Selling your car involves more than just handing over the keys and accepting payment. A critical step in this process is the proper transfer of the vehicle title. This document is the legal proof of ownership, and filling it out correctly is essential for both the seller and the buyer to avoid legal issues and penalties. This guide will walk you through the process of how to fill out a car title when selling your vehicle, ensuring a smooth and legally sound transaction.
For the Seller: Completing Your Part of the Title
As the seller, you have several responsibilities when it comes to transferring the title. Failing to complete these steps correctly can lead to complications down the line, including potential fines or liabilities for the vehicle even after it’s sold.
Removing and Surrendering License Plates
Unless you are transferring your current license plates to a newly purchased vehicle (and not to the buyer of your old car), the first step is to remove the license plates from the car you are selling. In many jurisdictions, these plates remain your property and should be surrendered to your local motor vehicle agency. This action officially disconnects the plates from the vehicle you are selling. Check with your local Department of Motor Vehicles (DMV) or Motor Vehicle Commission (MVC) for specific regulations on plate surrender in your area.
Signing and Providing the Title
The most crucial step for the seller is signing and transferring the vehicle title. Locate the seller’s section on the reverse side of the title. Carefully read the instructions, and then accurately fill in all required information. This typically includes:
- Mileage Odometer Reading: Record the exact mileage from your odometer at the time of sale. Accuracy is important here as it verifies the vehicle’s usage history. Be sure to note if the odometer reading is not accurate or exceeds mechanical limits, if applicable.
- Sale Date: Enter the date when the sale is finalized and the vehicle changes ownership.
- Sale Price: Write down the agreed-upon selling price of the vehicle.
- Seller’s Signature: Sign your name exactly as it appears on the front of the title in the designated “seller” or “transferor” section.
After completing these sections, you must hand the signed title over to the buyer. Do not mail the title to any agency for transfer; this process usually requires the buyer to present the title in person.
Creating a Bill of Sale
While the title transfer is paramount, providing a bill of sale adds an extra layer of legal protection for both parties. A bill of sale documents the details of the transaction and can be useful for resolving any potential disputes later on. Your bill of sale should include:
- Buyer’s Full Name and Address: Accurately record the buyer’s complete name and current address.
- Vehicle Information: Include the vehicle’s Year, Make, and Vehicle Identification Number (VIN) to clearly identify the car being sold.
- Date of Sale: This should match the date you entered on the title.
- Mileage Odometer Reading: Again, record the odometer reading at the time of sale, matching what’s on the title.
- Sale Price: State the agreed sale price.
- Seller’s Printed Name and Signature: Include your printed name and signature.
- Buyer’s Printed Name and Signature: Provide space for the buyer to print and sign their name, acknowledging the purchase.
Giving the buyer a completed bill of sale along with the signed title fulfills your responsibilities as the seller.
For the Buyer: What to Do After Receiving the Title
As the buyer, receiving the title from the seller is just the beginning. To legally own and operate the vehicle, you must complete several steps with your local motor vehicle agency.
Signing the Title and Providing Identification
Once you receive the title from the seller, locate the buyer’s section on the reverse side. You will need to:
- Sign as the Buyer: Sign your name in the “buyer” or “transferee” section.
- Enter Driver’s License or EIN: Provide your driver’s license number or, if you are a business, your Entity Identification Number (EIN). This information verifies your identity and legal entity as the new owner.
Visiting the MVC and Completing Registration
The next crucial step is to visit your local Motor Vehicle Commission (MVC) or DMV agency. You cannot complete the title transfer process by mail; an in-person visit is typically required. When you go to the agency, be sure to bring:
- The Signed Vehicle Title: The title, properly signed by both you and the seller.
- Vehicle Registration Application: Complete the Vehicle Registration Application form (Form BA-49 in New Jersey, or equivalent form in your state), if applicable in your jurisdiction.
- Proof of Identification: Your driver’s license or other acceptable forms of identification.
- Proof of Insurance: You will need to show proof of valid vehicle insurance in your name for the car.
- Payment for Fees and Taxes: Be prepared to pay title transfer fees, registration fees, and any applicable sales tax.
The agency will process your paperwork, officially transfer the title into your name, and issue you new license plates for the vehicle if you need them.
Deadlines and Penalties
It’s important to complete the title transfer process promptly. Many states have deadlines for transferring a title after purchasing a vehicle. For instance, in New Jersey, titles must be transferred within 10 working days from the date of sale to avoid a $25 penalty. Check your local regulations to ensure you comply with all deadlines and avoid any unnecessary fees.
Special Situations: Power of Attorney and Transfer Upon Death
While most car sales are straightforward, some situations require additional documentation or procedures.
Power of Attorney (POA): If someone is signing the title or application on behalf of the seller or buyer, they must present a valid Power of Attorney. This document legally authorizes them to act on behalf of the individual. The POA must be notarized and include specific information, such as the names and addresses of both the person granting the power (Principal) and the person receiving the power (Attorney-in-Fact), the powers being granted, and vehicle details if it’s a limited POA.
Transfer Upon Death: Transferring a vehicle title after the owner’s death involves specific procedures depending on whether there is a will, co-owner, or designated beneficiary. Generally, you will need to present the title, a death certificate, and potentially other legal documents like a Surrogate’s Short Certificate or Affidavit of Surviving Spouse/Next of Kin, depending on the estate situation and local laws.
Conclusion
Properly filling out and transferring a car title is a critical part of buying or selling a vehicle. For sellers, it’s about legally relinquishing ownership and avoiding future liabilities. For buyers, it’s about establishing legal ownership and ensuring they can register and operate their newly acquired vehicle. By following these steps and understanding the requirements in your jurisdiction, you can navigate the title transfer process smoothly and confidently. Always refer to your local DMV or MVC for the most accurate and up-to-date information related to vehicle title transfers in your area.
