Transferring a car title to someone else involves a specific process that varies slightly by state but generally requires signing the title over, completing a bill of sale, and submitting the paperwork to your local Department of Motor Vehicles (DMV). The core steps are: ensuring the title is clear of liens, correctly filling out the transfer section with the buyer, and both parties reporting the sale to the DMV to avoid future liability. The most critical part is accurately completing the certificate of title itself, which serves as legal proof of ownership transfer.
First, locate the paper title. On the back, you'll find a section for the seller to complete. You must print and sign your name exactly as it appears on the front of the title. The buyer will need to do the same. You'll also need to record the vehicle's sale price and the exact odometer reading at the time of sale. Most states require an odometer disclosure statement to prevent fraud.
A bill of sale is highly recommended, even if not mandatory in your state. This document acts as a receipt, providing a record of the sale date, price, vehicle identification number (VIN), and the identities of both parties. It protects both you and the buyer.
After the sale, your responsibility isn't quite over. You must notify your state's DMV of the transfer. This often involves submitting a release of liability form. This step is crucial because it officially informs the DMV that you are no longer the owner, shielding you from parking tickets, toll violations, or accidents associated with the vehicle after the sale date. Check your state's DMV website for specific required documents and fees. The table below outlines key documents and their purposes.
| Document | Purpose | Importance |
|---|
| Certificate of Title | Legal proof of ownership; the primary transfer document. | Absolutely mandatory. Must be filled out correctly. |
| Bill of Sale | Serves as a receipt for the transaction. | Highly recommended for both buyer and seller protection. |
| Odometer Disclosure | Certifies the vehicle's mileage at the time of sale. | Required by federal law for vehicles under 16,000 lbs. |
| Release of Liability | Notifies the DMV you are no longer the owner. | Critical to avoid future fines and liabilities. |
| Vehicle Identification Number (VIN) | Unique code identifying the specific vehicle. | Needed for all paperwork to ensure accuracy. |
Finally, remember to remove your license plates and cancel your insurance policy on the vehicle after the sale is complete and the DMV has been notified.
