US
CA
Texas Dealer Compliance Rules
Texas enforces one of the most comprehensive systems for branded-title and used-vehicle disclosure in the United States. Regulated by the Texas Department of Motor Vehicles (TxDMV) under the Texas Transportation Code §§501.091–501.156, the law requires all licensed dealers to verify and disclose vehicle title conditions—such as salvage, rebuilt, flood, or non-repairable—before completing a sale.
Through direct integration with the National Motor Vehicle Title Information System (NMVTIS), the TxDMV ensures real-time title verification, helping prevent fraud, “clean title” misrepresentation, and resale of unsafe vehicles.
Purpose of the Texas Branded Title Law
The Texas branded-title framework is designed to protect consumers, maintain fair business practices, and align with federal NMVTIS standards. It ensures that both buyers and sellers operate within a transparent, data-driven marketplace.
- Transparency: Dealers must disclose all branded titles in writing before sale.
- Consumer Safety: Keeps total-loss and flood-damaged vehicles from being resold as clean titles.
- Accountability: Mandates accurate recordkeeping and synchronization with NMVTIS data for every title transaction.
Key Provisions of Texas Dealer Disclosure Law
| Provision | Dealer Obligation | Reference |
|---|---|---|
| Branded Title Disclosure | Provide written notice for any vehicle with a salvage, rebuilt, flood, or non-repairable title. | Transportation Code §501.100–§501.152 |
| NMVTIS Verification | Verify title brands through NMVTIS before resale or title transfer. | §501.091 & §501.151 |
| Salvage & Non-Repairable Titles | Total-loss vehicles must be retitled as salvage or non-repairable through TxDMV. | §501.091–§501.097 |
| Flood-Damage Notice | Written flood disclosure required for all flood-branded vehicles. | §501.097 & §501.100 |
| Record Retention | Keep NMVTIS reports and disclosures for at least four years for audits. | §503.034 & §503.038 |
| Penalties | Violations may result in fines, license suspension, or criminal penalties. | §503.094 & §503.095 |
Integration with NMVTIS and TxDMV Systems
Texas was one of the first states to integrate NMVTIS verification directly into its title and registration process. When a dealer submits a title application, the TxDMV automatically cross-checks NMVTIS data to identify prior brands or total-loss events, ensuring each record reflects the vehicle’s true history.
- All branded titles are uploaded to NMVTIS within 24 hours.
- Dealers and insurers electronically report salvage or non-repairable events.
- Consumers and dealers can access verified NMVTIS data through VinAudit.com.
Create a VinAudit Dealer Account to access official NMVTIS reports, automate title checks, and simplify compliance across every sale. VinAudit’s dealer platform supports batch processing, API integration, and audit-ready recordkeeping — all built for seamless TxDMV and NMVTIS compliance. Sign up for a Dealer Account →
Dealer Compliance Checklist
- Run a VinAudit NMVTIS Report before every used-vehicle sale.
- Disclose any salvage, rebuilt, or flood titles in writing to the buyer.
- Provide required flood-damage notices.
- Retain NMVTIS and disclosure documents for four years or more.
- Integrate NMVTIS verification into your DMS via VinAudit’s API or bulk tools.
- Train your sales and compliance teams on branded-title procedures.
Following this checklist ensures full compliance with both TxDMV regulations and federal NMVTIS standards.
Enforcement and Penalties
The TxDMV Enforcement Division and Office of Consumer Credit Commissioner (OCCC) jointly oversee compliance. Failure to disclose or verify title status can lead to:
- Administrative fines up to $10,000 per violation.
- Suspension or revocation of dealer licenses.
- Civil or criminal penalties for misrepresentation or omission.
- Consumer restitution for verified violations.
Relation to Other State NMVTIS Laws
Texas’s integrated NMVTIS model complements other states with explicit dealer mandates like California AB 1215 and Oregon SB 840. While Texas doesn’t require manual NMVTIS pulls, it ensures equivalent compliance through TxDMV’s automated verification process, supporting national title data consistency.
Frequently Asked Questions
Do Texas dealers have to use NMVTIS?
What qualifies as a branded title in Texas?
Are private sellers covered by these rules?
How quickly does Texas update NMVTIS records?
What records must dealers retain for audits?
Get Started with VinAudit for Dealers
Join thousands of licensed dealers nationwide who trust VinAudit to power NMVTIS compliance. Gain instant access to official NMVTIS data, batch VIN reporting, and automated integrations built to simplify compliance under Texas and federal regulations.
Fill all fields for instant activation.
| Your Name: | ||
| Business Name: | ||
| Address: | ||
| Zip Code: | ||
| Email: | ||
| Phone: | ||
| Website: | ||
| Promo Code (optional): | ||
| I agree to the Terms & Conditions. | ||
| I agree to the NMVTIS Disclaimer. | ||
Related Resources
- Oregon SB 840 Dealer Compliance
- California AB 1215 Dealer Compliance
- What Is NMVTIS? A Complete Guide
- Dealer Compliance Checklist
- NMVTIS Compliance Map (U.S.)
Stay compliant: Run a VinAudit NMVTIS Vehicle History Report before every sale and protect your dealership under Texas law.
The most comprehensive Automotive Data & Analytics
- Automotive Market Trends & Insights
- Research & White Papers
- Auto Market Analytics Articles
- VIN Decoder & Lookup
