Yes, you can sell a car with a signed title, but it must be done correctly to be legal and finalize the sale. The signed title is the primary document that transfers ownership from you (the seller) to the new buyer. However, simply handing over a signed title is not the complete process. You must follow your state's specific procedures to protect yourself from future liability for the vehicle, such as parking tickets, toll violations, or even accidents that occur after the sale.
The most critical step is to officially release your liability with your state's Department of Motor Vehicles (DMV). This usually involves submitting a "Notice of Transfer and Release of Liability" form. This form notifies the DMV of the sale date and the new owner's information, legally severing your connection to the car. You should do this immediately after the sale. Additionally, you must complete the title accurately. This includes printing and signing your name exactly as it appears on the title, filling in the exact sale price, and ensuring the buyer completes their section. Never sign a blank title, as it can be used fraudulently.
Finally, keep detailed records. Create a bill of sale that both parties sign, which acts as a secondary proof of the transaction. Keep copies of the signed title, the bill of sale, and the release of liability form. Remove the license plates from the vehicle before the buyer drives away, as they are typically registered to you, not the car.
| State-Specific Consideration | Key Action for Seller | Potential Risk if Not Done |
|---|
| California | Submit a Notice of Transfer and Release of Liability online within 5 days. | Remain liable for parking tickets and traffic violations. |
| Texas | Submit a Vehicle Transfer Notification to avoid liability for subsequent citations. | Responsible for any charges until the new owner registers the vehicle. |
| New York | Complete the "seller" section on the title and keep the bill of sale. | Liability for any vehicle-related incidents post-sale. |
| Florida | The buyer is responsible for titling; the seller must report the sale via HSMV 82050 form. | Potential liability if the buyer fails to title the vehicle promptly. |
| General Best Practice | Always create a detailed bill of sale and keep a copy for your records. | Difficult to prove the terms of the sale or the date of transfer in a dispute. |
