Title Transfers

Titles help the state keep track of vehicles and protect you against theft. Any time a vehicle changes ownership, a new title gets issued. The Department of Motor Vehicles (DMV) takes care of title transfers in Virginia.

When you buy a vehicle with borrowed funds, the DMV places a "lien" on the vehicle. It also does this when you refinance your vehicle loan. Any liens on the vehicle get recorded on the vehicle's title.

Transferring the Title to a Buyer

If you sell your vehicle in a private transaction, you must sign your title over to the buyer, who will take it to the DMV to be issued a new title in their name.

Section A on the front of your title has a space for you to sign your name, fill in the name and address of the buyer, and record the current odometer reading of the car. There is also space to indicate the price you sold the vehicle for. If you donated it, you can write "charitable donation" in this space.

Make sure the buyer also fills in his or her name and address and signs the title; then hand it over.

Titling Vehicles with Liens

When you title and register your financed vehicle in Virginia, the DMV sends the title with its recorded lien to the lienholder, who is usually the lender. The DMV issues the registration card and license plates to you.

Titling Your Vehicle After Paying Off a Loan

Once you pay off your loan, the lienholder or lender must notify the DMV within 10 days. The leinholder must also mark the title as "lien satisfied" and send it to you. You can then exchange the title at the DMV for a clear title and pay the $10 title fee. Or, you can keep the one the lender sends you.

Be sure that no matter what you choose, the DMV's records show that the lien has been released. If your lienholder has not notified the DMV, bring the title to any DMV customer service center and apply for a substitute title using the specific application form. There is a $10 fee, and you will receive a new title.

After the lienholder sends the title to you, if you lose it or it gets damaged, obtain a lien release letter from the lender as proof that the lien is satisfied. If the lienholder company has merged or changed its name or address, contact the State Corporation Commission to get the new name or address.

If the company is out of business, get a letter from the State Corporation Commission stating so, and bring it to the DMV. Also bring any receipts, cancelled checks, or other evidence showing that the loan has been paid off, with a notarized personal statement that says you have satisfied the lien.

Recording Supplemental Liens

A supplemental lien is placed on your vehicle if you finance it after you receive a title in your name, or if you are refinancing your vehicle loan. To record the supplemental lien and get a supplemental lien title, simply pay a $6 fee to the DMV and present a completed Application for Supplemental and Transfer Liens.

Transferring Ownership

If you want to sell or transfer your vehicle to someone else and there is a lien on it, contact your lender/lienholder. They must agree to the transfer and provide you with the Virginia title and a signed Transfer of Certification of Lien Information form.

The lender should satisfy the existing lien and record a new one for the buyer, if the buyer is taking over the unpaid balance of your loan and he or she was not on the original contract.

The buyer will also have to pay 3% sales and use tax on the unpaid loan balance plus any additional amount paid to the seller, even if the lienholder does not file a supplemental lien.

And if the question arises, you do not need a driver's license to own a title.

Relinquishing Leased Vehicles

Are you turning in your leased vehicle? If the lease term is up or your lease is otherwise terminated, you have no further obligation to the DMV for the vehicle if you are relinquishing it. The lessor (owner) will assume responsibility for it.

Retaining Leased Vehicles

If you retain a leased vehicle, you must have it titled in your name. You will have to pay sales and use tax on the vehicle's residual value unless you are exempt. If you already paid it on behalf of the lessor, you may be exempt from paying it twice.

When you acquire the vehicle directly from the lessor or from the original dealer who leased it, you are exempt. But if you buy it from another dealer, you owe sales and use tax. Also, the title must be issued to a person named on the lease, and the lease cannot have been to a business or any commercial entity.

The Virginia DMV offers more information about vehicle liens and titles.

Adding or Deleting a Name

To add a name to your existing title, complete an Application for Supplemental and Transfer Liens or Replacement and Substitute Titles and deliver it to any DMV location along with all applicable fees.

Removing a name requires nothing more than the owner completing Section A on the title certificate.

Changing Your Name on a Title

You must present to any DMV location:

• A completed Application for Change of Existing Vehicle Record.

• A completed Application for Supplemental and Transfer Liens or Replacement and Substitute Titles.

• Evidence of name change (divorce decree, marriage license, or court order).

• The existing title certificate.

• A $10 substitute title fee.

Transferring a Title as a Gift

If you're giving your vehicle away as a gift, complete Section A of the title. When doing so, write "gift" as the sale price. The recipient will complete the buyer's section.

Transferring a Title in the Event of Death

Joint Ownership

To have the title transferred to you, take the following to any DMV office:

• Proof of identity

• The vehicle title

• Certified or notarized death certificate

• Cash, check, or credit card to pay all applicable fees

Inherit by Will

You are not required, in this situation, to pay sales and use tax.

Bring to any DMV office:

• The vehicle title

• Certified or notarized death certificate

• Proof of identity

• Either a notarized copy of the will or a completed Statement of Authority to Assign Title

• Cash, check, or credit card to pay all applicable fees

Executor or Administrator of the Estate

The executor or administrator must deliver to any DMV office:

• Certified or notarized death certificate

• Proof of identity

• The vehicle title

• Court-issued document or will appointing the executor or administrator

• Cash, check, or credit card to pay all applicable fees