Gifting a car to a loved one in Florida is a generous act, but it’s essential to navigate the legal procedures correctly to ensure a smooth and hassle-free transfer. Treating a car gift much like a private vehicle sale simplifies the process. As the gift-giver, you’ll need to follow specific steps to legally transfer ownership, and the recipient also has responsibilities to finalize the transfer. Understanding these steps is crucial for both parties involved in gifting a car in Florida. Remember, along with the joy of receiving a car comes the responsibility of ownership, including maintenance, insurance, and registration.
Before you begin, it’s wise to remind the recipient about the ongoing costs associated with owning a vehicle. While a free car is a wonderful gift, factors like maintenance, repairs, insurance premiums, and registration renewals are important considerations for the new owner.
Step 1: Verify There’s No Lien on the Vehicle
Prior to gifting your car, it’s critical to confirm that no lien exists on the title. A lien signifies that a third party, such as a bank, has a financial claim on the vehicle due to an outstanding loan. If you financed the car, ensure the loan is fully paid off before proceeding with the gift. Once your car payments are complete, the lienholder should electronically notify the Florida Department of Highway Safety and Motor Vehicles (DMV) about the lien release. However, it’s always prudent to double-check and confirm the lien is officially removed before transferring the title.
Step 2: Properly Sign Over the Florida Car Title
As the gift-giver, legally transferring the car means signing over the Florida Certificate of Title to the recipient. Carefully complete the transfer section on the back of the title. Print your name and signature clearly. In the “selling price” field, explicitly write “GIFT” to indicate the nature of the transfer. Pay close attention to the odometer section. The numbers “5 and 6” on the title refer to the odometer’s capacity (5 or 6 digits), not the current mileage reading. Record the accurate mileage as required on the title.
Step 3: Create a Bill of Sale for Your Protection
Although it’s a gift, drafting a Bill of Sale is a recommended step to protect yourself, the gift-giver. In Florida, gifting a car is legally treated similarly to a private sale. A Bill of Sale serves as a formal record of the transfer and can shield you from liability for the vehicle once the transfer is complete.
Form HSMV 82050, the official Florida Bill of Sale, is available for this purpose. It includes sections for both the gift-giver (seller) and recipient (purchaser), as well as fields to document vehicle details like make, model, and the Certificate of Title number. This document helps establish a clear transfer timeline and protect both parties until the Florida Department of Highway Safety and Motor Vehicles officially updates the ownership records.
Step 4: The Gift Recipient Must Complete a Title Transfer
To finalize the gift and legally own the car, the recipient must complete a Florida title transfer. There are two primary methods for this:
- In-Person DMV Visit: The recipient can visit their local Florida DMV office, ideally with you, the gift-giver. Be prepared for potential wait times and ensure all necessary paperwork, including the signed Certificate of Title, is completed at the DMV. Standard title transfer and registration fees will apply to establish the new ownership. Importantly, gifting a car is exempt from sales tax in Florida.
- Online Title Transfer Service: For a more convenient option, the recipient can utilize an online service like eTags to complete the Florida title transfer from home. This eliminates DMV visits, traffic, and waiting times. eTags guides users through the process, prompting them to upload required documents, such as the completed Application for Certificate of Title and a Power of Attorney form if needed. Support from title transfer specialists is also available to assist with any questions or document completion. Additional documents might be required based on specific circumstances, such as for recipients in the U.S. Armed Forces.
Step 5: Florida Car Registration for the Recipient
For the gifted car to be legally driven, the recipient must register it in Florida. Title transfer and vehicle registration are closely linked and often processed together. While the title proves ownership, registration grants the legal right to operate the vehicle on public roads. The Florida Certificate of Title form even reflects this connection, titled “Certificate of Title With/Without Registration.”
To register the car, the gift recipient will need to provide proof of valid car insurance using a Florida Insurance Affidavit form. Upon successful registration, new license plates will be issued to the recipient, as Florida plates are not transferable when a vehicle is gifted. Remember, Florida car registrations must be renewed every one or two years. Online services like eTags also simplify registration renewals, offering convenient online processing and reminders to help keep registrations current.
In conclusion, gifting a car in Florida involves a straightforward process, closely mirroring a private sale. By following these steps – checking for liens, properly signing the title, creating a Bill of Sale, completing the title transfer, and registering the vehicle – both the giver and recipient can ensure a legal and seamless transfer of ownership.
