If you ever purchase a vehicle with from a person that possesses a blank title, you are part of an illegal transaction. If you ever lie to customer in order to sell a vehicle, you are part of an illegal transaction. If you ever ask someone to leave a title blank during a vehicle buy, you are part of an illegal transaction.
Illegal transactions vary from state to state. One state may allow a certain type of transaction while another state strictly forbids the identical transaction. For example, many states allow dealers to charge a document preparation fee to file paperwork, yet some states will actually revoke your dealer license permanently if you charge these fees.
I cannot stress the importance of staying in constant contact with your state dealer license bureau. Never wing it. If you are not quite sure if a transaction is legal, call your state dealer license bureau. If you are not sure how to correctly complete a document, call your state dealer license bureau. If you are not sure how to record a sale, call your state dealer license bureau.
Many dealers have had their dealer license suspended or permanently revoked when they were involved in a transaction they had no idea was illegal. States have zero tolerance for any dealer that does not follow state regulations to a tee. Remember, if you are not sure about any transaction, call your state dealer license bureau. They are your friend, they want you to be successful, and they are there for your support.