How to transfer a car title in Texas
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Any car sold in the state of Texas needs to be legally titled before the new owner can use it. In short, the title is what proves that the new owner does indeed own it, and this becomes crucial when registering the vehicle. If you’re looking to learn how to transfer a car title in Texas, you’ve come to the right place—as always, we’re here to ensure you’ve got all the info you need to rest easy.
Transferring a car title in Texas after a sale is fairly simple. In addition to selling or buying, the same process applies when you’re donating your car, gifting it to someone, or inheriting it from a family member. With that said, here’s everything you need to know.
What You Need When Transferring a Car Title in Texas
If you’re a car buyer, the first step is to get a signed title from the seller. The title transfer form should include the vehicle’s license plate number, VIN, model year, as well as the buyer’s name and address. The seller should also complete and provide you with an Application for Texas Title and release of lien if the vehicle has an outstanding loan. Don’t have it? Don’t worry, because we’ve got you covered—that’s Form 130-U.
If the vehicle is less than ten years old, the seller should indicate its sale price at the back of the title and disclose its current odometer reading. The state of Texas also requires the buyer to get insurance coverage for the car in his or her name. He or she also needs to provide proof that the vehicle has undergone a safety inspection.
With a signed title, Application for Texas Title, proof of insurance, proof of inspection, and a copy of your ID, you can now head over to the local county tax office and have the car title transferred. Alternatively, you can mail the documents to the office.
In situations where Power of Attorney has signed the documents, the original document for Power of Attorney should be presented as well. It is important to note that the state provides an opportunity for the seller to accompany the buyer to the DMV.
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Buying a car in Texas? Here’s a simple, straightforward guide on how to buy a car in Texas.
How Much Does It Cost to Transfer A Car Title in Texas?
Once you’ve taken care of the documents required to transfer your car title, you’ll need to pay the transfer fees. The cost varies quite a bit in Texas depending on your exact location.
For title application, you’ll be required to pay $28 or $33. The cost of vehicle inspection, where applicable, ranges between $7 and $40. There will be an additional charge for a county or local fee that shouldn’t exceed $20.
A payment of 6.25% should also be made to account for sales tax. The charge is based either on a presumptive standard value of the car or its higher purchase price. Other charges that you may encounter include an automation fee and an insurance verification fee.
Applying for a Duplicate Title
If the seller does not have the original car title, he or she will need to apply for a duplicate and sign it. All the seller needs to do is complete an Application for a Certified Copy of Title (Form VTR-34). If they are applying via mail, they’ll only pay a small fee of $2. The charge for applying physically at the county tax office is $5.45.
This also applies in situations where the buyer loses the title once they’ve bought the car. All you need to do is fill in the same documents and pay the necessary charges.
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Selling A Car Titled to a Late Spouse
Selling a car that belonged to a deceased spouse or family member is a bit more complicated than the normal purchase or sale process. However, it becomes easier once you learn the basic processes of how to transfer a car title in Texas.
If the deceased left a will, the vehicle will be subject to the probate process. This means it will be transferred according to what the executor deems fit before it is sold.
If the deceased had no will, the vehicle will not be probated. The state of Texas requires the heir or surviving spouse to fill an Affidavit of Heirship for a Motor Vehicle. A lien release is necessary in cases where there’s a lien on the vehicle.
If the lien is to be carried forward to the heir or surviving spouse, they’ll need a copy of the title together with a Muniment of Title which the Probate Court provides. Alternatively, they could submit a completed Affidavit of Heirship for Motor Vehicle form (Form VTR-262) together with the title. The title is only required if the vehicle was owned by the deceased and one surviving heir. The latter must sign it if they are the seller.
Gifting a Car in the State of Texas
We understand that many people would love to donate their cars to charities and foundations but do not know how to transfer a car title in Texas. Donating or gifting your car is a fairly easy process that doesn’t cost much. It only requires you to complete the same documents as you would when doing a sale as well as paying the necessary transfer fees. In addition, you’ll need to fill in the Affidavit of Motor Vehicle Gift Transfer and pay a $10 gift tax in place of the standard taxes.
What to Do if Your Car Title Was Never Transferred
Now you’ve got a good idea of how to transfer a car title in Texas, but what do you do if you run into the troublesome situation where you’re the seller, and the buyer never completely finishes the transfer process? In some cases, you may find out later that your car was never transferred even after completing the entire sale process. The state of Texas requires all cars to be properly titled within the first thirty days from the date of sale.
The buyer may have left the process of title transfer pending or chosen not to complete it at all. As such, any traffic tickets, toll violations, or crimes committed with the car will be charged against you as the seller.
You’ll need to visit the local county tax office and explain the situation. This is highly important as it helps to solve the problem as soon as possible before you get held responsible for the buyer’s actions. If you had sold the car to a licensed dealer, the vehicle remains registered under your name until it’s sold to someone else.
However, you can file for a Vehicle Transfer Notification to show that the vehicle has already been sold. If this is done within the first 30 days after the date of sale, you as a seller cannot be charged for any toll violations or parking tickets that pop up as a result of the buyer’s actions.
HOW TO BUY A CAR WITHOUT A TITLE
Find a great deal on a car, but the seller is unable to provide a title? Here’s how to buy a car without a title.
Now you’re ready to ride!
So, there you have it. Transferring a car title in Texas isn’t very different from any other state, and it’s not particularly difficult. You’ve just got to have the proper know-how, the right paperwork, and stay on top of the details. As always, we’ve got your back, so you can be ready to ride.
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