How to Sign Over a Vehicle Title

Selling your car is not finalized when you hand over the keys to the buyer. You have to sign over the title of your vehicle to the new owner, which may be a little daunting if you have never done so before. Be prepared to make this transition as smoothly as possible by following the guidelines below.

Instructions

1. Fill out the seller information on the back of title. This includes the odometer reading, price paid for the vehicle, your name and address, date of sale and signature. Some states require that your signature be notarized. The title would have a place for a notary's seal.

2. Have the buyer fill out their information in the appropriate box. Be sure they fill out name, address, signature, and notarization, if necessary, before handing over the title. The buyer should also have her car insurance information available, as many states require proof of insurance before registering a vehicle.

3. Fill out the lienholder's section of the title if there is still a loan out on the vehicle. Contact the lienholder, which is the loan company or bank who provided the loan, to obtain a release of lien. This will allow the title transfer to take place and the buyer will now be liable to pay off the loan.

4. Take the car to be inspected, if applicable. Some states require emission inspections to ensure that the car is environmentally safe to be driven. While the buyer can do this step alone, it is a good faith measure for the seller to go along, in case any problems are found.

5. Give the buyer your phone number, in case further information is needed by the Department of Motor Vehicles. Sometimes errors in filling out the back of the title require additional forms to be filled out.

Tips & Warnings

• Create a bill of sale for the title transfer, which should be signed by both the buyer and the seller. This is highly recommended so that the rights and responsibilities of both parties are in writing, which will prevent confusion and arguments later on. Make two copies so that both people can have a copy.

• Fill out the information on the back of the title very carefully. Mistakes may cause the title transfer to be delayed.