Transferring vehicle ownership is a crucial process when buying or selling a car. In New Jersey, this action requires a visit to a Motor Vehicle Agency (MVC) as mail transactions are not permitted. To ensure a smooth and compliant transfer, and to avoid potential penalties, it’s essential to understand the correct procedures for Signing Over A Car Title. This guide provides a detailed walkthrough for both sellers and buyers involved in signing over a car title in New Jersey.
For Vehicle Sellers: Steps to Signing Over a Car Title
If you’ve sold your vehicle, properly signing over the title is your responsibility to complete the ownership transfer. Here’s what you need to do:
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Remove and Surrender License Plates: Before signing over the car title, remove the license plates from the vehicle. Unless you intend to transfer these plates to another vehicle you currently own (which is not possible for transfer to the buyer), you must surrender them at an MVC agency.
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Sign the Title and Provide a Bill of Sale: Locate the seller’s section on the reverse side of the vehicle title. Carefully sign your name in this designated area. This signature is critical for legally signing over a car title. Accompany the signed title with a bill of sale that includes the following essential details:
- Buyer’s Full Name and Address: Ensure you have the complete legal name and current address of the buyer.
- Date of Sale: Record the exact date the vehicle was sold.
- Mileage Odometer Reading: Accurately note the odometer reading at the time of sale. This is important for legal and transparency purposes.
- Sale Price: Clearly state the agreed-upon selling price of the vehicle.
Once you have completed these steps, give the signed title and the bill of sale to the buyer.
For Vehicle Buyers: Steps After Signing Over a Car Title
As the buyer, receiving a properly signed car title is just the first step. To finalize the vehicle ownership transfer and legally register the vehicle in your name, follow these steps:
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Sign the Buyer’s Section on the Title: On the reverse side of the title, find the buyer’s section. Sign your name and insert your New Jersey driver’s license number or Entity Identification Number (EIN), if applicable (primarily for businesses).
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Visit a Motor Vehicle Agency for Title Transfer: It’s mandatory to visit an MVC agency to officially transfer the title. Bring the signed title to the MVC and complete the Vehicle Registration Application (Form BA-49), if necessary. This visit will also allow you to obtain new license plates for your vehicle. Make sure to bring all required documentation depending on whether the vehicle is:
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Time Limit to Avoid Penalty: In New Jersey, titles, especially those that are New Jersey titles or dealer reassigned titles, must be transferred within 10 working days from the date of sale. Failing to do so will result in a $25 penalty.
Power of Attorney for Signing Over a Car Title
In situations where you need to sign the title or related applications on behalf of someone else (excluding dealerships), you must present a Power of Attorney (POA). This POA can be General, Durable, or Limited, but it must be notarized and include specific information:
- Appointee/Attorney-in-Fact’s Details: Name and address of the person authorized to act on behalf of someone else.
- Principal’s Details: Name, address, and signature of the person granting the power of attorney.
- Scope of Power: Clearly state the powers being granted.
- Vehicle Specifics for Limited POA: If it’s a Limited POA, it must reference the vehicle’s Year, Make, VIN, and the type of transaction authorized.
Business-issued POAs need to be on official company letterhead. Additionally, anyone presenting these documents must also show their own valid ID or driver’s license.
Alternatively, if all paperwork is already signed by the person you are representing, you may use a General Letter of Authorization LOA-1.pdf (state.nj.us) instead of a POA.
Transferring a Car Title After Death
Signing over a car title becomes a more complex process when the vehicle owner is deceased. The procedure varies based on title ownership and estate status. All title transfers due to death must be handled at an MVC Vehicle Center, and it’s advisable to schedule an appointment beforehand.
Title in Spouses’ or Domestic Partners’ Names
If the vehicle title is in the names of both spouses or domestic partners, the process to sign over the car title to the surviving owner is as follows:
- 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 $60 title fee applies. The existing registration can be transferred to an immediate family member for an additional $4.50.
Transferring Ownership to Estate/Individual (Owner Dies With a Will, No Co-owner)
- Obtain an EIN: If the title is being transferred to the estate’s name, apply for an Entity Identification Number (EIN). If the title is going to an individual, an EIN is not needed.
- Visit MVC with Documents: Once you have the EIN (if applicable), bring the old title signed by the executor, the Surrogate’s Short Certificate, and your driver’s license to an MVC Vehicle Center.
- Pay Title Fees: Pay the $60 title fee ($85 for financed vehicles).
- New Registration and Insurance: If the vehicle will be driven, a new registration and proof of New Jersey insurance in the estate’s name are required. The existing registration can be transferred to an immediate family member for $4.50.
Title in Deceased’s Name Only (No Will)
The process differs based on the surviving family and estate value:
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Surviving Spouse/Partner, Estate Under $50,000: Present the current title, an Affidavit of Surviving Spouse/Domestic Partner/Civil Union Partner (with the raised seal of the County Surrogate), and the title signed by the surviving spouse/partner.
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Heirs, No Surviving Spouse/Partner, Estate Under $20,000: Submit the current title, an Affidavit of Next of Kin (with County Surrogate’s raised seal), and the title signed by the Next of Kin.
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Estate Over Listed Amounts: The title can be transferred by presenting the current title assigned by the Administrator of the estate, along with an Administrator’s Short Certificate (with County Surrogate’s raised seal).
Important Considerations When Signing Over a Car Title
- Odometer Reading Accuracy: Always provide an accurate odometer reading when signing over a car title. If the actual reading is inaccurate, provide an estimate. You can download a copy of the Universal Title Application for reference.
- Liens: Any liens on the vehicle title must be settled before a new title is issued unless the lien is being transferred to the new sole owner. Contact the lending institution for details.
- Sales Tax: Vehicles are exempt from sales tax only if marked as a gift on the title’s purchase price line. More information on vehicle sales tax exemptions is available.
By following these guidelines, both buyers and sellers can navigate the process of signing over a car title in New Jersey efficiently and correctly, ensuring legal compliance and a smooth vehicle ownership transfer.
Payment Methods at MVC: The MVC accepts various payment methods including American Express®, Visa®, MasterCard®, Discover card®, checks, money orders, and cash.
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