Selling your car in Texas involves more than just handing over the keys. A crucial step in the process is properly signing over your Texas car title to the buyer. This legal document transfers ownership of the vehicle, and ensuring it’s done correctly protects both the seller and the buyer from potential future liabilities. Understanding How To Sign Over A Texas Car Title correctly is essential for a smooth and legally sound vehicle sale.
Understanding the Texas Car Title
The Texas Certificate of Title is a legal document proving ownership of a vehicle. It contains vital information about the car, including the Vehicle Identification Number (VIN), make, model, and the registered owner’s details. When you sell your car, you, as the seller, must officially transfer ownership by signing the title over to the new owner. This process ensures that the Texas Department of Motor Vehicles (TxDMV) recognizes the change in ownership and that the new owner can legally register and operate the vehicle.
Step-by-Step Guide to Signing Over a Texas Car Title
To properly sign over a Texas car title, follow these steps meticulously:
Locate Your Texas Car Title
First and foremost, you need to have your physical Texas car title in hand. This is the official document issued by the TxDMV. Make sure it is the original title and not a copy. If you can’t locate your title, you’ll need to apply for a duplicate title from the TxDMV before you can sell your vehicle.
Complete the Assignment of Title Section
On the back of your Texas title, you will find a designated section labeled “Assignment of Title.” This is where you, as the seller, will fill in the required information to transfer ownership. Typically, this section requires:
- Buyer’s Information: You’ll need to enter the full legal name and address of the buyer. Ensure you have accurate spelling and address details to avoid processing issues.
- Odometer Reading: You must accurately record the vehicle’s odometer reading at the time of sale. Tampering with or misrepresenting the odometer reading is illegal.
- Sale Date: Write down the exact date you are selling the vehicle. This date is crucial for determining transfer deadlines and potential penalties.
- Sale Price (Optional but Recommended): While not always mandatory on the title itself, providing the sale price can be helpful for both parties’ records and may be required on other transfer documents.
Sign the Title as the Seller
This is the most critical step. You, as the seller (and all registered owners if there are multiple), must sign your name in the designated “Seller’s Signature” section on the title. Ensure your signature matches the name printed on the front of the title. Using a pen with blue or black ink is generally recommended. Do not sign blank titles. Always complete all required information before signing.
Provide Necessary Documentation to the Buyer
Along with the signed title, you should also provide the buyer with other essential documents:
- Vehicle Inspection Report (VIR): In Texas, vehicles require annual safety and/or emissions inspections. While the responsibility for inspection often falls on the buyer for registration, providing the latest VIR, if available, can be helpful. Note that emissions inspections are required in certain counties. If the vehicle is registered in one of the 17 counties not requiring a safety inspection, an emissions inspection is still necessary for registration. Commercial vehicles always require a commercial inspection.
- Release of Liability: It’s highly recommended that the seller file a Vehicle Transfer Notification with the TxDMV. This officially releases you from liability for the vehicle once it’s sold. This can protect you from issues that may arise after the sale but before the buyer officially titles the vehicle in their name.
- Bill of Sale: While not legally required in Texas, a Bill of Sale is a good practice. It documents the details of the sale, including the date, vehicle information, buyer and seller information, and sale price. This can serve as additional proof of the transaction for both parties.
Removing License Plates and Transit Permits
In Texas, license plates typically remain with the seller. You should remove your license plates from the vehicle upon sale. If the sale occurs on a weekend or when the county tax office is closed, and the buyer needs to drive the vehicle immediately, you can inform them about the Vehicle Transit Permit. This permit, downloadable from the TxDMV website, allows the buyer to legally drive the vehicle for five calendar days to the county tax office to complete the title transfer and registration. Only one transit permit can be issued per vehicle sale.
Common Mistakes to Avoid
- Incorrect Information: Double-check all information you write on the title, especially names, addresses, and the odometer reading. Errors can cause delays and complications in the title transfer process.
- Missing Signatures: Ensure all sellers named on the title sign in the designated areas. Missing signatures will invalidate the title transfer.
- Not Filing a Vehicle Transfer Notification: Failing to notify the TxDMV of the sale can leave you liable for tickets or other issues associated with the vehicle after you’ve sold it.
- Delay in Title Transfer by the Buyer: While this is the buyer’s responsibility, inform the buyer of the importance of titling the vehicle within 30 days of purchase to avoid potential penalties.
What Happens After You Sign Over the Title?
Once you’ve correctly signed over the Texas car title and handed it to the buyer, along with other necessary documents, your primary responsibility as the seller is complete. However, it is strongly advised to file the Vehicle Transfer Notification with the TxDMV as soon as possible.
The buyer is now responsible for:
- Applying for a new title and registration: The buyer must take the signed title, proof of insurance, and other required documents to their local county tax office to officially transfer the title into their name and register the vehicle.
- Paying sales tax and title transfer fees: The buyer will be responsible for these costs during the title transfer process.
- Vehicle Inspection (if required): The buyer needs to ensure the vehicle passes any required inspections to complete registration.
Signing over a Texas car title correctly is a crucial part of selling a vehicle in Texas. By following these steps and avoiding common mistakes, both sellers and buyers can ensure a smooth, legal, and hassle-free vehicle ownership transfer. Remember to consult the official TxDMV website or your local county tax office for the most up-to-date information and any specific requirements.
