Car Title Rules
A car title is a legal document that proves ownership of a car. The car title system is designed to prevent stolen cars from being sold and to insure that car buyers receive accurate odometer readings. Without a title, a car may not be issued license tags, registered or driven. In many states, it is illegal to sell a car without a title. There are several different types of car titles.
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Title Information
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A title displays the Vehicle Identification Number, or VIN, the name and address of the owner, the date the car was last sold and the odometer reading on the date of sale. If the title is a duplicate, salvage or rebuilt title, this will also be noted.
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Duplicate Titles
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A duplicate title is issued when the original title document issued to the owner is lost, damaged or destroyed. In order for a duplicate title to be issued, the state authority for auto titling must have a title on file for the car. If you do not have a copy of your car's title, you should check your car's VIN (engraved somewhere on the outer or inner surface of your car depending on its make and model) and run a VIN check. If your car is titled, the VIN check should reveal which state has the car's title on file (see Resources). Duplicate titles can be obtained without much trouble, as long as you can prove you own the car, by downloading an application from the website of your state department of motor vehicles
Bonded Titles
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If no state has a title for your car on file, you will have to apply for a bonded title. You will have to attest that the vehicle meets federal safety standards, that it has not been reported stolen, that there are no outstanding liens against it, and that you own it. You will also have to purchase a bond (typically more than the book value of the car) and liability insurance. The county tax office issues you a bonded title.
Salvage Titles
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A car is issued a salvage title when an insurance appraiser determines that it has been "totalled" (damaged so badly that the cost of repairs would exceed the book value of the car). As long as a car carries a salvage title, it can be legally sold for salvage, but cannot be driven on public roads even if it is subsequently repaired.
Rebuilt Titles
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If a car with a salvage title is repaired, it can be issued a rebuilt title that will allow it to be driven on public roads. The purpose of a rebuilt title is to alert potential buyers that the car was once totalled and that the odometer reading might be inaccurate.
References
Resources
- Photo Credit "Green means go for the All-New Dodge Challenger" is Copyrighted by Flickr user: dodge challenger1 under the Creative Commons Attribution license.
