Transferring vehicle ownership in New Jersey requires a visit to a Motor Vehicle Commission (MVC) agency, as this process cannot be completed via mail. To ensure a smooth and legally sound transfer, and to avoid potential penalties, both sellers and buyers must adhere to specific guidelines. This guide provides a comprehensive overview of how to properly sign a car title over to a new owner in New Jersey, covering scenarios from selling or buying a vehicle to handling title transfers after the owner’s death.
For Sellers: Steps to Sign Over Your Car Title
If you’ve sold your vehicle, it’s crucial to follow these steps to legally relinquish ownership:
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Remove and Surrender License Plates: Before handing over the vehicle, remove the license plates. Unless you intend to transfer these plates to another vehicle you currently own (note: plates cannot be transferred to the new owner of the sold vehicle), you must surrender them to an MVC agency. This action officially disconnects the plates from your vehicle and prevents any liabilities associated with the vehicle post-sale.
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Complete the Seller’s Section on the Title: Locate the seller’s section on the reverse side of your vehicle title. Carefully and accurately fill out all required fields, including your signature. This section formally documents your release of ownership to the buyer.
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Provide a Bill of Sale: While the title transfer is the official legal document, a bill of sale provides an extra layer of clarity and protection for both parties. Your bill of sale must include the following details:
- Buyer’s Full Name and Address: Ensure you have the buyer’s complete legal name and current address.
- Date of Sale: Clearly record the date the vehicle was officially sold and ownership transferred.
- Mileage Odometer Reading: Accurately note the vehicle’s odometer reading at the time of sale. This is a legal requirement to disclose the vehicle’s mileage history.
- Sale Price: Document the agreed-upon sale price of the vehicle.
Providing this bill of sale alongside the signed title ensures a transparent transaction and helps protect both the seller and buyer should any discrepancies arise later.
For Buyers: Steps to Receive a Signed Car Title
As the buyer, securing a properly signed title and completing the transfer process is essential to legally own and operate your newly acquired vehicle.
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Sign the Buyer’s Section on the Title: Upon receiving the title from the seller, locate the buyer’s section on the reverse side. Sign and complete this section, including your driver’s license or Entity Identification Number (EIN) if applicable (for businesses). This acknowledges your acceptance of ownership and initiates the official transfer process.
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Visit a Motor Vehicle Agency: The next critical step is to visit an MVC agency in person. This is mandatory for title transfers in New Jersey.
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Complete Vehicle Registration and Application (if applicable): At the MVC, you’ll need to complete the Vehicle Registration Application (Form BA-49) if you need to register the vehicle in New Jersey. This form, along with the signed title, initiates the process of officially registering the vehicle under your name and obtaining new license plates.
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Gather Necessary Documents: Ensure you bring all required documents to the MVC. The specific documents vary based on whether the vehicle was:
- Pre-owned in New Jersey: Refer to the MVC’s Pre-owned in New Jersey guidelines.
- Pre-owned in another state that issues titles: Consult the Pre-owned in another state that issues titles requirements.
- Pre-owned in a state that does not issue titles: Check the Pre-owned in a state that does not issue titles checklist.
- Pre-owned and purchased at an auction: Follow the Pre-owned and purchased at an auction instructions.
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Transfer Title within 10 Working Days: To avoid a $25 penalty, ensure you transfer New Jersey or dealer reassigned titles within 10 working days from the date of sale. Prompt title transfer is crucial to avoid fees and ensure legal compliance.
Power of Attorney for Title Transfer
In situations where you need to sign the title or application on behalf of someone else (and you will be signing for them), you must present a Power of Attorney (POA). This legal document authorizes you to act on their behalf in the vehicle title transfer process.
The POA must be either General, Durable, or Limited and must be notarized. Key requirements for the POA include:
- Appointee/Attorney-in-Fact’s Information: Name and address of the person authorized to act (you).
- Principal’s Information: Name, address, and signature of the person granting power of attorney (the vehicle owner).
- Scope of Powers Granted: A clear specification of the powers being granted to the appointee.
- Vehicle Specifics (for Limited POA): Limited POAs must include the vehicle’s year, make, VIN, and the type of transaction authorized.
- Business POAs: If issued by a business, the POA must be on official company letterhead.
In addition to the POA, you must also present your own valid ID/License when conducting the transaction.
If all paperwork is already signed by the person you are representing, a General Letter of Authorization LOA-1.pdf (state.nj.us) may be used instead of a POA.
Transfer of Title Upon Death of Owner
Transferring a vehicle title after the owner’s death requires specific procedures, depending on how the title was held and whether there was a will. All transfers in these situations must be handled at an MVC Vehicle Center, and scheduling an appointment beforehand is recommended.
Title in Both Spouses’ or Domestic Partners’ Names
If the vehicle title is in the names of both spouses or domestic partners, the process is simplified. The surviving owner needs to submit:
- The current vehicle title, properly signed and completed by the surviving owner.
- A copy of the death certificate.
- A notarized Affidavit (Form BA-62).
A $60 title fee will apply. The existing registration can be transferred to an immediate family member for an additional $4.50.
Transferring Ownership to the Estate/Individual (Owner Dies with a Will and No Co-owner)
When the owner dies with a will and there is no co-owner, and the title is being transferred to the estate:
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Obtain an EIN: Apply for an Entity Identification Number (EIN) for the estate. This is required when the title is being transferred to the name of the estate. If the title is going directly to an individual (heir), an EIN is not needed.
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Visit an MVC Vehicle Center: Once you have the EIN (if applicable), bring the following to an MVC Vehicle Center:
- The old title, signed and completed by the executor of the will.
- The Surrogate’s Short Certificate (proof of executor appointment).
- Your driver’s license (for identification).
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Pay Title Fees: Pay the $60 title fee (or $85 for financed vehicles).
If the vehicle will be operated, a new registration and proof of New Jersey insurance in the estate’s name are also necessary. The existing registration can be transferred to an immediate family member for $4.50.
Title in Deceased’s Name Only (No Co-owner) and Owner Dies Without a Will
The process differs based on the estate’s value and surviving relatives when the owner dies intestate (without a will).
Surviving Spouse, Domestic Partner, or Civil Union Partner and Estate Under $50,000
If there is a surviving spouse, domestic partner, or civil union partner and the estate’s value does not exceed $50,000, present:
- The current title.
- An Affidavit of Surviving Spouse/Domestic Partner/Civil Union Partner. This affidavit must include the raised seal of the County Surrogate from the county where the deceased resided.
- The current title, properly signed and completed by the surviving spouse/partner.
Heirs but No Surviving Spouse/Partner and Estate Under $20,000
If there are heirs but no surviving spouse, domestic partner, or civil union partner, and the estate is under $20,000, present:
- The current title.
- An Affidavit of Next of Kin. This affidavit must include a raised seal from the County Surrogate of the decedent’s county of residence.
- The current title, properly signed and completed by the Next of Kin.
Estate Value Exceeds Limits
If the estate value exceeds $50,000 (with a surviving spouse/partner) or $20,000 (without), the title transfer requires:
- The current title, properly assigned and executed by the Administrator of the estate.
- An Administrator’s Short Certificate. This certificate must include the raised seal of the County Surrogate from the decedent’s county of residence.
Other Important Considerations
Odometer Reading
Providing an accurate odometer reading during a vehicle sale is legally mandated. This reading discloses the vehicle’s mileage history and helps identify if the odometer has rolled over. If the actual reading is inaccurate, the seller must provide an estimated reading. You can download a copy of the Universal Title Application for odometer disclosure information.
Liens
If there are liens noted on the deceased’s title, these liens must be satisfied before a new title can be issued, unless the lien is being transferred to the sole owner. Contact the lending institution for specific details regarding lien transfers and satisfaction.
Sales Tax
Vehicles are generally subject to sales tax in New Jersey. However, a sales tax exemption applies if the vehicle is given as a gift. To claim this exemption, the customer must indicate “gift” on the purchase price line on the reverse side of the title. For more information on sales tax exemptions, refer to vehicle sales tax exemptions.
Conclusion
Properly signing and transferring a car title is a crucial step in vehicle ownership changes in New Jersey. Whether you are buying, selling, or handling a transfer due to the owner’s death, understanding and following these guidelines ensures a legal and penalty-free process. Always refer to the New Jersey Motor Vehicle Commission for the most up-to-date information and requirements, and remember that all title transfers require an in-person visit to an MVC agency.
Alt text: Example of a New Jersey Vehicle Title. The image displays a sample vehicle title document, highlighting key areas such as the seller and buyer signature sections, vehicle information, and official state seals.
Alt text: Image of a Motor Vehicle Commission Agency Building. The photo shows the exterior of a typical MVC agency building, with signage and parking, representing the physical location where title transfer transactions must be conducted.
