Is it Legal to Sell a Vehicle Without a Title?
Losing the title to a vehicle does not mean that you can never sell it, but it can make selling it a bit more difficult. In most states, you cannot sell the vehicle without a title because the title proves that you own the car. Your local Department of Motor Vehicles or tax assessor's office can advise you on the legalities of selling without a title in your area.
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Reasons Why a Seller Does Not Have a Title
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There are numerous legitimate reasons why a seller does not have the title to a vehicle he is selling. A title is just a piece of paper that can easily be lost when not filed correctly or during a move. One of the most common reasons that a seller does not have a title is because there is a lien on the vehicle. If he financed the vehicle, the bank or loan company retains the original title until it receives full payment. Buyers should be cautious when buying a vehicle without a title because stolen vehicles typically do not have titles.
Replacement Titles
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If you lost the vehicle title, your local DMV or tax assessor's office will be able to direct your filing for a replacement title. The process can differ in the names of the forms or fees, but will involve filing a lost title form, submitting it to your local DMV or assessor's office and paying a fee for your replacement title. You will need your registration number, the year and make of your vehicle, the vehicle's body style, the Vehicle Identification Number and the title number if you know it for the form. If the vehicle is a boat, you will need the Vessel Hull Identification Number. Your registration receipt may contain your title number; if not, your tax assessor's office can get it for you.
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Exceptions
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If you are selling a vehicle for scrap metal or parts, your state may not require a title for the vehicle. Scrap yards typically have paperwork on hand that you can fill out to avoid title requirements. This exception is generally only available if the vehicle is not working and repairing is not an option. Junk yards normally sell parts off the vehicle instead of the whole vehicle, so they typically do not need the title.
Considerations
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Typically, the best thing to do if you realize that you cannot locate your title is to apply immediately for a replacement title. By replacing your title as soon as possible, you will be able to sell it to anyone at anytime should you choose to do so. Not having your title can cause you to lose the opportunity to sell if the buyer is not willing to wait until you have the title. If you live in a state that allows selling a vehicle without a title, the person that buys it from you will not be able to resell it.
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