Texas Title Transfer
Are you a Texas motorist who has recently bought or sold a vehicle? In Texas when a vehicle is sold there must be a title transfer filed with the state. This title transfer will record the individual owner or owners of the vehicle. The title transfer is basically the changing of ownership from one owner to another.
You must transfer the title in the state of Texas and register the car with your local County Tax Office within 20 working days of the change of ownership. This includes:
- When you are buying or selling a vehicle
- When you are paying off a loan
- When you are transferring the title to a family member
- When you are donating or gifting your car
- When you have inherited a car
- When you are making name corrections Use
Selling a Vehicle in Texas
While there is a legal process involved in selling a vehicle in Texas, Texas car owners can also take steps that will give them the advantage when selling their car. If you are selling your vehicle, you might want to consider ordering a vehicle history report on it. This will allow the potential buyer to have a complete history on the car including its maintenance repairs, any accidents it has been involved in and the number of owners it has had. To learn about ordering a vehicle history report visit 4dmv.com’s History Vehicle Report Section.
When you are ready to officially transfer the title to the new owner of the vehicle do so by following the following steps:
- Keep the car’s license plates. In Texas you have the option of transferring them to your next vehicle. Also, 4dmv.com suggests having the buyer of the vehicle to get a vehicle transfer permit. This will allow them to legally drive the vehicle to their local County Tax Office in order to take care of the title transfer and registration of the car.
- Complete the title for change of ownership. This will include recording the odometer reading for all cars unless the vehicle is 10 years or older or the vehicle has a GVWR - gross vehicle weight rating that is greater than 16,000 lbs or is rated by the vehicle’s manufacturer with a carrying capacity of two tons or more. . When filling out the odometer reading you will have to indicate whether it is:
- A - The Vehicle show the Actual or the correct mileage
- X - The odometer reading exceeds the odometer limits
- N = Not Actual Mileage Show (replaced or broken odometer)
You will also need to date and sign the back of the vehicle’s title, record the selling price of the vehicle and then hand it over to the buyer.
- Give the buyer of the vehicle the latest registration receipt. You will also need to complete and sign a Form 130-U which is the Texas Application Corticated of Title Form. You should include the selling price of the auto. If your vehicle currently has a lien then you will need to enter the first lien date which was signed by the lending institution on the application as well as the specific information on the lien holder such as their name and address. It is also necessary to include your address as well.
- Keep Record the buyer’s name and address, the date in which you sold the vehicle and the amount that you sold the vehicle for as well as other important details for your records.
- 4dmv.com also suggests that you take the trip to the County Tax office with the new buyer to transfer tile of the vehicle. This will ensure that the title has been transferred and that you are not responsible for any liability on the vehicle after the date of its sell. If it is not possible for you to take the trip to the County Tax Office with the buyer then submit a Vehicle Transfer Notification.
While it is not necessary to submit a Bill of Sale at the time of title transfer some sellers prefer to. For more information on a Bill of Sale visit 4dmv.com’s Bill of Sale Section.
Buying A Vehicle
When purchasing a new car from a dealer, there is much less paperwork that you are in charge of. Normally, the dealer will submit the title and registration forms that are necessary to have the vehicle titled and registered in your name.
If you are shopping for a new vehicle, visit 4dmv.com‘s New Car Guide Section.
- Used Vehicles
There are many used car buyers that prefer to buy from a private party. The typical reason for this is the cars are usually less expensive. For buyers that cannot pay for the car outright they may want to consider auto finance options. For more information on auto finance options visit 4dmv.com’s Car Loan Section.
For information on car insurance for your new car visit our Insurance Center.
To transfer title of your used vehicle, follow the following steps. If the purchase is through a dealer, then the process may be taken care of for you.
- Have the seller of the car complete the title. This includes dating and signing as well as including the selling price and odometer reading of the car. An odometer reading is not required if unless the vehicle is 10 years or older or the vehicle has a GVWR - gross vehicle weight rating that is greater than 16,000 lbs or is rated by the vehicle’s manufacturer with a carrying capacity of two tons or more:
- Complete a Form 130-U which is the Texas Application for Certificate of Title
You should be sure that the name of the seller, the date the vehicle was sold, its selling price as well as the sellers signature is on the form as well.
- Ask the seller to give you all paperwork that is associated with the car as well as its last vehicle registration receipt.
- Record the sellers contact information, the date of the transaction and all details that relate to the sell and the auto such as its VIN number for your records.
- Depending on whether you purchased the car from a dealer or a private party will depend on the amount of sales tax you pay. If you have purchased the vehicle through a private party then you will be responsible for the standard presumptive value of the car. If you have purchased through a dealer you will be responsible for paying 6.25% of the purchase price. You will also be required to pay the title transfer and registration fees as well as local fees.
- Submit your proof of the required amount of liability insurance.
Once you have gathered the above documents you can then visit your local County Tax Office to transfer the vehicle title. You will also need to register the vehicle. For specific information on vehicle registration visit our Car Registration Section.
Removing a Lien
To remove a lean you will need to gather you vehicle’s title and the letter of lien release which you receive from the lender and all paper work which you have received from the lien holder or holder. You will also need to complete and sign the Form 130-U which is the Texas Application for Certificate of Title.
Once you have gathered the information you can then visit your local County Tax Office. You will also be responsible for application fees. To find out what the fees are you can call your County Tax Office prior to visiting.
Transferring A Vehicle to a Family Member
If you are a Texas vehicle owner that would like to transfer your vehicle to someone in your immediate family you can do so by following the simple steps below.
- Gather the Certificate of Title on the vehicle.
- Record the vehicle’s odometer reading on the Certificate of Title. This will be recorded on the Assignment of Title on the Certificate of Title. You will also need to make sure you print and sign your name and the family member that you are transferring the vehicle to. As well as, the date of sale.
- You will also need to complete or have your family member complete a Texas Application for Certificate of Title
If your vehicle is newer than 1999, you will need to complete section 15, 18, 21 and 22.
Gifting a Vehicle
Texas vehicle owners can also gift their vehicle. They must indicate that the change of ownership is a “gift” and this must be recorded on the title. Read the steps below for information on gifting your vehicle.
- Give the new owner of the car your completed title.
- You must have the new owner of the vehicle complete a Texas Application for Certificate of Title
- Complete and sign as well as have the new owner of the vehicle sign an Affidavit of Motor Vehicle Gift Transfer.
The new owner of the vehicle can then visit their local County Tax Office to title and register the vehicle. He will be responsible for showing proof of auto insurance at the time of application.
There is a $10 Gift Tax if the recipient of the vehicle is:
- Nonprofit organization or the vehicle is donated
- Decedent’s estate
- Grandparent or grandchild
- Parent or stepparent
Donating a Vehicle
Donating a vehicle is a way for Texas motorists to help those that are less fortunate. It is a fantastic feeling to donate to your favorite charity. If you are a Texas motorist that does have a vehicle to donate then visit our Donating a Car Section. Remember you will be eligible for a tax credit provided the charity is recognized by the IRS.
Inheriting a Vehicle
If you recently had a loved one pass away that left you a vehicle then you will be responsible for transferring the title of the vehicle. To transfer the title of an inherited vehicle, simply follow the following steps:
- Gather the original testamentary letters of the deceased person. The papers will state the name of the executor of the will who will then sign in the place of the decedent.
- Complete and sign the Assignment of Title on the back of the Certificate of Title. The executor will also need to sign the Assignment of Title.
- Record the recurrent date and the odometer reading of the vehicle on the Assignment of Title.
- Complete a Texas Application for Certificate of Title
The executor will be responsible for filling out sections 15, 18 for any vehicle that is a newer than 1999 and sections 21 and 22.
Once you have completed the above steps, you can then visit your local County Tax office. Remember to take your testamentary letters with you.
Making Name Corrections
There are times that you may need to make name corrections. Suppose you have recently been married or divorced and have changed your name. In cases that name changes are necessary you will need to change your name on important documents such as your vehicle title.
To make name corrections visit your County Tax Office. You will need to bring documentation of your name change and you updated Social Security card.