There are many different kinds of car titles. A car title is a legal document that proves ownership of a vehicle. While most vehicles require a title, obtaining a vehicle title isn’t necessarily a cookie-cutter process. There are several kinds of titles for different types of vehicles and for different situations. These titles come with their own set of requirements from the owner or new buyer and are used for different reasons. The reason that there are many different kinds of car titles is that the title will alert the owner or new buyer about the history of the vehicle.
A clear title means no liens or other claims against the vehicle. If you have a clear title in your name, you are the legal owner and can do as you please with the vehicle.
A vehicle that has a lien or a title loan may have the title issued directly to the lienholder since the owner is indebted to the lienholder. The purchaser will be listed as the owner, but the title will list the lienholder. Once the lien or loan has been paid in full, the owner may send a letter to the lienholder requesting a title transfer. Get assistance with your vehicle lien release here.
To obtain a title for your vehicle without ownership documents, you can purchase a surety bond to ensure that if someone else claims ownership of the vehicle in the future, the surety bond will cover any costs associated with that claim. The bonded title is stamped “bonded” for a period of 3-5 years before it will come off of the title and the owner may apply for a clear title. Get assistance with your bonded title application here.
If you are the legally titled owner of your vehicle and you have lost or misplaced the title document, you may apply for a duplicate title. Only the last titled owner in the DMV database can receive a duplicate title. Duplicate titles can only be issued in the state they were originally issued and only to the last titled owner of record. Get assistance with your duplicate title application here.
Each state has different regulations regarding whether a defective vehicle should be branded as a lemon. Before this branding can occur, the vehicle must have several malfunctions that render it unsafe to drive. If the malfunctions with the vehicle cannot be resolved, it will be assigned a lemon title.
A parts-only designation is shown on a bill of sale or transfer form, but not on a title. However, if a parts-only bill of sale is submitted for vehicle title processing, the title may be issued with a salvage or nonrepairable brand.
When a vehicle incurs major damage, the title may be designated as a salvage or nonrepairable title. This is done typically when the cost of repairs is greater than 60 percent of the vehicle’s value. It may also be marked as salvage if a vehicle is stolen or totaled in an accident. A salvage title cannot be removed under federal law.
Vehicles for which the title has been sold to a junkyard may be designated junk titles if it is intended to be scrapped or sold for parts. A vehicle’s VIN in the NMVTIS database means that it can no longer be titled after receiving a junk title brand.
When insurance companies pay claims for vehicles and take ownership, they are eligible to process the title as a certificate of destruction. This title is affixed to vehicles that are intended to be destroyed or never driven again.
This is the very first document that is issued by the manufacturer to the dealer. This document is intended to be used to transfer the vehicle title to the first owner and obtain a title.
Similar to the certificate of origin, but involving brand new imported and domestic vehicles.
Rebuilt vehicles may have a rebuilt or reconstructed title, issued by an insurance company, body shop, collision center, or licensed rebuilder. Such a vehicle can usually be used for road use but will require additional inspections to verify its safety.
A title may be issued under an affidavit in lieu of missing documentation. This title method is often a last resort when all other options have been exhausted.
To import a vehicle to the United States, you must have legal title. If the vehicle was previously titled in the United States, you may be able to clear customs by getting a state-issued title with restrictions. If the vehicle was not originally manufactured for the US market, there are specific requirements for certifying that the vehicle meets emission, bumper height, and other standards before entering the country.
If a vehicle is being exported, title documentation will be required for customs clearance. If the vehicle is not declared at the exit point, a clear title may not be possible in the destination country. Start the title process early so that storage fees do not accumulate while waiting for the title.
Due to the variety of different kinds of car titles, selecting a vehicle title method may be challenging, but it is an important part of ownership. Each situation should be looked at uniquely. By titling your vehicle in your name, you are ensuring that the certificate of ownership for your vehicle cannot be transferred to someone else without your consent.
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When buying or selling a car, it is important to be knowledgeable about how to properly transfer the title from one individual to another. Not only is a successful transfer of title important for securing the transaction, but an unsuccessful transfer may result in the denial of the DMV application. A vehicle title, also known as a certificate of title or car title, is the most important vehicle-related document because it assigns legal ownership of a vehicle. The individual whose name appears on the front of the title is considered to be the sole owner of record with the DMV. The steps necessary to complete a successful transfer of vehicle ownership are very specific and include filling out any necessary forms and paying any taxes and fees associated with DMV processing.
The first step in transferring a car title is to obtain the original title from the seller. The seller should be the prior owner or present when you pick up the car. The front of the title should contain watermarks, background patterns, and scrollwork that are difficult to recreate; it should also include both the current title holder’s name and the year of issuance. When signing over a car title, make sure that the person transferring ownership is the person listed on the car title document. The back of a car title serves as a form that assigns ownership of the title.
When presented with the original certificate of title from the seller, make sure that the information provided on the document matches the VIN plate and vehicle specifications of the particular vehicle you’re buying. Additionally, only the legal owner listed on the front of the title can sign away ownership to the buyer. If you’re buying from a private seller, make sure to check the photo ID to make sure this person is also the legal owner. Purchasing a vehicle with an incorrect title or from someone other than the legal owner will cause you significant problems with the DMV.
Once you’ve verified that the information is correct on the title and you’ve verified the seller’s identity, complete the back of the vehicle title with the seller. The back of the car title is where the seller assigns the new ownership. Additionally, make sure you also have a bill of sale, or proof of purchase, to provide proof that you’ve purchased the vehicle legally from the prior owner. Need assistance writing your bill of sale? Check out our article 9 Components of a Bill of Sale.
Congratulations! Now you’re ready to officially transfer your car title. Every state has its own title and registration application, as well as fees required for the transaction. State title applications can be found on every state motor vehicle division or secretary of state website. Most title and registration applications can be submitted via mail. The amount of fees due will vary by state according to sales tax requirements and tiered fees for specific types of vehicles.
When you get to the DMV, make sure you have the following items:
The vehicle title is the most important document a vehicle can have and it’s important to keep it safe from damage and theft. Do not keep your title inside of your vehicle. By transferring your car title into your name, you are protecting your property. If you lose your vehicle title after it has been printed by the DMV with your name on it, you are eligible to apply for a duplicate title. However, if you lose the original title signed by the prior owner before getting a new one printed by the DMV, you are not eligible for a duplicate title. Only the registered owner in the DMV system can apply for a title and if you didn’t transfer it, it’s not in your name.
If you’ve lost the title before you could transfer it, or you didn’t receive the old title at all, there are still methods available to get you a title.
If you are able to contact the prior owner, try asking them to apply for a duplicate title and sign over that duplicate title to you. Since you’ve already completed the transaction, they may not be willing to do this, but if you offer to cover the duplicate title fees they may be more inclined to help. Most duplicate title fees range from $2-$20.
The Vermont title loophole, also known as the Vermont registration process and bill of sale only title process, is a method for out-of-state residents to obtain a title for a vehicle that is 15 years old or older using a bill of sale. The Vermont registration for a vehicle that is 15 years old or older is equivalent to a vehicle title in the other 49 states and can be transferred.
A bonded title requires you to obtain a surety bond in order to back up your claim of ownership. The surety bond protects the DMV should there be a dispute over ownership of the vehicle once they have been issued a bonded title document.
Court-ordered titles are issued by the court system and can be issued for vehicle owners who do not qualify for title recovery because of missing paperwork, damaged or mutilated title documents, or other circumstances. If you have attempted to recover your own title and failed, a court-ordered title may be an option.
To transfer a title, the former owner must sign it over to you directly. If you have the signed title in hand, take it to the DMV as soon as possible to avoid late fees. If you lost the original title, it’s damaged, or you never received it at all, there are other options available for title recovery. If you own the car, you deserve a title in your name.
The terms lien title and vehicle lien release may seem to have negative connotations, but a lien on a vehicle title is actually extremely common. If you’ve purchased a vehicle with the assistance of a loan from a lender, that lender places a lien on your title until the loan has been paid off in its entirety. A lien is a claim on the property for the security of payment. When a lender loans a borrower (you) money to purchase a vehicle, they want to make sure that they are paid back plus interest. Your lender, also known as your lienholder, will remain printed on the front of your vehicle title until the loan is paid off. A lien on a vehicle title is a cloud on the title that places a hold on ownership; once it’s paid off, you can get a title for your car or you can sell it or trade it in.
In most states, the lienholder will hold on to your title until you have paid off your loan. On the other hand, not all states are like this—some will send a title to the vehicle owner with the lienholder and the owner holds the title until the loan is paid. The lender will stamp the title as paid and mail it off to you. However, just because your loan is paid doesn’t mean that the lien has been released; it’s up to you to go through the lien release process and notify the DMV of your satisfied payment.
The easiest way to release a lien–a legal claim against your vehicle for unpaid loan amounts–from your vehicle title is to contact the lienholder directly and request them to email or fax a lien release to you. The lienholder is the only authorized agent to release the lien from the title. If the lienholder doesn’t reply within twenty-four hours of your initial request, try contacting them via mail. Research their address along with any other address locations you can find. Then by certified mail, send the lienholder your state’s lien release request form along with a letter of non-interest. A letter of non-interest is a document that states that the lienholder no longer has any interest in pursuing the amount loaned on the vehicle and can be sufficient to release the lien. Make sure that all portions of the forms are completed in their entirety and notarized if needed. We recommend including a return envelope with a stamp for added convenience.
No, in most jurisdictions it is illegal to sell a car with a lien on the title. This is because if it has a lien, then the vehicle is owned by the bank or the lender, not the individual purchaser. A lien is only removed once the loan is paid back in full or released.
We don’t recommend it. If the vehicle you’re buying has a lien on the title, it could be a red flag of a fraudulent transaction. If you purchase a car with a lien on it, you should dispute the lien with the lender. You as the new owner should not be held responsible for the prior owner’s default of payment.
Similar to selling a car with a lien, you can’t transfer the title to a new name until the lien is paid off or released. Transferring a car title will not remove the lien.
If you have financed a vehicle and made monthly payments, you more than likely have a lien on your title. If you’re not sure, check with your local DMV office or, if you have it, take a look at your physical car title.
The vehicle lien release process is needed in order to get a title in your name. For assistance locating and contacting your lienholder to obtain your lien release, click here to learn more about how our title experts can help.
The Vermont DMV has played a key role in helping drivers across the country obtain titles for their vehicles. For many years, the Vermont registration process—also known as the Vermont title loophole—has allowed out-of-state residents to receive a vehicle title using this method. No other state offers this particular type of title process. The main requirements for using this title loophole include the vehicle being at least 15 years old and the owner providing a valid bill of sale.
The Vermont title loophole is only available for vehicles that are 15 years old or older. If your vehicle is a newer model, it is not eligible for the Vermont title loophole. Vermont is a non-titling district, meaning they do not produce titles for vehicles that are 15 years old or older. Instead, the registration that you receive for an older vehicle is equivalent to a title in the state of Vermont.
To use the Vermont title loophole, you do not have to physically take your vehicle to Vermont. However, you must meet all of the qualifications for an operable on-road vehicle and your vehicle cannot be in the NMVTIS database. The VIN verification process is used to determine if your vehicle meets all of these qualifications during an inspection.
The Vermont DMV does not require proof of insurance, but there is a section on the application that certifies that at the time of application, you have current insurance for the vehicle. It is a crime punishable by a fine of up to $1,000 and up to two years in jail for providing a false statement on this application.
The book value of a vehicle is the estimated price for which the vehicle could be sold. There are various methods of calculating value, including average value, clean trade-in, and others. For purposes of the Vermont title loophole, use clean trade-in value. When using the NADA book to calculate book value, look for your vehicle’s clean trade-in value rather than its retail cash price, because you will need to use that figure to apply for a title in Vermont. The Vermont DMV requires this method in its statutes but notes that not all vehicles are included in the NADA book. You can also check other sources such as Kelley Blue Book or Galves. Make sure to use an approved source and that the figure you assign to your vehicle reflects its condition accurately.
You must provide a valid bill of sale to provide proof of ownership to use the Vermont title loophole. The bill of sale is your receipt or proof that you purchased the vehicle. Your bill of sale can be typed or handwritten and must contain specific information about the transaction. For help with your bill of sale, check out our article How to Write a Bill of Sale.
One of the biggest mistakes applicants make when applying for vehicle registration is using section 4 of the VD-119 form to apply for a title rather than to apply for new registration. Remember, Vermont is a non-titling jurisdiction. In these situations, the registration is the equivalent to a title for that age of vehicle. We recommend that you type and double-check this form 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.
VIN verification is a physical inspection of a vehicle identification number (VIN) on the vehicle to confirm that it matches the VIN on the application. At the beginning of 2020, the VIN verification process was waived for all cars and trucks, except for motorcycles. In 2022, the Vermont VIN verification is being required again for all vehicles. The process of a VIN verification can be conducted by any state agency, such as state police, DMV investigators, and other authorized agencies. This does not have to be done in Vermont. For more information on the VIN verification process, check out our article Vermont VIN Verification For Title Loophole Explained.
When determining the tax on your vehicle in the state of Vermont, the procedure is to multiply the clean trade-in value of your vehicle by 6%. This percentage may not sound high, but it can vary depending on the value of your vehicle. For trucks over 10,100 lbs and for certain vehicles, the cap for taxes is $2,075. There is no way to get around paying taxes in Vermont. State statutes state that simply applying for registration is evidence you owe them taxes. For more information, check out our article How To Calculate Sales Tax for Vermont Title Loophole.
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.
Once you’ve determined that your vehicle is eligible for the Vermont title loophole and all paperwork has been completed, you can submit your documents to the Vermont DMV for processing. This typically takes 4-6 weeks for most applications. Once the Vermont DMV approves your application, they’ll send you temporary plates and registration. With that new registration, you can use that as proof of ownership to get a title in lieu of a certificate of title at your local DMV.
The Vermont title loophole is a great way to get a title for an old vehicle using a bill of sale. Remember, before proceeding with this method, make sure it’s applicable in your jurisdiction and situation. For additional tips, check out our article Top 5 Tips for Using the Vermont Title Loophole. Need help preparing your paperwork? Have one of our title experts do it for you!
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If you are a private property owner in Alaska and you are in possession of an abandoned vehicle, you may be able to title it in your name. In most states, abandoned vehicles cannot be kept after being deemed abandoned. However, in Alaska, there is a specific abandoned vehicle process that can allow a private property owner to take ownership of the vehicle.
Abandoned vehicles are vehicles that have been left on public or private property by their owner with no further intentions to collect or dispose of the vehicle. If you know who owns the car or know how it got on the property, it is not considered to be an abandoned vehicle.
In Alaska, a vehicle is considered abandoned when it is left unattended near a public road or highway for more than 48 hours, left unattended on private property for 24 hours, or left on other public property for more than 30 days.
Before filing the claim of ownership, make sure that your situation meets the definition of an abandoned vehicle as defined by Alaska Statute 28.11.020 Presumption of Abandonment. If your situation applies, the first step to the abandoned vehicle process in Alaska, and in all states, is to send an official DPPA request to the DMV for the release of motor vehicle records.
The Driver’s Privacy and Protection Act (DPPA) of 1994 prevents unauthorized access to personal information collected b state motor vehicle departments. This act was put in place to keep drivers safe from improper use of disclosed personal information to a third party. The DMV will take your DPPA request very seriously and oftentimes they may not release the information after the initial request. To request DPPA information from the state of Alaska, complete the Request for Research/Verification of Motor Vehicle Record (Form 851).
After you’ve received the contact information for the registered owner, you must notify them and any other interested parties by certified mail stating that you are claiming ownership of this vehicle that has been deemed abandoned. The notice must be made via registered or certified mail as defined by Alaska Statute 28.05.101 Giving Notice.
If the registered owner or interested parties do not respond within 30 days, you must provide proof that the notice was undeliverable, returned, or refused. Make sure you keep all mailing receipts when foregoing an abandoned vehicle process. After those 30 days with no claims of ownership, you may apply to have the vehicle title transferred to you as the property owner under Alaska Statute AS 28.11.025 Claim of Ownership by Private Property Owner.
Using the Claim of Ownership/Involuntary Lien form (Form 826), provide the following information on the vehicle:
To file for a claim of ownership, you must disclaim why you are claiming the lien. In this situation as a private property owner, make sure you’re describing the situation correctly as an abandoned vehicle. Note that you will not be able to sell or transfer the title until the vehicle is in your name. Then, have the form notarized by a public notary and submit it to the Alaska Division of Motor Vehicles and complete a state title application.
If you live in Alaska, you may be able to keep abandoned vehicles that you find on your property. The steps listed above are designed to provide a general overview of the abandoned vehicle process in Alaska and will work for most vehicles if executed properly. Most states aren’t “finder’s keepers” when it comes to abandoned vehicles, but if you’re in Alaska, you might just get lucky!
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