Selling your car involves more than just the payment and awarding of the vehicle to the new owner. Some paper works should be executed to seal the sale and to convey legal ownership to the buyer. The first consideration is the bill of sale that you need to issue to the new owner so you can sign over a car title to him. The car title though just a simple document, wholly bestows property rights on the owner. Therefore it is but proper that you arrange the documentary transfer to make the sale legal and absolute.
For your reference and guidance, read these tips on how to sign over a car title to someone:
- Prepare the car title and the bill of sale. This should be done before the buyer makes any payment. The car title should be in your possession as the previous owner. Inspect it of any liabilities and make sure its current registration is settled with the tax office in your area. The next thing to do is to draw a bill of sale between you and the new owner. There are sample forms on the Internet that you can download and use as pattern. You might want to get the services of a lawyer if you are unable to execute the sale on your own. The lawyer will prepare the bill of sale as well as affix legal attestation to it.
- Get another copy. If you cannot find the car title in your files, go to the local DMV or Department of Motor Vehicles of the state where the car was registered and request for an original copy of the title as duly authenticated by the agency’s officer.
- Make a comprehensive sale. Accomplish an all-inclusive title and sale paper if it is allowed in your state. There are areas in the country where the car title and the details of the sale are jointly stated in a single document. If this is the case then you just have to indicate the price of the car in a denoted space and the document is well in place. But if such practice is not permitted in your area, then you have to come up with a bill of sale as proof that the car has been sold and the amount of sale has been duly paid. Know also that there may be cases when the method of payment should be indicated in the title and bill of sale including the amount of initial payment and the subsequent installments. If the car is also meant to be donated, such purpose should be indicated in the transfer title form and bill of sale.
- Sign the transfer title form. Both you and the new owner must sign the documents, as confirmation that you are relinquishing ownership of the vehicle to the buyer. However, take caution not to sign the title if the payment has not been made yet. You may need to sign every page of the forms if they consist of several sheets. All signatures must be in place, including those of the other owners if it is a multiple ownership sale.
With car sale and for any sale transaction for that matter, the bill of sale should include a clause stating that the buyer received the item in good and working condition. This shall be for your protection as seller, so that in the event when there are future defects after the sale, you are no longer held liable.
Add comment