How to Transfer a Car Title

How to Transfer a Car Title

The steps to transfer a car title in a private vehicle sale are relatively simple, but they can vary depending on your state. Contact your DMV to find out their specific requirements. Generally, the process involves the following steps:

1. The Seller Signs the Title and Releases Ownership

The car seller must give their permission to transfer the title of ownership by filling out the required sections—such as the odometer reading and sale price—and signing the car title. If the title lists multiple owners, each must add their signature unless the word "or" separates their names. Check with your DMV for your state's requirements, such as whether signatures need to be notarized or whether you must also submit a bill of sale.

2. The Buyer Takes the Signed Title to the DMV

Depending on the state, the buyer has 10 to 30 days to transfer the title, so you'll want to bring the signed title to the DMV as soon as possible. For instance, in California, you only have five days after a private car sale to file a notice of transfer and release of liability with the DMV.

Keep in mind, states often have strict rules about the information on your car title and how it's presented. Be careful when filling out the title, as any errors—even scratched-out ones—may void the title. In that case, you'd need to request a new copy from the DMV.

3. The Buyer Pays Applicable Fees and Taxes

When you're submitting your paperwork, you'll also need to pay your state's title transfer fee or sales tax. If the paperwork is submitted after the deadline, you may be charged a late fee. Fees and requirements vary widely by state, which can affect your total costs. For example, you may be required to pay for a smog test or inspection fees before the title can be officially transferred.

4. The DMV Issues the New Title

Once you submit your signed title and pay the fees to your DMV, it should take 15 to 30 days to update the car's ownership records.You should receive a copy of the title by mail or email if your state uses electronic titles.

Car Title Transfer With a Dealership vs. a Private Party

Transferring a car title with a dealership is a little different from doing so with a private party. The dealer takes care of the paperwork and fees for you, making it more convenient, but you can easily transfer the title yourself in a private-party sale.

How Do You Transfer a Car Title Across State Lines?

It's possible to transfer a car title from one state to another, although the process may be more complicated than transferring a title in-state.

If you're moving to a new state, you must adhere to that state's requirements for title transfer. On top of submitting title and registration forms and paying the fees and taxes, you may need to complete additional steps, such as passing an emissions test or safety inspection.

Residents new to a state typically have a grace period before registering their car. In Missouri, for example, you have 30 days from the date you establish residency to title and register your vehicle with the state. If you're buying a car out of state and driving it home, you'll need to get a temporary registration and license plate to legally drive the car until you get your official registration in your state.

Can You Transfer a Car Title With a Loan?

No, you generally can't transfer a car title without paying off the loan first. Remember, when you take out a loan on a vehicle, the lender is the car's legal owner. They place a lien on the car to prevent the borrower from selling the vehicle and not paying them what they are owed. It also allows them to sell the vehicle if you default on the loan.

Before you can transfer the title, you must pay off the loan and obtain a lien release. Without this release, the car cannot be sold or the title transferred because the lender still has a legal claim on the vehicle. It's a good idea to check with your lender or DMV for specific details about how the process works in your state.

Learn more: Can You Transfer a Title Without Auto Insurance?

Frequently Asked Questions

Check Your State's Car Title Rules

To transfer a car title, you'll need to fill out the required paperwork, pay any fees and submit everything to your DMV. Just make sure you check your state's specific rules and deadlines to avoid any issues with the process.