Paperwork
4 min read
Every state has its own forms, but the same few documents come up in nearly every car sale. Here is what each one does, with examples from California, Texas and New York. States differ, so check your own state’s motor vehicle agency for the exact rules before sale day.
The title
The title shows who owns the car, and signing it over is the heart of the sale.
Texas: the seller gives the buyer a properly signed title, including the date of sale and the odometer reading.
New York: the seller completes and signs the transfer of ownership section of the title certificate.
California: in a private sale, the seller signs the title and the buyer submits it to the DMV. If there is a loan, the lienholder signs too.
If you still owe money
If a lender holds a lien, the title is freed once the loan is paid. In Texas, the lienholder has 10 days after receiving payment to release the lien. A paper title is mailed to you, and an electronic title is converted to paper and mailed without you doing anything. Our guide to selling a car you still owe money on covers the steps.
If you lost the title
Replace it before you sell. California lists form REG 227 for transfers when the title is missing. Other states have their own form.
The odometer disclosure
Federal rules require a written mileage statement when ownership changes. For cars from model year 2011 on, the requirement runs until the car is 20 years old. A 2011 model, for example, is covered until 2031. Cars from model year 2010 and earlier are exempt once they are 10 years old.
Most titles have a space for the odometer reading. Write the exact number and don’t round. Dealers must keep the odometer statements they receive for five years.
A bill of sale
A bill of sale records the price, the date, the car and the names of the buyer and seller.
California: the DMV lists a Bill of Sale, form REG 135, among the forms that may be needed for a transfer.
New York: the seller signs a Vehicle Bill of Sale, form MV-912, even when the car is a gift, or provides another accepted proof of transfer.
Even where it isn’t required, a signed bill of sale is a useful record. Keep a copy.
Your notice to the state that you sold the car
This step protects you once the car is gone. Without it, tickets and tolls run up by the new owner can come back to you.
California: submit a Notice of Transfer and Release of Liability within 5 days of the sale, online or on form REG 138. Once the DMV has it, liability for parking and traffic violations after the sale date moves to the buyer.
Texas: file a Vehicle Transfer Notification. If you file within 30 days of the sale, you can’t be held responsible for the buyer’s parking tickets and toll violations.
New York: take your plates and windshield registration sticker off the car before the sale. Then turn the plates in to the DMV or move them to another car right away, and turn them in before you cancel your insurance.
License plates
Plate rules vary widely. In Texas, removing your plates and registration sticker is optional. In New York, you remove them before the sale. Ask your state, or your buyer, before the car drives away.
Smog or emissions paperwork
Some states require an emissions certificate when a car changes hands. In California, the DMV says a seller needs to give the new owner a valid smog certification, with exceptions for newer cars, electric cars and some others. Our California guide lists them.
A checklist for sale day
Document | Who usually provides it |
|---|---|
Title, signed in the seller’s section | You, or your lender if there is a loan |
Lender name and loan account number | You, if you still owe money |
Odometer reading, written down | You |
Bill of sale | Buyer and seller together |
State notice of sale or release of liability | You, after the sale |
Smog or emissions certificate, where required | Usually the seller |
Photo ID and every key | You |
Service records | You, if you have them |
Common mistakes
Signing in the wrong place on the title. Read the title before you sign, and use only the seller’s section.
Skipping the notice of sale. It is the step that keeps the new owner’s tickets and tolls away from you.
Leaving plates on in a state that wants them back. In New York, plates left on the car can bring tickets that aren’t yours, and canceling insurance before you turn them in can get your registration suspended.
Guessing the mileage. The odometer statement is a legal disclosure.
Selling to Auto Exit
You bring your ID, the keys, and either the title or your lender’s details. We prepare the sale documents, collect signatures at pickup, and pay your lender directly if there is one. Before pickup, we tell you which of your state’s forms apply to your sale and which part is yours to file.
