How to Sign Over a Title to a Vehicle: A Comprehensive Guide

Transferring vehicle ownership is a crucial process that must be handled correctly to ensure legal compliance and avoid potential issues. In most jurisdictions, including New Jersey, this type of transaction requires specific procedures and cannot be completed through mail. Whether you are selling, buying, or inheriting a vehicle, understanding how to properly sign over a title is essential. This guide provides a comprehensive overview of the steps involved in signing over a vehicle title, ensuring a smooth and legally sound transfer of ownership.

Signing Over a Title When Selling or Buying a Vehicle

When you are involved in a vehicle sale, both the seller and the buyer have distinct responsibilities in the title transfer process. Failing to adhere to these guidelines can lead to penalties and complications.

Responsibilities of the Seller

As the seller of the vehicle, your obligations include several key steps to legally relinquish ownership:

Remove and Surrender License Plates: Before transferring the vehicle, you must remove the license plates. Unless you are transferring these plates to a newly acquired vehicle for yourself (which is permissible in some cases, but not to a new owner), you need to surrender them to a motor vehicle agency. This step officially disconnects the plates from your ownership and prevents any further liability associated with the vehicle’s registration under your name.
Properly Sign and Transfer the Title: The most critical step is signing over the title. Locate the seller’s section on the back of the vehicle title. Carefully and accurately complete this section with your signature. Once signed, the title, along with a bill of sale, must be given to the buyer.
Provide a Bill of Sale: A bill of sale acts as a formal record of the transaction and should include specific details to protect both parties. Ensure your bill of sale contains the following information:
- Buyer’s Full Name and Address: Essential for officially recording the new owner.
- Date of Sale: Establishes the exact date of ownership transfer, crucial for legal and insurance purposes.
- Mileage Odometer Reading: Accurately record the odometer reading at the time of sale. This is a legal requirement to document the vehicle’s mileage history, and discrepancies can lead to legal issues.
- Sale Price: Clearly state the agreed-upon sale price of the vehicle.

Responsibilities of the Buyer

As the buyer, you are responsible for completing the title transfer to legally register the vehicle under your name and operate it lawfully. Your responsibilities include:

Sign the Buyer’s Section on the Title: Upon receiving the signed title from the seller, locate the buyer’s section on the reverse side. Sign this section and insert your driver’s license number or, if applicable, your Entity Identification Number (EIN), formerly known as CorpCode, for businesses.
Visit a Motor Vehicle Agency for Title Transfer: The buyer must visit a motor vehicle agency to officially transfer the title into their name. This step is mandatory and cannot be skipped or done via mail.
Complete Vehicle Registration and Obtain License Plates: While at the motor vehicle agency, you will need to complete a Vehicle Registration Application (Form BA-49), if required, and finalize the process to receive new license plates for the vehicle under your name.
Bring Necessary Documentation: Ensure you bring all required documents to the motor vehicle agency. The specific documents needed may vary based on whether the vehicle was:
- Pre-owned in New Jersey
- Pre-owned in another state that issues titles
- Pre-owned in a state that does not issue titles
- Pre-owned and purchased at an auction
Adhere to Transfer Deadlines to Avoid Penalties: 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. Prompt title transfer is crucial to avoid this unnecessary fee and ensure legal compliance.

Utilizing Power of Attorney (POA) for Title Transfer

In situations where an individual cannot personally sign the title or handle the transfer, a Power of Attorney (POA) can be legally used to authorize another person to act on their behalf. This is common in cases of absence, illness, or other incapacities.

When is a Power of Attorney Necessary?

If you are presenting and signing title documents or applications for a non-dealer title transfer or registration change on behalf of someone else, you will need to provide a Power of Attorney. This applies when you are signing for someone else, not just when you are delivering documents they have already signed.

Types of Power of Attorney Accepted

The motor vehicle agencies typically accept several types of Power of Attorney documents, including:

General Power of Attorney: Grants broad powers to the appointed person.
Durable Power of Attorney: Remains effective even if the principal becomes incapacitated.
Limited Power of Attorney: Restricts the powers to specific situations or transactions.

Requirements for a Valid Power of Attorney

To be accepted for vehicle title transfers, the Power of Attorney must be notarized and include specific information:

Appointee/Attorney-in-Fact’s Information: Name and address of the person authorized to act.
Principal’s Information: Name, address, and signature of the person granting the power of attorney.
Scope of Powers Granted: A clear specification of the powers being granted. For vehicle transactions, it should explicitly mention the power to sign vehicle titles and related documents.
Vehicle Specifics for Limited POA: If using a Limited POA, it must reference the specific vehicle, including the year, make, VIN (Vehicle Identification Number), and the type of transaction authorized (e.g., title transfer).

Business Issued Power of Attorney

If the Power of Attorney is issued by a business, it must be presented on official company letterhead to be considered valid.

Identification Requirement

Regardless of the POA type, the person presenting the POA must also present their valid ID or driver’s license at the time of transaction.

Letter of Authorization (LOA) vs. Power of Attorney

It’s important to distinguish between scenarios. If all the required paperwork has already been signed by the person you are representing, you may use a General Letter of Authorization (LOA-1) instead of a POA. The LOA is simpler and suitable when you are merely acting as a messenger for documents already signed by the owner. However, if you are required to sign on behalf of the owner, a notarized Power of Attorney is mandatory.

Transferring a Vehicle Title Upon the Death of the Owner

Dealing with vehicle titles after the owner’s death requires understanding specific procedures that vary depending on how the title was held and whether there was a will. All title transfers in such cases must be handled at a motor vehicle agency, and scheduling an appointment beforehand is generally recommended.

Title in Spouses’ or Domestic Partners’ Names

If the vehicle title is in the names of both spouses or domestic partners, transferring ownership to the surviving partner is relatively straightforward. You will need to submit:

The current vehicle title, properly signed and completed by the surviving owner.
A copy of the death certificate.
A notarized Affidavit (Form BA-62).

A title fee will be applicable, and the existing registration can often be transferred to an immediate family member for a nominal fee.

Transfer on Death Beneficiary

New Jersey allows vehicle owners to designate a beneficiary on their vehicle title. This allows for a streamlined transfer of ownership upon death, bypassing probate. The process involves:

The original owner completes a Transfer on Death Beneficiary Form and keeps it with the vehicle title.
Upon the owner’s death, the beneficiary presents the title, death certificate, and Universal Title Application to the motor vehicle agency.
Liens on the title must be addressed before a new title can be issued to the beneficiary, unless the lien is being transferred to the sole owner.

This method simplifies the transfer process, as the vehicle is not considered part of the deceased’s estate and does not require letters of administration for the transfer.

Transferring Ownership to the Estate or an Individual (Owner Dies with a Will and No Co-owner)

When the deceased owner had a will and was the sole owner, the title transfer process depends on whether the title is being transferred to the estate or directly to an individual.

Transfer to the Estate

Obtain an Entity Identification Number (EIN) for the estate. This is required when the title is being transferred to the name of the estate. If transferring directly to an individual, an EIN is not needed.
Present the EIN (if applicable), the old title signed and completed by the executor of the will, the Surrogate’s Short Certificate (proof of executor authority), and your driver’s license for identification at a Vehicle Center.
Pay the applicable title fee.
If the vehicle will be operated, a new registration and proof of New Jersey insurance in the estate’s name will be necessary.

Transfer to an Individual

Follow the same steps as transferring to the estate but without the need for an EIN, if the title is going directly to an individual named in the will.

Title in Deceased’s Name Only (No Will)

When the owner dies without a will (intestate), the title transfer process depends on the estate’s value and the presence of a surviving spouse or heirs.

Surviving Spouse, Domestic Partner, or Civil Union Partner (Estate Under $50,000)

Present the current title along with an Affidavit of Surviving Spouse/Domestic Partner/Civil Union Partner. This affidavit must include the raised seal of the County Surrogate from the county where the decedent lived.
The current title must be properly signed and completed by the surviving spouse/partner.

Heirs, No Surviving Spouse/Partner (Estate Under $20,000)

Present the current title with an Affidavit of Next of Kin, including the raised seal of the County Surrogate from the decedent’s county of residence.
The title must be signed and completed by the Next of Kin.

Estate Exceeding Specified Values

If the estate value exceeds $50,000 (with surviving spouse/partner) or $20,000 (without surviving spouse/partner), the title must be transferred by the Administrator of the estate.
Present the title assigned by the Administrator, along with an Administrator’s Short Certificate bearing the raised seal of the County Surrogate.

Conclusion

Signing over a vehicle title correctly is a critical step in transferring vehicle ownership, whether you are selling, buying, or handling estate matters. By understanding and following these guidelines, you can ensure a legally compliant and smooth transfer process. Always remember to visit a motor vehicle agency to finalize the title transfer and registration. Paying attention to details like accurate odometer readings, proper documentation, and adherence to deadlines will help you avoid penalties and legal complications.