To transfer a car title in Alabama, you need the signed title, a bill of sale, a valid ID, and must complete the Application for Certificate of Title (Form MVT 5-6). You must then visit your county probate judge's or revenue commissioner's office, pay the required fees, and submit the documents. If there's a lien, you'll also need a lien release. The process is straightforward if you have all the correct paperwork.
The most critical document is the certificate of title. The seller must sign it in the presence of a notary public. If the title has two names (e.g., "John Doe AND Jane Doe"), both parties must sign. If it's "OR," either can sign. You'll also need a completed Bill of Sale (Form MVT 12-1) to document the sale price, which is used to calculate the sales tax.
For the buyer, the next step is to complete the Application for Certificate of Title (Form MVT 5-6). This form requires vehicle details like the VIN, make, model, and year, as well as your personal information. You must also provide proof of insurance that meets Alabama's minimum liability requirements and a valid driver's license.
Here’s a quick reference for the typical costs involved:
| Fee Type | Typical Cost | Notes |
|---|
| Title Fee | $15 | Standard fee for issuing a new title. |
| Registration Fee | $23 - $175+ | Based on vehicle weight and model year. |
| Sales Tax | 2% of purchase price | State sales tax on the vehicle's value. |
| Plate Transfer Fee | $1.25 | If you are transferring a plate from another vehicle. |
| Lien Recording Fee | $3 | If a lien is being recorded on the new title. |
| Notary Fee | $5 - $10 | If the title signature was not notarized beforehand. |
Once all documents are in order and fees are paid, you'll receive a new registration and license plate. The new title will be mailed to you by the state, which can take a few weeks. Remember, driving without properly transferring the title is illegal, so complete this process promptly after the sale.
