30+ Years of Dealership & Manufacturer Expertise - Approved Academy
30+ Years of Expert Retail Dealer Operations and Manufacturer Experience - Approved Course
3.7 Completing Titles for Transfer
When you sell a vehicle, you must properly complete the title transfer. This is one of the most fundamental dealer functions, and errors here cause delays, penalties, and unhappy customers. Let’s walk through the process step by step.
When you acquire a vehicle — whether from a private party, at auction, or from another dealer — the seller signs the title over to you. Your dealership name and dealer number should appear as the buyer on the title. When you then sell the vehicle to your customer, you sign the title as the seller and the customer signs as the buyer. The odometer reading must be recorded on the title at each transfer, and it must be accurate.
Use ink — never pencil — when completing title documents. Write legibly. Do not use correction fluid or tape. If you make an error, draw a single line through the error, write the correction nearby, and initial the correction. Both the seller and buyer should initial any corrections. A title with excessive corrections, illegible writing, or whiteout may be rejected by DMV, which delays the transfer and frustrates your customer.
Make sure all lienholder information is properly addressed. If the vehicle you acquired had a lien on it, you need either a lien release from the lienholder or the lienholder’s signature on the title releasing their interest. If you’re selling a vehicle that will be financed, the new lienholder’s information needs to be included in the appropriate section of the title or on the accompanying transfer documents.
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⚠ Key Compliance Point Dealers must submit completed title transfer documents and all applicable fees to DMV or an authorized service within the timeframe required by law. Failure to transfer title within the required period can result in penalties assessed against the dealer and is a ground for disciplinary action. |