How to Sign Over a Vehicle Title: Your Essential Guide

Transferring vehicle ownership legally requires correctly signing over the vehicle title. This process, crucial whether you’re selling, buying, or inheriting a vehicle, ensures a smooth transition and helps you avoid potential legal and financial issues. In New Jersey, this action cannot be completed by mail and necessitates a visit to a Motor Vehicle Agency (MVA) facility. This guide provides a comprehensive breakdown of How To Sign Over A Vehicle Title, ensuring you navigate the process with confidence.

Signing Over a Title When Selling a Vehicle

When selling your vehicle, properly signing over the title is paramount to relinquish ownership and avoid liabilities associated with the vehicle after it has been sold. Here’s a step-by-step breakdown for both sellers and buyers:

For the Seller: Key Steps to Sign Over a Title

As the seller, your responsibilities include several crucial steps to legally transfer ownership:

1. Remove License Plates: Before handing over the vehicle, remove the license plates. Unless you are transferring these plates to a newly acquired vehicle, you must surrender them at an MVA. Remember, license plates are not transferable to another owner.

2. Sign the Title Correctly: Locate the seller’s section on the back of the vehicle title. Carefully and clearly sign your name as the seller in this designated area. This signature officially starts the transfer process.

3. Prepare a Bill of Sale: While the title transfer is the official document, a bill of sale provides an extra layer of protection and clarity for both parties. Ensure your bill of sale includes the following details:

   • Buyer’s Full Name and Address: Accurately record the complete name and current address of the buyer.
   • Date of Sale: Clearly document the date the vehicle was officially sold.
   • Current Mileage (Odometer Reading): Note the vehicle’s odometer reading at the time of sale. This is a legal requirement and helps in verifying the vehicle’s history.
   • Agreed Sale Price: State the exact sale price of the vehicle.

   Once completed, provide the signed title and the bill of sale to the buyer.

For the Buyer: Accepting a Signed Title

As the buyer, receiving a properly signed title is your first step towards legal ownership. Here’s what you need to do:

1. Sign the Buyer’s Section on the Title: On the reverse side of the title, find the buyer’s section. Sign your name in this area and include your driver’s license or Entity Identification Number (EIN), if applicable.

2. Visit a Motor Vehicle Agency: Within a specific timeframe (in New Jersey, it’s 10 working days for New Jersey or dealer reassigned titles to avoid a $25 penalty), visit an MVA facility. Remember, title transfers cannot be done via mail.

3. Complete Necessary Forms and Applications: At the MVA, you’ll need to complete the Vehicle Registration Application (Form BA-49), if required, and finalize the title transfer. You will also receive your new license plates at this time.

4. Gather Required Documents: Ensure you bring all necessary documents to the MVA. The specific documents needed will depend on whether the vehicle was:

   • Pre-owned in New Jersey
   • Pre-owned in another state that issues titles
   • Pre-owned in a state that does not issue titles
   • Pre-owned and purchased at an auction

   Refer to the MVA’s guidelines to prepare the correct paperwork based on your purchase scenario.

Situations Requiring Power of Attorney (POA) or Letter of Authorization (LOA)

There are instances where you might need to sign vehicle title documents on behalf of someone else. This typically requires a Power of Attorney (POA) or, in some cases, a Letter of Authorization (LOA).

Power of Attorney (POA) Requirements

If you are signing title or registration applications for a non-dealer transaction where you will be signing on behalf of someone else, you must present a valid Power of Attorney. The POA must be either General, Durable, or Limited, and it must be notarized. Essential components of a POA include:

• Appointee/Attorney-in-Fact’s Information: Full name and address of the person authorized to act on behalf of the vehicle owner.
• Principal’s Information: Full name, address, and signature of the person granting the power of attorney (the vehicle owner).
• Scope of Powers Granted: A clear specification of the powers being granted.
• Vehicle Details (for Limited POA): If it’s a Limited POA, it must reference the specific vehicle, including the Year, Make, VIN, and type of transaction authorized.

For businesses issuing POAs, the document must be on official company letterhead. Regardless of POA type, you must also present your own valid ID/License when conducting the transaction.

Letter of Authorization (LOA)

In situations where all necessary paperwork has already been signed by the person you are representing in a non-dealer title or registration change, you may use a General Letter of Authorization instead of a POA. This is a simpler alternative when you are merely submitting documents that have already been signed. You can find the Letter of Authorization LOA-1 form on the New Jersey MVC website.

Transferring a Vehicle Title After Death

Transferring a vehicle title after the owner’s death involves specific procedures depending on how the title was held and whether there was a will. All transfers related to a deceased owner must be processed at an MVC Vehicle Center, and scheduling an appointment beforehand is advisable.

Title in Both Spouses’ or Domestic Partners’ Names

If the vehicle title is in the names of both spouses or domestic partners, the transfer process is relatively straightforward:

• Submit the current title, signed and completed by the surviving owner.
• Provide a copy of the death certificate.
• Include a notarized Affidavit (Form BA-62).

A title fee will apply, and the existing registration can often be transferred to an immediate family member for a nominal fee.

Transferring Ownership to the Estate/Individual (Owner Dies With a Will and No Co-owner)

When the deceased owner had a will and no co-owner, transferring the title involves these steps:

1. Obtain an Entity Identification Number (EIN): If the title will be in the name of the estate, apply for an EIN. This is not needed if the title is being transferred directly to an individual.

2. Gather Required Documents: Bring the EIN (if applicable), the old title signed by the executor, the Surrogate’s Short Certificate, and your driver’s license for identification.

3. Pay Title Fees: Be prepared to pay the applicable title fee.

If the vehicle will continue to be operated, a new registration and proof of New Jersey insurance in the estate’s name will also be necessary.

Title in the Deceased’s Name Only (No Will)

If the title is solely in the deceased’s name and there is no will, the transfer process depends on the estate’s value and surviving relatives:

• Surviving Spouse, Domestic Partner, or Civil Union Partner (Estate ≤ $50,000):

  • Present the current title.
  • Provide an Affidavit of Surviving Spouse/Domestic Partner/Civil Union Partner, including the raised seal of the County Surrogate from the county where the deceased resided.
  • Ensure the title is signed and completed by the surviving spouse/partner.

• Heirs, No Surviving Spouse/Partner (Estate ≤ $20,000):

  • Present the current title.
  • Provide an Affidavit of Next of Kin, including the raised seal of the County Surrogate.
  • Ensure the title is signed and completed by the Next of Kin.

• Estates Exceeding Above Values:

  • The title must be transferred by the Administrator of the estate.
  • Present the current title assigned by the Administrator.
  • Include an Administrator’s Short Certificate with the raised seal of the County Surrogate.

Important Considerations When Signing Over a Title

Regardless of the transfer scenario, keep these points in mind:

• Odometer Reading Accuracy: Federal and state laws require an accurate odometer reading during a vehicle sale. Ensure the reading is correctly recorded on the title and bill of sale. If the odometer reading is not accurate, the seller must provide an estimated reading.

• Liens: If there are any liens on the vehicle title, they generally must be satisfied before a new title can be issued, unless the lien is being transferred to the new sole owner. Contact the lending institution for detailed guidance.

• Sales Tax: Vehicle sales are subject to sales tax unless specifically exempt. In New Jersey, a vehicle sale is exempt from sales tax if it’s considered a gift, which must be indicated on the title.

Navigating the process of signing over a vehicle title correctly is essential for a legal and hassle-free vehicle transfer. By following these guidelines and ensuring all necessary steps are completed at a New Jersey Motor Vehicle Agency, you can confidently transfer vehicle ownership, whether through sale or inheritance. Always refer to the official New Jersey Motor Vehicle Commission website for the most up-to-date information and forms.