How to Complete a Secure Power of Attorney for Vehicle Transactions in Illinois

When processing vehicle transactions, especially when titles are held by lienholders or lost, a Secure Power of Attorney (POA) is an essential tool. It allows the buyer or dealership to complete title-related tasks on behalf of the seller. Below, we’ll guide you step-by-step on how to properly complete a Secure POA in compliance with Illinois regulations.

What is a Secure Power of Attorney?

A Secure POA is a legal document that grants authority to a designated party (buyer or dealership) to act on behalf of the vehicle owner for specific title-related transactions. This document is often used when:

• The title is held by a lienholder.

• The title is lost.

It is important to note that a Secure POA is not applicable for floor-planned vehicles or non-conforming titles (i.e. Manufacturer Certificate of Origin).

Step-by-Step Guide to Completing a Secure POA

Step 1: Verify Eligibility

Before you start, confirm that the vehicle transaction qualifies for a Secure POA:

• Ensure the title is either held by a lienholder or lost.

• Confirm the vehicle is non-exempt under Illinois regulations.

A non-exempt vehicle refers to a vehicle that does not meet the criteria for exemption under specific regulations, such as those related to odometer disclosures or other legal requirements. In the context of vehicle transactions, a non-exempt vehicle typically requires compliance with additional processes or disclosures mandated by federal or state laws.

For instance, under the Truth-in-Mileage Act, non-exempt vehicles are those that must have their odometer readings disclosed during a title transfer. This ensures transparency about the vehicle’s mileage history. Vehicles that do not fall under this category (exempt vehicles) might include older vehicles, certain types of trailers, or vehicles not designed for highway use.

Step 2: Obtain the Secure POA Form

Secure POA forms are typically provided by the Illinois Secretary of State or authorized entities. Ensure you are using the official form to avoid compliance issues. To order the forms, you must use Form RT OPR 48.32.

Step 3: Fill Out the Vehicle Information Section

Year, Make, and Model

• Fill in the vehicle's year of manufacture, make (brand), and model.

• This information is typically found on the vehicle title, registration, or insurance documents.

Body Style

• Indicate the body style of the vehicle (e.g., sedan, SUV, truck, coupe).

• If unsure, refer to the title or registration documents for this detail.

Vehicle Identification Number (VIN)

• Locate the vehicle’s 17-character VIN, which can be found on the vehicle's dashboard (visible through the windshield) or on the driver’s side door frame.

• Enter the VIN exactly as it appears. Double-check for accuracy, as errors can delay processing.

Step 4: Fill Out the Odometer Disclosure Section

The seller of the vehicle must:

• Complete the odometer disclosure section, as required by the federal Truth-in-Mileage Act. This includes:

  • Certifying the numerical odometer reading (no tenths).

  • Indicating whether the mileage is:

    • Actual.

    • Not actual.

    • In excess of mechanical limits.

• Print the seller and purchaser's name to certify the odometer reading.

The Secure Power of Attorney cannot be signed by using another Power of Attorney. This is called "Piggy-Backing POAs" and it is prohibited. The same is true regarding estate-purchased/sold units. A title that is being sold as an estate sale, the signature of the executor or affiant may not be signed by Power of Attorney.

Step 5: Fill Out the Buyer’s and Seller's Section

The seller and purchaser must:

• Sign and print their names, acknowledging the odometer reading and to approve and accept the POA responsibilities.

• Ensure all information is accurate and legible.

• Businesses cannot sign their own name on the signature line. An agent for the business must sign their legal name and have their title or position indicated.

Step 6: Retain and Submit Copies

Once the Secure POA form is completed:

• Retain the original Secure POA for submission to the Illinois Secretary of State along with the title application.

• Keep a photocopy of the Secure POA for your records.

• Submit the completed form with the title application in the buyer’s name.

Key Compliance Tips

• Original Form Submission: Always submit the original Secure POA to the Illinois Secretary of State with the title application.

• Odometer Disclosure Compliance: Ensure the odometer disclosure is completed accurately to comply with federal regulations.

• Authorized Use Only: The Secure POA can only be granted to the buyer of the vehicle. If the vehicle is being sold or traded to a dealership, the dealership must be granted the POA.

Common Mistakes to Avoid

1. Using a Secure POA for Floor-Planned Vehicles: This is not permitted under Illinois regulations.

2. Incomplete Odometer Disclosure: Missing or inaccurate odometer information can delay the transaction.

3. Illegible Copies: Ensure all copies of the Secure POA are clear and legible for processing.

FAQs

1. Can the Secure POA be used for exempt vehicles?

No, the Secure POA is only applicable for non-exempt vehicles under specific conditions.

2. What happens if the title is held by a lienholder?

The Secure POA allows the buyer or dealership to process the transaction without the physical title, provided all other requirements are met.

3. Where do I submit the Secure POA and related documents?

Submit the documents to the Illinois Secretary of State along with the title application and surrender title for the buyer.

Final Thoughts

Completing a Secure Power of Attorney correctly ensures smooth and compliant vehicle transactions. By following these steps and adhering to Illinois regulations, you can avoid delays and potential legal issues. If you have further questions or need assistance, feel free to contact Illinois Title Services for expert guidance.