Sec. 501.051.  GROUNDS FOR REFUSAL TO ISSUE OR FOR REVOCATION OR SUSPENSION OF TITLE.  (a)  A title may be refused, canceled, suspended, or revoked by the department if:
(1)  the application contains a false or fraudulent statement;
(2)  the applicant failed to furnish required information requested by the department;
(3)  the applicant is not entitled to a title;
(4)  the department has reason to believe that the motor vehicle is stolen;
(5)  the department has reason to believe that the issuance of a title would defraud the owner or a lienholder of the motor vehicle;
(6)  the registration for the motor vehicle is suspended or revoked; or
(7)  the required fee has not been paid.
(b)  The department may rescind, cancel, or revoke an application for a title if a notarized or county-stamped affidavit is presented containing:
(1)  a statement that the vehicle involved was a new motor vehicle in the process of a first sale;
(2)  a statement that the dealer, the applicant, and any lienholder have canceled the sale;
(3)  a statement that the vehicle:
(A)  was never in the possession of the title applicant; or
(B)  was in the possession of the title applicant; and
(4)  the signatures of the dealer, the applicant, and any lienholder.
(c)  A rescission, cancellation, or revocation containing the statement authorized under Subsection (b)(3)(B) does not negate the fact that the vehicle has been the subject of a previous retail sale.
(d)  The department shall place a hold on processing a title application for a motor vehicle if the department receives a request for a hold accompanied by evidence of a legal action regarding ownership of or a lien interest in the motor vehicle.  The hold shall continue until a final, nonappealable judgment is entered in the action or the party requesting the hold requests that the hold be removed.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Amended by: 
Acts 2011, 82nd Leg., R.S., Ch. 1296 (H.B. 2357), Sec. 28, eff. January 1, 2012.
Acts 2013, 83rd Leg., R.S., Ch. 1135 (H.B. 2741), Sec. 51, eff. September 1, 2013.
Acts 2021, 87th Leg., R.S., Ch. 959 (S.B. 1817), Sec. 2, eff. September 1, 2021.