Motor Vehicle Division Vehicle Titling and Registration 5 — Questions and Answers
Question 1: What is the purpose of a 'certificate of non-operation' (also called a PNO or planned non-operation)?
- To report a stolen vehicle to the DMV
- To avoid paying registration fees for a vehicle kept off public roads (Correct answer)
- To transfer a title to a family member without a fee
- To apply for a handicapped parking placard
Correct answer: To avoid paying registration fees for a vehicle kept off public roads
Filing a certificate of non-operation (PNO) notifies the DMV that a vehicle will not be driven on public roads, allowing the owner to avoid paying full registration fees during that period.
Question 2: When adding a co-owner to a vehicle title, what does 'OR' between two names signify versus 'AND'?
- 'OR' means both owners must sign to sell; 'AND' means either owner can sign alone
- 'OR' means either owner can act independently; 'AND' means both must sign for any transfer (Correct answer)
- 'OR' is used for married couples; 'AND' is used for business partners
- 'OR' and 'AND' have identical legal meanings on a title
Correct answer: 'OR' means either owner can act independently; 'AND' means both must sign for any transfer
When names are joined by 'OR,' either owner can independently sell or transfer the vehicle; 'AND' requires both parties to sign any transfer documents.
Question 3: What is a 'manufacturer's certificate of origin' (MCO) and who typically holds it?
- A safety recall notice sent to the owner by the manufacturer
- The original ownership document issued by the manufacturer, held by the dealer until first sale (Correct answer)
- A warranty certificate kept by the vehicle owner
- A customs clearance document for imported vehicles only
Correct answer: The original ownership document issued by the manufacturer, held by the dealer until first sale
The MCO is the factory document that serves as the vehicle's first title; the dealer holds it and surrenders it to the DMV when the vehicle is first sold to obtain a state title.
Question 4: What is 'title jumping' and why is it illegal?
- Selling a vehicle across state lines without paying taxes
- Skipping the title transfer step to avoid taxes and fees when quickly reselling a vehicle (Correct answer)
- Using a stolen title to register a vehicle under a false name
- Registering a vehicle in a state where you do not reside to get lower fees
Correct answer: Skipping the title transfer step to avoid taxes and fees when quickly reselling a vehicle
Title jumping occurs when a buyer sells a vehicle without first transferring the title into their own name, depriving the state of tax revenue and creating ownership chain problems.
Question 5: A vehicle's registration sticker is typically placed where on the vehicle?
- On the windshield near the rearview mirror
- On the rear license plate (Correct answer)
- On the driver's side door jamb
- On the dashboard near the steering column
Correct answer: On the rear license plate
In most states, the registration validation sticker is affixed to the rear license plate to allow law enforcement to quickly verify current registration.
Question 6: What is the primary reason states require vehicle registration to be renewed periodically?
- To ensure the vehicle passes a mechanical safety inspection each year
- To verify continued insurance coverage, collect revenue, and keep ownership records current (Correct answer)
- To confirm the owner still holds a valid driver's license
- To update the vehicle's mileage in the state database
Correct answer: To verify continued insurance coverage, collect revenue, and keep ownership records current
Periodic registration renewal allows states to collect fees that fund road infrastructure, confirm insurance, and keep DMV records of ownership and address current.
Question 7: If a vehicle's title is from another state, what must you typically do when registering it in your new state?
- Nothing — out-of-state titles are automatically accepted for permanent registration
- Surrender the out-of-state title and obtain a new title issued by your current state (Correct answer)
- Mail the out-of-state title back to the original state's DMV
- Keep the original title and only update the registration sticker
Correct answer: Surrender the out-of-state title and obtain a new title issued by your current state
When registering a vehicle in a new state, you must surrender the out-of-state title to the new state's DMV, which then issues a new title in that state's name.
Motor Vehicle Division Vehicle Titling and Registration 5
What is the purpose of a 'certificate of non-operation' (also called a PNO or planned non-operation)?