(1) The Office of Motor Vehicle, upon receipt of a properly endorsed certificate of title and proper application for registration accompanied by the required fee, and when satisfied as to the genuineness and regularity of the transfer and of the right of the transferee to a certificate of title, shall reregister the vehicle as upon a new registration in the name of the new owner and issue a new certificate of title as upon an original application.
(2) The office shall retain and appropriately file every surrendered certificate of title, the file to be so maintained as to permit the tracing of title of the vehicle designated therein.