NJ CAR continues to field numerous emails and phones calls on the implementation of the new POAs. It will likely take some time for dealers to get to the point where mistakes and rejections are few and far between. We will work together to make sure that the implementation process is as smooth as possible.
Below are some of the most critical issues that dealers need to be aware of:
NOTARY: Dealers are reminded that the notary’s only function on a deal is to notarize the customer’s signature. A notary cannot sign any document to be submitted to NJMVC for the dealership as seller, after they notarize the customer’s signature. The New Jersey Manual states that “a notarial officer may not perform a notarial act with respect to a record to which the officer or the officer’s spouse or civil union partner is a party, or in which either of them has a direct beneficial interest. An act that violates this provision is voidable.” As an employee of the dealership, the notary has a beneficial interest in the deal.
ODOMETER DISCLOSURE STATEMENT (ODS): Dealers are reminded that a separate ODS must be submitted with a Non-Secure POA (NSPOA), as well as with the General, Limited, or Dealer POAs, when it is being used to sign for the customer on a title. On a lease, the lessee must sign the ODS. That means that the lessee’s name, not the name of the lessor, must be listed on the ODS. This accommodation was made by NJMVC because the customer is in the dealership, inspects the vehicle and certifies the correct mileage. If lessors were required to sign the ODS under the new rules, they would be required to come into the dealership and personally sign the ODS. A POA cannot be used to sign an ODS. To accommodate dealers who are getting pushback from lessors who refuse to let the lessee sign the ODS, NJ CAR sought, and received, the go ahead from NJMVC to allow lessors to electronically sign the ODS. However, this will require the dealership to also sign the ODS electronically and produce a Certificate of Completion for all signatures.
HANDWRITTEN & STAMPED NAMES: While it is preferred that all portions of the Dealer POA be typed, handwritten names and stamped names of the appointed dealer representative(s) are allowed. This is because the ultimate responsibility for what is on the POA before signature by the customer and the notary, is solely the responsibility of the notary.
SIGNATURE OF DEALER REPRESENTATIVE: The signature of the dealer representative on a Dealer POA is no longer required. Sample Dealer POAs were suggested without that information. However, if dealers wish to continue that practice and include a space for the Dealer Representative to sign, the Dealer Representative must sign in the space provided. NJMVC has instructed that if any space, field or boxes is left blank, the POA must be rejected. For example, unnecessary areas for witness signatures, mileage fields and boxes, if included on a POA, must be filled in with data or N/A.
SECURE POA (DLR-SPOA): The DLR-SPOA can only be used when a dealer takes in a vehicle where title is lost or held by a lienholder. It cannot be used when the dealer sells a new vehicle.
ELECTRONIC SIGNATURES: E-Signed POAs and Odometer Disclosure Statements must be accompanied by a Certificate of Completion for all signors. A document should not have both e-signatures and wet signatures on the same document.
DEALERSHIP REPRESENTATIVE USING POA: While using a POA, a dealership representative cannot sign a document as both buyer (customer) and seller (dealership) in the same transaction. Once the signature is completed for the customer, another authorized signatory from the dealership must sign for the dealership, as seller.
DUPLICATE TITLE APPLICATION: When a dealer takes in a vehicle and the title is lost, application for a duplicate title requires only one Secure POA. A photocopy of PART A and C will be used to apply for the duplicate title. When the duplicate title is received, you will use the original of PART A and C to flip the title into the dealerships’ name. An authorization letter from the owner is still required when applying for a duplicate title.
If dealers have any additional questions about the POAs, they should contact any of the following NJ CAR staff members:
- Mary Lynn Edwards, DSP Director
[email protected]
609.883.6330, x102
- Eileen Nuttall, DSP Manager
[email protected]
609.883.6330, x101
- Greyson P. Hannigan, NJ CAR Director of Legal & Regulatory Affairs
[email protected]
609.883.5056, x340