Vermont Title Process – Common Mistakes

Today we’re going to look at the top few common errors that are made on the Vermont registration form which is what many people use to get a title when you only have a bill of sale. So we talk to Vermont many, many times looking at files and cases for our clients. They tell us all the time what are the common errors they see when customers fill out the form themselves and we’re gonna go over those with you so you can avoid those issues if you decide to do this on your own.

Section 4: Most Common Error
So here’s the Vermont VD-119 form, very common. The first most common error is in section 4 where asked what is being applied for: new registration, lease buyout, title only, renew. Many, many clients will select title only because they intend to be getting a title. However, when you’re using the Vermont process to get a title, you’re not actually getting the title from Vermont. You’re getting a registration from Vermont, which then you bring to your state to get a title. So the box you need to check off is new registration, not title only. I can’t tell you how many times Vermont tells us that they’ve received applications for title only that they have to send back. So that’s the number one error that people will make when they fill out the VD-119.

Section 3: Second Common Error
The second common error is in section 3 to start putting down things like lien holders and prior owners. All you really need to do in section 3 is enter the name of the person that you bought the car from. They have to match your bill of sale. Now, if you put the date and you want to put the address, that’s fine. It does not have to be signed. A lot of times customers will sign their own name there or they’ll put down a Vermont dealer number or their own address. Now, in theory, you could actually leave it blank, but we recommend writing in the name of the person that matches your bill of sale. It has to match exactly. If it doesn’t match exactly, they will send it back.

Section 1: Third Common Error
Another common error is when you put down section 1 vehicles owned. They’ll put down the name of the prior owner, which says owner. This is for your name, the new owner of the vehicle. So if you put down the last owner, it’s not gonna work. You’re gonna actually get a registration that you paid for in somebody else’s name. So those are the three most common errors.

Additional Tips
A couple other things to watch out for is the registration type. Make sure it matches the vehicle’s in a car, truck, motorcycle. We also recommend not applying for an antique plate. It’s just gonna open up a can of worms. You’re gonna have to do more work because you’re not going to use the license plate anyways. You’re gonna be using their paper to get your title in your state. If it’s a truck, make sure you put down the weight; otherwise, it’ll get sent back. If it’s got different types of brakes, air or hydraulic, you want to check that off.

Calculating the Tax
Most importantly, this is the last thing that is very, very common is calculating the tax correctly. The tax is calculated on either the purchase price from your bill of sale or the NADA value, whichever is higher. So make sure it’s correct. If it’s the wrong amount, they will send it back. You also have to make sure that all of the other qualifications for the vehicle are matched. The right year, make sure it’s not too new, make sure that the VIN number exists on your bill of sale.

Bill of Sale Requirements
And that’s something else you have to make sure, which is not on this form, is that your bill of sale is correct for the application. It has to have the name of the buyer and seller, has to have a date, has to have the VIN number. A lot of people think that a bill of sale could just say 1985 Chevy Camaro without specifying the VIN number to know which Chevy Camaro it is. So make sure that you have that on your documentation.

Conclusion
Fortunately, they give you two copies. If you mess one up, you can do another one. It talks about verification. That’s something that we cover in other videos. So if you have any questions, you can reach us at our website, cartitles.com, and there’s a lot more information there, including these forms you can download for free. Or if you want us to help you out with it, we’re glad to do it, and you can use this process along with many hundreds of thousands of other people to get a title for your vehicle when you only have a bill of sale.

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