How To Fill Out A Title When Gifting A Car?

Are you planning to gift a car to someone you love? It’s a wonderful gesture that shows your generosity and affection. However, before you hand over the keys, you need to make sure that the paperwork is in order. One crucial aspect of gifting a car is filling out the title correctly. In this article, we’ll guide you through the process of filling out a title when gifting a car, so you can give your loved one the gift of a lifetime without any legal complications. So, let’s get started!

First, it’s essential to understand what a title is and why it’s important. A car title is a legal document that proves ownership of the vehicle. It contains information such as the owner’s name, the vehicle’s make and model, and the vehicle identification number (VIN). When you gift a car to someone, you need to transfer the title to their name to avoid any legal issues in the future. So, let’s dive deeper into the steps you need to follow to fill out the title correctly.

How to Fill Out a Title When Gifting a Car?

If you are planning to gift a car to a friend or family member, it is important to follow the proper procedure to ensure that the transfer of ownership is legal and complete. One of the most important steps in the process is filling out the title correctly. Here is a step-by-step guide on how to fill out a title when gifting a car.

Step 1: Obtain the Title

Before you can transfer ownership of the car, you need to have the title in your possession. If you do not have the title, you will need to obtain a duplicate from the Department of Motor Vehicles (DMV) in your state.

Once you have the title, you will need to fill out the section that transfers ownership. This section is usually located on the back of the title and is labeled “Transfer of Ownership” or “Assignment of Title.”

Step 2: Fill Out the Seller’s Information

The first section of the transfer of ownership section is for the seller’s information. You will need to fill out your name, address, and any other required information. Make sure that everything is legible and accurate.

Step 3: Fill Out the Buyer’s Information

The next section is for the buyer’s information. This is where you will fill out the name and address of the person to whom you are gifting the car. Again, make sure that all information is accurate and legible.

Step 4: Fill Out the Vehicle Information

The next section is for the vehicle information. You will need to provide the make, model, year, and vehicle identification number (VIN) of the car that you are gifting. Double-check that all information is correct.

Step 5: Fill Out the Odometer Reading

The next section is for the odometer reading. You will need to provide the current odometer reading at the time of the transfer. This is important for the buyer to know, as it will affect the value of the car.

Step 6: Sign and Date the Title

Once you have filled out all of the required information, you will need to sign and date the title. Make sure that you sign in the presence of a notary public, as this is required in some states.

Step 7: Provide a Bill of Sale

While not always required, it is a good idea to provide a bill of sale to the buyer. This document will serve as proof of the transaction and can help protect you in case of any future disputes.

Step 8: Submit the Title to the DMV

Once you have filled out the title and provided a bill of sale (if necessary), you will need to submit the title to the DMV in your state. This will officially transfer ownership of the car to the new owner.

Step 9: Remove Your License Plates

Before handing over the car to the new owner, make sure to remove your license plates. In most states, it is illegal to drive a car without proper license plates, so the new owner will need to obtain their own plates before driving the car.

Step 10: Enjoy Your New Car!

With the title transfer complete, the new owner can now enjoy their new car! Gifting a car can be a great way to show someone that you care, and by following these simple steps, you can ensure that the process is legal and hassle-free.

In conclusion, when gifting a car to someone, it is important to follow the proper procedure to ensure that the transfer of ownership is legal and complete. By obtaining the title, filling out the necessary information accurately, and submitting the title to the DMV, you can ensure that the new owner has all of the proper documentation to legally drive and maintain the car.

Frequently Asked Questions

When gifting a car, it is important to properly fill out the title to ensure a smooth transfer of ownership. Here are some common questions and answers related to filling out the title when gifting a car:

Question 1: What information do I need to provide on the title when gifting a car?

When gifting a car, the title needs to be signed over to the new owner. The gift giver needs to fill out the seller section of the title, including their name, address, and signature. The gift recipient will then fill out the buyer section of the title with their name and address.

It is important to make sure all information is filled out correctly and legibly to avoid any delays in the transfer of ownership.

Question 2: Do I need to include a sale price on the title when gifting a car?

No, when gifting a car, the sale price can be listed as “gift” or “$0.” This is because no money is being exchanged for the vehicle. However, some states may require that a tax exemption form be filled out in order to avoid paying sales tax on the vehicle.

Check with your state’s DMV to see what forms may be required when gifting a car.

Question 3: Can I gift a car to someone who lives in a different state?

Yes, you can gift a car to someone who lives in a different state. However, the requirements for transferring the title may differ from state to state. It is important to check with the DMV in both the state where the car is currently registered and the state where the new owner resides to ensure all necessary paperwork is completed.

In some cases, the new owner may need to get the car inspected, register the car, and pay any applicable taxes and fees in their home state.

Question 4: Do I need to notify my insurance company when gifting a car?

Yes, it is important to notify your insurance company when gifting a car. Even though you are no longer the owner of the vehicle, you may still be liable for any accidents or incidents that occur while the new owner is driving the car.

Notify your insurance company that you have gifted the car and provide them with the new owner’s name and insurance information to avoid any issues in the future.

Question 5: What should I do with the license plates when gifting a car?

When gifting a car, it is the responsibility of the new owner to obtain new license plates and registration. The gift giver should remove their license plates from the vehicle and return them to the DMV.

It is important to remove the license plates to avoid any liability for tolls, parking tickets, or other violations that may occur after the transfer of ownership.

In conclusion, gifting a car can be an exciting and generous gesture, but it’s important to make sure the title transfer is completed correctly to avoid any legal or financial issues down the road. By following these simple steps, you can ensure that the gift is properly documented and recorded with the state. Remember to obtain a bill of sale, complete the seller section of the title, and provide any necessary documentation to the recipient.

Additionally, it’s important to keep in mind the potential tax implications of gifting a car. Depending on the value of the vehicle and the state in which you reside, you may be required to pay gift tax or file a gift tax return. Be sure to consult with a tax professional to understand your obligations and avoid any surprises come tax time.

Finally, don’t forget to communicate clearly with the recipient about any outstanding liens or loans on the car. It’s important to disclose any obligations that may come with the gift so that the recipient is fully informed and can make an informed decision about accepting the gift. By taking these steps, you can ensure that the car gifting process goes smoothly and without any unexpected issues.