§ 4-90-206 - Disclosure requirements on transfer of a motor vehicle.
4-90-206. Disclosure requirements on transfer of a motor vehicle.
(a) (1) A person transferring his or her ownership of a motor vehicle shall give the transferee a written disclosure:
(A) Of the cumulative mileage registered by the odometer; or
(B) That the mileage is not actual, if the transferor knows that the mileage registered by the odometer is incorrect.
(2) A person making a written disclosure required by a regulation prescribed under subdivision (a)(1) of this section may not make a false statement in the disclosure.
(3) A person acquiring a motor vehicle for resale may accept a disclosure under this section only if it is complete.
(4) The Director of the Department of Finance and Administration shall adopt, pursuant to the Arkansas Administrative Procedure Act, 25-15-201 et seq., rules not inconsistent with this subchapter or Title 49, Chapter 327 of the United States Code, or any rules promulgated thereunder prescribing the manner in which the written disclosure shall be made.
(b) (1) A motor vehicle, the ownership of which is transferred, may not be licensed for use in this state unless the transferee, in submitting an application for the title on which the license will be issued, includes with the application the transferor's title and, if that title contains the appropriate space, the transferor's disclosure of the mileage at the time of transfer, and the signature and the date of the disclosure.
(2) (A) If the title to a motor vehicle issued to a transferor is in the possession of a lienholder when the transferor transfers ownership of the vehicle, the transferor may use a written power of attorney in making the mileage disclosure required under subsection (a) of this section.
(B) The director shall adopt, pursuant to the Arkansas Administrative Procedure Act, 25-15-201 et seq., rules not inconsistent with this subchapter or Title 49, Chapter 327 of the United States Code, or any rules promulgated thereunder prescribing the form of the power of attorney.
(C) The provisions of 4-90-203 and 4-90-207(a) apply to a person granting or granted a power of attorney under this subdivision (b)(2).
(c) (1) For a leased motor vehicle, the lessee shall provide the written disclosure required by subsection (a) of this section to the lessor when the lessor transfers ownership of that vehicle.
(2) The lessor shall provide written notice to the lessee of:
(A) The mileage disclosure requirements of subsection (a) of this section; and
(B) The penalties for failure to comply with those requirements.
(3) The lessor shall retain the disclosures made by a lessee under subdivision (c)(1) of this section for at least four (4) years following the date the lessor transfers the leased motor vehicle.
(4) If the lessor transfers ownership of a leased motor vehicle without obtaining possession of the vehicle, the lessor, in making the disclosure required by subsection (a) of this section, may indicate on the title the mileage disclosed by the lessee under subdivision (c)(1) of this section, unless the lessor has reason to believe that the disclosure by the lessee does not reflect the actual mileage of the vehicle.
(d) If a motor vehicle is sold at an auction, the auction company conducting the auction shall maintain the following records for at least four (4) years after the date of the sale:
(1) The name and address of the most recent owner of the motor vehicle, except the auction company;
(2) The name and address of the buyer of the motor vehicle;
(3) The vehicle identification number of the motor vehicle; and
(4) The odometer reading on the date the auction company took possession of the motor vehicle.