Q: Can an automobile dealership apply for a Title in its name?
A: Massachusetts General Laws Section 90D Section 2 exempts dealers from applying for a Title on vehicles that are being held for resale. The Registry will allow a dealer to apply for a Title when the vehicle to be resold has gone through the salvage inspection process and the dealer is applying for either:
The dealer must be certified as a dealer with the Department of Revenue. This Application for Title is tax exempt.
Q: A Massachusetts Dealer purchases a car with a Rhode Island Title. There is an unused reassignment available on the Title, but it says “For use by Rhode Island Licensed Dealer Only”. Does the Dealer need a Massachusetts DRT-1 to sell the car?
A: No. The Dealer should use the available reassignment section on the back of the Rhode Island Title.
Q: A Dealer purchases a car with a Massachusetts Title and a Massachusetts DRT-1 attached. Both of the reassignments on the DRT-1 have been completed, but there is a blank reassignment on the Title. Does the Dealer need a DRT-1 to sell the car?
A: No. The Dealer should use the available reassignment section on the back of the Title.
Q: A Dealer purchases a car with an Authorization for Loan Payoff attached. The reassignments on the Title have been completed. Does the Dealer use a reassignment on the reverse side of the Authorization for Loan Payoff or complete another DRT-1?
A: A new DRT-1 should be used. Dealers should not use both sides of a DRT-1 Form.
Q: A Dealer takes a car to an auction. There is a reassignment available on the Title. The clerk at the auction tells the Dealer to attach a DRT-1 in case the car goes to arbitration or there’s a mistake. Should the Dealer attach a DRT-1?
A: No. The Dealer should provide an additional DRT-1 form ONLY when all reassignments on the Title are already used.
Q: An out-of-state Dealer sells a car to a Massachusetts Dealer and tells the Dealer that he needs a Massachusetts reassignment. Does the MA Dealer provide the DRT-1?
A: No. The out-of-state Dealer must use a reassignment provided by that state.
Q: A Massachusetts Dealer sells a car with a New Hampshire title to a Rhode Island resident. The NH Title has a reassignment space available. Does the MA Dealer provide a DRT-1?
A: No. The MA Dealer uses the space on the back of the NH Title.
Q: A Dealer has properly completed an Authorization for Payoff on the DRT-1, pays off the loan, and requests the Title from the lender. Does the dealer give the lender the original or a copy?
A: The Dealer gives the lender a copy of the DRT-1 Form and attaches the original to the Title.
Q: Can I use the DRT-1 Assignment and Authorization for Payoff Form for a Lease Buyout?
A: No, The Assignment and Authorization for Payoff is used to pay off a loan and assigns ownership. A lease payoff transaction is not a loan and lessor is the owner of the vehicle, not the lessee. The Leasing Company must assign ownership on the Title documents.
Q: I bought a car at the auction as a “Title Attached”. I have a buyer, but am still waiting for the Title. Can I use a DRT-1 to transfer ownership and sell the car, then attach it to the Title later?
A: No. The Dealer must have possession of the Title at the time of the sale. The DRT-1 is a supplemental document that is only used when all reassignments on the Title are complete.
Q: Who is eligible to request DRT-1 Forms?
A: Massachusetts-licensed Dealers only