Reviewed and updated October 14, 2026 by the SearchSystems.net editorial team. Every fact on this page was read that day from the Texas agency that publishes it, the Department of Public Safety for driver licenses and the Texas Department of Motor Vehicles for titles and registration, and the official page each fact came from is linked where it appears.
When the problem is the dealer: the 30-day duty to file the title and the complaint, a dealer that closed with the fee waivers and the free permit, a dealer in bankruptcy, the surety bond, and the complaints about sales practices and what the TxDMV can and cannot do. Defects in the vehicle itself are on the lemon law guide.
In this guide: The dealer's 30 days, A dealer that closed, A dealer in bankruptcy that stays open, The surety bond, Complaints about sales practices, Questions about dealer problems
The dealer's 30 days
A licensed Texas dealer applies for title on the buyer's behalf for most vehicle types, within 30 days of the date of purchase or 45 days when the sale is seller-financed, and the TxDMV's FAQ says a buyer who has nothing after 30 days may file a dealer complaint online at its Motor Vehicle Dealer Online Complaint System; the reply email carries a case number for tracking, complaints are assigned in order received with up to three weeks before an investigator takes one, and the investigator contacts the buyer if more information is needed. Dealers must post a Buyers Guide on used cars and pickups saying whether the sale is as is or with a warranty, and since July 1, 2025 issue metal plates rather than temporary tags under House Bill 718. The exclusions from the dealer's titling duty are trailers and semitrailers of 4,000 pounds or less and vehicles over 11,000 pounds.
A dealer that closed
The TxDMV's dealer closures page explains that a dealer closing unexpectedly can leave the buyer's title paperwork and fees never transferred to the county. The first step is the dealership's official status: an extended closure, a permanent closure, or a bankruptcy filing. For a qualifying vehicle bought from a dealer that went out of business without applying for title, the buyer may apply for title and registration at the county tax office and obtain one 30-Day Permit at no fee if needed, after getting a letter on department letterhead from a TxDMV regional service center stating that the dealer went out of business and which fees may be waived. The waivers depend on the evidence of the purchase and the fees paid to the dealer, a sales contract, retail installment agreement or buyer's order: the title application fee, the delinquent transfer penalty, all registration and optional county fees under Transportation Code Chapter 502, all inspection fees under Chapter 548, and the buyer tag fee; fees not shown as paid are collected at the application, and the county may waive the sales and use tax with proof of payment, with the Comptroller at (800) 252-1382 for tax questions. Then the county tax office takes the letter, the contract or buyer's order as ownership evidence, a government-issued photo ID and Form 130-U; a recorded lien needs a release unless the lienholder is the closed dealer, and a missing odometer disclosure records the odometer as Not Actual Mileage.
A dealer in bankruptcy that stays open
When the dealer filed for bankruptcy in court but remains in business, the TxDMV says title and registration transactions are still processed normally; the dealer keeps its 30-day duty, and the complaint route stays open.
The surety bond
The TxDMV's motorists page explains that many independent dealers must hold a surety bond and post a bond notice at the business near the dealer license, with the bond company's contact information so customers can file a claim. The requirement covers every general distinguishing number license type except trailer and semitrailer and non-motorized travel trailer dealers, and does not apply to franchised dealers. When the notice is not posted, a Public Information Act request to the TxDMV yields the bond company's name.
Complaints about sales practices
For a complaint about a dealer's sales practices the TxDMV's FAQ says to use the online complaint system with a copy of the sales contract and any documents the dealer gave, or the advertisement for an advertising complaint, and to call 1 (888) 368-4689 with any trouble filing. If the Enforcement Division finds a violation of the laws it enforces it may bring administrative action in the TxDMV's name, with any civil penalty credited to a state fund; the TxDMV cannot pursue a private claim for damages and encourages the buyer to seek private legal counsel about civil claims, their time limits and other options. The TxDMV's consumer protection page groups the rest of its consumer material: its Smart Buyer series on flood damage, odometer fraud, new and used car purchases, RVs, repairs and moving, the Motor Vehicle Crime Prevention Authority, and the household goods mover complaints at its carrier complaint site.
Questions about dealer problems
The dealer has had my paperwork for over 30 days.
A Texas dealer must process the title and registration within 30 days of the purchase, or 45 days when the dealer finances it; after that, file a complaint through the TxDMV's online dealer complaint system, which answers with a case number, assigns an investigator within about three weeks, and contacts you if more is needed.
My dealer closed before titling my car. What now?
First establish whether it closed for good or filed for bankruptcy and stayed open. If it closed, get a letter on TxDMV letterhead from a regional service center stating that the dealer went out of business and which fees are waived, then apply for title at the county tax office with the letter, your sales contract, retail installment agreement or buyer's order, a photo ID and Form 130-U; a 30-Day Permit is issued free if needed. If the dealer is in bankruptcy but open, transactions are processed normally.
Which fees can be waived?
The title application fee, the delinquent transfer penalty, the registration and optional county fees, the inspection fees and the buyer tag fee, to the extent the evidence shows they were paid to the dealer; the county may waive the motor vehicle sales tax with proof of payment, and anything not shown as paid is collected at the application.
What about the lien?
A lien on the record needs a release, unless the lienholder is the dealer that went out of business. Without a proper odometer disclosure the title records Not Actual Mileage.
What is a surety bond claim?
Most independent dealers must hold a surety bond and post a bond notice near their license with the bond company's contact information, so a customer can file a claim; if it is not posted, a Public Information Act request to the TxDMV gives the company's name. The bond applies to GDN license types except trailer and non-motorized travel trailer dealers, and not to franchised dealers.
Can the TxDMV get my money back from a dealer?
No. The TxDMV's Enforcement Division may take administrative action and civil penalties go to a state fund; it cannot pursue a private claim for damages, and says to consult a lawyer about civil claims and their time limits.
Written by SearchSystems.net from the TxDMV's dealer closures, motorists, consumer protection, buying or selling and FAQ pages, read on October 14, 2026.