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FACT SHEET

Transitional Ownership Documents


PURPOSE:
This fact sheet provides basic information regarding Transitional Ownership Documents (TODs), per Sections 49-121(7) and 49-527 through 49-530, Idaho Code. Liens on vehicles and vessels are normally perfected by filing a title application recording the lien, together with the title, manufacturer’s certificate of origin (MCO), or manufacturer’s statement of origin (MSO) within 30 days of the transaction. When this lien perfection method cannot be used, due to the fact that the title, MCO, or MSO is not going to be available within 30 days, the lien can be perfected by filing a TOD within 30 days of the sale, or if there was no sale, within 30 days of the contract signature date. The title application, together with the title, MCO, or MSO must then be filed within 90 days of the sale, or if there was no sale, within 90 days of the contract signature date to perfect the lien.

Filing or failing to file a TOD will have no effect on ownership (whether or not a subsequent title is issued). Regardless of the timing, a title will be issued if an application accompanied by the appropriate ownership documents is properly filed. The sole function of the TOD is to positively affect the recorded date of the lien on the title, which could determine whether or not the lien has a preferred status if the owner files for bankruptcy.

EFFECTIVE DATE
July 1, 2007.
   
DEFINITION:
Transitional Ownership Document (form number ITD-3901): a document used by a selling dealer, a new security interest holder, or an agent working on their behalf to perfect a lien in a timely manner against creditors or subsequent purchasers when:
  • the primary ownership document (title, MCO, or MSO) is not available, and
  • the filer—to the best of his knowledge—will not have possession of the primary ownership document within thirty (30) days of the sale, or if there was no sale within thirty (30) days of the contract signature date.
To be valid, a TOD or the accompanying copy of the application for certificate of title must include:
  1. the date of sale or if no sale is involved, the signature date of the contract or security agreement being perfected;
  2. the name and address of each owner of the vehicle or vessel,
  3. the name and address of each security interest holder,
  4. the priorities of interest (if there are multiple security interest holders),
  5. the vehicle identification number (VIN) or hull identification number (HIN), and
  6. the name and signature of the security interest holder or agent (dealer or other) filing the TOD.
TOD PROCESS
If it becomes evident that a vehicle or vessel’s primary ownership document will not be available to file within thirty (30) days of the sale, or if there was no sale within thirty (30) days of the contract signature date:
  1. The dealer, security interest holder, or authorized agent may prepare a TOD, attach a copy of the completed application for certificate of title or other proof of sale or contract, pay a non-refundable $26.00 fee*, and either file these documents with a county assessor motor vehicle office or the Idaho Transportation Department headquarters (ITD) office in Boise within thirty (30) days of the sale, or if there was no sale, within thirty (30) days of the contract signature date. If the document is filed with ITD, the filer will also list the TOD on a transmittal form.
    *The $26.00 TOD application fee should be paid by the dealer or lienholder. The vehicle owner should not be expected to pay the fee.
  2. The receiving office will enter the TOD onto a database for tracking purposes and forward the TOD and supporting documents to the ITD title examination unit for review.
  3. If the documents are in order they will be kept on file. If they are deficient in some respect, they will be rejected and returned to the filer to correct the deficiencies.
  4. When the primary ownership document is received, the dealer, security interest holder, or authorized agent will file it along with the original application for certificate of title and any other necessary supporting documents according to normal procedures. The filing must be done within ninety (90) days of the sale, or if there was no sale, within ninety (90) days of the contract signature date.
  5. The primary ownership document, application for certificate of title, and supporting documents are forwarded to the ITD title examination unit for review.
  6. If all title and TOD requirements have been satisfied, the title will be issued and the lien will be recorded with the earliest of either the TOD recorded date or the date paperwork was received. If all TOD requirements were not satisfied but the ITD title requirements were, the title will be issued and the lien’s recorded date will be assigned as if no TOD had been filed.

REASONS FOR REJECTION OR INVALIDATION
A TOD will be rejected or invalidated if:
  1. it was filed more than 30 days from the date of sale, or if there was no sale, more than thirty (30) days from the contract signature date;
  2. a copy of the application for certificate of title or other documetation verifying the sale or contract was not attached to the TOD;
  3. The TOD or the accompanying copy of the application for certificate of title or other alternative documentation does not provide the required key information (date of sale, or if there was no sale, contract signature date, vehicle or vessel identification number, owner name[s] and address, lienholder name and address, owner and filer’s signatures, etc.);
  4. a $26.00 fee was not submitted with the TOD;
  5. key information on the TOD was changed or altered without explanation;
  6. the TOD filer requests that the TOD be withdrawn or returned;
  7. the primary ownership document and application for certificate of title were not filed within ninety (90) days of the sale, or if there was no sale, within ninety (90) days of the contract signature date.
  8. key information on the TOD does not match key information on the application for certificate of title;
  9. the person filing the TOD made false statements; or
  10. the lienholder on the TOD did not have a lien when the TOD was filed.
TOD WITHDRAWAL PROCEDURE
To request the withdrawal of a TOD, the dealer, lienholder, or authorized agent must submit a withdrawal request to ITD headquarters at the address below. The request should include the vehicle year and make, vehicle or hull identification number, owner name(s), lienholder name(s), and the business name and a signature of the party requesting the withdrawal.

FORMS
All ITD forms required in the TOD process may be obtained from any county assessor motor vehicle office, from the Idaho Transportation Department headquarters office, or they can be downloaded from the links below:

Transitional Ownership Document Form
Other Vehicle Services Forms

This fact sheet has been provided by:
Idaho Transportation Department, Division of Motor Vehicles
PO Box 7129, Boise, ID 83707-1129

Page Last Modified: 1/14/2010 5:21:29 PM

Division of Motor Vehicles / Vehicle Services Section
Vehicle Titles: (208) 334-8663Vehicle Registrations (Special Plates): (208) 334-8649Dealer Licensing: (208) 334-8681



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Idaho Transportation Department
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Boise, ID 83707-1129