Car Title Signed But Never Transferred: What to Do Next

Selling a car privately can be a great way to get top dollar, but it comes with some risks. One of the most concerning? A buyer who takes possession of the vehicle but never officially transfers the title into their name. If that happens, you could be on the hook for parking tickets, toll charges, or even criminal liability tied to a car you no longer own.

While a buyer failing to register a newly purchased vehicle is relatively rare, it pays to be proactive and protect yourself throughout the selling process. Here's how to prevent an untransferred title from coming back to bite you, and what to do if you wind up in this tricky situation.

Why a Buyer Might Not Transfer a Car Title

When a car is sold privately, the buyer is supposed to take the signed title and other documents to their local DMV promptly to officially transfer ownership. But some unscrupulous buyers purposefully skip this step, in a practice known as title jumping. The goal is to avoid paying sales tax, registration fees, and other costs of the sale.

That may save the buyer some cash upfront, but it leaves the seller in a bad spot. If the car racks up parking tickets, toll charges, or even criminal ties while still titled in your name, you could be held responsible. The same goes for any accidents the new owner causes - if the title and insurance haven't been switched over, the liability could fall unfairly on you.

Of course, not every failure to transfer a title is malicious. First-time buyers may not realize the extra DMV paperwork is their responsibility, especially if they've only ever bought from dealerships that handle the process seamlessly. Misplaced documents or pandemic-related DMV backlogs and closures can also throw a wrench in the re-titling process. Still, regardless of the reason, you'll want to be proactive in ensuring the vehicle is fully out of your name after the sale.

How to Prevent an Untransferred Title When Selling Your Car

Your first line of defense against future title headaches is setting up a clear, well-documented sale:

1. Complete a bill of sale: This simple document should include the sale date, price, VIN, and contact info and signatures for buyer and seller. Make copies for both parties.
2. Disclose the exact odometer reading: Don't round up or estimate; providing the precise mileage at the time of sale can help prove you weren't responsible for any post-sale incidents.
3. Make copies of all documents: Before handing over the title and other paperwork, make copies (or take photos) for your records. You want a paper trail of the sale details.
4. Verify the buyer's ID: Check that the title will be transferred to the same name and address shown on the buyer's driver's license. Taking a photo of their ID can also help if issues arise later.

It's also a good idea to contact your local DMV to ask about any extra steps for your state. Some states require a seller to file a vehicle transfer notification or a release of liability form to officially absolve you of responsibility for the car post-sale. Others recommend turning in your old license plates rather than passing them to the buyer.

These proactive steps can't prevent a buyer from title jumping, but they can help prove you're not liable if something goes wrong with the car down the line. And just having an open, face-to-face conversation with the buyer about title transfer and your state's requirements can help ensure they follow through with the process.

What to Do If a Car You Sold Is Not Registered By the Buyer

What should you do if you find out a car you sold has never been registered or titled by the buyer? First, try contacting them directly. There may be an innocent explanation; especially during the height of the pandemic, many DMVs had long backlogs and limited appointment availability that slowed down title transfers. Giving the buyer a friendly nudge or offering to meet them at the DMV could solve the issue rapidly.

If the buyer gives you the runaround or you can't reach them at all, it's time to get the law on your side. With copies of the bill of sale, signed title, and other documents, you can prove to the DMV and law enforcement, if needed, that you sold the vehicle in good faith. Providing a copy of the buyer's photo ID can also help them track down the person now in possession of the vehicle.

Depending on your state's rules, you may need to file a vehicle transfer notification or release of liability after the fact. Contact your DMV for specific guidance on protecting yourself when a buyer fails to transfer a car title. Consulting with a lawyer can also help you understand your options if you're facing fines, legal issues or other fallout from an untransferred title.

The Bottom Line on Untransferred Car Titles

It's frustrating and unsettling to discover a car you sold is still lingering in your name because a buyer failed to transfer the title. But by being proactive during the sale and keeping good records, you can help head off any liability or legal issues before they start.

If you want to avoid private sale pitfalls altogether, consider selling to a dealership or using an online service like Motorvero that will make a verified direct cash offer for your vehicle. While you may leave a little money on the table compared to a private sale, you'll also spare yourself a boatload of hassle and risk.

Regardless of your selling approach, just remember: Never sign over a title and hand off your keys until you've documented the transaction thoroughly and taken steps to confirm the buyer will follow through with their end of the paperwork. Selling a used car is stressful enough without having to chase down a runaway title after the fact.