A transfer of title involves the legal transfer of property ownership from one entity or individual to another. Title transfers most commonly occur when vehicle ownership changes. Each state has different requirements for transferring ownership of vehicles. Check with your state regulations before initiating a title of transfer.
Common Title Transfer Scenarios
You will encounter a title transfer when selling or purchasing a vehicle. Also, if the car was bought with a loan, a title transfer will initiate after full payment of the loan. Other scenarios of title transfer include vehicle donations, inheriting a vehicle, correcting the legal name of an owner, transferring ownership of a vehicle to a family member, repossession of vehicles and junking or scrapping your vehicle for parts.
Application for Transfer
Each state's department of motor vehicles has a different form, but several commonalities exist among them. You will need to provide the title data, owner's information, VIN number, vehicle information, lien holder's information, odometer reading and insurance certification.
Bill of Sale
Some states require a bill of sale during the title transfer process, but it is not always necessary. However, it is good practice to obtain or create one when buying or selling a vehicle. Include the following information on the bill of sale: name, address, and signature of the buyer and seller; date of purchase; purchase price; and VIN, make, model and year of the car.
Registration
Take the Application for Transfer and the bill of sale to your state's department of motor vehicles to formalize the title transfer. Also, be prepared to pay for the registration, plates and any applicable sales taxes.
Tags: title transfer, bill sale, Application Transfer, department motor, department motor vehicles, Each state
