How To Transfer Your Car Title to Someone Else [Guide]

You’ll need to transfer a car title whenever ownership changes. This could include selling the car to someone else, gifting the car to a friend or family member, or inheriting a vehicle if the owner dies. Fortunately, transferring a car title isn’t typically a lengthy or complicated process — but there are some important details to be aware of.

Each state has its own requirements, but here’s general information you need to know if you want to transfer a car title and pass ownership of a motor vehicle to someone else.

Overview of car title transfers

	Responsibilities	Other considerations
Seller	Release ownership by signing the car title over	State laws might require notarization and the removal of license plates
Buyer	Must take the signed certificate to the DMV to officially transfer and register the title	Verify the VIN and ensure you meet the insurance requirements before the transfer
Both	Ensure all necessary documents are presented at the time of sale	States may also require a VIN verification form or emissions certificate

Documents you need

Having the correct paperwork ready is essential for ensuring a smooth and legally compliant car title transfer. This process involves transferring ownership from the seller to the buyer, and having all necessary documents prepared can help avoid delays and complications. Here’s a list of the documents that may be required for a successful car title transfer:

• Original car title: Must be signed by the seller to release ownership.
• Bill of sale: This document records the transaction details, including the sale date, buyer and seller's information, sale price, and odometer reading.
• Driver’s license: The buyer should check and record the seller’s driver’s license number to confirm their identity.
• Proof of insurance: The DMV (or BMV, RMV, or MVD) may check the buyer’s proof of insurance before completing the transfer.
• VIN verification: Not all states require this, but if yours does, this is proof that the VIN on the paperwork matches the VIN in the vehicle.
• Lien release: This is required if the purchased car is still an outstanding loan.

How to transfer a title

Transferring a car title may be simple if you own the vehicle outright and there are no other parties involved, but it can involve more steps if there are multiple owners or you’re not transferring the title directly to another person. Here are the steps to transfer your title when selling your car in different situations.

If you own the vehicle outright

Owning a vehicle outright means the only name listed on the title is yours. There’s no lien holder, spouse, or cosigner. If this is the case, it should be simple to transfer ownership. You have complete control of the transaction.

The typical process for a simple transfer is for the owner to sign the designated area on the title to show they are selling the vehicle. This will typically be accompanied by information about the sale price, odometer disclosure (the current odometer reading), and the date of the sale.

The buyer would then fill out their portion of the title with their name, address, and signature. I recommend having a bill of sale when buying or selling a vehicle to have a record of the transfer. If you don’t know how to write a bill of sale for a car, many state Department of Motor Vehicles websites (or equivalents) provide free templates.

If you co-own the car

You might see other names listed on the title, such as a spouse, cosigner, or a bank or lender. If there is an “and” between the names, you’ll need to have all parties agree before you can transfer ownership. If your names are separated by “or,” either party can sell the car.

If the car isn’t paid off

A bank or lender’s name often appears as a lien holder on a title when a car isn’t paid off. You probably can’t sell it just yet if it's still being financed. You will need to pay off the loan to become the sole owner or agree with the lender to transfer ownership of the car.

If you have an outstanding loan amount on your vehicle, speak with your lender before you sell. Your lender, or the lien holder, will let you know whether you can sell the vehicle. This is because lenders are basically part owners and may even hold the physical title to your car.

One solution is to pay off the loan so you have full ownership of the vehicle. However, this isn’t always possible. If you don’t have the cash, you might get a personal loan to pay off the vehicle and then pay off the personal loan once you receive the funds from the car buyer. However, make sure you understand the advantages and disadvantages of taking out another loan.

If you’re trading the car

Selling or trading your car to a dealership is typically straightforward and might be quicker and easier than finding a private buyer. Dealers handle title transfers regularly, so you shouldn’t expect any hiccups throughout the process.

You’ll need to sign the title over to the dealership, and they’ll need to sign the title as the buyer. If there are multiple selling parties involved on your side, you’ll need to get the necessary signatures from each party. If you have a lien on your title, agree with the dealership about how the lien will be taken care of, and contact your lender to talk through scenarios.

If you’re moving or buying a car out-of-state

If you’re moving to another state or buying a car from another state, you might have to do an out-of-state transfer. The steps for completing an out-of-state transfer can vary by state, so be sure to check the requirements where you live. Common requirements include having the out-of-state title, filling out a title application form in the new state, and getting your vehicle inspected if needed.

Check your state’s fees for buying a car out of state. Many Californian friends of mine decided to buy a car in Arizona or Nevada because it was cheaper, but then they were hit with big DMV bills when they transferred it to the state.

If you’ve inherited a car

When you inherit a vehicle from a deceased relative or friend, you need to transfer ownership to yourself. The requirements will vary depending on the state you live in and the situation. You most commonly need a copy of the death certificate of the deceased individual and may also need a court letter specifying certain information about the deceased's estate. Check with your state’s DMV office to see what documents are required for this type of transfer.

Even receiving a car from a living relative will require a bill of transfer — I would know. In my case, even though my sister-in-law transferred a car to me without charging us, the DMV still wanted to see a sales slip and charge a fee to do the transfer.

How to transfer a car title you’ve lost

A car title is often nothing more than a piece of paper, which makes it easy to lose or misplace. If you want to sell your vehicle but can’t find your car title, contact your local state’s motor vehicles department for a duplicate or replacement car title.

It’s not uncommon to have to fill out and submit a form or two and pay a duplicate title fee. California charges $27 for a replacement title.

Getting a duplicate title may take a week or more. If you’re looking to sell your vehicle soon, factor this processing time into your plans.

What you’ll pay to sign over your car title

The cost to transfer or sign over your car title to someone else can depend on where you live and the type of vehicle being transferred. Here are a few costs you might have to consider when transferring a car title:

• Transfer fee: Your state may require a flat transfer fee to transfer your car title to someone else. The amount of this fee varies by state. For example, California charges $15, but New York charges $10.
• Sales tax: You typically have to pay sales and/or use tax when registering a vehicle you bought from a private seller. If you buy a vehicle from a dealer, the sales tax is typically paid to the dealer. The sales tax is based on the purchase price of the vehicle. Some states don’t require sales tax to be collected on private party vehicle sales or gifts.
• Notarized bill of sale: If you live in a state that requires a notarized bill of sale to accompany a car title transfer, you may have to pay to get the bill of sale notarized. Getting a document notarized doesn’t typically cost more than $10 or $15.
• Inspection and/or emissions: Certain states may require a vehicle safety inspection or smog check (emissions test) before a transfer of ownership. These fees can vary depending on the state and the business administering the tests.

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FAQs

Bottom line

Knowing how to transfer a car title can come in handy if you’re buying or selling a vehicle. While the steps are generally straightforward, each state has its own set of rules, so be sure to check your state’s department of motor vehicles website.

And if you’re transferring a car title because you’re getting a new car, make sure you also search around for the best car insurance policy for your new vehicle.