Original Notice.

Preproposal statement of inquiry was filed as WSR 98-24-006.

Title of Rule: Certificate of title--Motor vehicles, etc.

Purpose: 1. To meet the criteria set forth in Governor Locke's Executive Order 97-02.

2. To clarify rules and help make them more comprehensible.

Statutory Authority for Adoption: RCW 46.01.110.

Summary: Amending WAC 308-56A-060 Form required for name and address--Ownership in joint tenancy, 308-56A-065 Vehicles held in trust, 308-56A-070 Leased vehicles, and 308-56A-075 Two legal owners.

Reasons Supporting Proposal: Meet criteria supporting Governor Locke's Executive Order 97-02.

Name of Agency Personnel Responsible for Drafting: Patrick J. Zlateff, 1125 Washington Street S.E., Olympia, 902-3718; Implementation and Enforcement: Eric Andersen, 1125 Washington Street S.E., Olympia, 902-4045.

Name of Proponent: , governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: The anticipated effects will be a clarification of the above-mentioned requirements.

Proposal Changes the Following Existing Rules: Clarify sections needed and repeal those no longer required.

No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement is not required pursuant to RCW 19.85.030 (1)(a). The proposed rule making does not impose more than a minor cost on businesses in an industry.

RCW 34.05.328 does not apply to this rule adoption. The contents of the proposed rules are explicitly and specifically dictated by statute.

Hearing Location: Highways-Licenses Building, Conference Room 303, 1125 Washington Street S.E., Olympia, WA 98507, on March 16, 1999, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Patrick J. Zlateff by March 15, 1999, TDD (360) 664-8885, or (360) 902-3718.

Submit Written Comments to: Patrick J. Zlateff, Rules Coordinator, Title and Registration Services, P.O. Box 2957, Olympia, WA 98507-2957, fax (360) 664-0831, by March 15, 1999.

Date of Intended Adoption: April 3, 1999.

January 26, 1999

Nancy S. Kelly, Administrator

Title and Registration Services

OTS-2765.1

AMENDATORY SECTION(Amending Order MV 208, filed 7/31/74)

WAC 308-56A-060
((Form required for name and address--)) Ownership in joint tenancy.

((If more than one person is shown on the title application as registered owner, and the intention of the parties is to create ownership in joint tenancy, it is necessary to use the following language on the application for certificate of title:

(1) "John Doe and Jane Doe and Mary Doe as joint tenants with right of survivorship"; or

(2) "John Doe and Jane Doe and Mary Doe as joint tenants with right of survivorship and not as tenants in common."

The address of only one of the registered owners will be accepted on the application for title.  The ownership of the vehicle in joint tenancy will be indicated on the certificate issued by the department in the following manner: "J.T.W.R.O.S."

A certified copy of the death certificate will be required upon the death of a party named on such a title.  An application for title in the name(s) of the remaining party will be required.)) (1) What does joint tenancy with rights of survivorship mean when noted on a certificate of ownership? If owners own a vehicle in joint tenancy with rights of survivorship and one of the named parties dies, ownership vests in the surviving joint owner(s). The department will issue a certificate of ownership in the name of the surviving joint owner(s) upon application supported by a copy of the death certificate.

(2) How is joint tenancy with rights of survivorship shown on the application for certificate of ownership? The application for certificate of ownership shall show the name of every owner with the phrase "Joint tenants with rights of survivorship" spelled out. The address of only one owner can be accepted on the application.

Example 1:

Doe, John

Doe, Jane

Doe, Mary

Joint tenants with rights of survivorship; or

Example 2:

Doe, John

Doe, Jane

Joint tenants with rights of survivorship.

(3) How is joint tenancy with rights of survivorship shown on the certificate of ownership? The certificate of ownership will be printed showing the abbreviation "JTWROS."

(4) If one of the owners dies, what additional documentation does the department require to transfer the certificate of ownership into the name(s) of the surviving owner(s)? The department requires a copy of the death certificate.

[Order MV 208, § 308-56A-060, filed 7/31/74.]

(1) ((The trustee of a trust, including family trusts, executed pursuant to chapter 11.98 RCW listing a vehicle on the property schedule shall make application for certificate of ownership and registration in the name of the trustee, pursuant to chapters 46.12 and 46.16 RCW.  The certificates of ownership and registration shall show the trustee as registered or legal owner followed by the word "trustee" and the name of the trust.  The name of the trust may be abbreviated to fit into available space.

(2) Applications for licensing activities on the vehicle, including release of interest and transfer of ownership shall be requested over the signature of the trustee until the trustee is replaced or the trust is terminated.  The replacement trustee shall make application for transfer of ownership as provided in subsection (1) of this section.  If a replacement trustee is not appointed or the trust is terminated, the beneficiary of the vehicle shall make application for ownership as provided in chapter 46.12 RCW.)) How is a trust, established under chapter 11.98 RCW, shown on a certificate of ownership? Owners who choose to designate the trust on a certificate of ownership may:

(a) Show the registered owner name with the designation trustee;

(b) Show the registered owner name with the designation trustee followed by the name of the trust as one owner. If necessary, the name of the trust will be abbreviated to comply with the department's data field size constraints on the automated vehicle field system and space limitations on the certificate of ownership; or

(c) The name of the trust only.

(2) What trust documents do I need to present to apply for a certificate of ownership in the name of the trust? You will need to provide a copy of the signed trust documents, showing the name of the trust, trustee(s) and successor trustees.

(3) If a vehicle is titled in the name of a trust, who represents the trust for title transactions? The trustee shown on the certificate of ownership represents the trust on all vehicle transactions with the department until such time as the trustee is replaced or the trust is terminated.

(4) What is required when a successor trustee is appointed? The successor trustee must apply for a new certificate of ownership and provide documentation appointing them as trustee.

(5) What is required when a trust is terminated? The beneficiary must apply for a new certificate of ownership under chapter 46.12 RCW.

[Statutory Authority: RCW 46.01.110 and 46.12.030.  97-03-076, § 308-56A-065, filed 1/15/97, effective 2/15/97; Order MV 208, § 308-56A-065, filed 7/31/74.]

((If the vehicle is leased and operated in Washington, it must be titled and licensed in Washington.

(1) The application for title is to be completed with the name of the lessee as registered owner, followed by the word "lessee." The name of the lessor is shown as the secured party or legal owner, followed by the word "lessor."

(2) If the vehicle is subject to a security agreement, the application will be completed as above except the lessor's name will be immediately below the lessee's name and will be identified by the word "lessor." The address shown will be the lessee's.  The secured party's name and address will be shown in the legal owner's space.

(3) Dealers and persons engaged in the business of vehicle leasing may simply show the lessor as sole registered owner if a copy of the lease or rental agreement is attached to the application.  This does not apply if the lease contains an option to purchase or if it is for more than one year.)) (1) How are the lessee and lessor designated on Washington certificates of ownership?

(a) The application for certificate of ownership shall show the name of the lessee as registered owner, followed by the word lessee. The name of the lessor shall be shown as the secured party or legal owner, followed by the word lessor.

(b) If the vehicle is subject to a security agreement, the application shall be completed as above with the lessor's name immediately below the lessee's name as second registered owner and shall be followed by the word lessor. The address shown shall be the lessees. The secured party's name and address shall be shown as the legal owner.

(c) Dealers and persons engaged in the business of vehicle leasing may simply show the lessor as sole registered owner if a copy of the lease or rental agreement is attached to the application. This does not apply if the lease contains an option to purchase or if it is for more than one year.

(2) How is a lessee and sublessee designated on the Washington certificate of ownership?

(a) Lessees who enter into a lease agreement with another party will be shown on a certificate of ownership as the registered owner followed by the designation LESSEE. The sublessee will be shown on a certificate of ownership as the registered owner followed by the designation SUBLESSEE. Only the sublessee must sign the application for certificate of ownership.

(b) The name of the lessor shall be shown as either:

(i) The secured party or legal owner, followed by the word lessor; or

(ii) If the vehicle is subject to a security agreement, the application shall be completed as above with the lessor's name immediately below the lessee's name as third registered owner and shall be followed by the word lessor. The address shown shall be the sublessee's. The secured party's name and address shall be shown as the legal owner.

(3) Do I need to surrender my out-of-state certificate of ownership to the department when I register my leased vehicle in Washington? If the out-of-state certificate of ownership shows lessee and lessor designations as required by Washington state law or rule, the certificate of ownership need not be surrendered. A certificate of registration will be issued, however, a Washington certificate of ownership will not. If the out-of-state certificate of ownership is not in name agreement or does not show lessee and lessor designations as required by Washington law or rule, the out-of-state certificate of ownership shall be surrendered and a Washington certificate of ownership will be issued to the lessor/legal owner.

[Statutory Authority: RCW 46.01.110 and 46.12.030.  97-03-076, § 308-56A-070, filed 1/15/97, effective 2/15/97; Order MV 208, § 308-56A-070, filed 7/31/74.]

((If one of two legal owners shown on a certificate of title has his/her security interest in the vehicle satisfied, that interest in the vehicle shall be released in the appropriate manner and the appropriate documentation forms forwarded to the remaining legal owner.  The remaining legal owner shall either (1) retain that documentation and forward it to the department at the time his/her interest is satisfied along with an application for reissue or (2) the documentation shall be immediately presented to the department with an application for reissue of title to show the remaining secured party as the sole legal owner of the vehicle.  If the outstanding certificate of title does not show the address of the remaining legal owner, there must be an application for reissue of title in order that the address of the remaining legal owner may be indicated on the outstanding certificate of title.)) (1) Will the department issue a certificate of ownership indicating more than one legal owner? Yes, more than one legal owner may be shown on the certificate of ownership.

(2) How are additional legal owner's interest shown on the certificate of ownership? Additional legal owners are shown directly after the first legal owner. Only the address of the first legal owner shall be shown on the certificate of ownership.

(3) If the lien has been satisfied with one of the legal owners shown on a certificate of ownership, how is their interest released? When security interest of one of the legal owners shown on a certificate of ownership has been satisfied that interest shall be released on the certificate of ownership or a department approved release of interest form. The remaining legal owner(s) shall, within ten days of receiving the properly released certificate of ownership, apply for reissue of the certificate of ownership showing the remaining legal owner's name and address.

[Statutory Authority: RCW 46.01.110 and 46.12.030.  97-03-076, § 308-56A-075, filed 1/15/97, effective 2/15/97; Order MV 208, § 308-56A-075, filed 7/31/74.]

© Washington State Code Reviser's Office