How To Ensure That A Vehicle Title Has Been Transferred To The Buyer
Selling a vehicle to a buyer who does not re-title it can put you at financial risk. If your buyer abandons the vehicle, gets into an at-fault accident or has parking tickets without transferring ownership, you’ll receive fines or penalties as the last known registered owner. For this reason, you can require that your buyer go to a motor vehicle office to complete the title transfer with you. Many states also require that sellers report a motor vehicle sale, which you can also do while at the motor vehicle office.
Explain to your buyer that you want the vehicle title transferred into his name immediately upon selling the car. Arrange for you and your buyer to go to a motor vehicle office to transfer ownership. Do not sign the title until then.
Meet your buyer at a motor vehicle office. Wait for your buyer to complete a title application, a requirement in most states to obtain a new title. Sign the title along with your buyer in front of a motor vehicle representative.
Tell the motor vehicle representative that you want to report your sale. Even though you already confirmed the buyer has transferred the title, ensure the representative updates the vehicle’s information to reflect that you no longer own it.
Your buyer may not want to re-title the vehicle immediately and is not required to do so. If you’re selling the car on the weekend or your buyer does not want to title the vehicle immediately, you must report the sale as soon as possible.
Complete Both Title Transfers
One of the most important documents for selling a car is, of course, the title transfer application. But when you sell a car out of state, youll need to complete a title transfer application in both states.
As the seller, youll need to get your title transfer application at your local DMV. While you may be tempted to fill this out online, you may want to go in person so that you can inquire about any other requirements for selling out of state. Have the buyer do the same at his or her local DMV.
Be sure to fill out both halves of the title transfer, as well as any other paperwork required by either state.
When You Do Not Need A Used Vehicle Information Package
The following reasons are when a used vehicle information package is not required:
- purchasing from a registered used vehicle dealer
- between taxi licence holders
- between family member
You can also sell or transfer ownership of a vehicle without a used vehicle information package if the vehicle:
- was sold outside of Ontario
- is a donation to a licensed religious, charitable or benevolent organization as defined in the Canadian Income Tax Act
- is sold or transferred to a hospital, local service board, municipality, school board, university or college
- is a prize for registered lotteries and raffles
- is purchased from a registered motor vehicle dealer
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How Do You Transfer Car Ownership For Buyers
Here are the steps for the buyer to transfer it :
Always check the lien information on the Used Vehicle Information Package.
How Your Title Indicates If The Car Loan Has Been Paid Off
Typically, lenders don’t keep a paper copy of your title on hand, they store it electronically. Then when you pay off the loan on your car, the lender has your title printed and you get it in the mail usually about a week later, signed or stamped to indicate the lien is satisfied. There are 2 examples below of vehicle titles where the loan was paid off.
This title below shows space on the front for 2 lienholders. The 1st lienholder was Motorola Credit Union and there was no 2nd lienholder, as indicated by the word none. When the loan was paid off, the credit union stamped on the front of the title “lien satisfied.” They also signed the Lien Release section on the upper right and checked off the 1st lien box to indicate which lien was satisfied. A buyer of your car might still be a bit concerned because they still see someone listed as a lienholder on this title, but they can rest assured the title is clean.
This example above means you now hold a clear title and can quickly and easily sell your car to a buyer. You can see on the bottom of the title where you would sign ownership over to the buyer and record the current mileage. They can then take this to the DMV and get a new title issued in their name. The buyer’s newly issued title will be totally free and clear of liens and will indicate NONE for 1st lienholder.
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Trusts And Transfer On Death
To register and title a vehicle to a family trust, you need a Trustee Appointment and Powers Affidavit or court-certified trust documents in addition to all other requirements.
The name of a trustee can be added to the registration.
The name of the insured on the Nevada Evidence of Insurance must match either a name of a trustee on the registration or the trust to which the vehicle will be registered and titled.
The Trust Affidavit for Exemptions allows you to transfer a tax exemption for veterans, surviving spouse or the blind.
Transfer on Death is an option to allow listed a listed a beneficiary to claim ownership of a vehicle upon the death of the owner. The vehicle must have no liens. Use the Transfer on Death Application .
Ensure Safe Test Drive
f you want to sell your car, youll probably need to let potential buyers take it for a drive. But how to keep it from being stolen? Some sources advise that you go along on the ride, but its really not a good idea to be in a vehicle with a car thief.
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The best strategy is to make sure your insurance covers other drivers, remove valuables from the car, and set a time limit for the test. If possible, use your smartphone to take a photo of the would-be buyers drivers license, or at least write down the name and address. And make sure the photo on the license matches the person at the meeting.
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Does The Insurance Company Owe You The Value At The Time They Decide To Pay Or When It Was Totaled
Wouldnt that be a terrific incentive for insurance companys to delay payment of claims? The longer they delay payment, the more the damaged property will naturally depreciate , so their liability and risk will be the lower the longer they wait to pay.
Especially in the case of an automobile.
Most automobiles naturally depreciate in value over time, quickly when they are new, and then more gradually over time.
The value is greater at the beginning of an autos life, right? But if it is wrecked when it is new and the insurance company waits a year to agree to pay, and then they calculate the value, the vehicle will be a year older, not considered new, and of course, less valuable.
Do they owe for the value when they agree to pay, or when it was totaled?
What about if you get rear ended and everybody agrees it is totaled, but drive-able?
Then, while driving it to the garage while the claim gets settled, you get rear-ended a second time . The second one totals the car even worse.
Is the first person that hit you now off the hook?
Taking The Vehicle Abroad And Registering It There
Fill in the permanent export section of your vehicle log book.
Send it to DVLA, Swansea, SA99 1BD. Include a letter giving the buyers name and address.
Give the rest of your log book to the buyer – theyll need it to register the vehicle in the country theyre going to.
It will take longer than usual to process your refund because of coronavirus .
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Create A Bill Of Sale
Some states require a Bill of Sale along with the title transfer, some states dont. But even if you dont need this document for selling a car in your state, it wont hurt to have one on hand.
Creating a Bill of Sale is easy. Simply create a document titled Bill of Sale. Then, list the make, model, year and VIN of the vehicle. Be sure to include the sales price and odometer reading. Create a section for the buyer and sellers full names and addresses.
Both parties must sign and date this document, and voila you have a Bill of Sale.
But What If There Is More Damage Than Estimated You Say
Well, this is a common problem and the recommended solution is to negotiate or pay for a tear-down or disassembly of the vehicle to look behind the fascia and surface metal to see if there is any unibody or other hidden damage.
Also, it is suggested that your shop of choice gets the car on a lift to inspect from underneath. Once the tear-down / inspection is complete and the shop of your choice has given you their best estimate, you have to decide whether to authorize repair on the vehicle or not.
Keep in mind that there is almost always a supplement, even if a tear-down is performed. Something like a parts price change can cause a supplement even if the shop hasnt made any mistake in their estimate, and true supplements that increase the cost will be the responsibility of the negligent party.
If you dont trust the shop, find another place to help you.
Now, as a final word, I must say that this article is meant for educational purposes only and is not meant to be legal advice in any way shape or form.
If you need legal advice, you need an attorney. I am not an attorney, so dont be actin all crazy like I tol you to do somethin and stuff.
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Can I Transfer My Car Title Online
The exact process for changing ownership on a cars title varies by state, but many states will process online or mailed title applications. You can check with your states DMV website or customer service for that process.
For example, the state of Georgia allows sellers to start the application online and then contact the local county tag office for instructions. New York accepts applications at the DMV or mailed directly to its Title Bureau.
Below I Have Pulled The Relevant Text Out Of The Property Damage Section Of The Texas Jury Instructions :
. . if Plaintiff suffered less than a total loss of the property, then the measure of damage is the difference in the fair market value of the property immediately before and the fair market value immediately after .
Further, The American Law Institutes Restatement of Torts, section 928 states:
Where a person is entitled to a judgment for harm to chattels not amounting to a total destruction in value, the damages include compensation for the difference between the value of the chattel before the harm and the value after the harm, or at the plaintiffs election, the reasonable cost of repairs or restoration where feasible, with due allowance for any difference between the original value and the value after repairs.
In Texas, a recent case memorialized the default rule for measuring partial property damages as the difference in the market value immediately before and immediately after the damage to such property at the place where the damage was occasioned. J& D Towing, LLC v. Am. Alternative Ins. Corp,l 478 S.W.3d 649 . In other States, the principles of law are the same. At the moment the vehicle is damaged, that is when we measure the loss amount. These common laws form the basis for the guidelines used by most professional appraisers. The effective date of the appraisal has to be identified and utilized in order to define the value and market properly.
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Registration And License Plate
In addition to proof of Michigan No-Fault insurance, you must have a valid vehicle registration, tab, and license plate to own and operate your vehicle in Michigan. Information about license plates
You may request current ownership, a complete history, or a partial history of a vehicle for specified dates, if you have a legally valid reason for doing so
Before buying a new or used vehicle, check to make sure that all equipment and options ordered have been included. If youre buying a used vehicle, its also recommended that you have it inspected by a mechanic before purchasing it. The seller is required to give you the original vehicle title with the sellers portion completed, an accurate odometer reading or disclosure statement, and their signature. If there is more than one owner on the title, all the owners must sign it before it can be transferred into your name. Additionally, the odometer reading entered by the seller and vehicle identification number on the title match the vehicle’s odometer reading and VIN.Note: Making changes, such as crossing out a name, invalidates the title.
What Is The Difference Between Vehicle Ownership Permit And Registration
Vehicle ownership is the process of purchasing a car. The permit is the green piece of paper provided to you by the seller. Vehicle registration is the process of registering your vehicle with the province of Ontario.
To register you will need proof of insurance, a valid license plate and plate sticker. This process can be completed at any ServiceOntario location.
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If A Sell Price Dictates Market Value Then There Is No Such Thing As A Good Deal
When property is not sold, the way the value is determined is by conducting market research and using repeatable methods to get averages.
Its called an appraisal!
It is nothing new, but in my experience, education about what an appraisal is has eluded the majority of insurance company adjusters. It is not really a laughing matter, it is a true reality.
Insurance adjusters are typically trained in a manner that forces them to accept the view of their superior, and they simply dont logically think of the fact that an appraisal is the method for determining value when a sale is not available for reference.
If value could only be determined by a sales transaction, then insurance companies would be in a pretty good pickle when they decide to deem a vehicle totaled.
I mean, how the hell can you determine the value of a car you cant sell?
Not to be outsmarted, one of the insurance adjusters said, I know, I know!
Lets go back in time to BEFORE it was wrecked and sell the vehicle its the only way to prove the value!
I mean, mention diminished value and adjusters forget there is such a thing as an appraisal!
Trade Monthly Payments And The Test Drive
Scammers are known to contact sellers of cars acting very interested, but instead of buying the car outright, they suggest a swap or trade usually in return for a far more attractive or expensive car. The car to be traded, however, will either be stolen, written off and repaired , be mechanically troubled or ready to die, or still have a large amount owing on it.
A variation on this is someone who offers to buy your car and make monthly payments which, of course, wont be paid and cant be enforced or collected upon without considerable expense, if at all. A rarer example is the buyer who wants to test drive your car alone with a friend, is allowed to do so, then never returns with it.
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How To Buy A Car In Prince Edward Island
- In Prince Edward Island, in order to transfer the ownership of a vehicle from the seller to the buyer, the seller must fill out and sign the back of the registration marked vehicle permit. The seller must also complete the Notification of Transfer form on the registration permit and mail it within seven days of the transfer date to the Registrar of Motor Vehicles in P.E.I.
- The buyer has seven days from the date of transfer to change the registration of the vehicle to their name. When doing so, the buyer must present the Vehicle Permit , the Bill of Sale or receipt, the Motor Vehicle Inspection Form and a valid insurance card. P.E.I. requires that all vehicles and trailers undergo an annual inspection and you can find more information on the inspection program here.
- The buyer will be charged sales tax based on the Red Book value , the Bill of Sale or an appraisal, whichever one is greater.
For more information, please visit the Prince Edward Island Department of Transportation and Public Works.
About The California Bill Of Sale
A bill of sale is used when cars are sold in a private sale. Its a document that serves as proof of a transaction, and its beneficial to both the seller and the buyer of a vehicle. It also helps the DMV keep track of all car sales so that everything is documented. Youll need a bill of sale to re-register and transfer the title of the car.
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