Lemon Law Disclosure Requirements: State-by-State Guide (2026)

Lemon law disclosure violations cost dealers an average of $35,000 per case, with penalties reaching $50,000+ in rescission costs and attorney fees. A 2024 Carfax study found 8% of branded title vehicles were sold without proper disclosure. The NMVTIS federal database now tracks lemon buybacks nationally.

This guide covers state-specific lemon law buyback disclosure requirements, title branding rules, NMVTIS checks, and dealer liability standards.

California (Strictest Requirements)

Civil Code § 1793.23 - Lemon Law Buyback Disclosure:

Title Branding: Manufacturer must brand title "Lemon Law Buyback" when repurchasing under CA lemon law.

Written Disclosure (12-point bold minimum): "THIS VEHICLE WAS REPURCHASED BY THE MANUFACTURER UNDER CALIFORNIA'S LEMON LAW. THE MANUFACTURER HAS MADE SPECIFIED REPAIRS."

Requirements: Disclosure on window + contract, state defect nature + repairs, 12-month/12K-mile warranty on defect, price cannot exceed non-lemon comparable.

Penalty: Rescission + full refund + 2× damages + attorney fees. Dealer strictly liable even if manufacturer failed to brand.

New York (Interstate Coverage)

NY General Business Law § 198-b: Disclosure required if vehicle bought back under ANY state's lemon law. Must check NMVTIS for all 50 states.

Penalty: $500-$1,500 + buyer can rescind within 30 days of discovery

Texas (Title Branding Only)

Texas Transportation Code § 501.0331: Title branding required. Branded title serves as disclosure.

Penalty: $5,000-$15,000 + license revocation for title fraud

Florida (No Lemon Branding)

Florida Statute § 681.115: No title branding for lemon buybacks. Disclosure required if dealer has knowledge under general fraud law.

Used Car Lemon Laws

State	Coverage	Minimum Warranty
California	Under 75,000 miles	30-90 days
New York	Under 100,000 miles / under 8 years	15-90 days
Massachusetts	Under 125,000 miles	30-90 days
Connecticut	Under 100,000 miles	60 days / 3,000 miles
Texas	NEW vehicles only	N/A
Florida	NEW vehicles only	N/A

NMVTIS Database Check

National Motor Vehicle Title Information System: Federal database tracking title brands across all 50 states. Includes lemon buybacks, salvage, flood, odometer fraud.

Best Practice: Check NMVTIS BEFORE acquiring any vehicle. Fee: $5-$10 per VIN. Access via Carfax, AutoCheck, VinAudit.

Compliance Checklist

Before Acquiring Vehicle

Run NMVTIS report (check for lemon buyback, salvage, flood)
Run Carfax/AutoCheck (manufacturer buyback events)
Inspect title for brands
If out-of-state, check origin state branding rules

If Lemon Buyback Identified

Obtain manufacturer warranty document
Obtain repair records showing defect + repairs
Price below comparable non-lemon value
Prepare written disclosure per state

At Sale

Written disclosure on contract (12-point bold CA/NY)
Post disclosure on window (CA requirement)
Explain defect + repairs verbally
Provide manufacturer warranty if exists
Provide branded title to buyer
Buyer signs disclosure acknowledgment

Frequently Asked Questions

What is a lemon law buyback vehicle?

A vehicle repurchased by the manufacturer under a state lemon law because it had a substantial defect that could not be repaired after reasonable attempts. Must be disclosed when resold. California, New York, Texas require title branding.

Do I have to disclose lemon law buyback?

Yes in most states. California requires prominent written disclosure + title branding. New York requires disclosure for buybacks under ANY state lemon law. Failure = rescission right + damages.

Does used car lemon law exist?

Only in some states. California (under 75K miles), New York (under 100K miles), Massachusetts, Connecticut, New Jersey, Minnesota have used car lemon laws. Most states cover ONLY new vehicles.

Can I sell lemon buyback across state lines?

Yes, but disclosure follows vehicle. NMVTIS tracks title brands nationally. Selling without disclosure = federal title fraud (felony).

What triggers lemon law claim?

Typically: Substantial defect + 3-4 repair attempts OR 30+ days out of service during warranty. Manufacturer must buy back or replace if unresolved.

What if I unknowingly sold a lemon buyback?

Dealer liability varies by state. California/New York: Strict liability even if unaware. Best practice: Run NMVTIS check BEFORE acquiring vehicle.

Never miss a lemon buyback disclosure.
DealerOneView includes automatic NMVTIS integration, state-specific lemon disclosure templates, title brand tracking, and compliance alerts for all 50 states.
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Lemon Law Disclosure Requirements: State-by-State