(a) The owner of a motor vehicle registered in this state:
(1) except as provided by Section 501.029, shall apply for title to the vehicle; and
(2) may not operate or permit the operation of the vehicle on a public highway until the owner:
(A) applies for title and registration for the vehicle; or
(B) obtains a receipt evidencing title for registration purposes only under Section 501.029.
(b) A person may not operate a motor vehicle registered in this state on a public highway if the person knows or has reason to believe that the owner has not applied for a title for the vehicle.
(c) The owner of a motor vehicle that is required to be titled and registered in this state must obtain a title to the vehicle before selling or disposing of the vehicle.
(d) Subsection (c) does not apply to a motor vehicle operated on a public highway in this state with a dealer's license plate attached to the vehicle as provided by Chapter 503.