Signing the paperwork

Everyone is happy, you and your buyer agree on pricing and call it a deal, now what? Its time to finalize the deal and sign some papers.

Actually its just one paper, the vehicle’s title. You will definitely want to check out your state’s DMV web site for all the related details about private party transactions. While the law may vary by state, there are some general steps to always have in mind.

The most important thing is signing over the title. Ideally, the first part of this process is to receive either cash or a cashiers check as payment and make sure there are no issues there. Once payment has been cleared by your bank you can start the transfer. Sign the title to the new owner, making sure to note the vehicle’s mileage where required. Make sure there’s nothing of yours in the car because at this point the deal is done and the buyer is free to leave and register the car in his name. The tag is your to keep most of the time.

Take great caution in letting the buyer have the vehicle before payment is made or the title is signed over. Follow a different set of steps to transfer ownership, and you could end up being liable if something happens to the car, the buyer, or someone else.

First you get the money, then you sign over the title and give possession at the same time. Its not required but you may also want to look for a “Notice Of Sale” or any release of liability form on your DMV’s web site and mail it in to establish when ownership was transferred.

“Its…simple. Receive payment, sign over the title…”

The other possibility is that you do not have the title because it is being financed. In that case, call up your bank and see what they need. Basically, you’ll need to get payment from the buyer and pay off the loan. The bank gives you the title, which you immediately sign over to your buyer.

If the buyer is also financing, then his bank may work directly with your bank and make the whole process a bit more transparent. Just make sure you communicate with your bank to make sure everything is legitimate.

Its just that simple. Receive payment, sign over the title and you’re done. Just make sure you understand all the particulars for your situation and the state you live in.