If the buyer rescinds the sale, what must the dealer do?

When a buyer rescinds a sale, it is the dealer's responsibility to ensure that the transaction is properly canceled and documented. Filing a cancellation of the Report of Sale (ROS) with the DMV is essential because it formally acknowledges that the vehicle is no longer sold and removes the buyer's registration from the DMV records. Additionally, the dealer must refund the buyer for the purchase. This process ensures that both parties are protected, and it maintains the integrity of vehicle title records and ownership transfer.

By following this procedure, the dealer upholds legal and consumer protection standards. It is crucial to have accurate records with the DMV to prevent any future disputes regarding vehicle ownership or liability. Proper documentation also helps the dealer maintain a good reputation and trustworthiness with their customers.