When must dealers report a change of ownership of their business?

Dealers must report a change of ownership immediately because such changes have a direct impact on their licensing status. Ownership changes may alter the qualifications, background checks, or other critical aspects that are considered during the licensing process. Timely reporting ensures that the regulatory authorities are aware of who is operating the business and can verify that the new owner meets all necessary criteria and requirements to hold a dealer license. This proactive approach helps maintain the integrity of the licensing system and prevents potential violations that might arise from an unreported change in ownership.

In contrast, options suggesting a delay, such as reporting within 30 days, during license renewal, or at the end of the fiscal year, do not align with the urgency required in maintaining compliance with licensing regulations. Prompt reporting supports ongoing oversight and accountability in the dealership operations, which are critical for both legal compliance and consumer protection.