Iowa law sets title, record, and disclosure rules for dealers

A licensed dealer is treated as holding rights to a vehicle when its title is issued or properly assigned to an entity that directly owns or controls the dealer. This applies to motor vehicle dealers licensed under Iowa law. The title must be issued or properly assigned to an entity with direct ownership or control over the dealer.

For a remote sale, the dealer or an entity that directly owns or controls it must have the vehicle’s title at the time of sale. This applies to motor vehicle dealers and the vehicles they sell remotely. An electronic title must use a secure system approved by the department. A PDF, scan, email message, or dealer-created format does not qualify. The buyer must sign the purchase agreement before the dealer signs it. The dealer or controlling entity must have the title when the sale takes place.

Dealers must store required records at their business or at a U.S. business of an entity that directly owns or controls them, and provide records to the department when requested. Required records include where a vehicle is stored, its title status, and documents about its remote sale. Electronic records are due within 24 hours after a request. Physical records are due within a reasonable time based on postal delivery. The 24-hour deadline starts when the department requests electronic records. Physical records must be provided within a reasonable time based on postal delivery.

Dealers must tell remote buyers whether the vehicle is outside Iowa, whether its title is electronic, and the estimated delivery date. These disclosures apply to vehicles offered for remote sale. The dealer must disclose the vehicle’s location and electronic title format when either applies.

Dealers may use a qualifying electronic signature on a digital image of a physical title for odometer disclosures, and remote vehicle sales are not covered by Iowa’s door-to-door sales law. The signature rule applies to odometer disclosures; the exclusion applies to remote motor vehicle sales. The physical title must have been printed through a secure process that meets federal requirements. The dealer must mark the original title void or surrendered and apply electronically for a title and registration through an authorized service provider.