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When a vehicle is sold, the protocol for the legal transfer to the new owner starts with the seller signing the certificate of title over to the buyer. The failure or inability to transfer title can temporarily leave the buyer without proof of ownership and the seller liable for the vehicle.
A new state law requires those who purchase vehicles in a private sale, whether it's in or out of state, to obtain a new title within 30 calendar days or face financial penalties. Failure to title within the 30 days results in an automatic $25 penalty, plus another $25 for each month the title is late.
If the buyer does not sign the title and mail or give it to DVS, then the seller's name stays on the title of the car. If the buyer doesn't transfer the title within 10 days, the car's registration is suspended.
Failure to pay your fees to DMV within 30 days will result in transfer and use tax penalties. If you sell or transfer ownership of a vehicle to another party, you have 5 days to report the transfer to DMV.
Upon transfer, the dealer must execute and acknowledge an assignment and warranty of title upon the certificate of title, and deliver the title not later than 60 days from the date of sale.
IMMEDIATELY call your state'DMV office, or go in person to your nearest DMV office, with an old copy of your car's title, registration and proof of insurance, plus the copy you just made of the buyer's Driver's License and the Bill of Sale.
How do I get proof of the car sale? You can use the title certificate with the new owner's name, the bill of sale or the sales tax form as proof you sold your car. You can download a bill of sale from your state's DMV website for both parties to sign.
It's rare, but it can happen. When you buy a vehicle from a private seller, you take the transferred title to your local DMV and register the car in your name. All the paperwork is taken care of for you if you buy from a dealer. Sometimes a private seller will sell his or her car, but the buyer won't ever register it.
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