Car Title Tips for Texas Drivers

In the State of Texas, making sure the information on your car title is up to date when you sell a vehicle can save you time, money, and liability risk.

When you sell, trade in, donate, or give away a car, it's crucial to make sure the car title gets transferred into the new owner's name. If ownership isn't transferred, then your name will still be listed as the official owner. This means you are liable for any violations such as citations for running through tolls without paying, red light camera tickets, parking tickets, car accidents that might end up in a hit and run incident, or any sort of criminal activity that might be associated with the vehicle.

Here are a few simple steps that can keep you out of a jam when it comes to your car title.

1. If you are selling the car on your own to an individual, don't simply sign the title and walk away. You have no way of knowing if the person you sold it to will ever have the title transferred. This leaves you (the seller) vulnerable to potential legal action. Instead of taking a chance, go to the local county tax office with the buyer and fill out all of the paperwork there. Then you can rest assured that everything has been taken care of properly.

2. If you can't go with the buyer to the tax office, or if you're selling to a dealer, then protect yourself by logging on to the Texas Department of Transportation website and file a Vehicle Transfer Notification form. The form is free to fill out and file online. This quick and easy process will inform the state that you are no longer the owner of the car, releasing you from any future liability related to the vehicle. Don't put it off too long though because the form has to be filled out and submitted within 30 days of the date of sale.

3. Keep your license plates, no matter if you sell to an individual or to a dealer. Simply take the plates off the car, and while you're at it, go ahead and peel the registration sticker off the windshield. This forces the new owner to transfer the title to their name in order to get new plates. Then go to the local county tax office, pay a $5 transfer fee, and you're all set to use your old plates on any vehicle you own.

4. After signing over the title to the new buyer, go online to the Texas Department of Transportation website. There you will find an Application for Texas Certificate of Title form. The buyer is responsible for filling out most of the information it's up to you to fill out the seller's portion.

5. Keep copies of all paperwork for your records. Make a copy of the title showing where you signed it over to the new buyer. Print a hard copy of any online forms associated with the sale.

6. It's also important to keep track of all documentation relating to the sale in case any questions arise. Keep records of things such as the date of sale, make and model of the vehicle, VIN (Vehicle Identification Number), and information about the buyer such as name, address, and phone number.

So remember, unless you are proactive and ensure the car title is transferred out of your name, you are putting yourself at risk for legal problems. Of course, if you have proper documentation to prove you no longer own the vehicle, the problems can be resolved. However, providing that proof is time consuming and can be a hassle. So keep yourself out of a jam by doing the legwork up front and prevent problems down the road.

Sources:
Texas Department of Transportation
Personal experience