The department may refuse to issue a certificate of title if any required fee is not paid or if the department has reasonable grounds to believe that:
(1) the applicant is not the owner of the motor vehicle, trailer, semitrailer, pole trailer, camper, motorboat, personal watercraft, sailboat, or snowmobile;
(2) the application contains a false or fraudulent statement;
(3) the applicant failed to furnish any information or document required by the department; or
(4) based on the check performed under 61-3-217 (2), the motor vehicle, trailer, semitrailer, pole trailer, camper, motorboat, personal watercraft, sailboat, or snowmobile has been reported as stolen.