Transferring a car title is a legal process that establishes the rightful owner of a vehicle. This process ensures that the new owner has the legal rights to drive, submit vehicle registration, and insure the car.
It also protects both the old car owner and new owners from potential liabilities, such as traffic violations or accidents involving the vehicle. Properly transferring the title helps prevent disputes over ownership and provides a clear record of the transaction.
In a Nutshell
To transfer a vehicle title to a member of your family, you’ll need to gather the necessary documents, complete the required paperwork, possibly notarize the documents, and submit them to the DMV. It’s important to follow state-specific requirements and take advantage of potential cost savings, such as tax exemptions and reduced fees.
Why It Might Be Necessary to Transfer a Title to Family Members
- Gifting: To transfer ownership of a car title as a gift can be a generous way to provide transportation to family members.
- Inheritance: When a registered owner of a car passes away, the vehicle often needs to be transferred to a beneficiary. This ensures that the heir can legally use or sell the car.
- Other Reasons: There may be other reasons to transfer ownership of a vehicle title within a family, such as simplifying estate planning, removing a co-owner, etc.
Lender Tip: When dealing with inheritance and car title transfer is due to the death of the current owner, a death certificate may be required as part of the documentation. The death certificate serves as proof of the owner’s passing. It is necessary for processing the transfer of ownership to the heir or designated beneficiary.
Steps to Transfer a Car Title
- Gather Necessary Documents
- Original Title Document: The original title must be provided to prove the current owner’s right to transfer ownership of the vehicle.
- Proof of Identity: Both the current registered owner (seller) and the new owner (buyer) must provide valid identification, such as a driver’s license or state ID.
- Odometer Reading: For vehicles less than 10 years old, an accurate odometer reading must be provided. This is required by federal law to prevent odometer fraud.
- Bill of Sale (if required): A bill of sale may be necessary in some states to document the transfer ownership, even if the vehicle is gifted and no money changes hands.
- Complete the Transfer Paperwork
- Seller’s Responsibilities: The seller must endorse the vehicle title by signing the title. They must also complete the odometer disclosure statement to certify the mileage at the time of transfer title.
- Buyer’s Responsibilities: The buyer is responsible for completing a title application form, which is available from the DMV. This form requires information about the vehicle, the buyer, and the transaction.
- Accuracy: It is critical to fill out all forms accurately. Mistakes can lead to delays, fines, or even legal issues. Double-check all entries for spelling errors and correct information.
- Notarization
- When to Notarize: Some states require vehicle notarization to transfer a title. This means a notary public must witness the signing of the title and other documents. States with this requirement include Arizona, Kentucky, Louisiana, Montana, and Ohio.
- How to Notarize: To notarize the title transfer, both the seller and buyer should go together to a notary public with their identification and the required documents. The notary will verify their identities, witness the signatures, and apply a notary seal.
- Submit Documents to the DMV
- Documents: Make sure you have all the necessary documentation prepared for submission to the DMV. This typically includes various forms and proof of information. For a detailed list of required documents and any additional specifics for your state, please refer to your local DMV.
- License Plates: If the vehicle is being transferred within the same state, the existing license plates may often be kept by the new owner. However, in some cases, the plates may need to be surrendered, especially if the car is being moved out of state or if there is a change in the registration status.
- DMV Submission Process: The method for submitting these documents varies by state. In some states, you must visit the DMV in person. Others allow submissions by mail or online. Check with your local DMV for specific instructions.
- Transfer Fees: There are usually fees associated with transferring a vehicle title. These can include a transfer title fee, vehicle registration fee, and possibly pay sales tax. The amount varies by state, so consult the DMV’s fee schedule.
State-Specific Requirements
Each state has its own regulations and requirements for transferring a car title.
Here Are a Few Examples:
California:
- Requires a smog certification if the vehicle is more than four years old, unless it is being transferred to a family member who is exempt.
- The California DMV also requires a Vehicle/Vessel Transfer and Reassignment Form (REG 262), which includes an odometer disclosure and bill of sale section.
Texas:
- The Texas DMV requires a signed Application for Texas Title and/or Registration (Form 130-U).
- The seller must also provide a signed title and a Vehicle Transfer Notification form to the DMV.
- A vehicle inspection report may be needed if the car is from another state.
Florida:
- Florida requires a notarized Bill of Sale and a completed Application for Certificate of Title With/Without Registration (Form HSMV 82040).
- A VIN verification is required if the vehicle is being titled for the first time in Florida.
For detailed instructions specific to each state, visit the state’s DMV website.
Special Considerations
Transferring to a Family Member in Another State
When transferring a car title to an immediate family in another state, it’s important to comply with the regulations of both the originating state and the destination state.
This may involve clearing emissions tests, safety inspections, new license plates and additional paperwork. Be sure to verify the requirements with the DMVs of both states to ensure a smooth title transfer.
Handling Loans and Liens
If the vehicle is financed, the lender (also known as the lienholder) holds the title until the loan is paid off. To transfer the title, you’ll need to pay off the remaining balance or obtain permission from the lender.
After paying off the loan, request a lien release document from the lender. This document is necessary for the new owner to register the vehicle in their name.
Potential Cost Savings
Some states offer sales tax exemptions for car transfers between family members. This can result in significant savings, as sales tax can be a substantial portion of the transaction cost.
Applying for Sale Tax Exemption
Check with your local DMV to see what options are available in your state. To apply for a tax exemption, you may need to provide documentation proving the family relationship, such as birth certificates, marriage certificates, or a notarized affidavit.
Reduced Transfer Fees
Lower Fees: Many states reduce or waive title transfer fees for family member transfers. This can make the process more affordable and less burdensome.
State Examples:
- California: Offers reduced fees for certain family transfers.
- Texas: May waive certain fees if the transfer is a gift.
- Florida: Provides a lower title transfer fee for immediate family members.
Tips for a Smooth Transfer
- Double-Check Information: Ensure all information on the forms is accurate and complete. Incorrect or missing information can lead to delays and complications.
- Keep Copies: Retain copies of all completed forms and supporting documents for your records. This includes the signed title, bill of sale, and any DMV forms.
- Consider Ongoing Costs: Ensure you know the ongoing costs associated with owning the vehicle, such as insurance, maintenance, and vehicle registration fees.
Conclusion
Transferring a car title to a member of your family involves several steps, including gathering documents, completing paperwork, and possibly getting notarization. State-specific requirements and potential cost savings should be carefully considered. Always check with your state’s DMV for the most up-to-date and accurate information.
Once the title is successfully transferred into your name, you may be eligible for a title loan using your vehicle as collateral. Title loans can be a quick and convenient way to access funds, leveraging the value of your vehicle.4
If you’re interested in exploring this option, or if you have any questions about the title transfer process, our customer service team is here to help. For more details on common questions and concerns, be sure to visit our FAQ Page.
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FAQ
How Much Does It Cost to Transfer a Car Title to a Family Member in California?
In California, transferring a vehicle title to a family member usually involves a $15 title transfer fee. Immediate family members are exempt from use tax.
If the vehicle is over four years old, a smog certification may be required, costing between $30 and $60. Transferring license plates may incur a fee or require payment for new plates, starting at around $20.
Additional fees, such as late fees for transfers not completed within 10 days, may apply. For the latest details, check the California DMV website or contact your local DMV office.
Do I Have to Go to the DMV to Transfer Title in California?
In California, you can often complete the transfer by mail or online, but certain situations may require an in-person visit. For example, if the transfer involves a smog check or additional paperwork that cannot be completed online, an in-person visit may be necessary.
Can You Gift a Car to a Family Member in North Carolina?
Yes, you can gift a car to a member of your family in North Carolina. The process involves transferring the title, and you may be eligible for a tax exemption if certain conditions are met. You will need to submit the title, an affidavit of facts, and possibly other documentation to the DMV.
Written by
Crystal Voogd