Effective October 30, 2023 (extended from September 15, 2023), dealerships must conform to New Powers of Attorney (POAs), Odometer Disclosure Statement, and new rules for General and Limited POAs announced by the New Jersey Motor Vehicle Commission (NJMVC). NJ CAR has hosted several webinars and produced both a comprehensive FAQ document and a Quick Reference Guide. All of these materials are accessible under the News section of the NJ CAR website (www.njcar.org).

Below are some of the highlights regarding the biggest NJMVC change to POAs in more than 25 years:

• NJMVC requires a new Non-Secure POA to be used if dealerships choose to use electronic signatures on POAs. Additionally, the NJMVC requires a Secure POA to be used when the title is either lost or held by a lienholder (i.e., the classic trade situation).
• Dealerships who do not wish to implement the new Non-Secure POA to be used with electronic signatures may continue to use a General or Limited POA that can be on Dealer Letterhead. However, these POAs must now be notarized.
• Whether a dealership implements the new Non-Secure POA or continues to use their current General or Limited POAs, they must also supply an Odometer Disclosure Statement that can either be electronically signed or wet signed.
• While the forms are effective immediately, dealers can utilize the grace period until October 30, 2023, to familiarize themselves with the forms and upload the Non-Secure POA and Odometer Disclosure Statement in their systems to be e-signed.
• NJMVC considers the period before 10/30/23 as a phase-in period. Dealerships must be implementing the new POAs starting NOW. This means that any motor vehicle transaction submitted after 10/30/23 (for sales that occurred before 10/30/23) must use the new POAs.
• After 10/30/23, all transactions for SALES OCCURRING PRIOR TO 10/30/23 submitted to local NJMVC Agencies or NJ CAR for processing must conform to the new POAs and new rules for Dealer POAs or they will be REJECTED.
• If these MV transactions are submitted to local NJMVC Agencies or NJ CAR before 10/30/23 for processing, they can use current POAs or the new POAs. We strongly suggest that dealerships should not wait to implement these new POAs and new rules.

Dealer POAs

To be used during regular purchases or trades — with title in hand for signing documents, (including the title and registration on behalf of the customer) — dealerships can continue to use this POA. It must be notarized and have a Notary Commission Expiration date. The Notary cannot sign for the dealership. The POA must have the following in order to be notarized:

• The owner(s) address
• The address of the dealership (if not on Dealership Letterhead)
• Must be accompanied by an Odometer Disclosure Statement
  • May list more than one (1) dealership representative

If you have an MCO, NJ Title, Out-of-State Title with a New Jersey Reassignment that is not being signed by the customer as a buyer, a notarized dealership POA (signed by the customer) appointing a dealership representative may be used.

If you have a trade title (New Jersey or Out-of-State Title) that is not being signed by the customer as a seller, a Notarized Dealership POA (signed by the customer) appointing the Dealership Representative may be used.

Non-Secure POA (NSPOA)
NSPOAs must be used with Electronic Signatures. The NSPOA is not mandatory and cannot be forced on a customer. The NSPOA accomplishes everything the Limited, General, or Dealer POA is used for. It can be used for purchases only, never a trade. It does not require a notary, but it must be filled out digitally on a computer, or in the DMS, and must be accompanied by an Odometer Disclosure Statement. The user may list more than one (1) Dealership Representative, but it must be accompanied by a Certificate of Completion for all signatures.

If you have a New Jersey or Out-of-State Title with a New Jersey Reassignment or MCO that is not being signed by the customer as a buyer, a Non-Secure POA that is digitally completed and electronically signed by the customer, certifying the Dealer Representative, may be used.

The NSPOA must include a Certificate of Completion for all signatures.

Secure POA (SPOA)

The SPOA is used only when a Title is lost or held by a lienholder and is mandatory. A separate Odometer Disclosure Statement is not needed and does not require a notary, but it must be filled out digitally, printed, and wet-signed. The SPOA must contain the following three (3) security features:

• A star at the top left over NJMVC
• A Vehicle Identification Number (VIN)
• Watermark Signatures

Part A is filled out by the person trading in the vehicle. Part B is filled out by a new customer when the dealership is awaiting the title. Part C is always filled out.

If a dealership takes a vehicle in trade, the title is then held by the bank while awaiting a payoff and release of the title. If the dealership does not have the title in hand to be signed by both the buyer and seller, then Parts A and C must be completed.

If the vehicle described above, which had been taken in trade, is subsequently sold before the dealership has received the title from the bank, the purchaser of the vehicle must complete Part B. This confirms the true mileage at the time they purchased the vehicle. Parts A, B, and C are then submitted.

Odometer Disclosure Statement (OS-SS-2)
The Odometer Disclosure Statement is used to state the total mileage upon the transfer of ownership. It is required to be submitted with the Dealer POA, NSPOA — if implemented — and a Leasing POA, unless an exemption applies. It is not required to be filed with a Secure POA, but a separate Odometer Disclosure Statement must be submitted for each Lease or Fleet transaction.

The Odometer Disclosure Statement must be signed by both the buyer and the seller. It cannot be signed using a POA. The statement can be electronically signed, but must be done so with an accompanying Certificate of Completion. If it is used for Mileage Corrections, it must be wet-signed and notarized. Only the primary owner is required to sign; a co-owner’s signature is not necessary. If the source document is a New Jersey, Out-of-State Title, or MCO, the Title will be flipped into the purchasing customer’s name, and the dealership should use a POA to sign the title documents on behalf of the purchaser, then the purchaser must sign a separate Odometer Disclosure Statement. You cannot use a POA to sign for the customer. Alternatively, on a Lease, the lessee must sign the Odometer Disclosure Statement.

Greyson Hannigan is NJ CAR’s Director of Legal and Regulatory Affairs. He can be reached at (609) 883-5056, x340 or via email at ghannigan@njcar.org.