Friday, March 3, 2017

Colorado Laws About Transferring Car Titles

In Colorado, the State Department of Revenue makes the rules about how to title your vehicle, but titles are recorded in each of the state's 64 counties. That means you follow Colorado state laws and fill out Colorado state forms but take them to the county clerk's office to get your Colorado state plates.

If you're buying from a dealership, the dealer will handle the paperwork for you. You'll get a temporary license plate, and the county motor vehicle office will let you know by mail when your documents are ready. For private sales, if you're moving to Colorado, or changing the title because of a life change, Colorado law requires you to bring various documents to your county motor vehicle authority and pay title and registration fees, ownership tax and sales tax.

Record Your Title With the County

    Colorado is different from many other states in that driver licensing and motor vehicle ownership laws are overseen by the state Department of Revenue, but the county registers and titles vehicles. You must go in person to the correct county office, and that's not always easy to figure out---some Denver suburbs include addresses in three counties. Call the clerk and recorder's office, or visit the U.S. Postal Service's website, enter your street address and city, and click "submit." On the results page, click "Mailing Industry Information" to see your county name.

    This law also requires that both you and the vehicle be in the state of Colorado at the time of registration. When you move, update your motor vehicle registration so it comes to the right address and ownership taxes (the Colorado version of personal property tax) are collected on behalf of the city and county where you live.

Laws That Protect Buyers and Sellers

    To transfer title in Colorado, you must prove who you are, show that the vehicle is legally yours to sell, and provide details of the sale such as cost (to figure sales tax). You'll also need:

    1) Secure and verifiable identification for yourself (driver's license or permit, passport, immigration documents, military ID)

    2) The current title or documents from the dealer, properly endorsed by the previous owner. On a Colorado title, the previous owner should fill out the form on the back, sign and date. If there's more than one owner, all must sign.

    3) Proof the vehicle passed a Colorado vehicle emissions test, if you live in metro Denver, Weld, Larimer or El Paso counties. No other inspection is required by law.

    4) Odometer disclosure

    5) A bill of sale, or a signed and dated gift letter if somebody gave you the car. What goes on a bill of sale: buyer's name(s), purchase price, vehicle identification number, year and make of the vehicle, date of sale and the seller's signature.

Proof of Insurance, VIN Number and Lien Details

    Colorado law requires proof of insurance before registering a vehicle. Bring your insurance card, a copy of your policy or a letter from your insurance company confirming coverage.

    If you borrowed money to buy the vehicle, a lien will be recorded with the title until your loan is paid off. Your lender should give you a mortgage document (security agreement). It must be an original, carbon copy or certified copy and must contain vehicle description (year, make, vehicle identification number), lienholder's name and address, loan amount and owner's signature.

    If the vehicle was titled in another state, you'll need a Verification of Vehicle Identification Number form (download it from the Department of Revenue website), completed by a Colorado law enforcement officer, motor vehicle dealer or emissions testing station.

Special Situations

    In case of death or divorce, if there's no current title document, or in special situations such as salvage or rebuild titles or unusual vehicles like road machinery or manufactured homes, Colorado law may require you to provide extra paperwork such as a death certificate or power of attorney, or go through additional steps. Contact the Colorado Department of Revenue or your county clerk for advice.

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