If you’re buying or selling a car, it’s important to know how to properly transfer a car title from buyer to seller. Not only is this important for the security of the transaction, but if done improperly, the DMV will reject your application for a title transfer. A car title, also known as a vehicle title or certificate of title, is the most important document for a vehicle as it assigns legal ownership. The name of the individual on the front of the car title is the only legal owner of the car in the eyes of the DMV. The title transfer process is meticulous and does not provide any room for error. This article discusses the steps necessary to transfer a car title from buyer to seller, and what you can do if the original title is lost.
The first step to transferring a car title is to obtain the original title from the seller. The seller should also be the prior owner or the prior owner should be present to sign the transfer. The front of the car title should be very detailed and should feature watermarks, background patterns, and scrollwork that are difficult to recreate. The front of the car title is where the current title holder’s name is located, make sure that the person signing over the title to you is the person listed on the car title document. The back of the car title is a form that assigns ownership of the title. To transfer ownership, the prior owner must complete and sign the back of the car title document and give it to you.
The most direct way to obtain a car title is to have it signed over to you by the prior owner. Oftentimes this document is required to be notarized, but not all states have this requirement. The notary verifies that the person transferring the title is the actual printed titleholder and not just someone trying to sell you a car that doesn’t belong to them.
As you and the prior owner are completing the assignment of title, be extremely careful to not make any errors or scratch anything out. Any stray marks, white out, scratch out, or damage to the document will invalidate the entire title. If the title is damaged in any way from a small rip on the corner to water damage, the title is invalid and you will have to proceed with an alternate method of title recovery.
Once you have the previous title signed over to you by the prior owner, take that document to the DMV as soon as possible along with your government-issued photo ID. Most states require that you apply for a title within 30 days of purchasing the vehicle or a late fee will be imposed. At the DMV, you’ll complete an application for title, if your state does not allow for the assignment of title to double as an application. All states require a title fee and most states will require the applicant to pay sales tax on the purchase price or book value of the vehicle. Certain vehicles that are brought from out-of-state may require an additional VIN inspection. Make sure to check the requirements in your state before visiting the DMV.
If you don’t have the prior title or you lost the original title before you were able to take it to the DMV, there still may be methods available to obtain a new title in your name.
This method of title recovery involves contacting the prior owner and asking them to obtain a duplicate title. Remember, if you were not the last printed owner on the title document, you cannot get a duplicate title even if the prior owner assigned you as the new owner, without that original document the duplicate process will not work. If the prior owner obtains a duplicate title, they can then sign over the title to your name again.
A bonded title requires the applicant to obtain a surety bond to back up their claim of ownership. The surety bond is intended to protect the DMV in the instance that there is a dispute of ownership over the vehicle after the bonded title is issued.
If you have a vehicle that is 15 years old or older, you may be able to obtain a title using an out-of-state title method in Vermont. The Vermont title loophole, or Vermont registration, is a process used by non-residents to obtain a title for a vehicle that can be transferred into their state. Vermont is the only state that allows for this and it only applies to vehicles 15 years old or older.
The most direct and secure way to transfer a car title is by having the prior owner sign the title over to you directly. Once you have the signed title transfer in hand, make sure to take that to the DMV as soon as possible to avoid late fees, lost documents, or other avoidable issues. If you lost the original title, it’s damaged, or you never received it in the first place, there are other options available for title recovery. If it’s your car, you deserve a title in your name,
What happens to a car title when the owner dies? It’s a common question for many individuals who aren’t sure what to do with their deceased loved one’s car. Almost every state has a process to transfer the title from a deceased owner. While all states are different, there are general similarities that can help you get started on your deceased owner title transfer.
Before proceeding with the title transfer from the deceased owner, you must first check if the title has survivorship. If the title has survivorship, then the title is automatically transferred into the survivor’s name. If there is no survivorship, will the estate be probated? Meaning, has the deceased owner left a will that will go through the court system for the vehicle? If the answer is yes to either of these questions, the transfer process may be more streamlined and defined in the official documents or will.
If there is no survivorship and there is no will or probate needed, then you will have to seek permission from all other legal heirs (other family members) before transferring ownership of any property into your name.
In many cases, the vehicle does not have survivorship and the estate will not be probated. In this case, most states have a process to obtain a title from a deceased owner. To apply for a new title from a deceased owner, you’ll typically need the following items:
The inheritance affidavit is a document needed when transferring ownership of a vehicle from a deceased owner. This document outlines the ownership of the vehicle as assigned by all of the surviving heirs of the property/vehicle. In order to transfer ownership, all heirs must sign this document and it must be notarized.
If the vehicle previously had a lien, you will need to obtain a vehicle lien release prior to transferring the title.
Not all states require the death certificate to be included in the application for title. However, be sure to check your state’s requirements prior to submitting your application.
The DMV title transfer process can be confusing and tedious, especially when you’re also dealing with the loss of a loved one. Remember as you are caring for your deceased loved one’s property you also remember to care for yourself. If there is an estate or survivorship, consider consulting or hiring a lawyer to assist you in this process. We always recommend getting good legal advice when transferring a title from a deceased owner, the DMV cannot provide legal advice.
Abandoned vehicles are vehicles that have been left on private property by their owner with no further intentions to collect or dispose of the vehicle. The abandoned vehicle process varies by state, but all abandoned vehicle processes have similar legal requirements. Additionally, in some cases, the abandoned vehicle process may not provide the ideal outcome.
If you are a private property owner who has been left with an abandoned vehicle on your property, it can be incredibly stressful and overwhelming to have to deal with the necessary steps to get rid of the vehicle. This blog discusses general steps to take if you have discovered an abandoned vehicle on your property and what other options for title recovery may be available.
Each of the 50 US states has a different process to file for an abandoned vehicle. With each state having different legal requirements, it’s important to contact an attorney that specializes in vehicle title laws in your state. This article is not legal advice, we recommend speaking to an attorney prior to beginning your abandoned vehicle process.
What are your intentions with this abandoned vehicle? Abandoned vehicles aren’t necessarily a “finder’s keepers” type of situation. In most states, if you file an abandoned vehicle, you’re intending for the vehicle to be towed and disposed of. Many abandoned vehicle title processes do not allow for the property owner to take possession of the vehicle. If you’re planning to keep the vehicle and possess it or sell it, consider other title options such as a bonded title or a court-ordered title.
The Driver’s Privacy Protection Act (DPPA) is a federal statute that protects driver information from being public records. According to the DPPA, to obtain personal driving information, an individual or organization must submit an official form to the state DMV requesting specific information. To obtain information protected by the DPPA, you must disclose your reasoning in your official request. Just because the DMV receives your official request form doesn’t mean they will give out the information. The information you obtain from the DPPA request can help you locate the prior owner and will assist in the title or removal process. Not all states allow for this information to be requested. Arkansas and Wyoming do not allow for DPPA information to be provided about other individuals, in these states you can only request your own driving and vehicle records.
In some states, the property owner must sign an affidavit that states the vehicle has not moved from the original location in which it was abandoned. By moving the vehicle, you may be inadvertently invalidating the abandoned vehicle process.
In certain cases after all other methods of title recovery have been exhausted or if your state requires it, you may need to have a judgment against the prior owner of the vehicle. Certain businesses such as storage and towing companies may be able to charge storage fees for the abandoned vehicle, but private property owners are not permitted to do the same. Private property owners can use the court process to obtain a judgment against the owner for abandoning the vehicle on their property.
The abandoned vehicle process is a complicated legal process. If you are a private property owner with an abandoned vehicle of any kind whether it’s a truck, car, motorhome, or another type of vehicle, you may be able to file for an abandoned vehicle and have it removed from your property. In most states, an abandoned vehicle title is not a regular method of obtaining a title. When choosing your method of title recovery, first decide the desired outcome of the situation. Do you want to keep the vehicle? If so, try a bonded title or court-ordered title. Do you want to dispose of the vehicle? An abandoned title process may be right for you. Always seek professional or legal advice before proceeding with your title recovery method.
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A bonded title is a type of vehicle title that is acquired using a surety bond when the vehicle owner does not have valid prior title documents or those documents have been damaged. Typically, a vehicle title is signed over to the new owner by the prior titleholder when purchasing the vehicle. Unfortunately, not all sellers deliver on their promise of a title. If you live in Texas and you are trying to obtain a new vehicle title without valid prior title documents, you may be able to obtain a bonded title.
The following reasons may render your vehicle ineligible for a Texas bonded title:
Vehicles that have a lien or security interest on the title are not eligible for a Texas bonded title unless one of the following conditions is met:
Vehicles that fall into one of these categories are not eligible for a Texas bonded title. To check if your vehicle is non-repairable, junk, or salvage, perform a VIN check through the NMVTIS database. Incomplete cars are vehicles that are inoperable or disassembled. Vehicles that are disassembled or incomplete are not eligible for a Texas bonded title.
If your vehicle is eligible for a bonded title, the next step is to begin the application process. Complete the Bonded Title Application or Tax Collector Hearing Statement of Fact (VTR-130-SOF) with the following information:
This section of the Texas bonded title application is very important. Why are you requesting a bonded title? Why don’t you have the prior title? Oftentimes the answer is simply “I bought the vehicle online and never got a title” or “I lost the title document”. The Texas DMV wants to make sure that you’re requesting a bonded title in good faith.
If your vehicle meets the criteria described on page two of the bonded title application as a rebuilt or newly assembled vehicle, you may be required to submit additional documents. Be sure to review the instructions prior to submitting to the DMV. Once completing this application, submit it to the Texas DMV along with a processing fee of $15.00 and any evidence of ownership you have such as a bill of sale or canceled check.
Texas has a specific method to determine the value of your vehicle. Using the Standard Presumptive Value (SPV) on the Texas DMV website, input your vehicle’s information to obtain the SPV. If your vehicle’s value cannot be determined through the SPV, your vehicle will need to receive an appraisal from a licensed dealer or insurance adjuster.
Once your application has been approved and you’d like to proceed with the bonded title, you can purchase your surety bond. The amount for the bond will be determined by your vehicle’s SPV value or appraisal value. To purchase your surety bond, visit a surety bond agency such as ProBonds.com. The surety bond amount for a Texas title bond is 1.5x the value of the vehicle. However, this doesn’t mean you’ll have to pay thousands of dollars just to obtain a surety bond. Most surety bonds cost around $100-$150 to purchase, the surety bond company backs the DMV with the remainder of the amount. The reason for the surety bond is to protect the DMV in the situation where there is a discrepancy of ownership over your vehicle.
After being approved for a Texas bonded title and purchasing your surety bond at 1.5x the value of the vehicle, gather all of the documents and submit them to the county tax assessor-collector’s office for the application to be processed or a hearing to be held. Include the Application for Texas Title and/or Registration (130-U), both pages of the Bonded Title Application (VTR-130-SOF), Form VTR 130ND issued to you by the Texas DMV stating the amount of your bond, and the Certificate of Title Surety Bond (VTR-130-SB). If your vehicle requires an inspection or VIN certification, be sure to review and include those necessary documents as well.
A Texas bonded title is a great alternative when vehicle owners are unable to provide prior title documents. This article is not a full list of instructions, if your vehicle meets rebuilt, kit, or otherwise reconstructed criteria, there may be additional steps you need to take. Before proceeding with a Texas bonded title, make sure to contact your local Texas DMV to determine eligibility.
CarTitles.com takes the hassle out of applying for a title for your vehicle. Our team of title experts can help prepare your paperwork for your Texas bonded title or any other title recovery method provided.
Looking for a quote for your title bond? Get one at ProBonds.com!
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Have you heard of the famous Vermont title loophole? The Vermont title loophole, also known as the Vermont registration process, is a method for non-residents to obtain a title for a vehicle that is 15 years old or older using a bill of sale as proof of ownership. Vermont residents are able to use this method as well, but Vermont is the only state to allow non-residents to apply for a title in their state.
Vermont is a non-titling jurisdiction, meaning that the state of Vermont does not produce titles for vehicles 15 years old or older. This means that vehicles 15 years old or older are only eligible to receive a registration, which in the state of Vermont would be the equivalent to a vehicle title. In most US states, you cannot apply for a title without having the old title signed over to you. If you’re unable to find the prior owner or they’ve lost the title, this could pose problems in your application process in your state. By using the Vermont title loophole, a vehicle owner can apply for registration in Vermont and if approved, use that registration document as proof of ownership, aka a vehicle title, and transfer it to a title in your state.
According to the Vermont DMV, one of the biggest mistakes that applicants make when applying is selecting “New Title” rather than “New Registration” in section 4 of the VD-119 form. Remember, Vermont is a non-titling jurisdiction for vehicles 15 years or older. In these situations, the registration is the equivalent to a title for that age of vehicle. We recommend that this form is typed and double-checked for accuracy and completeness before submitting it to the Vermont DMV. Applications that are typed and complete are more likely to be approved and processed quicker than handwritten applications.
A VIN verification is a process where an authorized agent physically inspects the vehicle’s VIN to confirm that the VIN on the vehicle matches the VIN on the application. If your vehicle is a motorcycle, a VIN verification is always required. Due to COVID, some cars, trucks, and other non-motorcycle vehicles have been able to apply without the extra VIN verification. However, in 2022 this is changing and the Vermont DMV will soon require this as a step for all applicants. A VIN verification can be conducted by an authorized state agency such as state police, a DMV investigator, or another authorized agency. For non-motorcycle applications, we recommend that you include a VIN verification if you are able to do so. Motorcycle applications will always require a VIN verification.
The book value of your vehicle is about how much your vehicle is worth in the market today. There are different values such as average value, clean trade-in, and so on. When using the Vermont title loophole, look for your vehicle’s clean trade-in value. The Vermont DMV first recommends using the NADA book value first in their statutes, but not all vehicles will be featured in this book. If your vehicle is not in the NADA book, there are some other comparable places you can find the book value such as Kelly Blue Book and Galves. Make sure that the book you are using is approved by the Vermont DMV and that the value you assign to your vehicle is correct. Always choose the lowest possible value for your vehicle because the higher the value, the more you will pay in taxes. If you can, attach a copy of the book value to your application. If the value is too low, the Vermont DMV will send you an invoice for the remaining balance. If it’s too high, they may simply agree with the value or may send you a refund depending on the difference in figures.
The amount of sales tax owed is often a sore subject. The amount of sales tax owed on most vehicles is calculated using the clean trade-in book value of your vehicle multiplied by 6%. This might not sound like a high percentage, but depending on your vehicle’s value, the amount owed in taxes may be higher or lower than anticipated. For trucks over 10,100 lbs and for certain vehicles, the taxes are capped at $2,075. There’s not a way to get around paying taxes. Vermont statutes state that by simply applying for a registration, that is evidence that you owe them taxes.
The Vermont registration fees are $48 for motorcycles and $76 for most vehicles and trucks under 6,000lbs. Heavier vehicles and some other types of vehicles may be subject to a higher registration fee that can be found here.
To use the Vermont title loophole, you don’t have to ever take your vehicle physically to Vermont. However, this doesn’t mean that you can get a title for any vehicle or parts using this method. The vehicle must meet all of the qualifications of an operable on-road vehicle and cannot be in the NMVTIS database. The VIN verification process is used to assist this requirement as the verifier can check the VIN against the NMVTIS database upon inspection.
The Vermont DMV doesn’t require proof of insurance, however, on the application, there is a section that certifies that at the time of application, you have current insurance for the vehicle. It is a crime and punishable by a $1,000 fine and up to two years in jail for providing a false statement on this application.
The Vermont title loophole is a great way for vehicle owners to get a title for an older vehicle and a bill of sale. Every state recognizes the Vermont registration as the equivalent to a certificate of title and should have no problem transferring the title to your state. We recommend that when applying to transfer the registration to a title in your state that you bring along the title informational bulletin to assist the DMV agent with the process if they are not familiar. Obtaining a vehicle title is an important step in keeping your assets safe. If it’s your car, you deserve a title with your name on it.
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