Whenever you buy a car or receive a vehicle as a gift or inheritance, you’ll need to complete a title transfer.
The most common times you’ll need to complete a vehicle title transfer include:
- Buying or selling a used car in a private sale.
- Paying off your car loan and removing the lien.
- Inheriting a vehicle or gifting a car to a family member.
The basic requirement include:
- Receiving the signed and filled out title from the seller.
- Signing the title yourself.
- Complete and Title and Registration application.
- Providing proof of insurance.
- Paying the necessary title fees and taxes.
If there is a lien on the vehicle, there are some additional requirements you’ll need to satisfy.
In most cases, you’ll need to be sure to visit your local DMV office to complete the transfer within a certain timeframe to avoid having to pay any late fees.
Remember, whenever buying a used vehicle it’s a good idea to order a vehicle history report, get a Bill of Sale, and shop around for a new car insurance policy.
For an overview of the process and some answers to common title transfer questions, select your state.
What is a car title?
A car title, or pink slip, is used by the DMV to determine the owner of a vehicle.
The title will contain information such as:
- The owner’s name and address.
- The vehicle make, model, year, and VIN.
If you own the vehicle outright, the title should be in your name.
If you have financed the vehicle, the title will be in the lienholder’s name and you’ll need to transfer it once you pay off the loan.
Whenever you want to sell or gift your vehicle to someone else, you’ll need to use the form on the title to transfer it to the new owner.
Where to Sign a Title
It’s important that the previous owner and the new owner fill out and sign the title in the correct spots.
In some cases, the DMV may reject titles that have been filled out incorrectly. If this happens, the previous owner may need to request a duplicate title and start the process from scratch.
Do not attempt to correct errors by crossing them out or using white out on the title. Instead, visit your local tag and title office.
When you are doing a title transfer:
- The seller (or previous owner), or sellers, must complete the transfer of ownership section of the title.
- The buyer (or new owner) must complete the new owner section (title assignment) of the title and submit this along with the title and registration application.
Typically, the seller’s name that’s listed on the title must be their current legal name and match any supporting documentation, like a bill of sale. If a name change has occurred, they’ll need to apply for a corrected or updated title before the sale.
Sellers can release their liability by notifying the DMV of the sale. This can be done by:
- Submitting a notice of transfer and release of liability form.
- Submitting the notice of sale attached to the original title, if applicable.
- Contacting the DMV or going along with the buyer to complete the transaction.
Vehicle Title Status (Branded Titles)
One important piece of information contained in the vehicle title is the status, or brand.
A branded title is used to denote significant circumstances about a vehicle’s history.
Common title brands used in many states include:
- Salvaged.
- Taxi vehicle.
- Police vehicle.
- Non-USA.
- Warranty Return/Lemon Law.
- Rebuilt.
You can typically find the title’s brand in the upper corner of the title document in an area labeled “vehicle history.”
You can find the status of a vehicle’s title by checking with the DMV or getting a vehicle history report.