Do I Need a Title to Sell My Car?
The need to sell a car can arise because you require money or have outgrown the vehicle, or because the car is not practical to maintain where you live. You must have certain documents in order to sell a vehicle legally. The document people question frequently is the car title.
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Basic Rule
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In most states, selling a car without a title is not legal, because you cannot prove that you own the car and that you therefore have the right to sell the property. This is especially true if there are multiple entities listed on the original title, such as if both you and a spouse are named as owners. In this case, every person named on the title has to sign off on the sale.
Buyer Implications
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If a buyer pays for a car that has no title, she may have a hard time getting a new title for herself from the DMV. The Department of Motor Vehicles will be able to see the buyer paid money for the vehicle, but it will hesitate to grant a title if it can't find a record of a previous legal ownership. Without a proper title, the owner will be unable to register the car and therefore can't legally drive the car on the highway or get insurance.
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Scrap Vehicles
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In some cases, you may not have the title and the vehicle is a scrap vehicle. People may be willing to buy the car even without the title in these circumstances because they have no intention of putting the car back on the road. The practice of selling these types of vehicles "under-the-counter" is one reason people get confused about title law, but technically, because the scrap still has value, you legally should sign over the title for these sales.
Getting a New Title
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Occasionally, people simply lose their original vehicle title. This is not the same as having no title at all, as the DMV will have a record of the title on file. If this is the case for you, the easy solution is to apply for a replacement title at the DMV. The agency want you to fill out a vehicle registration/title application and may ask that you bring ID and the proof of sale for the vehicle to further verify your ownership. Once you have the replacement title, you can proceed with the sale without a problem.
Buyer Perception
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Having your title is an advantage in selling your vehicle because the buyer has some guarantee that the sale will not be legally complicated. If you cannot provide a title (or at least a proof of ownership as you wait for a replacement title), potential buyers may perceive you as not trustworthy or as dishonest and subsequently shy away from the purchase.
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References
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