[Mark IV]

In some states the title is physically held by the lender and supplied to the "owner" when the lien is satisfied. In such case doing the transaction at the bank works well and the bank can notarize the bill of sale and the title if required. In some situations the MSO for a new vehicle is also held by the bank providing floor planning to the dealer and the MSO is released to be supplied to the retail purchaser when the dealer "pays off" the floor plan amount.

As 1795 indicated once paid a seller is only bound by a personal code of ethics to timely complete the paperwork. Over many years in the retail automotive business I have seen many sellers (i.e. customers trading in a vehicle) that failed to provide required documents to the dealer because they were driving their new car and well, screw the dealer. Don't be the dealer.