So you decided to sell your vehicle. You have it prepped up, and you started to search and screen for potential buyers. After thorough searching for the right buyer, you finally agreed to someone, and you’re set to hand over the keys. At this point, the question you may have in mind is, how to sign a car title over to a new owner? Though it seems to be an easy task, you need to be mindful even in the slightest detail before signing over your car title to someone.

What is a Car Title?

A Car Title is a legal document providing authentication of ownership of a vehicle. It is also known as an automobile title or pink slip. According to Wikipedia, the name "pink slip" is a reference to California certificates of ownership before 1988, when they were pink. Current California titles have broad vertical stripes of teal, yellow, and pink with a green border; while Illinois titles have blue, pink, and blue with a purple border, (just a little FYI.) Vehicle Titles are very significant since it is the only legal proof that you are indeed its owner. Having that said, it is something you need to care for and keep in someplace safe. 

Can I Just Have the Title Signed?

You need to follow procedures in transferring car ownership. You cannot just sign in your title to someone without verifying all the details on the title. Any error on the document may cause future problems for you or the new owner. It is best to handle it the proper way together with the other needed paperwork. The Bill of Sale, Odometer Disclosure Statement, Vehicle History Report, and the Report of Sale are among the paperwork you need when selling a vehicle. Remember that all the documents are legal and required by your state, so every detail should be honest and accurate. What do you need to know when signing a car title over to someone or how to do a car title transfer?

• Obtain your Title. You should have your car title on hand when selling a car. It is one of the vital documents you need to prepare before putting the vehicle for sale. We know that you have kept your title in a safe place, but what are you going to do when you lost or damage it? You can request a duplicate to your state Division of Motor Vehicles. You can apply online if issued by the following states: DC, Indiana, Maine, Maryland, Massachusetts, Michigan, New York, South Carolina, Virginia, or Wisconsin. For the rest of the states, you can apply it via mail, or you can just simply go to DMV's physical location. If your car has a lien, make sure you pay off the loans so the lender can send you the title.

• Write a Bill of Sale. Other than the title, you will need a bill of sale. A Vehicle Bill of Sale is a paperwork that transfers ownership of the vehicle from one person to another. It contains the price, vehicle's make and model, the purchase date, Vehicle Identification Number (VIN), all other car details, and the names and information of the buyer, and the seller. It is the seller's responsibility to make a Bill of Sale and make sure all the information is correct in line with the car title. A Bill of Sale will help avoid any problems that may arise. A Bill of Sale along with a registration certificate may be enough to prove ownership if a title is not available yet. Please remember to make a copy for your reference.

• Use Black or Blue Ink. It is required to use a pen with black or blue ink when signing over a legal document. It looks more formal and presentable. It also stays longer over time. They say blue inks are more preferred as the signature looks authentic, while the black ink looks more of a photocopied.

• No Erasures nor White Outs. There should not be any erasures on the title as it is a legal document, so you have to be careful and be sure of what you are going to write. Write neatly and legibly to avoid any mistakes at the time of data-entry. Do not use white-out or correction fluid. Any error or mistake can void the document, so you need to be mindful. Take your time in writing.

• Use your Real Names. Since a Car Title is a legal document and is considered formal and official, you have to use your actual name on the paperwork. Do not use nicknames nor aliases. It has to match the printed name on the title. If in case you got married or may have changed your name, you will still need to sign and use the same listed name on the title.

• Counter-Check the VIN. The Vehicle Identification Number or VIN is a combination of seventeen letters or numbers that serves as a car's unique identifier. You need to check if the VIN on the Car Title and the vehicle is the same. You can find the VIN on the driver's side dashboard in which you can view it from the windshield. You may also see it on the driver's side door pillar. If you would like to check further, you may also find the VIN on the registration card or the insurance records.

• Matching Odometer readings. The Odometer reading on your vehicle should match the ones in your Title. You will also need to fill out the Odometer Disclosure Form to declare the accurate odometer reading. If in case they do not match, it may indicate the odometer was damaged, and the vehicle can be hard to sell. Always provide accurate mileage on your paperwork as the buyers are cautious about odometer fraud and tampering.

• Signatures. Both the buyer and the seller need to sign the Car Title to make the sale official. Please read the document before signing as there is no room for errors. Sign on the seller's part and on any part that requires your signature. Some states require the title to be notarized, in which both must sign in front of a notary public.

Signing a Title to a Car Dealership

When selling or trading your car to a dealership, the dealer usually takes care of the paperwork. You just need to bring the car title and registration with you. They will process the documents to the state Division of Motor Vehicles (the process depends per state), and the seller usually receives the title via mail if they traded it for a new car. If you have liens on the car, the dealer will coordinate with the lienholder with regards to paying the loan and transferring the vehicle's ownership.

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