A secure power of attorney form is a special limited power of attorney used for the odometer disclosure statement between a buyer and seller during the transfer of ownership of motor vehicles.
Secure power of attorney forms contain unique security features and are printed in different colored inks to deter illegal reproductions. Secure power of attorney is often used by car dealerships to conform to the Federal Truth in Mileage Act – laws enacted to protect consumers in the United States from odometer fraud.
A secure power of attorney form is most commonly used by licensed dealers and insurance companies when the title of the vehicle has been lost, the title is electronic, or when the title is still in the possession of the lienholder and won’t be released until the vehicle is paid off.
The difference between a secure power of attorney form and a non-secure general power of attorney form is that the secure POA is printed on state identified security paper with special language and sections for a full disclosure of odometer readings and check boxes for acknowledgements about the vehicle’s actual mileage. Other non-secure general POA forms are not as specific with respect to odometer readings.
How to Fill Out a Secure Power of Attorney Form
First, when filling out a secure power of attorney form, the SELLER will enter the odometer reading at the time the vehicle is purchased. The SELLER will then check – or not check – any of the boxes on the form to acknowledge that the mileage stated on the odometer is not the actual mileage the vehicle has been driven.
Next, the SELLER will put his signature on the Secure POA form to declare that all the information entered on the document is the truth. Then, the PURCHASER will sign the secure POA to acknowledge the disclosure of the odometer reading.
Finally, once all the details above have been taken care of, the secure power of attorney form can now be used by the ATTORNEY-IN-FACT to apply for a replacement title.
More Things to Know About Secure Power of Attorney Forms
A secure power of attorney form is used only during specific transactions involving vehicle dealerships and title companies.
A few guidelines that apply to businesses when drafting secure power of attorney forms:
- A secure power of attorney form can only be used when the title is not available at the time of a vehicle’s sale.
- Secure POA forms originating in other states are accepted in all United States jurisdictions.
- Secure power of attorney forms are not to be used for transactions between individuals.
- Secure power of attorney is only available for dealerships or title companies representing a dealership.
- Dealerships are required by law to keep a copy of all secure power of attorney forms on file for a minimum of five years.
- Secure POA forms are prohibited for usage by individuals or companies when trying to sell their own vehicles.
- Any form of alteration to a secure power of attorney form will void out the document.
Do I Need a Lawyer for Secure Power of Attorney?
You don’t have to get a lawyer to draft a secure power of attorney form. Secure POA forms are used by dealerships and title companies for odometer reading declarations on used vehicles. Company representatives will take care of the document on your behalf.
However, if you are unsure about anything that has to do with a secure power of attorney form, we suggest that you consult with a licensed attorney about your concerns.