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You shouldn't have any problem, but I would not offer any more information than they specifically ask for. Take the car for inspection, without any license plate on it and don't mention that its already titled. You may want to remove a vin sticker, if there is one and the inspector will issue a new number, corresponding to the new title. Just thinking these ideas might avoid complications. I may be off base with these ideas, but its what I'd do in the situation.
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Karlos
"In the Land of the Pigs, The Butcher is King"
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