To sign over a car title, the seller completes the assignment section on the back of the title, records the odometer reading and sale price, and signs on the seller’s line; the buyer signs on the buyer’s line and prints their legal name and address exactly as shown on their ID. In states that require it, both signatures must be made in front of a notary. The seller then hands over the signed title along with a bill of sale, and the buyer takes those documents to the DMV to register the vehicle in their name.
That’s the shape of it. The details below are where sales go sideways.
What You Both Need Before Signing
The original title is the one thing you cannot do without. Both parties should also bring a valid driver’s license or state-issued photo ID, because the buyer’s ID information goes on the title in most states and the DMV verifies identities at registration.
Get an accurate odometer reading before you fill anything in. Federal law requires an odometer disclosure on the title for most passenger vehicles from model year 2011 through the current year.1eCFR. 49 CFR 580.17 – Exemptions Vehicles with a gross vehicle weight rating above 16,000 pounds are exempt, along with trailers and other non-self-propelled vehicles.
A bill of sale is not legally required in every state, but write one anyway. It should list the full names and addresses of both parties, the date of sale, the purchase price, a description of the vehicle including the VIN and odometer reading, and both signatures. If anything is disputed later, that document is your proof.
A handful of states require title signatures to be notarized. Call or check your state motor vehicle agency’s website before you meet the buyer. Showing up without a notary when one is required stops the transaction cold.
Filling Out the Title
Use a black or blue ink pen. Pencil is not acceptable, and some states reject other ink colors. Write clearly and read every line before you commit, because fixing a mistake is harder than making a clean entry.
The seller signs on the line marked for the seller or transferor. The buyer signs on the buyer or transferee line. Some titles have separate lines for printed names and signatures, so fill both. Enter the buyer’s full legal name exactly as it appears on their ID.
In the odometer section, write the current mileage and check the box that describes it: actual mileage, exceeds the mechanical limits, or does not reflect the true mileage. Both parties typically have to acknowledge the reading. Falsifying it is a federal offense carrying civil penalties of up to $10,000 per violation and criminal penalties of up to three years in prison for knowing violations.2Office of the Law Revision Counsel. 49 USC 32709 – Penalties A buyer who discovers odometer fraud can also sue for three times their actual damages or $10,000, whichever is greater.3Office of the Law Revision Counsel. 49 USC 32710 – Civil Actions by Private Persons
Enter the sale price and the date. If the car is a gift, write “gift” or “$0” depending on your state’s format. The sale price matters because the buyer’s sales tax is usually calculated from it.
In notarization states, both parties must sign in front of the notary. Signing at home and bringing the title in afterward does not count. The notary has to witness the signatures being made.
Fixing a Mistake Without Voiding the Title
If you slip while filling out the title, draw a single clean line through the error so the original text is still readable, write the correct information nearby, and have both parties initial the change. No white-out. No scribbling. No writing over the error. DMVs routinely reject titles with white-out or heavy cross-outs because they cannot verify whether the change was legitimate. A rejected title means the seller has to apply and pay for a duplicate, and you start over.
If the Title Is Lost, Damaged, or Has a Lien on It
No title, no sale. If you cannot find the original, apply for a duplicate through your state motor vehicle agency before you list the car. The process generally involves an application, your ID, and a fee that varies by state, and some states require the application to be notarized. Processing can take anywhere from a few days to several weeks, so start early.
A title that is water-stained, torn, or illegible can also be rejected at transfer. If the VIN, owner name, or signature area cannot be read clearly, apply for a duplicate the same way you would for a lost title. You may need to surrender the damaged original.
If the car still has a loan on it, the seller must pay off the balance and get a lien release before transferring the title. Many lenders participate in electronic lien programs and release the lien directly to the state agency, which then mails a clean title to the owner.4American Association of Motor Vehicle Administrators. Electronic Lien and Title Lenders outside those programs sign and date the lien release section on the physical title and mail it back. Do not try to sell the car until the lien is cleared.
What the Seller Does After Signing
Handing over the keys does not end your obligations.
Take your license plates off the car. In most states, plates belong to the owner, not the vehicle. You can usually transfer them to another car you own or surrender them to the motor vehicle agency. Leaving your plates on a car you no longer own is a fast way to collect somebody else’s toll violations and parking tickets.
File a notice of sale or release of liability with your state motor vehicle agency. Most states have a dedicated form, and deadlines range from 5 to 30 days after the sale depending on the state. This filing creates an official record that you no longer own the vehicle, which protects you if the buyer wrecks the car or racks up tickets before registering it. It is the single most important post-sale step, and the one sellers skip most often.
Keep copies of the signed title (front and back), the bill of sale, and the release of liability. Those are your proof that the sale happened and when.
Call your insurance company. If you are replacing the car, your insurer can usually move the coverage. If not, cancel the policy so you stop paying premiums on a car you don’t own.
What the Buyer Does After Signing
Register the vehicle in your name at your state motor vehicle agency. Most states give you between 10 and 60 days, and missing that window means late fees.
Bring the signed title, your photo ID, and the bill of sale. Many states require proof of insurance before they will register the vehicle, so arrange coverage first. Some states require a safety inspection or emissions test before registration. Check what applies before you go so you don’t make two trips.
You will pay sales tax on the purchase price at registration. Rates vary by state, generally falling between 0% and about 8%, with some local jurisdictions adding their own percentage on top. A few states do not tax vehicle purchases at all. The title transfer fee and registration fee are separate charges.
Do not drive the car on the seller’s plates. In most states that will earn you a citation.
Watch Out for Title Jumping
Title jumping is when someone sells a vehicle without ever registering it in their own name, signing the previous owner’s title directly over to the next buyer. It is illegal in every state because it dodges sales tax and breaks the ownership chain. Penalties vary but can include fines up to $10,000 and potential jail time, and they apply even when the title jump was unintentional.
As a buyer, check that the name on the title matches the ID of the person selling you the car. If it doesn’t, you are probably looking at a jumped title, and registering it can turn into a drawn-out mess involving the original owner, the DMV, and sometimes a court. As a seller, the way to avoid creating this situation is to register any vehicle in your name before reselling it, even if you only plan to own it briefly.
Taxes on the Sale
Most private vehicle sales do not create a federal income tax bill, because personal cars almost always lose value. If you sell your car for less than you paid, that loss on personal-use property is not deductible.5Internal Revenue Service. Publication 544 – Sales and Other Dispositions of Assets
If you sell a car for more than you paid, which can happen with classic or restored vehicles, the profit is a capital gain and must be reported on your federal return. The taxable amount is the sale price minus your adjusted cost basis, which includes what you paid plus improvements, but not routine maintenance.
One quick worry to put to rest: receiving more than $10,000 in cash from a private buyer does not require you to file IRS Form 8300. That requirement applies to cash received in a trade or business, not to individuals selling personal property. The IRS specifically uses the example of someone selling a personal car for $11,000 in cash as a situation where Form 8300 is not required.6Internal Revenue Service. IRS Form 8300 Reference Guide