How to Transfer Car Ownership

Vehicle ownership is a document that proves who owns a vehicle. When you sell your vehicle, ownership must be legally transferred to the new owner for him or her to complete the registration process. But, how to transfer car ownership? This is what we’re going to simplify today in this article.

In addition to clearly stating the owner of the vehicle, ownership documents also include the vehicle identification number, the number of kilometres travelled at the time of sale and the type of vehicle.

How to transfer car ownership includes three steps, one step for the seller, one step for the buyer and one step for the state.

The seller must release the title to the vehicle by signing the title.
The buyer brings the signed title to the state office that handles auto titles, commonly known as the Department of Motor Vehicles, or DMV.
Some states may require additional documents to complete the process, such as a bill of sale or title (ownership) transfer form.
Your state DMV issues new registration and title.

The Difference Between Dealer Sales and Private Sales

When you buy a new car, the dealership handles the paperwork and you usually receive the vehicle title from your state DMV by mail. But when individuals buy or sell cars, the transfer of ownership is up to them. States may require sellers to provide basic information about the car, such as odometer reading and sales price, that is used to calculate sales tax.

Before signing the title, check with the DMV in your state to find the appropriate line to sign on and how to provide the correct information.

What names are listed?

The seller’s first step is to check how your name appears on the vehicle’s title. If only your name is printed on the title, it means you are the sole owner and can easily transfer ownership.

However, if the name of the bank or lender is also on the title (called the “lienholder”), it means you have an auto loan that must be paid off before it can be sold. This complicates things, but you can still sell your car.

Call your lender and ask them how to sell a car with a loan and how to handle the transaction. In many cases, a car is jointly owned by two people, such as a married couple. In this case, there are two ways to write the car’s name. Two nouns can have “and” or “or” between them. Generally, “and” means that both parties must sign the property transfer documents; “or” means anyone can sign.

Avoid delays

Visit your state’s DMV website before selling your car to see what documents are required, where to sign them, and how to manage multiple owners.

Find your DMV website here: If you make a mistake, such as signing on the wrong line or trying to remove something from the title, this will slow down the process.

You will need to submit a second form, stating that you made a mistake, or you may need to request a new title from the DMV before the sale can be completed.

VIC

When you sell a Victorian-registered vehicle, the seller has 14 days to notify VicRoads that the transaction has taken place. This can be done online once the seller has created a personal account via the VicRoads website, including relevant information including the buyer’s license number. If the buyer is from outside Victoria, this process cannot be completed online.

RWC

In Victoria, the seller must also provide a Roadworthy Certificate (RWC) to complete the transfer. If the vehicle is sold without the RWC, the number plates must be surrendered to VicRoads and the registration will be suspended until the new owner provides the RWC.

Once the transaction has been concluded, the seller and buyer must complete a transfer form (downloadable from the VicRoads website) and the buyer and seller must sign it. As the seller, you must take a photo of the completed form as it is the buyer’s responsibility to submit the form to VicRoads to complete the transaction.

NSW

New South Wales gives the vehicle seller 14 days to provide online notification (after logging into your MyServiceNSW account) that the vehicle has been sold. If you take longer, you may be responsible for late fees. Like Victoria, if the new owner is not in your home state, you will need to submit a paper form rather than online.

The new owner will not be able to transfer ownership until the seller submits these documents.

You must then download the Registration Transfer Request which must be completed and signed by the buyer and seller.

This form can be brought to a Service by NSW customer service centre along with proof of identity, vehicle registration and all associated payments, including transfer and stamping fees.

However, in many cases, you can do this online and pay electronically.

If you are transferring ownership of a vehicle that is currently registered, you do not need a new pink slip (similar to Victoria’s RWC) and a green slip (public liability insurance applies to the vehicle) will automatically transfer to the new owner.

QLD

Queensland has a similar arrangement to Victoria and NSW with an online rego transfer option for private sellers and buyers, starting with the seller notifying the authorities within 14 days of the sale. To complete an online transaction, the merchant must have an electronic security certificate before the transfer can take place.

To complete the transfer directly, you must request the buyer and seller to fill out detailed information in the Vehicle Registration Transfer Request Form, and then come to the service centre with the required documents. Identification, proof of residence as well as related fees must be paid.

WA

While most states give you 14 days to notify the vehicle registration transfer department, in WA you only have seven days before you become liable for late fees. From there, you can complete your car registration transfer online through your DoT Direct online account. Or you can do it on paper by obtaining a copy of the vehicle transfer form, filling it in and completing the rather imposing Notice of Change of Ownership of a Vehicle Licence form.

The next step is to give the buyer a red copy of the completed form, provide them with the registration and any other relevant documentation, and send the blue copy of that form to the Department of Transport. The buyer is then responsible for completing their part of the process, including paying the appropriate fees.

SA

Transfer of registration of a vehicle that has changed hands in South Australia must be completed within 14 days or a $92 late fee will apply. To do this online, you must have a MySA GOV account and follow the steps. To complete the online transfer, the seller must provide the vehicle registration number, SA driving license number and name.

You can also do this yourself by visiting a Service SA customer service centre with a completed registration transfer form and paying the corresponding fee. Both the buyer and seller must sign this form, so you must download it before the actual sale. SA also has a system where sellers can submit these forms and fees by post along with payment by cheque or money order.