How to Transfer a Car Title

Posted on July 29th, 2009 by Carmelia

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When you’ve sold your car, it’s important to transfer the car title to the new owner’s name. Otherwise, you may be liable for the car when an accident or anything else happens in the future. Procedures on how to transfer a car title may vary from state to state, but most essential steps remain the same. Here’s how to transfer a car title.

Transferring a Car Title

Make sure that you maintain the insurance up until the time when you have to make the car title transfer. Ensure that the future owner will insure the car immediately after taking possession of the car. This is done because the Department of Motor Vehicles (DMV) will require proof of this insurance to enable you to transfer the title.
Make sure that all your liens have been released. This usually just means that you have to have all of your loans paid. Once you have, the bank will send you a letter of release, and the DMV will send you your title.
If you’ve misplaced your title, you can contact the lending institution or the bank for another copy. If that doesn’t work out, or if the institution no longer exists, you can go to the Federal Deposit Insurance Corporation to get an original copy of the title.
Go to the DMV with the buyer or the recipient of the transfer to complete the required paperwork. Requirements vary from state to state, but generally you will be required to show your proof of insurance, driver’s license, a bill of sale with the purchase price, the VIN number, the title paperwork and the current odometer reading.
Look at the bottom portion of your title. There should be a section labeled as “Transfer of title by seller.” In this space, enter the name and address as it appears on the recipient of the car. You should also indicate the selling price or if it’s a gift, indicate that the car is a gift.
Make a copy of both sides of the title, and give one copy to the purchaser in person or via registered mail. The purchaser will need to sign and print their name where indicated and take the title to the DMV. The DMV will then process the transaction.
Keep in touch with the buyer until the transaction is completed by the DMV. This way, you’ll be able to be updated should anything go wrong with the transaction.
Remit a transfer fee, which should be anywhere between $20-$300 depending on your state.
Should you need any more information, check your state’s DMV for guidelines.