What should a dealer do if an original title is lost?

When a dealer encounters a situation where the original title of a vehicle is lost, the appropriate course of action is to submit a REG 227 to the DMV. The REG 227 is an application for a duplicate title in California. Through this process, the dealer officially requests a replacement title from the Department of Motor Vehicles, ensuring that the necessary documentation is provided to establish ownership and proceed with the sale legally.

This action is crucial as it maintains compliance with state regulations regarding vehicle sales and ownership documentation. Ignoring the lost title, reserving a new title without proper documentation, or contacting the manufacturer are not viable solutions, as they do not appropriately address the legal requirements for resolving a lost title situation. Submitting the REG 227 ensures that the dealer follows the correct procedural steps to obtain a duplicate title, which is essential for a smooth and legal transaction.