The title to your car is a very important piece of paper. Like a short biography, a title gives all the essential information about a car, including, most importantly, who owns it. When a car changes owners, the title must reflect that change. If it doesn’t, the new driver isn’t the owner. Procedures for the transfer of a car title vary in their details nationwide, so check with your county's department or bureau of motor vehicles office for your local requirements.
Locate the current title. A car without a title cannot legally be sold for use on the road. If you’ve lost your title, you can obtain a new one for a small fee from the department of motor vehicles (DMV) in the county where the original title was issued.
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Some states provide a space on the title itself to enter the sale price of the car, as well as the names of the seller and the recipient. Others, however, require that you provide a separate bill of sale, a signed document containing information about the car and the transaction. Bills of sale are available at the DMV offices of a number of states. If your state does not have these, you can download a generic automobile bill of sale or create your own.
The document will contain basic information about the transfer of ownership: names, price, description of the car and date. You will also have to supply your car’s vehicle identification number (printed on the title) and the odometer reading. Some states also require the bill of sale to include the nature of the payment, whether made in a lump sum or in installments, as well as the amount of a down payment if applicable. The price, if the car is a gift, can be designated as $0.
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Sign the title. Both the current owner of the car and the future recipient must sign the title. If the car has multiple owners, all must sign. Some states require that you meet with the recipient and sign the title before a notary. The space for the signatures is in most cases on the back of the title, although there are a few states that include this on the front of the sheet.
If you are selling the car, do not sign the title over until you have received payment. It is the title, rather than possession of the car, which legally establishes ownership.
After you’ve signed the title, your work is done. The new owner is responsible for the rest, which could include a title application form, a notarized odometer reading, processing fees or excise taxes and proof of insurance.
Tips & Warnings
In some states, especially California, the current owner must perform a smog test before title is signed over to another party.
