Wednesday, July 15, 2015

How To Transfer a Title to a Car

Every state has different laws regarding car ownership, but transferring a title to a car follows some basic steps across the country. It's important, in all 50 states, to adhere to the local laws in order to ensure that your title is transferred cleanly.

Instructions

    1

    Ensure that all liens on your vehicle have been released. Usually this means just paying off your loan, at which time the bank will send you a letter of release, and the DMV will send you the title.

    2

    Near the bottom of the title, there should be a section called "Transfer of title by seller." Enter the purchaser's name and address, as it appears on their driver's license. Enter the selling price, or "Gift" if it is a gift. Enter the current odometer reading. You may have to check a box to say that it is the actual mileage, to distinguish it from cases where the odometer "turned over." You might have to check if the odometer has five or six digits. Enter the date sold. Sign and print your name. Some of this information will have to be duplicated on the back.

    3

    Make a copy of both sides of the title. Give it to the purchaser in person or by registered mail. They will need to sign and print their name where indicated, and take it to their DMV or Title office (usually within 30 days), who will process the transaction. The seller does not need to be present for the transaction. The buyer will likely have to pay a small fee for the transferring of the title. There may also be tax issues for the buyer and/or seller. Both should follow state tax laws, seeking the advice of a CPA as needed. The buyer's title office will send a new copy of the title to him/her, with the title fully in his/her name.

    4

    I suggest staying in contact with the buyer until s/he receives a copy of the title in his/her name, and the entire transaction is complete. They will likely want this from you as well, just in case anything goes wrong.

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