Selling Your Car? Here’s How To Properly Fill Out The Title

When you decide to sell your car, one of the most important steps is filling out the car’s title. This document proves that you are the vehicle’s legal owner, and transferring it properly is vital for completing the sale.

Mistakes on the title can lead to frustrating delays, potentially affecting the transaction and causing issues with the Department of Motor Vehicles (DMV). In this article, we will guide you through the steps involved in filling out a title when selling a car and how to avoid common pitfalls.

What Is a Car Title, and Why Is It Important?

The title of your car is a legal document that establishes ownership. It contains key information about the vehicle, including the vehicle identification number (VIN), the car’s make and model, and the current owner’s name. When you sell your vehicle, you must transfer the title to the buyer to give them legal ownership.

Failing to transfer the title properly can lead to complications, such as the buyer’s inability to register the car or transfer the insurance. This is why understanding how to fill out a title when selling a car is so important.

Signing Over the Car Title: Step-by-Step

Once you’ve found a buyer and agreed on a price, the next step is to sign the title. This action officially releases ownership of the car and transfers it to the new owner. However, several steps must be followed to ensure everything is done correctly.

Start by reviewing the title carefully. It should have a section designated for the seller’s signature, which you must fill out. Make sure you sign your name exactly as it appears on the title. If multiple owners are listed, all owners must sign the title unless it states otherwise.

If the car title is in a joint name with “and,” both parties must sign. If it lists “or,” only one signature is required.

How to Handle Liens on the Title

In many cases, car owners have loans tied to the vehicle, and the lender holds the title until the loan is paid off. If you owe money on the car, it is important to pay off the lien before transferring the title.

Contact your lender to find out the steps you need to take to pay off the loan. After the loan is paid off, the lender will send you the title. If you’re selling the car before the loan is fully paid, you’ll need to pay the remainder of the loan first. Once the lien is cleared, you can transfer the title to the buyer.

If you work with Airway Cash For Junk Cars, you can also get a fast, hassle-free sale, even if the car has a lien. We will help you navigate the process and ensure that everything is handled properly.

Creating a Bill of Sale

Along with signing over the title, creating a bill of sale is a good idea. While not all states require this document, it can help protect both the buyer and seller. A bill of sale includes the sale price, the date of the transaction, the names of the seller and buyer, and a description of the car, including the VIN and mileage.

In some states, you might be required to submit the bill of sale to the DMV when transferring the title. It’s a simple document, but it can be vital in case any issues arise in the future.

Common Mistakes When Signing Over a Car Title

Filling out the car title seems straightforward, but several common mistakes can delay the process. One of the most frequent issues is signing in the wrong place. The title usually has multiple lines for signatures, and it’s important to ensure you sign in the right spot. A mistake here could mean a correction form is required, or you may need to apply for a new title altogether.

Additionally, avoid using correction fluid or tape. This can void the title and cause further delays. Instead, contact the DMV to learn how to fix any errors. If you make a mistake, a simple request for guidance can prevent costly errors down the road.

Verifying Vehicle Information on the Title

Before transferring the title, verify the car’s information. Double-check the Vehicle Identification Number (VIN) on the title to make sure it matches the VIN on the car itself. The VIN is typically located on the driver’s side dashboard, visible through the windshield.

You should also verify the mileage listed on the title. Federal law requires that the mileage recorded on the title be accurate. If there’s a discrepancy, it must be disclosed on the title or via a separate document. Making sure all information matches accurately is key to a smooth sale.

How to Handle Title Transfers with Multiple Owners

Sometimes, a car’s title lists more than one owner, which can make the transfer process a bit more complicated. If the title lists two or more names, it’s essential to understand the requirements for each state, as these may differ.

If the title includes the word “and” (for example, “Jack and Jill”), both owners must sign the title for the transfer to be valid. However, if the title includes the word “or” (as in “Jack or Jill”), then only one signature is needed. Always verify this by checking your state’s rules to avoid any mistakes.

In cases where the car is jointly owned, both parties must sign in the correct spots, or the title may not be processed properly, leading to delays or even the need to reapply for a new title.

Special Scenarios: Deceased Owners and Liens

Sometimes, the owner of a vehicle passes away before completing a sale, creating additional complications in transferring the title. If you are inheriting a car, you will likely need to contact the DMV to update the title. Depending on the state, you may also need to give documentation like a death certificate and a will to complete the transfer process.

For cars with outstanding liens, it is necessary to contact the lienholder (such as a bank or financial institution) to clear the loan before transferring ownership. If the car is still under financing, the title transfer cannot proceed until the loan is paid off. Some lienholders may be willing to work with you, especially if you are selling the car for cash to pay off the loan, making it vital to communicate with them early in the process.

State-Specific Rules for Title Transfers

Each state has its own rules and regulations regarding car title transfers. While the general process is the same, you may encounter specific requirements based on your location. For instance, some states may require the buyer to have the car inspected before the sale or give proof of insurance before completing the title transfer.

It’s important to familiarize yourself with the requirements in your state before proceeding. Checking the DMV website for your state will give you a detailed outline of the necessary documents and steps required to complete the title transfer. By making sure you have all the proper paperwork ready, you’ll avoid unnecessary delays in the process.

Tips for a Smooth Title Transfer

When you’re preparing to sign over a car title, follow these simple tips to make sure the process goes smoothly:

• Verify Vehicle Details: Before transferring the title, make sure all the details match the car. Check the VIN and ensure it corresponds with what is written on the title. Also, make sure the odometer reading is correct.
• Sign in the Correct Place: Double-check the title for the correct location to sign. Many titles have multiple signature lines, and signing in the wrong place could delay the process.
• Check Local DMV Requirements: Be sure to check with your state’s DMV for specific requirements. Some states may require a notary to be present during the signing, while others may have additional paperwork requirements.
• Avoid Mistakes: Mistakes on the title can cause delays or lead to the title being voided. If you make an error, don’t use correction fluid. Instead, consult your DMV to find out how to proceed.

Airway Cash For Junk Cars Simplifies the Title Transfer Process

At Airway Cash For Junk Cars, we make the title transfer process hassle-free. We understand that the paperwork can be confusing, which is why we assist our customers every step of the way. If you are looking to sell your car, we offer fast, reliable services that include free towing and immediate cash payments. We’ll help you navigate the entire title transfer process and make sure everything is done correctly so you can get paid without unnecessary delays.

If you have any questions about filling out the title when selling a car or need assistance with a sale, don’t hesitate to contact us to Get Our Offers. We’re here to help!