Does signing the back of a title release you from liability?

[The motor guy]

I've heard that you need to go with the buyer and get the title out of your name, but it seems like a lot of people just sign the back of it and let the buyer go and let it be their responsibility to get it in their name. That just seems stupid to sell something and let the buyer take it when it's still in your name basically.

Opinions?

 

[tcp71]

I would think a bill of sale signed by both parties along with that signature on the title would handle any legal liability. Seller should keep a copy of both with originals going with the buyer.

 

[brages]

In our state, there is a tag on the bottom of the title that you tear off, fill out, and mail in when you sell a vehicle. I have assumed (!!!) that sending this in takes you off the hook for liability...

I also fill out a bill of sale and get that signed. And I take the license plates.

 

[anndel]

Just signing it doesn't let you off the hook. Years ago when my dad sold his car to a bum I didn't trust. He gave my dad cash and told him he'll take care of the title change. Months later the cops came to visit my dad saying his car still registered under his name, was parked illegally and considered abandoned. He went down to see it and was issued a citation plus had to pay the towing fee. He contested the ticket and towing fee and got off but lesson learned. Go with the guy to change the title!

 

[MNgopher]

The answer will vary slightly by state, but your best bet is always to go to the DMV/Registrar whatever your state calls it and transfer it with both parties present. I've even found that can often make an easy place to meet to help a transaction go down.

In Minnesota, the car is legally yours until the party that bought the vehicle has the title transfered into their name. You can report the sale to the state, but it doesn't get you off the hook...

 

[JohnnyJohnson]

No the transfer of ownership at the DOV does. If you are still on the tittle with the State you still have very potential liability.

 

[The_Nuke]

In Texas, you will need to have both parties' signatures on the title to transfer it, and the seller needs to submit a Change of Ownership form to the state as soon as possible. That form basically says you no longer own the vehicle and someone else will be driving it (presumably with their own tags though).

Both parties are also supposed to go to the courthouse to change over the tags from the seller's name to the buyer's name. Actually new tags will usually be issued instead of transferring the tags to the buyer's name., but if the seller only recently renewed the tags, the buyer has the option of paying to use out the life left on the tags (after being put in his name of course).

The bill of sale isn't good for much except to try to cover one's bases should there be a question about the details of the sale. I'ts not a legally binding document or anything.

 

[BMWTurboDzl]

No you don't NEED to go with the buyer. The State recommends it because it wants to make sure it gets its piece in the form of taxes/fees.

Depending the state it might when the title was properly signed/dated by the transferor (seller) and delivered to the transferee (buyer). However the seller should notify their local DMV as soon as reasonably possible and of course remove the license plate.. If one is really worried about it then having the signatures on the bill of sale notarized along with a photocopy of the signed/dated title should help.

 

[SeaJay]

In New York, the ownership is based on the tags. It is similar in many other states. We sell a vehicle, keep our own tags, turn them into the department of motor vehicles and then cancel insurance coverage on the vehicle. It is up to the new owner to prove ownership with a transferred title and insurance coverage under his/her own name in order to obtain new plates. Then he/she is the new owner.

If you let the new owner drive off with your tags, you are opening yourself up to all kinds of potential liability and parking tickets. Keep your tags when you sell a vehicle, always!

 

[StevieC]

I've always asked for the cash up-front with a receipt given for a vehicle I have sold and then give them the signed ownership (title) to change but hold the keys until they come back with it changed. That way they can't go anywhere with the vehicle until it's now officially owned by them.

 

[MNgopher]

Originally Posted by SeaJay
In New York, the ownership is based on the tags. It is similar in many other states. We sell a vehicle, keep our own tags, turn them into the department of motor vehicles and then cancel insurance coverage on the vehicle. It is up to the new owner to prove ownership with a transferred title and insurance coverage under his/her own name in order to obtain new plates. Then he/she is the new owner.

If you let the new owner drive off with your tags, you are opening yourself up to all kinds of potential liability and parking tickets. Keep your tags when you sell a vehicle, always!


Except not every state works that way. In Minnesota, the tags/plates belong to the vehicle - not the owner. The plates and registration are transferred with the title.

No idea what Texas laws for the OP are like - which is why unless its Texas specific advice, I'd take with a grain of salt.

 

[oldoak2000]

Originally Posted by motor_oil_madman
I've heard that you need to go with the buyer and get the title out of your name, but it seems like a lot of people just sign the back of it and let the buyer go and let it be their responsibility to get it in their name. That just seems stupid to sell something and let the buyer take it when it's still in your name basically.
Opinions?


In the state of Texas, IGNORE all the above posts;
you simply need to fill-out a ONLINE notification of transfer WITHIN 30 DAYS
here: - https://webdealer.txdmv.gov/title/publicVehicleTransfer.do

This is the 21'st century and Texas gave us a easy/fast/free way to protect the seller! period. Done!

 

[BMWTurboDzl]

Originally Posted by oldoak2000
Originally Posted by motor_oil_madman
I've heard that you need to go with the buyer and get the title out of your name, but it seems like a lot of people just sign the back of it and let the buyer go and let it be their responsibility to get it in their name. That just seems stupid to sell something and let the buyer take it when it's still in your name basically.
Opinions?


In the state of Texas, IGNORE all the above posts;
you simply need to fill-out a ONLINE notification of transfer WITHIN 30 DAYS
here: - https://webdealer.txdmv.gov/title/publicVehicleTransfer.do

This is the 21'st century and Texas gave us a SIMPLE way to protect the seller! period. Done!


Except when the new owner performs a hit-and-run on their way out of your neighborhood.

 

[Omahaug]

I take the plates, remove the registration and inspection sticker. If they want to move it they need to go get their new registration and plates from the DMV.

 

[JeffKeryk]

In CA, the act of turning over the vehicle to another owner will release you from liability.
But you have to be able to prove it.
www.DMC.CA.GOV has the release of ownership form on-line.
Or you can mail it in if you have the pink and associated paperwork.

Do it!
I also keep insurance on the vehicle for about 2 weeks, just in case.
Finally, I do prefer selling to a dealership to avoid any problems.
Kinda an insurance hedge against trouble.

 

[doitmyself]

Originally Posted by tcp71
I would think a bill of sale signed by both parties along with that signature on the title would handle any legal liability. Seller should keep a copy of both with originals going with the buyer.


I confirmed with my lawyer that it does in Michigan, but I would heed the advice above that it varies by state.

I sold my Caravan about 6 years ago without going to the DVM. A few years later the grandma that had it said that she could not sell it because it still showed under my ownership. Her grandson, the buyer, put plates on the vehicle from another car and never completed the title paperwork at the DVM. I went with the grandmother to straighten the paperwork out rather painlessly. Again, the lawyer confirmed that I had no liability concerns if the vehicle had been involved in any type of incident (accident).

Learned my lesson.

 

[PandaBear]

Depends on the state I think. I see my pink slip has a section that you give to the new owner and a section you sign and send to DMV to release liability yourself. I think once that's done you are off (if the new owner use it for a crime, for example).

 

[Mr Nice]

Originally Posted by MNgopher
Originally Posted by SeaJay
In New York, the ownership is based on the tags. It is similar in many other states. We sell a vehicle, keep our own tags, turn them into the department of motor vehicles and then cancel insurance coverage on the vehicle. It is up to the new owner to prove ownership with a transferred title and insurance coverage under his/her own name in order to obtain new plates. Then he/she is the new owner.

If you let the new owner drive off with your tags, you are opening yourself up to all kinds of potential liability and parking tickets. Keep your tags when you sell a vehicle, always!


Except not every state works that way. In Minnesota, the tags/plates belong to the vehicle - not the owner. The plates and registration are transferred with the title.

No idea what Texas laws for the OP are like - which is why unless its Texas specific advice, I'd take with a grain of salt.


Here in Florida the tag remains with the seller. New owner is responsible for buying new tag.

 

[Lyman]

Im in CA. I sold a pickup years ago and neglected to fill out the release of liability. The new owner got a parking ticket before he registered it in his name.
I went rounds with the DMV getting it ironed out. The DMV wouldn't let me do ANYTHING with my other vehicles or Drivers License until it was resolved.

 

[Donald]

The buyer and seller both need to sign a document indicating the sale has completed.