Step by Step Guide to Transfer your Car Title

Whose name is listed on the car title?

If you are the seller, you need to check at how your name is listed on the title of the car. In case it is your name alone printed on the title, it means you are the sole owner, and can easily transfer ownership. But if there is a bank’s name or lender’s name on the title, which is referred to as a lienholder, it means you still have an auto loan to settle before selling the vehicle. The situation gets complicated, but you can always call your lender and ask how to sell a car that has a loan and how the transaction should be handled.

Sometimes, a vehicle is owned jointly by two people, such as spouses. There are a couple ways to write the vehicle title in such cases. The two names might have an “and” or an “or” between them. Generally, “and” means both parties have to sign the title to release ownership, but “or” means either person can sign the title.

How to avoid unnecessary delays with vehicle title transfers?

It is advisable to visit the website of your state’s DMV, so you can be sure of what documents are required, where to sign the title, and how to deal with multiple owners. If you make a mistake, such as signing on the wrong line, or if you try to erase something from the title, it can slow the process. You might need to fill out a second form, stating you made a mistake, or apply for a new title from the DMV before the sale can be concluded.

How to verify if you have a transferable title?

You can only transfer the title if the following conditions are met:

• Title must be in your name, barring cross-outs or errors.
• All liens must be released. In case there is a lien listed on your title, it must be signed off on the title or you must provide a separate lien release document.
• You must adhere to the title instructions while signing as the seller.

What is the next step for the buyer?

Once the title is properly signed by the seller, the buyer must register the car in the new owner’s name. In a few states, the application for a new title and registration is on the back of the old title. Otherwise, you might have to download a transfer of ownership form from the state’s DMV website. Usually, a temporary registration is issued as soon as the title and proper forms have been presented to the DMV. A new title, in the new owner’s name, is mailed later.

If you have changed your name since the car has been titled, please proceed with caution when you transfer the car title. You have to sign the title with your name as shown on the front of the title. If you don’t abide by this condition, the title becomes void, so you must get a correction form or duplicate title.

Another aspect you need to keep in mind is if the title is in a deceased person’s name. Different states require varied paperwork. Usually, this involves a copy of the death certificate, executor rights paperwork, and the signed title. Find out the paperwork specific to your state before proceeding.