How to Transfer a Car Title to a New Owner

Selling a car or buying one from a private party? One of the most important steps is transferring the car title. Without it, the sale isn’t legally complete, and the new owner could run into trouble registering the car or even proving ownership. The good news is, the process is simpler than it sounds—and we’re breaking it down in an easy, step-by-step format.

What Is a Title Transfer?

Transferring a car title means officially moving ownership of the vehicle from one person to another. It usually happens when a car is sold, gifted, inherited, or even donated.

This legal process is required in all 50 states and involves both the seller and the buyer.

When Is Title Transfer Required?

You’ll need to transfer a title in these common situations:

• Selling or buying a car (private sale)
• Receiving a car as a gift
• Donating a vehicle
• Inheriting a car
• Moving to a new state

If you’re buying from a dealership, they usually handle it for you. But in private sales, it’s up to both parties to complete the paperwork properly.

Step 1: Locate the Vehicle Title

If you’re the seller, find your original car title. It should be:

• Free of damage
• In your legal name
• Without any active lien (unless the loan is just paid off and the lien release is included)

If you’ve lost it, you’ll need to apply for a duplicate before continuing.

Step 2: Complete the Back of the Title

On the back of the title, you’ll find fields for:

• Buyer’s name and address
• Sale date and price
• Odometer reading
• Signatures of both buyer and seller

Fill these out clearly and carefully. Mistakes may void the document and require a new one.

Step 3: Provide a Bill of Sale (Optional but Recommended)

Some states don’t require it, but it’s a good idea to include a separate bill of sale. This document protects both parties by recording the terms of the transaction.

It usually includes:

• Vehicle description (VIN, make, model, year)
• Buyer/seller info
• Sale price and date
• Both signatures

Step 4: Submit to DMV

The buyer must take the signed title (and bill of sale, if needed) to the DMV to complete the registration.

They’ll likely need:

• The signed title
• Bill of sale
• Valid ID
• Proof of insurance
• Payment for fees/taxes

Depending on the state, this must be done within 10–30 days of purchase to avoid late fees.

Step 5: Seller Notifies DMV

The seller should also notify the DMV that they’ve sold the vehicle. Some states require a Notice of Transfer or Release of Liability. This prevents you from being liable for any tolls or violations after the sale.