Bill > SSB3126

Introduced Session

Under current law, a retail seller licensed under Code chapter 322 (motor vehicle manufacturers, distributors, wholesalers, and dealers) is authorized to sell, offer, barter, negotiate, exchange, and communicate regarding the sale of a motor vehicle via mail, either electronically or by courier, and to deliver a vehicle to the residence of the buyer or another agreed-to location (remote sale). Motor vehicles sold S.F. _____ in a remote sale must be located at the place of business as listed on the seller’s license. This bill strikes the phrase “as listed on the license”. The bill does not amend the requirement to list on a license application the location of each place of business within Iowa to be used by the applicant for the conduct of the applicant’s business (Code section 322.4(1)(c)) or the requirement to list on the license the seller’s principal place of business and location therein of each place wherein the licensee is licensed to carry on such business (Code section 322.7(1)(b)). The bill authorizes a dealer to possess a vehicle’s certificate of title in an electronic format, as described in the bill, when a motor vehicle is offered for remote sale. The bill strikes a provision prohibiting a dealer, during a remote sale, from signing a proposed purchase agreement until the dealer receives an executed purchase agreement from a buyer. The bill specifies that a signed purchase agreement must be delivered to the dealer’s place of business that is listed on the dealer’s license. Under current law, upon the transfer of any registered vehicle, the seller must, unless otherwise provided, endorse an assignment and warranty of title upon the certificate of title for such vehicle with a statement of all liens and encumbrances thereon. A person is prohibited from selling or otherwise disposing of a vehicle subject to registration without delivering to the purchaser or transferee thereof a certificate of title, with certain exceptions. In addition, a person does not acquire any right, title, claim, or interest in or to any vehicle subject to registration from the owner thereof except by virtue of a certificate of title or manufacturer’s or importer’s certificate for such vehicle, with certain exceptions. The bill provides an exception for remote sales, and specifies that a person acquires right to, claim to, and interest in the motor vehicle at the time of delivery. The seller must otherwise deliver the certificate of title S.F. _____ pursuant to current law not more than 30 days after delivery of the motor vehicle. Pursuant to current law, a person has 30 days after purchasing a vehicle to apply for and obtain a new certificate of title. The bill requires a dealer engaging in a remote sale to disclose certain facts about the location and title status of a vehicle and the expected delivery date to a prospective buyer. A dealer is required to produce proof that the dealer has the certificate of title for a vehicle offered for sale within 24 hours if requested by the department of transportation. The dealer is required to retain records showing where a vehicle is stored, the status of the vehicle’s title, and documents relating to the remote sale of the vehicle. The bill specifies that a remote sale of a motor vehicle is not a “door-to-door sale” and is not subject to Code chapter 555A (door-to-door sales). Under current law and the bill, remote sales are subject to Code chapter 554D (electronic transactions —— computer agreements).

Committee Categories

No sponsors listed

Other Sponsors (1)

Committee report approving bill, renumbered as SF 2408. (on 02/18/2026)

Official Document