N.Y. Comp. Codes R. & Regs. tit. 15 § 78.18
If before taking possession of a vehicle, for which the dealer has already applied for registration and/or title, the customer cancels the sale, the dealer must retrieve his or her proofs of ownership. He or she must do this (a) by contacting the local office immediately and reporting such cancellation and requesting the return of his or her proofs of ownership, or (b) if the registration transaction has already been processed, by telephoning the title bureau and reporting such cancellation, giving the year, make and vehicle identification number and the name of the former customer. This notification must be confirmed in writing and be accompanied by the search fee provided for in section 202(2)(a) of the Vehicle and Traffic Law for retrieval of the ownership documents. If a lien was recorded for a lending institution, other than a lending institution established to finance the sale of vehicles of a franchised dealer, the dealer should submit, with his or her written confirmation, written notice from the lending institution of cancellation of the lien before the transaction is cancelled on department records and the proofs of ownership returned.
N.Y. Comp. Codes R. & Regs. Tit. 15 § 78.18