses the odometer reading. If that person is not the party who had possession of the
vehicle, they may rely on information provided by the party who has physical possession of
the vehicle.
The disclosure must be on the title itself if available. If the title is not available, the
disclosure may be on a secure odometer disclosure/reassignment form.
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Repossession
Repossession is the act of taking back possession of a vehicle when the purchaser fails to
make payments based upon a contractual agreement.
To apply for title after repossession, the repossessor, or an authorized representative, may
complete the Vehicle Repossession Certificate, Form 263.
The repossession certificate must indicate all debtors shown on the security agreement.
The certificate must show vehicle information (year, make, VIN), must be signed by the
repossessor, and must be the original. The applicant must also obtain releases from all
owners on the title not named in the security agreement. The form is not acceptable as a
lien release.
The title is required, if available. If the title is lost or otherwise unavailable, DMV will
accept a completed application for title and registration, the repossession certificate, any
other supporting documents needed to transfer title, and the proper fee.
DMV will accept another state’s repossession certification form. If the vehicle is titled in
another state, the form must be accompanied by the out-of-state title. The repossessor
must be the security interest holder on the out-of-state title. If no security interest holder is
listed on the title, DMV needs a copy of the security agreement.
When the security interest is not shown on the title
The party that repossesses a vehicle is usually shown as the security interest holder on
DMV records. However, there are times when the DMV record does not show the security
interest holder. For example, if the title was not transferred to show their interest.
If DMV records do not show the party repossessing as security interest holder, a copy of
the contract or security agreement signed by the owner of record must be submitted with
the transaction. DMV will accept the contract or security agreement if there is no indication
of any third-party claim to the vehicle. For example, the registered owner has sold the
vehicle to someone.
When the security interest has been reassigned
Under certain circumstances, the security interest holder will sell or reassign their contract
for a vehicle. If the registered owner defaults on the loan, the party the contract was sold
or reassigned to has a right to repossess the vehicle. For example:
A dealership obtains financing for a customer from a lender based on an
“unconditional guarantee” and the customer is expected to pay off the loan. If the
customer defaults on the loan, the contract may be reassigned to the dealership by
the lender. The dealership then has a right to repossess the vehicle from the
customer.
In these instances, a copy of the contract with some indication the security interest was
reassigned or sold must be submitted as well as the other repossession papers.
Odometer
When applying for title, the odometer disclosure is required from the repossessor.
DMV TITLE AND REGISTRATION HANDBOOK
Chapter G: Operation of Law/Trusts
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Example of VEHICLE REPOSSESSION CERTIFICATE, FORM 263
Actual size 8½” x 5½ “
Possessory lien/abandoned vehicle
Customers may use the Possessory Lien/Abandoned Vehicle packet, Oregon DMV (Form
6828) to help them determine what form to use according to the laws they are following.
This packet is available online. The packet contains general information, the forms DMV
issues that relate to possessory lien foreclosures, and copies of some of the laws
pertaining to common possessory lien and abandoned vehicle situations. This form is
available at DMV offices, and through the ODOT Storeroom.
ORS 87.152 requires lien claimants who foreclose a lien to file a surety bond or irrevocable
letter of credit in the amount of $20,000 with DMV prior to foreclosing a lien. The bond or
letter of credit must have an original (wet) signature and can be mailed to:
DMV Business Licensing
1905 Lana Ave NE
Salem, OR 97314
The surety bond form for possessory liens can be found at
https://www.oregon.gov/odot/Forms/DMV/522Bfill.pdf. A surety bond form is included in
the Possessory Lien/Abandoned Vehicle packet, Oregon DMV, Form 6828.
Manufacturers, franchised dealers, towers with a valid tow business certificate, and
national auction companies are exempt from the requirement to file a surety bond or
irrevocable letter of credit with DMV.
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DMV forms
DMV possessory lien foreclosure forms submitted with a transaction must be the version in
effect at the time the lien was foreclosed or be the form in effect at the time of application.
(See OAR 735-020-0012 (3).) DMV does not have forms for city and county ordinances.
Out-of-state possessory liens
Oregon DMV does not accept applications for vehicle titles when ownership is being
transferred under out-of-state abandoned vehicle laws or out-of-state foreclosure laws.
Oregon DMV may only issue a title after the jurisdiction where the foreclosure occurred
issues a certificate of title to the lien claimant or purchaser.
Abandoned
ORS 98.810 defines an unauthorized parking of a vehicle at a “proscribed” property.
ORS 98.805 defines “proscribed” property as private property where parking is not
normally permitted at all or that is used primarily for parking at a single-family residential
dwelling or a duplex.
ORS 98.812 describes the conditions when the owner of the property with an unauthorized
parked vehicle may have a vehicle towed and when the owner of the property with an
unauthorized parked vehicle is entitled to a lien on the vehicle. Read ORS 98.805 through
98.991 to determine if you are entitled to dispose of a vehicle parked without authorization
on your property.
Vehicles towed at the request of an authority - ORS 819.160
ORS 819.110 through 819.215 describe the towing and disposal of abandoned vehicles
from a public right-of-way. Read the cited statutes before disposing of a vehicle towed
under these conditions.
Vehicles stored, repaired, etc.
ORS 87.152 describes a possessory lien for labor or material expended on a chattel. ORS
87.156 describes an innkeeper’s lien and 87.162 describes a landlord’s lien. Read ORS
chapters 87.152 through 87.214 if you believe you are entitled to foreclose a lien against a
vehicle for any of these reasons.
Note: Oregon licensed towers that sell passenger vehicles with Oregon registration plates
to any person or entity, other than an Oregon licensed dealer or Oregon licensed
dismantler, must remove the stickers from the plates prior to selling the vehicle. Oregon
certified dealers must remove the stickers unless they sell the passenger vehicle to
another Oregon dealer, or unless the dealer submits the title paperwork to DMV for their
buyer.
Trusts
A trust is “a right of property, real or personal, held by one party for the benefit of another.”
There are many types of trusts, such as Family Trust, Honorary Trust, Irrevocable Trust,
and Revocable Trust. For DMV purposes, trusts, except for business trusts, are all treated
the same.
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Chapter G: Operation of Law/Trusts
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A copy of the trust agreement is not required when a transaction involving a trust is
submitted to DMV.
DMV will not enter dates in the vehicle record as part of the trust name. The date may be
needed for the trust but it is not considered part of a trust’s name for DMV title purposes.
Business and/or corporate trusts
A business trust is a business entity, similar to a corporation or partnership. It is a legal
entity formed to operate a business and it can acquire, sell, or lease real property or
personal property such as vehicles.
If the application shows a business trust, DMV will issue the title showing the name of the
business trust. DMV will issue the title with the names of the trustees or nominees, in
addition to the name of the business trust, only if a copy of the trust is submitted and the
trustees or nominees for the business are named in the trust.
Private trusts
Application for title
The application for title for a non-business (private/individual) trust must list all current
trustees of the trust. The application must include an indication of their title as trustee.
If the name of the private trust is included in the application, DMV will issue the title with
the name of the trust as well as the names of the trustees.
Release of interest
Trustees are the owners and the persons with authority to release for the trust. The trust
itself is not an owner; thus, DMV does not need a release from the trust.
If the title only shows the name of the trust and not the trustees, a trustee statement is
required. If a trustee is deceased, DMV requires a trustee statement. No proof of death is
required.
A trustee statement can be in the remarks section of a DMV form or on a separate piece of
paper.
Two examples of trustee statements are:
1. Jane Doe is no longer trustee of the John Doe Happy Trust due to her death. I, John
Customer, am the successor trustee of the John Doe Happy Trust.
Signed by (John Customer’s signature), Trustee
2. John and Jane Customer are no longer trustees of the John Doe Happy Trust. The
trustees of the John Doe Happy Trust are Robert Somebody, Susan Somebody, and
Chris Anybody.
Signed by (Susan Somebody’s signature), Trustee
A title may have been issued in the names of the registered owners who later include the
vehicle in a trust, naming themselves as trustees. If the owners are on the title as
registered owners and not as trustees, they must release as registered owners. Trust
procedures are only a requirement when the vehicle is titled in a trust.
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Chapter G: Operation of Law/Trusts
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When trustees release interest, they must sign with some indication that they are signing
as a trustee; for example:
(Just A. Customer’s Signature), Trustee
-OR-
Trustee (Just A. Customer’s Signature)
All applicable fees and other title and registration requirements apply.
