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Maybe the intent is for a vehicle that just came from gov auction and it details how the buyer would proceed as first registrant with sf97 in hand. They just didn’t word it correctly.
I would think the dealership would be responsible for making sure you have the proper paperwork. If they can't provide a title or transferrable reg then they should take the truck back. Most states have DMV enforcement units tasked with keeping dealerships on the up and up.