I am in Texas. I bought this 1989 Camry wagon for $500. It wasn't
running then, and after 3 months, I still don't have it running, the
engine is in pieces.   The former owner has signed title to me, and
filled out the title application/registration paperwork.

Problem is, Now in this state you have to show proof of insurance to
get title and registration. I can't take out insurance coverage on a
car that is not running!   If a car is registered more than 20 days
after the date of sale,  there is a 5% fee added to the tax owed, then
after another 30 days, they add another 5%  plus a $10 flat fee. It
doesn't say anything about registering more thna 50 days late, I don't
think.

I think the Texas sales tax rate is abt 8 percent, so that is $40.  I
guess the maximum I will pay extra is $15.00?   This is really screwed
up not to have some provision for my situation where a car is
purchased that is broke down, can't be driven.

This is not a problem for me as the sale price was so little...but
what about someone who buys a much more expensive, but not running,
vehicle?

Maybe I should go back to the person who I bought it from when I get
it fixed, with a new title/registration form, and get her to show a
new/ later sales date...or would this be fraud (but they would never
know)?