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Title Transfers
Travelers® Offers Free Quotes on Car Insurance. Review Rates Today.www.Travelers.com/CarInsuranceState Farm® Is The #1 Car Insurer. Get Your Free Quote Today.www.StateFarm.comTop What is a Title Transfer?
A title is a legal document that establishes ownership of property. Since all vehicles in the state need to be have a title, when you buy or sell a vehicle, a title transfer must take place to allow the Secretary of State (SOS) office to keep track of who currently owns the vehicle.
Title transfers must take place within 20 business days of the exchange. Some common reasons for title transfers include:
- Buying a vehicle
- Selling a vehicle
- Paying off a loan
- Transferring a vehicle to a family member
- Gifting or donating a vehicle
- Inheriting a vehicle
- Making name corrections
Buying a Used Car? Order a Vehicle History Report First
Ordering a vehicle history report is a critical step in the used car buying process. Failing to do so could result in the purchase of a vehicle with frame, flood, or fire damage, odometer rollback and more. Stay on the safe side, and order a vehicle history report before you buy a used vehicle.
Top Selling a Vehicle
Buying a vehicle understandably makes people a little apprehensive, as usually there's a lot of money involved. As a seller, obtaining a vehicle history report is an excellent to calm these jitters, and should facilitate the selling of your vehicle.
Once you've sold the vehicle, you should:
- Locate the title.
- Fill in the odometer section.
- Fill in the buyer's name (be sure to include the correct spelling).
- Sign and date the title.
- Verify that the buyer has correctly included the necessary information and signed the title.
The buyer will then need to bring the paperwork to a SOS office, and follow the instructions listed below. You might want to accompany the buyer to the office, just to be able to correct a mistake that might have been made in the title transfer.
Also, while you're not required to do so, completing a bill of sale is a smart move to further protect yourself in this transaction.
Top Buying a Vehicle
New Vehicles
In almost all these cases, the dealer will handle the title transfer for you. If the dealer fails to comply, call the SOS at (800)252-8980 or write to them.
If you haven't made your final decision, take a look online and quickly gather information on the many choices available.
Used Vehicles
For most people, buying a car (new or used) is second only to housing purchases in terms of money spent. So, you'll obviously want to proceed cautiously when purchasing a vehicle.
Another thing to be cautious about, always insist on walking away with the signed-over title in your hands; never take the word of a seller that they "will mail it to you once they pay off the lienholder." If a title is not free and clear, you should reconsider whether you should go through with the deal.
Searching for a used car online not only saves you time, but gives you the type of information you need to make the best decision. Purchasing a vehicle history report or two is also a sound move, once you've narrowed your choices.
And, getting the best deals for your car loan and insurance will allow you to save a lot of money―and may even allow you to spend more on the car itself.
Once you've made your decision and finished the sale, you'll need to transfer the title by:
- Making sure the seller has correctly completed the applicable sections.
- Confirming that the seller signed and dated the title.
- Verifying the mileage reading.
- Checking to make sure the vehicle identification number (VIN) matches.
- Signing and dating the title.
- Completing form VSD-190 (use form VSD-330 if you won't be registering the vehicle).
- Filling out tax form RUT-50.
- Heading to a SOS location (or mailing the material to the address listed below).
- Paying the use tax (if applicable).
- Paying the $65 title fee.
While at the SOS office, you may register the vehicle and pay the registration fees.
If you prefer to process the transfer through the mail, send all the required documents and fee payment to:
- Secretary of State
- Vehicle Services Department
- 501 S. Second St., Room 014
- Springfield, IL 62756
Top Removing a Lien
Once you pay off your loan, the lienholder should release you from the lien and return the title to you. If the lienholder fails to do so, contact the SOS at (800)252-8980 for instructions on how to proceed.
Top Transferring to Family
For the sake of this section, "family" refers to:
- Mother
- Father
- Brother
- Sister
When transferring a vehicle between family members, the same title rules apply as those between non-family members. This means the use tax must be paid; however instead of it being based on the model year value of the vehicle, it's a fixed fee of $15.
To transfer a vehicle within a family:
- Seller must locate the title.
- Seller must complete the odometer section.
- Seller must record the buyer's name.
- Seller must sign and date the title.
- Buyer should be sure the seller has correctly completed the applicable sections and signed and dated the title.
- Buyer should confirm the mileage reading.
- Buyer should see if the VIN matches.
- Buyer must sign and date the title.
- Buyer must fill out form VSD-190 (use form VSD-330 if buyer won't be registering the vehicle).
- Buyer must complete tax form RUT-50.
- Buyer should go to a SOS location (or mail the material to the address listed below).
- Buyer must pay the use tax.
- Buyer must pay the $65 title fee.
For mail transactions, send all the required documents and the fee payments to:
- Secretary of State
- Vehicle Services Department
- 501 S. Second St., Room 014
- Springfield, IL 62756
Top Gifting a Vehicle
If you receive a vehicle as a gift (meaning you didn't pay anything for it), you should handle the title transaction in the same manner as if you purchased the vehicle. The sales tax you'll pay will be based on the vehicle's model year value, or $15 if the transfer is between a mother, father, brother, or sister.
To process the title transfer:
- Verify that the seller has correctly completed the applicable sections and signed and dated the title.
- Confirm the odometer reading.
- Check if the VIN matches.
- Sign and date the title.
- Fill out form VSD-190 (use form VSD-330 if you won't be registering the vehicle).
- Complete tax form RUT-50.
- Travel to a SOS location (or mail the material to the address listed below).
- Pay the use tax.
- Pay the $65 title fee.
While at the SOS office, you may register the vehicle and pay the registration fees.
When processing the transaction through the mail, send all the required documents and the fee payments to:
- Secretary of State
- Vehicle Services Department
- 501 S. Second St., Room 014
- Springfield, IL 62756
Top Donating a Vehicle
While giving your vehicle to charity is a kind gesture, you should be sure of what you're doing before you proceed, as these matters can be surprisingly complex. Reading our car donation article is an excellent way to start, but you might also want to consult a tax attorney, too.
Top Inheriting a Vehicle
Since the procedures for these matters vary according to the situation, it's wise to either talk to a probate attorney or at least someone at the SOS office before trying to take care of this transfer.
In an effort to try to simplify these types of situations, both new title certificates and title applications contain a space where the vehicle owner may list the individual (beneficiary) who will receive the vehicle should the vehicle owner pass away.
While the SOS provides guidelines for handling different scenarios, here's how to handle the common situation of when probate is not involved and the estate's value is not more than $100,000:
- Locate the title.
- Obtain a copy of the death certificate.
- Complete the Small Estate Affidavit form.
- Complete VSD-190 (use form VSD-330 if the vehicle won't be registered).
- Complete tax form RUT-50.
- Go to a SOS office.
- Pay the use tax fee.
- Pay the $65 title fee.
You can register the vehicle and pay the registration fees while at the SOS office.
To find the best insurance coverage for the vehicle, consult our Insurance Center.
Top Making Name Corrections
Changing a Name
To change your name on the title, you should:
- Change your name on your license first.
- Go to a SOS office.
- Bring your title, registration, and photo ID.
- Bring the legal document declaring the name change.
- Complete form VSD-190.
- Pay the fee ($15 for changes finalized after December 31, 2007; $65 for changes before then).
Consult our article on name changes for more information. Also, in these situations, it's always good to have a copy of your vital records on hand, too.
Deleting a Name
To remove a name due to a divorce:
- Go to a SOS office.
- Bring either a letter from your ex-spouse declaring permission to have the name removed, or a copy of the divorce decree showing that the vehicle belongs to you.
- Complete form VSD-190.
- Pay the fee ($15 for divorces finalized after December 31, 2007; $65 for divorces before then).
To remove a name due to a death:
- Go to a SOS office.
- Bring a certified copy of the death certificate (if the matter is in probate, bring certified copies of letters of administration or court order).
- Complete form VSD-190.
- Pay the fee ($15 for deaths that occurred after December 31, 2007; $65 for deaths before then).
Adding a Name
To add a name:
- Go to a SOS office with the person whose name is being added.
- Complete form VSD 190.
- Pay the fee, which differs according the circumstance, but will either be $15 or $65.
Related Questions from DMV Answers
Where can I get a release of liability form?
Not every state requires a specific release of liability form (see grid below) during a title transfer. If, however, you do reside in a state that requires this form, you can grab one from your local DMV office. Or, in some instances, download a copy from your state's DMV Web site. This form goes under many names. Arizona, for example, calls it a Sold Notice. California refers to it as a Notice of Transfer and Release of Liability. And Ohio names it a Customer Request to Cancel Vehicle Registration form.Keep in mind that just because your state does not require a specific Release of Liability form, does not mean you're free from notifying your DMV office. In lieu of a specific form, many states substitute surrendering the vehicle's license plates as adequate notification. Others require a letter in writing. And some don't require any notification at all. The advantage of getting a release of liability on record is that should the new owner not properly file title transfer paperwork,...
Read more >>I paid off my loan but the lien holder has not released the title, what can I do...
Contact the lender and ask that they take action to release the title because you have paid off the loan. Be ready with proof, such as the bank’s own “Paid in Full” note, or bank statements with payment history. When you pay off your car loan, your lender, or lien holder, is supposed to release the lien. At this point, you can enact a title transfer at the motor vehicle office, so that the title will be in your name only. Now, let’s say the lender, for whatever reason, never gets around to releasing the lien, and you only find out about the oversight much later. Now you can’t contact the lender because the bank failed and there’s no proof that you own your car. What to do? There is another option. Contact the FDIC, or Federal Deposit Insurance Corporation, and ask for a lien release in writing by email, fax, or letter. Explain the terms of your loan, when you paid it off, and proof that you paid it off. Proof can include documentation such as copi...
Read more >>Where can I obtain a lien release form?
You'll need to contact the financial institution that gave you the loan. In turn, they'll either send you a completed lien release form, or a letter that states you've been released from the loan.After you've paid off your loan, your bank should automatically send you the lien release. A lien release is often required by motor vehicle agencies in order to process a used car title transfer. Visit your state's motor vehicle agency site to learn what paperwork is required when buying or selling a used car. Most states do a good job of explaining this matter, but if you're confused, contact your local DMV branch or the state headquarters.
Read more >>Do I need smog certification to complete a title transfer?
Some states require that the car’s owner provide a smog check or emissions certificate prior to the title transfer, while others make it the buyer’s responsibility to get a smog check, if a smog check is required in the state. Certain states only have smog requirements in higher-population counties. Check with your state’s motor vehicle agency for specifics.
Read more >>Can I take care of title transfers online?
While the Internet has made many tasks more convenient, title transfers must still be completed the old fashioned way. Although a few states have Web sites that allow you to download the forms necessary to complete a title transfer, you can not actually complete the car title transfer without making a trip to your local DMV office. A title transfer is needed: When you are buying or selling a car When you have paid off a loan When you inherit a vehicle When you transfer a vehicle to a member of your family When you donate a vehicle to a charitable organization When you need to make name corrections after marriage or a divorce Title transfer processes vary slightly by state, but you’ll generally need to provide: A title transfer application The completed car title A Bill of Sale showing the purchase price An odometer reading Proof of insurance Photo identification An emissions inspection certificate Payment for pay any sales or luxury taxes applicable to your purchase No app...
Read more >>
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