How to Sign Over a Car Title: A Step-by-Step Guide

Transferring vehicle ownership requires careful attention to detail, especially when it comes to signing over the car title. Whether you’re selling your car or handling the transfer due to other circumstances, understanding the correct procedure is crucial to avoid penalties and ensure a smooth legal transition. This guide provides a comprehensive overview of How To Sign Over A Car Title, primarily focusing on the requirements and best practices for a seamless transfer process.

Signing Over a Car Title When Selling a Vehicle

When you sell your vehicle, both you (the seller) and the buyer have specific responsibilities to complete the title transfer correctly. Failing to follow these steps can lead to legal complications and unnecessary fees.

For the Seller: Essential Steps

As the seller, your responsibilities include the following actions:

1. Remove and Surrender License Plates: Before handing over your vehicle, it’s imperative to remove the license plates. In many jurisdictions, including New Jersey, these plates must be surrendered to a motor vehicle agency. Remember, license plates are typically registered to the owner, not the vehicle, and cannot be transferred to another owner, although they might be transferable to another vehicle you own.

2. Complete the Seller’s Section on the Title: Locate the reverse side of your car title, where the seller’s section is clearly marked. Carefully and accurately fill out all required fields. This usually includes:

   • Your printed name and signature.
   • The date of the sale.
   • The odometer reading at the time of sale. It’s critical to provide an accurate reading. If the odometer reading is not accurate, you may need to provide an estimate of the actual mileage.
   • The sale price of the vehicle.

3. Provide a Bill of Sale: While the signed title is the primary document for transferring ownership, a bill of sale offers an additional layer of protection for both the buyer and seller. A proper bill of sale should include:

   • The buyer’s full name and address.
   • The date the vehicle was sold.
   • The vehicle’s identification number (VIN).
   • The make, model, and year of the vehicle.
   • The odometer reading at the time of sale.
   • The agreed-upon sale price.
   • Signatures of both the buyer and seller.

   Providing a bill of sale ensures clarity and can be helpful for record-keeping and resolving any potential disputes later on.

For the Buyer: Essential Steps

As the buyer, you also have crucial steps to take to finalize the vehicle ownership transfer:

1. Complete the Buyer’s Section on the Title: After the seller has completed their section, you should locate and fill out the buyer’s section on the reverse side of the title. This typically requires:

   • Your printed name and signature.
   • Your driver’s license number or Entity Identification Number (EIN) if you are a business.
   • The date of purchase.

2. Visit a Motor Vehicle Agency: The next essential step is to visit your local motor vehicle agency. In New Jersey, as highlighted in the original document, this transfer must be done in person at a motor vehicle agency and cannot be completed through mail. When you visit the agency, you will need to:

   • Submit the signed car title.
   • Complete a Vehicle Registration Application, if required in your state (in NJ, this is Form BA-49).
   • Pay the necessary title transfer fees and registration fees.
   • Obtain new license plates for the vehicle.

   It’s wise to check your local motor vehicle agency’s website for a checklist of required documents specific to your situation, such as if the vehicle is pre-owned from your state, another state, or purchased at an auction.

3. Adhere to Transfer Deadlines: Many states have deadlines for transferring a title after purchasing a vehicle. In New Jersey, for instance, titles must be transferred within 10 working days from the date of sale to avoid a $25 penalty. Promptly completing the title transfer is crucial to avoid fines and ensure legal ownership.

Using a Power of Attorney (POA) for Title Transfer

In situations where you need to sign a title or related documents on behalf of someone else, a Power of Attorney (POA) is usually required. This is common when someone is unable to be present due to illness, travel, or other reasons.

• Requirements for POA: To be valid for vehicle title transfers, a POA must generally be notarized and include specific information:

  • The name and address of the person appointed as Attorney-in-Fact (the person authorized to act on behalf of someone else).
  • The name, address, and signature of the Principal (the person granting the power of attorney).
  • A clear specification of the powers being granted. For vehicle title transfers, it should explicitly state the authority to sign vehicle titles.
  • If it’s a Limited POA, it must reference the specific vehicle, including the year, make, VIN, and type of transaction authorized.
  • Business POAs must be on official company letterhead.

• Presenting a POA: When you go to the motor vehicle agency, you must present the original notarized POA along with your identification (driver’s license).

• Letter of Authorization (LOA): In some cases, a General Letter of Authorization might be acceptable, particularly if all the required paperwork has already been signed by the person you are representing. However, it’s best to confirm with your local motor vehicle agency whether a LOA is sufficient or if a POA is necessary.

Transferring a Car Title After the Owner’s Death

Transferring a car title after the owner’s death involves specific procedures that depend on various factors, including whether there is a will, co-owner, or surviving spouse.

Title in Spouses’ or Domestic Partners’ Names

If the vehicle title is in both spouses’ or domestic partners’ names, transferring ownership to the surviving owner is typically straightforward. You will generally need to submit:

• The current car title, properly signed and completed by the surviving owner.
• A copy of the death certificate.
• A notarized Affidavit (Form BA-62 in New Jersey).
• Payment of the title fee.

Transferring to the Estate or an Individual (Owner Dies with a Will)

When the owner dies with a will and there is no co-owner, the process involves transferring the title to either the estate or an individual named in the will.

• Transfer to the Estate: If the title is being transferred to the name of the estate, you may need to obtain an Entity Identification Number (EIN) for the estate.
• Required Documents: You will need to present:
  • The EIN (if applicable).
  • The old car title signed and completed by the executor of the will.
  • The Surrogate’s Short Certificate (proof of executor appointment).
  • Your driver’s license for identification.
  • Payment of title transfer fees.
  • If the vehicle will be driven, new registration and proof of insurance in the estate’s name are also needed.

Title in Deceased’s Name Only (No Will)

If the deceased owner’s name is solely on the title and there is no will, the transfer process depends on the estate’s value and the presence of a surviving spouse or heirs.

• Surviving Spouse/Partner and Small Estate: If there is a surviving spouse, domestic partner, or civil union partner, and the estate’s value is below a certain threshold (e.g., $50,000 in NJ), you may need to present:

  • The current title.
  • An Affidavit of Surviving Spouse/Domestic Partner/Civil Union Partner (must include a raised seal from the County Surrogate).
  • The current title properly signed by the surviving spouse/partner.

• Heirs but No Surviving Spouse/Partner and Very Small Estate: If there are heirs but no surviving spouse/partner and the estate is even smaller (e.g., under $20,000 in NJ), you may need:

  • The current title.
  • An Affidavit of Next of Kin (with a raised seal from the County Surrogate).
  • The title signed by the Next of Kin.

• Larger Estates: For estates exceeding these value thresholds, you will likely need to transfer the title via the Administrator of the estate, presenting:

  • The current title assigned by the Administrator.
  • An Administrator’s Short Certificate (with a raised seal from the County Surrogate).

Always check with your local motor vehicle agency or legal counsel for the specific requirements in your jurisdiction, as estate laws vary.

Odometer Reading and Other Important Considerations

• Odometer Accuracy: Federal and state laws mandate accurate odometer readings during vehicle sales. Ensure the reading you provide on the title and bill of sale is correct. If there’s any discrepancy or if the odometer has exceeded its mechanical limits, disclose this information properly.

• Liens: If there is a lien on the vehicle title, it generally must be satisfied before the title can be transferred unless the lien is being transferred to the new owner (which is rare and requires lender approval). Contact the lienholder for instructions on how to release the lien.

• Sales Tax: Sales tax implications vary by state. Be aware of your state’s sales tax rules for vehicle sales. Some exemptions may apply, such as for vehicle gifts within families, but proper documentation is usually required.

Conclusion

Signing over a car title correctly is a critical part of transferring vehicle ownership. Whether you are a buyer or seller, or handling a transfer due to power of attorney or inheritance, understanding and following the required steps is essential. Always refer to your local motor vehicle agency’s guidelines for the most accurate and up-to-date information to ensure a smooth and legally sound title transfer. For more helpful tips on vehicle ownership and maintenance, visit keyfobx.com.