(Admins, feel free to pin this message as it concerns a niche but highly-important registration/titling trick called the "Vermont Loophole". A lot of people ask about this but there is conflicting information online. I have trailblazed, gone through the Vermont Loophole personally, and I the below complete guide will clear this up for anyone in the future who's trying to go through the Vermont Loophole)

The Vermont Loophole: What is it?

A little bit of information for anyone asking what this is. The state of Vermont allows something called mail-in registration for mopeds (and motorcycles!) under 300cc. Previously, this was thought only to apply to pedal-driven mopeds under 49cc, because the only people who used the Vermont Loophole were moped enthusiasts who could not get a title from their local state for various reasons (usually, because a Moped doesn't qualify for it). However, after doing the legwork myself, I can confirm that Vermont will also title and register motorcycles, big scooters, basically anything on two wheels 300cc or under. The vehicle also does NOT have to be 20 years old (some places online say this), it can be brand new.

Why do you need to go through the state of Vermont? All they require is a bill of sale between you and the "owner" of the bike. When you go to buy, if the owner doesn't have a title, or has missing documentation, they can fill out a bill of sale with you and you can get plates and a registration through Vermont, without going through your local DOL. I also said "owner" as anyone can fill out this bill of sale, the owner's friend, or roomate, or tenant. Once your plates come in, this will allow you to "legally" drive it around your home state.

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How do you undertake the Vermont Loophole?

There are some guides online, but this one below is the one I followed:https://www.mopedarmy.com/wiki/Mail_in_Registration

This guide focuses ONLY on 49cc pedal-driven mopeds, since this is what was previously thought to be the ONLY vehicle type that would work for the Vermont Loophole. I, however, sent in a bill of sale, my two pictures, and the Vermont form for a 150cc scooter, which Vermont recognizes as a Motorcycle. I filled it out following the guide, and put in 150cc under the CC section.

Ultimately Vermont DOL sent it back to me with the instructions to send $70 for a Motorcycle registration, rather than a scooter registration. They still accepted the original form, I just had to send a new cheque. PLEASE NOTE, if you're trying this with a motorcycle above 150cc, just fill in the form as if it was a motorcycle, not a moped. Otherwise, they'll have to cross it out and correct the form themselves. They may not always do this.

After a hefty delay (2 months), Vermont sent me a plate and my original VD-119 (application for tax title and registration), the VD-119 was stamped and had an expiry date in two years. That's it, no extra documentation.

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Limitations of the Vermont Loophole

(very important information follows)

The Vermont Loophole is commonly used to get the owner's original state to give a new title, via the Transfer of Title method. The owner brings in the Vermont VD-119, which has been stamped by the Vermont office, and his state's ID, and can get a title transferred into a brand new home-state title.

HOWEVER, and here's the key: if the VIN (vehicle identification number) of the bike is already in the home state's system as having had a title issued for it, then that supersedes anything from Vermont.

What this means is that your home state will not give you a brand-new title for a VIN they already titled. The original owner has to release interest and certify he lost the title, via some official forms that must usually be notarized.

Your mileage may vary! Some states have much laxer laws around scooters and mopeds and sometimes you might catch a DOL agent that will go ahead and double-title the bike on accident, giving you a brand new title.

As a matter of thumb, your home state's DOL will not transfer the Vermont title into a new home state title without the original owner on record releasing interest.

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What does this mean? Is the Vermont Loophole for me?

The Vermont Loophole still has its uses and can be a great way to get your bike on the road when you're missing paperwork. When driving on Vermont plates, note that you won't have any tabs (Vermont doesn't do tabs in this way), and the only supporting documentation you'll have is the VDOL stamped- VD-119, which serves as your Vermont registration.

If you get pulled over in your home state, there is still a moderate chance that a police officer will consider you to be riding dirty. The absolute worst case scenario for this is a fine and impounding of the bike. Realistically, though, police will either accept the Vermont plate and registration, or they'll tell you to go home, don't drive it and get it sorted out. This all depends on your riding habits, if you're a good, polite driver (or if you're a squid), and how passive your local law enforcement is towards motorcyclists/scooterists.

If you want to get a title in a state that the bike was NEVER titled in, then the Vermont Loophole should work perfectly. Just expect a bureaucratic delay, and expect to pay some fees to your local DOL to transfer the bike into your name.

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Using the Vermont Loophole to flip (buy and sell) a bike

You can use the Vermont Loophole to your advantage when you're trying to buy and resell a bike that has no title.

Usually, there are state laws against selling a vehicle without first putting it into your name. It's called "skipping title", and although it happens somewhat frequently, it can be a severe offence and you can be easily tracked down as the offender.

If you go through the Vermont Loophole, you can sell the vehicle with your VD-119 (this acts as the registration/title), and a Vermont Bill of Sale. You will have to fill out your portion of the Vermont Bill of Sale. The new owner will then send in the Vermont Bill of Sale and your original VD-119 to Vermont and get Vermont to transfer the Vermont title into his name. This keeps the bike plated in Vermont and you avoid dealing with your local DOL.

You, or the future owner, also has the choice to go the "legal" local way and get the original title from the original owner, or, lacking this, an affadavit in lieu of title, or a release of interest form. In my personal case, due to the original owner not wanting anything to do with the bike, I would have to eventually submit a Title In Doubt to my local State Patrol office for them to eventually give me a provisional 3-year registration.

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I hope this guide has been helpful and will help clear up some information regarding the Vermont Loophole. The biggest take-away from the above should be that you CANNOT use a Vermont title to override/supersede a local VIN on file that's already been titled.

Best of luck!