When buying or selling an automobile, the title must be transferred. Learn about the DMV title transfer procedure and what is needed by law.
What you will discover:
When does a car title transfer become necessary?
When purchasing or selling a car, how do I transfer vehicle ownership?
How can I transfer ownership of a car to a family member?
If I inherit a car or a boat, how can I transfer ownership?
When I pay off my auto loan, how can I remove my loan company’s name off the title?
When I give someone an automobile, how do I transfer ownership?
What is the procedure for changing or correcting a name on a car title?
A car title is the legal document that proves ownership of a vehicle. To transfer car ownership, both the existing and new owners must file a vehicle title transfer with the DMV. This procedure differs from one state to the next. The answers to frequent inquiries regarding transferring car ownership provided here might assist both buyers and sellers in finalizing the title transfer.
Table of Contents
When does a car title transfer become necessary?
When a vehicle has or is needed to have a title, a title transfer is usually necessary when ownership changes. The following are the most prevalent scenarios in which a car title transfer is required:
Buying or selling an automobile.
Car transfer to a family member.
Getting a car as a gift.
Repaying a vehicle loan or debt.
A car might be given, donated, or junked.
Making name changes.
When purchasing or selling a car, how do I transfer vehicle ownership?
When purchasing or selling an automobile, most states need a Vehicle Bill of Sale or equivalent documents. A Bill of Sale specifies the terms and circumstances of a private transaction between two individuals. It contains the purchase price, the VIN, the type and year of the car, the warranty, an odometer reading, the seller’s and buyer’s signed legal names and addresses, and occasionally a notarized signature. A Vehicle Bill of Sale, on the other hand, merely indicates the transfer of ownership rights. Every state requires a certificate of title to show real ownership of a car.
The seller must give a current odometer disclosure on the title after or at the time of the transaction, and both the buyer and seller must sign and date the title document. The buyer must next schedule an appointment with their state’s DMV to apply for a title in their name. Prepare to produce the aforementioned documentation and pay a minor transfer fee. It should be noted that certain states, such as California, also need smog certification.
How can I transfer ownership of a car to a family member?
Most, if not all, of the same vehicle title transfer processes and requirements apply when transferring automobile ownership to a family member. In most cases, the receiver will not be required to pay sales tax on the car. A family car title transfer is available to spouses, parents, children, grandparents, grandchildren, siblings, and partners. The remainder of the title transfer procedure is similar to purchasing or selling an automobile.
If I inherit a car or a boat, how can I transfer ownership?
The procedure for obtaining the title to an inherited automobile or boat in your name may differ based on the circumstances. You should consult with a lawyer about your individual case.
In general, you may be required to provide the DMV with proof of your identity and relationship to the deceased owner, a completed and signed title, including the current odometer disclosure, and other supporting paperwork, such as the will, death certificate, or other certified court documents, in order to claim the deceased owner’s vehicle. Expect to pay a transfer fee. Inherited automobiles may be free from sales tax as well.
When I pay off my auto loan, how can I remove my loan company’s name off the title?
The lienholder must be removed from the title once you have paid off your auto loan or car note. This is usually handled by the lienholder. After signing and mailing the lien release, you may still need to set an appointment with the DMV to submit the lien release, a completed car title transfer application, and the transfer fee. You may be possible to complete all of this via mail, but keep in mind the extra processing time.
When I give someone an automobile, how do I transfer ownership?
The receiver of a given automobile, like the recipient of a car transferred to a family member, may not be required to pay sales tax on the vehicle. Transferring ownership follows the same steps as purchasing or selling a car: the donor must include the odometer disclosure on the title, both parties must sign and date the title, and the receiver must travel to the DMV and apply for a new title in their name, as well as pay the transfer fee.
What is the procedure for changing or correcting a name on a car title?
If your name changes as a result of marriage or divorce, or if you uncover an error on your title, you may have it updated or repaired on the document. Collect any legal papers that prove your name change, such as a birth certificate, marriage certificate, divorce decree, or court order. Fill out the relevant area of the title or title transfer paperwork with the revised name under New Registered Owner. Then, schedule an appointment with your local DMV to submit the necessary documentation. It should be noted that certain states waive the title price for name changes.
