How to Sign Over a Car Title

A car title serves as a legal paper that establishes vehicle ownership. It contains crucial details about the car, like its make, model, production year, and vehicle identification number (VIN). Additionally, the title lists the present owner's name and any lienholders. When changing the ownership of a car, the title needs to be signed by the new owner and sent to the local Department of Motor Vehicles (DMV) office for processing. This guarantees that everyone participating in the deal is legally safeguarded, and it prevents any disputes over the car's ownership. 

1. Locate the car title

The first step is to locate the car title, also known as the Certificate of Title or Pink Slip. This document serves as proof of ownership and contains essential information about the vehicle. Check your files, safe deposit box, or contact your lender if you still have an outstanding loan. If you cannot find the title, you may need to request a duplicate from your local DMV.

Once you have the car title in your possession, you can proceed with the transfer process. 

2. Complete the transfer section on the car title

On the back of the car title, you'll find a transfer section that needs to be completed. Fill in the necessary information about the buyer or recipient, such as their full name, address, and any other required details. Take care to provide accurate information and double-check for any errors or omissions.

Car title notarization regulations may vary by state, but in most cases, it is necessary to get your car title notarized. While it is not needed to drive the vehicle away, getting the title notarized is crucial if you want the document to be legally recognized by a court of law. 

Write a bill of sale

In some cases, additional forms or documents may be required by your local DMV, such as a bill of sale, a release of liability form, or an odometer disclosure statement. The bill of sale is like a receipt that outlines any guarantees or conditions attached to the sale. 

The bill of sale is a legally mandated document in 16 states across the US. In certain states, an additional notarization is necessary to be considered valid. To authenticate a transaction, notaries in Louisiana, Nebraska, Maryland, New Hampshire, West Virginia, and Montana must witness both parties signing the bill of sale.

Note that even in states where a bill of sale is not mandatory, it's advisable to create one, as it offers additional security and safeguards for both parties involved in the transaction.

When crafting a bill of sale, make sure it contains the following elements:

• Vehicle details such as year, model, or color. 
• The vehicle identification number (VIN).
• Vehicle mileage (odometer reading).
• Provide information about the sale price and the payment method you agreed upon. If you agreed to installment payments, describe the terms that were agreed upon.
• Include the phrase “sold as is” in the bill of sale to indicate that no guarantees are being made about the car's condition and no warranty is being offered.
• The bill of sale must include the names, addresses, and phone numbers of both parties involved.
• Both the seller and the buyer need to sign and date the bill of sale.

3. Exchange payment and submit the documents

After completing all the necessary details, both the seller and buyer need to sign the title. As the seller, ensure youget your payment for the vehicle prior to handing over the title or finalizing the title transfer paperwork. This is crucial because the buyer obtains legal ownership of the car as soon as the title transfer is complete, regardless of payment status.

Keep in mind thatwhen you buy a car, taxes are usually already included in the price. If you purchase a car through a private sale, the new owner has to pay sales tax in addition to the purchased price.

When the title is signed and notarized (if needed), the buyer must bring the title to their local DMV or similar organization to register the car under their name and handle any required fees or taxes. Meanwhile, the seller might have to inform the  DMV about the transaction to free themselves from any responsibility related to the vehicle.

By following these three simple steps, you can easily sign over a car title and transfer ownership legally and efficiently.

As an alternative to the traditional buying and selling process, consider exploring FINN, a platform designed to simplify car ownership. With FINN, you can avoid the hassle of selling cars in the future and enjoy a seamless experience.  

To legally own a car, the seller must sign the title and transfer ownership to the buyer. The buyer then takes the signed title to the DMV, where a new registration and title will be issued in their name. Some states may require additional paperwork for the transfer of a car title:

• Certificate of title – A certificate of title is a legal document proving vehicle ownership. During a car title transfer, the seller signs and hands over this certificate to the buyer. The buyer then registers the vehicle with the DMV, officially transferring ownership from the seller.
• Bill of sale – The bill of sale is a document recording the details of a vehicle transaction between a seller and buyer. When transferring a car title, some states require this document as proof of the transaction. It helps protect both parties in case of disputes or legal issues related to vehicle ownership.
• Odometer disclosure – The odometer disclosureis a statement of the vehicle's mileage at the time of sale. When transferring a car title, this disclosure is often required by law to prevent odometer tampering and fraud. The seller provides the Odometer Disclosure to the buyer, who then submits it along with the title transfer documents to the relevant authorities.
• Emissions report – An emissions report confirms a vehicle's adherence to emissions standards. In some locations, this report is required during a car title transfer to ensure compliance with environmental regulations. The seller provides the report, and the buyer submits it along with other necessary documents for the title transfer.

Some states may ask for more than just the basic requirements when registering a vehicle, such as proof of insurance, a report on the vehicle's history, and a form indicating any past damage. 

Transferring a car title can be challenging in certain situations, such as when the previous owners have passed away or if there is a lien on the vehicle. Here are some of those situations and what to do: 

After paying off a loan

After you complete your last car payment, the lender will give you the car's title. Note that some lenders may not automatically send you the title after the final payment, so you may need to request it by providing a paid-in-full receipt. 

When buying from a dealership

When you purchase a car from a dealership, they usually take care of the paperwork, such as the title transfer process. Therefore, you might not have to go to the state department in person, regardless of whether you buy a new or used car. Typically, you'll receive the title through mail. The process is comparable when selling your car to a dealership, although they may retain the title until they find a buyer. 

Within the family

Even if you want to gift a car to one of your family members, you need to sign over a car title. In several states, it is suggested to have a bill of sale indicating the name of the previous owner, mileage, and the paid amount when selling a vehicle. If you are gifting the vehicle, you can write $0 as the purchase price. However, there may still be a title transfer fee for the family member receiving the gift. 

When buying from a private seller

When purchasing a car from a private seller, you are responsible for completing the title transfer process. The seller needs to sign the title using black or blue ink. Afterward, the buyer must bring the signed title to their local registration department. 

When the current owner is deceased

If the owner of the car passed away, transferring the car title can become a bit more challenging. However, the beneficiary or executor of the deceased owner can still obtain a new title by applying for it with their state department. If the beneficiary includes a copy of the will when applying for the title, the state will issue a new ownership form to them. When selling the car, the new owner can receive the signed title from the beneficiary. 

When there's a lienholder

If a car has a lienholder on the title, it means that a bank or lender has the title until the car loan is paid off. Selling the car is still possible with an auto loan, but the loan must be paid before the sale can proceed.

It's important to note that your lender or financial institution may impose fees for an early payoff of the car, and their specific procedures for handling this may differ. Therefore, it is essential to contact your lienholder to inquire about the requisite steps when transferring the car title.

If you fail to sign the car title in the correct location or provide all the necessary information, it can cause a delay in the process. To avoid this, follow these tips for signing over a car title:

• Black/blue pen for title transfer signature – For both the buyer and seller of a car, it is recommended to use a black or blue pen when signing the title. This will ensure that the signature is legible and difficult to alter. Refrain from using correction fluid or tape when signing the title, as it may lead to invalidation, requiring you to request a new one.
• Double-check the vehicle's information – To ensure a secure transaction, sellers, and buyers should verify that the VIN on the vehicle matches the one on the car title while transferring ownership. Make sure to verify that the mileage on the car's title matches the odometer reading. Although some discrepancy may be allowed, the car's title should never indicate a lower mileage than what is displayed on the vehicle.
• Check the requirements for your state – In some states, transferring a car title involves the seller signing it and the buyer registering it at the DMV office, while other states may require additional paperwork, such as a bill of sale. Some states even necessitate a notary's presence during the seller's signing for official certification. It's crucial to sign the title correctly, as signing on the wrong line can void the document and cause delays; consult your state's DMV website if you're uncertain.
• Don't delay the transfer of your vehicle – To avoid any issues, make sure to visit your local Department of Motor Vehicles promptly for filing the title transfer documents. Different states have different time limits for car title transfers, which can be as short as 30 days.
• Join the buyer for the title filing – The ownership of the vehicle will not officially transfer to the buyer until they register it with the state department, even if you have already signed the title. Until the buyer registers the vehicle, you remain responsible; to avoid this, consider accompanying them to the Department of Motor Vehicles to ensure they transfer ownership to their name.