To change a car title to a new owner, the seller signs the existing title over to the buyer, the buyer fills out the state’s title application, and the two of them (or just the buyer, in most private sales) submit the paperwork to the state motor vehicle agency along with a transfer fee and any sales tax owed. The state cancels the old title and issues a new one in the buyer’s name. Forms and fees vary by state, but the sequence is the same everywhere.
The Core Steps
Every title transfer follows the same basic path. The seller completes the assignment section on the back of the title, entering the buyer’s name, the sale date, the sale price, the odometer reading, and both signatures. The buyer then takes that signed title, together with a completed state application and identification, to the motor vehicle office. The clerk reviews the paperwork, collects the fee and sales tax, and either prints the new title on the spot or mails it later. Some states let you submit by mail or through an online portal, but most people handle it in person.
Bring originals. Photocopies of titles are almost never accepted. Fill out the application completely before you arrive, because missing fields send people back to the parking lot to start over.
Processing times vary. Some states hand you the new title the same day. Others mail it, and the wait can run from a couple of weeks to a couple of months depending on the agency’s backlog. In the meantime, you get temporary documentation that lets you drive the vehicle and prove ownership.
Documents You Need
Gathering everything before your visit saves a wasted trip.
The Signed Title
The original title is the most important document. Write in ink. Don’t use white-out. Make sure the names match what’s on your IDs exactly. Errors on the title are the single most common reason transfers get rejected at the counter. Some states allow the seller to initial a correction; others require a fresh title before they’ll process anything.
Bill of Sale
Not every state requires a separate bill of sale for a private transaction, but having one is smart. It records the price, date, VIN, and both parties’ contact information. It also establishes what you paid, which matters for sales tax. If you paid less than market value, some states will tax you on fair market value anyway, so keep the figures accurate.
Identification
Both parties need a valid government-issued photo ID, usually a driver’s license or state ID card. The name on your ID must match the name on the title and the application. If someone is signing under a power of attorney, bring the original notarized POA along with the signer’s own ID.
Odometer Disclosure
Federal law requires the seller to record the vehicle’s mileage at transfer and certify whether the reading is accurate, has exceeded the odometer’s mechanical limit, or shouldn’t be relied on.1Office of the Law Revision Counsel. 49 USC 32705 – Disclosure Requirements on Transfer of Motor Vehicles Most titles have a space for the disclosure built into the assignment section. If yours doesn’t, use a separate odometer disclosure statement from the motor vehicle agency.
Older vehicles, heavy trucks over 16,000 pounds gross weight, and non-self-propelled vehicles like trailers are exempt. For 2026 transfers, any vehicle with a 2010 or earlier model year is exempt; starting with the 2011 model year, the exemption doesn’t kick in until the vehicle is 20 years old.2eCFR. 49 CFR 580.17 – Exemptions
Lien Release
If the title shows a lienholder, the buyer needs proof the loan is paid off before the state will issue a clean title. The lender provides a formal lien release letter or state-specific release form, usually within 10 to 30 days of payoff. Many states now use electronic lien and title systems, so the release happens without paper.
If the vehicle you’re buying still has an active loan, the seller has to pay it off before or during the sale. Some sellers arrange this at their bank with the buyer present, so the buyer’s payment goes straight to the lender and the release and signing happen in one visit.
State Application and Proof of Insurance
Every state has its own application for title, sometimes combined with a registration form. Download it from your state’s motor vehicle agency site or pick one up in person. Insurance requirements vary: dealerships and lenders always require proof of coverage, and some states require it at title transfer while others only ask at registration. Either way, the buyer needs active coverage before driving away.
Fees and Sales Tax
Transfer fees range roughly from $8 to over $100 depending on the state. Some states charge a flat fee; others calculate it based on age, value, or weight. You pay this at the counter when you file.
Sales tax is usually the bigger number. Rates run from zero in Alaska, Delaware, Montana, New Hampshire, and Oregon up to around 7% or 8% at the state level elsewhere, and many counties and cities add local tax on top. Most states calculate the tax on the purchase price or the vehicle’s fair market value, whichever is higher, specifically to prevent buyers and sellers from writing an artificially low number on the bill of sale. If you think the state’s valuation is off, most jurisdictions have a dispute process.
The Transfer Deadline
Nearly every state gives buyers 15 to 30 days from the date of sale to complete the transfer. Miss that window and you’ll typically owe a late fee, which in some states grows the longer you wait. Driving with an untransferred title also creates a messy situation at a traffic stop or after an accident, because the vehicle is still registered to someone else.
Special Situations
Not every transfer is a straight purchase between strangers. A few common variations change the paperwork.
- Gift: The giver signs the title the same way a seller would, with the price listed as zero or “gift.” Many states partially or fully exempt gifts between immediate family from sales tax, but some still charge tax on fair market value. Check before assuming you owe nothing.
- Inheritance: Transferring from a deceased owner doesn’t always require full probate. Many states let heirs transfer with a death certificate and an affidavit when there’s no dispute and the estate isn’t indebted. If probate is open, you’ll need court documents authorizing you to take possession. A surviving spouse listed on the title can often transfer or sell without any court involvement.
- Name change: Bring the current title, your updated driver’s license, and the legal document showing the change (marriage certificate, divorce decree, or court order) to the motor vehicle office.
- Out-of-state purchase: Bring the out-of-state title, application, proof of insurance, and ID to your home state’s agency. If the out-of-state title has no space for odometer disclosure, get a separate disclosure statement from the seller. Some states require a VIN inspection by law enforcement or a motor vehicle inspector before titling a vehicle from another state, and emissions or safety inspections may also apply. Call ahead.
- Lost title (seller): Apply for a duplicate before you sell. You’ll need ID, the VIN, and a small fee. Some states issue duplicates same-day; others mail them.
- No title at all (buyer): Many states offer a bonded title process, where you buy a surety bond (typically one to one-and-a-half times the appraised value) and the state issues a title backed by that bond. Not every state offers this; some require a court order instead.
What Sellers Should Do to Protect Themselves
If the buyer never registers the vehicle in their name, you remain the owner on record. Parking tickets caught on camera, toll violations, and accident liability can all come back to you. Law enforcement follows the title, not a handshake.
- Keep copies of everything. Photocopy the signed title, the bill of sale, and any transfer documents before you hand them over.
- File a notice of sale. Most states let sellers notify the motor vehicle agency that a vehicle has been sold. Some call it a “release of liability” or “notice of transfer.” This creates an official record that you no longer own the vehicle, even if the buyer drags their feet.
- Remove your plates. In most states, plates stay with the seller. Take them off before the buyer drives away. If your state’s plates stay with the vehicle, notify the motor vehicle agency and your insurer right after the sale.
- Cancel your insurance on the vehicle. If the buyer crashes it before transferring the title, an active policy in your name invites your insurer into the claim.
If you filed a notice of sale and the buyer still hasn’t transferred the title weeks later, follow up with the motor vehicle agency. Your notice is what protects you from anything that accumulates in the gap.
Check the Title Before You Buy
Before handing over money for a used vehicle, look at the title itself. Many titles carry permanent “brands” that disclose the vehicle’s history and affect its value sharply. A salvage brand means an insurance company declared the vehicle a total loss. Rebuilt or salvage-rebuilt means someone repaired a previously salvaged vehicle and passed a state inspection. Flood and fire brands describe specific damage. A junk brand typically means the vehicle was damaged beyond economical repair and may not be legally drivable.
Brands follow the vehicle across state lines. The federal government maintains the National Motor Vehicle Title Information System to prevent laundering of branded titles by moving vehicles between states, and it tracks VINs, brands, salvage and junk designations, and odometer readings from every state.3eCFR. 28 CFR Part 25 Subpart B – National Motor Vehicle Title Information System (NMVTIS) Run the VIN through a title history check before you buy.
Watch for Title Jumping
Title jumping is when someone buys a vehicle and resells it without ever registering it in their own name, leaving the title in the original owner’s name. It’s illegal in every state, and it’s usually done by unlicensed dealers dodging sales tax, title fees, and state limits on how many vehicles a private individual can sell per year. Buyers who fall for it can end up needing the original owner’s cooperation, or a court order, to get the vehicle properly titled. If the name on the title doesn’t match the person selling you the car, walk away.