Curbstoning
Revised 06-09-2014
1
WHAT IS CURBSTONING?
• The unlawful sale of motor vehicles.
Curbstoning commonly occurs on public
roadsides, right of ways and parking lots.
• Curbstoners may be:
– Licensed dealers operating off their licensed premises
– Unlicensed persons engaged in business as a dealer
– Anyone unlawfully selling motor vehicles
2
WHY SHOULD YOU CARE?
• Curbstoning is against the law (Tex. Trans. Code
503.021)
• Seller cannot be located if problems arise
after the sale
• Seller may not own the vehicle or have a
valid title to it
• Curbstoning can create traffic hazards
• Vehicle may be stolen
• Vehicle may subject to a lien
• Vehicle odometer may be rolled back
• Vehicle may be flood damaged or salvaged
3
WHY YOU SHOULD CARE?
(CONT.)
• Vehicle may have been designated for export
and cannot be titled or registered
• Vehicle may not pass inspection
• Taxes: Licensed dealers pay federal, state
and local taxes in operating their businesses.
CURBSTONERS DO NOT!
4
CURBSTONING COMPLAINTS
Processed by the
TxDMV Enforcement Division
FY 2011 - 284 cases
FY 2012 - 347 cases
FY 2013 - 204 cases
5
What CAN YOU DO?
• If the curbstoner is a licensed dealer
file a complaint with the TxDMV
Enforcement Division
• If the curbstoner is not licensed contact
the local law enforcement agency
and/or TxDMV Enforcement Division
6
What does the TxDMV DO?
• Encourage criminal prosecution under
Chapter 503 of Transportation Code
• Provide training to law enforcement
agencies on curbstoning
• Participate in joint operations with local
law enforcement agencies to address
curbstoning
• Advise local prosecutors on
curbstoning laws
7
NEW LAW: CURBSTONED VEHICLES MAY BE
ORDERED TOWED
Under the provisions of Tx. Trans. Code
Section 503.096, if a peace officer has
probable cause to believe a vehicle is
being offered for sale (curbstoned) by
person in violation of TX. Trans. Code
503.021, after proper notice has been
given, the vehicle may be towed to a
vehicle storage facility.
ESTABLISHING PROBABLE CAUSE
• Check the VIN/title/registration to determine if the
seller is the owner or authorized by the owner to
sell the vehicle.
• Record and check the contact phone number on
the vehicle. Have you seen it on other vehicles?
• Call the number and tell seller to come to site with
title or title receipt and personal ID to prove it is
the same person or authorized by the owner.
• If the seller is a licensed dealer ask them to show
you their license.
WHAT IS REQUIRED NOTICE?
• Must be attached to the vehicle at least two hours
before being towed.
• May be affixed by peace officer, appropriate local
government employee, or TxDMV investigator.
• Notice must state: (1) make, model, plate, and VIN;
(2) date and time notice affixed;
(3) that vehicle is being offered for sale in violation
of Transp. Code 503.021; (4) that vehicle and
contents will be towed in two hours; and
(5) name, address, and phone of the vehicle
storage facility where the vehicle is towed.
• (The DMV has a sample Notice available for
reference)
SUGGESTIONS TO LAW ENFORCEMENT
AND OTHER CONCERNED PARTIES
• Watch problem areas – grocery store parking lots,
flea markets, mechanic/body shops, vacant lots,
roadsides.
• Look for:
– Advertising similar to a dealership publication or
internet advertisement
– “For Sale” signs with the same phone number
– Body/Repair shops to see if they have a valid
mechanic’s lien on vehicle. If not, they should
have a dealer license
– Dealer plates or temporary tags displayed on the
vehicle
11
DEALING WITH CURBSTONING
– Educate your community
• License dealer list is available
• Go to the DMV webpage for complaint
form: http://www.TxDMV.gov/reportsand-data/doc_download/1032-motorvehicle-dealer-complaint-form
– If not already in existence, recommend
new or stronger curbstoning ordinances
12
DEALING WITH CURBSTONING
(CONT.)
Check and see if other local ordinances apply
to curbstoning.
– Parking ordinances
– Public nuisance ordinances
• Invite the TxDMV Enforcement Division to
speak with local groups interested in
stopping curbstoners
• Encourage use of criminal penalties under TEX.
TRANS. CODE Section 503.094; ($50 to $5,000 fine
and up to a state jail felony) for violating the
provisions of Chapter 503
13
QUESTIONS?
Enforcement Division
1-888-368-4689
Complaint forms found at
http://www.TxDMV.gov/reports-anddata/doc_download/1032-motor-vehicle-dealercomplaint-form