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Title Transfers
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A title is a legal document that identifies ownership of a piece of property, such as a vehicle. So, when a vehicle is sold, a title transfer must take place to let the Secretary of State (SOS) office officially know who owns the vehicle. Title transfers need to occur within 15 days of the sale transaction to avoid a $15 late fee. Ideally, the transfer will happen immediately after the vehicle is sold.
Some common reasons to transfer a title include:
- Selling a vehicle
- Buying a vehicle
- Paying off a loan
- Transferring a vehicle to a family member
- Giving away a vehicle
- Donating a vehicle to charity
- Inheriting a vehicle
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
Most vehicles transfers involve a lot of money, which justifiably usually makes people a little nervous. Buying a vehicle history report is an excellent way for the seller to calm the apprehension of a potential buyer, as the buyer can at least get an idea of what's happened in the vehicle's past.
Once you've sold the vehicle, you'll need to:
- Locate the title.
- Fill in the applicable sections, including the buyer's name and the date of purchase.
- Complete the odometer section.
- Sign your name.
- Give the title to the buyer, who will need to finish the transaction at a SOS branch office by following the steps listed below.
If the transaction doesn't take place at a branch office or you can't accompany the buyer to the office, you should make a copy of both the front and back of the title for your records.
Also, although you're not required to do so, it's smart to complete a bill of sale, too.
Top Buying a Vehicle
New Cars
When you purchase a new car from a dealer, the title transaction should be handled by the dealer. If the dealer fails to do so, call the SOS at (888) SOS-MICH.
If you haven't made your final decision on what new vehicle you're going to purchase, you can always shop online and easily see what vehicles are available.
Used Cars
Buying a used car is often a smart move financially, especially with so many pre-owned cars on the market. Searching for a used car online is a terrific way to efficiently see what's currently available. Of course, it's also a great way to shop for the best financing and insurance rates.
Before you purchase a used vehicle, it's always smart to buy a vehicle history report to get an indication about the vehicle's background.
Once you've made your decision and purchased the vehicle, you'll need to process the title transfer by:
- Obtaining the title from the seller (be sure to do this).
- Making sure the seller has correctly included the appropriate information, such as the odometer reading, sales price, and your name.
- Verifying that the vehicle identification number (VIN) on the title and the vehicle match.
- Confirming that the seller signed and dated the title.
- Checking that there aren't any outstanding liens on the vehicle.
- Signing and dating the title.
- Going to an SOS branch office to complete the transaction.
- Paying the 6% use tax.
- Paying the $15 title transfer fee.
You can register the vehicle while at the branch office.
Top Removing a Lien
After you pay off the loan, the financial institution or lienholder will release you from the lien by filing the required paperwork with the SOS. If this fails to happen, call the SOS at (888) SOS-MICH for instructions on how to proceed.
Top Transferring to Family
For the sake of these sorts of transfers, the state defines "family" to include:
- Parent (natural or adoptive)
- Brother or sister (including half-brother and half-sister)
- Child (natural or adopted)
- Stepparent, stepbrother, stepsister, or stepchild
- Grandparent
- Grandchild
- Spouse
- Legal ward or legally appointed guardian
When a vehicle is transferred between these family members, no use tax needs to be paid. Other than that, though, the title transfer process is the same as that between non-family members:
- Seller finds the title.
- Seller completes the applicable sections, including the buyer's name and the date of purchase.
- Seller fills in the odometer section.
- Seller signs the title.
- Seller hands over the title to the buyer.
- Buyer verifies the seller has properly included the appropriate information, like the odometer reading, sales price, and seller's name.
- Buyer checks that VIN on the title and the vehicle match.
- Buyer confirms the seller signed and dated the title.
- Buyer verifies there aren't any outstanding liens on the vehicle.
- Buyer signs and dates the title.
- Buyer heads to an SOS branch office to complete the transaction.
- Buyer pays $15 title transfer fee.
While at the branch office, the buyer may register the vehicle.
Top Gifting a Vehicle
If you receive a vehicle as a gift from a family member (see the section above), you won't have to pay the 6% use tax. If you receive a vehicle from anyone else, you will have to pay the tax based upon the vehicle's retail value.
No matter who you received the vehicle from, however, you'll need to follow these steps to process the title transfer:
- Get the title from the giver.
- Be sure the giver properly included the appropriate information, such as the odometer reading and your name.
- Check that the VIN on the title and the vehicle match.
- Verify that the giver signed and dated the title.
- Make sure there aren't any outstanding liens on the vehicle.
- Sign and date the title.
- Visit an SOS branch office to complete the transaction.
- Pay the $15 title transfer fee.
You can register the vehicle while at the branch office.
Top Donating a Vehicle
Giving a vehicle to a charity is a noble gesture, but you should make sure you know exactly what you're doing and whom you're dealing with before proceeding. See our Car Donation article for more information on this matter, and if you need more help, consult a tax consultant.
Top Inheriting a Vehicle
These transactions are often complex, and the title transfer procedure varies according to the exact situation. You might want to contact a probate attorney if the situation merits it, or at least call the SOS at (888) SOS-MICH to inquire about you'll need to process the transfer.
Here, though, is how to handle the common situation of if your spouse left you the vehicle and there's no probate involved:
- Locate the title.
- Obtain a certified copy of the death certificate.
- Complete the heir certification form.
- Have the current registration or the license plate number with you.
- Bring everything to an SOS branch office to complete the transaction.
- Pay the $15 title transfer fee.
Don't forget about having the proper insurance coverage; check our Insurance Center to find providers.
Top Making Name Corrections
Changing a Name
To change your name on a title:
- Go to a branch office with the legal document that certifies your name change.
- Have proper photo identification.
- Make sure everyone who originally signed the title is either present or has completed an Appointment of Agent form.
- Pay the $15 fee.
If there is a lien on the title, the SOS will need to see a letter from the lienholder allowing the change to take place.
Also, in situations like this, it's handy to have a copy of your court decrees or licenses for proof of a name change.
Consult our Changing Your Name section for additional information on name changes.
Deleting a Name
To delete a name from a title:
- The person whose name is being deleted must sign off the change on the title.
- The current owner(s) must go to a branch office to complete the transaction and pay the $15 fee.
If there's a lien on the title, you must bring a letter from the lienholder allowing the change to take place.
Adding a Name
To add your name to a title:
- Go to a branch office.
- Bring proper photo identification.
- Sign the title.
- Pay the $15 fee.
If there's a lien on the title, a letter from the lienholder allowing the change to take place must be shown at the SOS office.
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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