The dealer must remember, the DMV requirements for fees/registration/documents are the same as for any other roll-back of a sale. The existing DMV requirements for when fees are due or when documents are required and due remain in effect.


The new law requires the dealer to return registration fees collected must be returned to the buyer when the contract cancellation option is exercised.

If the vehicle was operated so as to cause fees to become due (that is, the vehicle was not currently registered at the time of sale), then those fees must be posted with the DMV. A dealer may collect prorated registration fees (based on the number of months left in the registration year) from a subsequent buyer.


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Also see Our Car Buyer Bill of Rights Contract Cancellation Option Agreement Forms: