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If you’re selling your car in Texas, it’s important to understand the requirements to transfer the car title. Did you know you could still be liable for tickets, tolls, and other penalties if you don’t transfer your car title to the new buyer? To avoid this, let’s discuss how to properly transfer a car title in Texas and how to notify the Texas Department of Motor Vehicles (TxDMV) of the sale.
To transfer a Texas car title, you’ll need to provide the following documents to your buyer:
On the back of every car title that is issued, you’ll find a section to transfer ownership. A properly assigned title is one that has the transfer section completed in its entirety, the sale date is recorded, and the purchase price is clearly stated.
As the seller of a Texas vehicle, you must provide an Application for Texas Title and/or Registration (Form 130-U) to the buyer and sign in the seller’s space at the bottom. We recommend completing this form as much as possible to ensure all the buyer has to do is verify the information and sign at the bottom.
A bill of sale is not required to sell your car in Texas, but it is highly recommended that you provide one anyway. We recommend making a copy for the buyer and one for your records. If you have any supporting documentation to support the title transfer, such as a lien release or power of attorney, provide those to the buyer at the time of sale.
Once you’re ready to sell your car, here are the next steps to transfer your title:
Step 1: Provide the above-mentioned documents to the buyer at the time of the sale.
Step 2: Visit the TxDMV with the buyer to ensure the Application for Texas Title and/or Registration (Form 130-U) is completed and filed correctly.
Step 3: Submit a vehicle transfer notification to the TxDMV
When your Texas-titled vehicle is successfully transferred to the buyer, it’s crucial that you notify the TxDMV within 30 days of the transaction. Doing so removes your vehicle liability and assigns it to the buyer. Remember, if you don’t remove your liability from the vehicle, you can be stuck with tickets, tolls, and civil penalties that the new owner accrues.
Knowing how to navigate the title transfer process in Texas is crucial if you are selling your car. By providing the necessary documentation to the buyer and notifying the TxDMV after the sale, you can be assured that the Texas title transfer process will be smooth and hassle-free.
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