Title issues and you, Some general information about car titles Options

[LvSteveH]

I posted this over at the bird board in reply to a post about "skipped titles" (where someone sells a car they never actually had in their name, although they may have clear title to the vehicle). Anyway, I thought the info might be helpful to someone.

What's with all the recent hysteria with "skipped" titles? States have laws, and the DMV has their policies. I've never had a problem with a clean title, properly released from it's former owner. The requirements vary from state to state, some require a notary, others do not. Some want a bill of sale, others do not. Some collect taxes, others do not.

Even if you have a car without a title, most states have a simple process to go about clearing it up, although it is not fun and should be taken into consideration when buying a car. Any car without a valid title has the potential to be stolen, so keep that in mind too. The main things to look for when dealing with a title are:

1. Make sure that the name on the title and the signature match EXACTLY. If it says John Q. Crook, make sure it is signed off that way.

2. Make sure the VIN of the car matches the title. Some states will allow for small errors, but more than a digit or two incorrect and it can be difficult to correct.

3. Make ABSOLUTELY sure that no one else has been filled in as the new owner, be it a private party or dealer. If so, then it's erasure affidavit time, not fun tracking everyone down.

4. Check with the state you plan to title the car in, some will require a bill of sale, others will not. Some don't charge tax on private party sales, others do. Some determine the sales tax on the bill of sale price, others just depreciate the vehicle from new and tax on the estimated value.

5. The DMV does not want to hear all the boring details surrounding the transaction, they deal in facts. Find out what paperwork you need prior to going in. Present them with what you have, and pay the nice lady. If there is an issue, they will tell you. If something is really screwed up, they do not have the authority to do just let it slide, and contrary to what you may hope for, they will not risk getting fired for customer 488A.

6. The DMV understands that sometimes a car and title change hands without being properly retitled. I've seen cases where a car went through half a dozen owners while still using the 1978 title. It's a fact of life. The DMV is just happy that someone is in there trying to get the mess straightened out, and they are generally pretty accommodating to help someone who wants to do things properly.

7. The third party DMV services that title and register cars for people are your friend. They usually have a standing appointment at the DMV and can wade through the mess faster and more efficiently than you can.