Yes, two people can absolutely be on a car title. This is a common practice, typically referred to as co-titling or joint ownership. The names listed on the title are the legal owners of the vehicle. However, the way you hold the title significantly impacts what happens if one owner passes away or if there's a disagreement. The two primary methods are Joint Tenancy with Rights of Survivorship (JTWROS) and Tenancy in Common.
With Joint Tenancy with Rights of Survivorship, if one owner dies, their share of the vehicle automatically transfers to the surviving owner without going through probate court. This is often the preferred method for spouses or family members. In contrast, Tenancy in Common means each owner has a distinct, transferable share (e.g., 50/50 or 70/30). If one owner dies, their share becomes part of their estate and is passed on to their heirs, not necessarily the other owner on the title.
There are important practical considerations. When applying for a car loan, most lenders will require all parties on the title to also be on the loan, meaning both individuals' credit will be checked and both are equally responsible for the debt. Selling the car later also requires signatures from all named owners. This can create complications if one person wants to sell and the other does not.
| Consideration | Joint Tenancy with Rights of Survivorship (JTWROS) | Tenancy in Common |
|---|
| Primary Use Case | Spouses, long-term partners | Business partners, friends co-owning |
| Transfer on Death | Automatic transfer to surviving owner | Share goes to the deceased's estate/heirs |
| Selling the Vehicle | Requires all owners to agree and sign | Requires all owners to agree and sign |
| Loan Implications | All owners typically must be on the loan | All owners typically must be on the loan |
| Flexibility of Shares | Ownership is usually equal (50/50) | Ownership shares can be unequal (e.g., 70/30) |
Before deciding, consider your relationship with the co-owner and your long-term plans for the vehicle. It provides a clear path for inheritance but adds a layer of legal complexity for any future transaction.
