A vehicle title is a document that proves that someone is a legal owner of a car. Whether you are buying, selling or gifting a vehicle, the ownership must be transferred.
If the title transfer isn’t properly conducted when you are buying a used car, you may end up being responsible for traffic violations that were made by the previous owner, or having to pay any outstanding liens on the title.
Title transfer requirements vary from state to state, but there are some general rules that apply in every state.
If you want to sell your car and there is a lien on it, you have to pay off the loan and than the lienholder can be removed. The seller must provide a vehicle registration receipt, and it’s advisable to fill a Vehicle Transfer Notification so that you are not held responsible if the new owner gets involved in an accident, gets a traffic ticket or makes any other traffic violation.
If you are in the process of buying a used car, you need to make sure that the title has been properly signed over to you and you have to get the car’s VIN and an odometer reading.