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Protect your title, Sellers

When you sell your vehicle, there are certain steps you have to take to protect yourself. Texas law requires a buyer to transfer the title into his or her name within 20 working days. Not all Texans comply with this requirement and thousands of vehicles remain titled in the name of the previous owner, which puts the sellers at risk.

The best protection for both the seller and the buyer is to go into the county tax office together to transfer the title.

If you traded or sold your vehicle to a dealership or you cannot accompany the buyer to the county tax office, however, you only have 30 days to protect yourself by filing the Vehicle Transfer Notification online.

Why am I at risk?

You are shown as the owner of the vehicle in Texas state records until the buyer transfers the title into his or her name. As long as the title remains in your name, you could receive parking tickets, toll violations or find yourself part of a criminal investigation if the vehicle is used to commit a crime.

Seller’s Checklist:

  • Take the buyer with you to the county tax office to transfer the title. Make sure you sign and fill in the vehicle sales price on the Application for Texas Certificate of Title form (130-U).
  • Be sure you sign, date and enter the odometer reading on the vehicle’s title.
  • If you cannot accompany the buyer to the county tax office, you need to submit the Vehicle Transfer Notification (Form VTR-346) online within 30 days of selling the vehicle. This lets TxDOT know you no longer own the vehicle. This will remove your financial liability for possible violations associated with the vehicle.
  • Keep your plates! Remove your license plates and peel off the windshield registration sticker when you sell or trade in your passenger vehicle. This helps to make the buyer title the vehicle in his or her name. It only cost $5 to transfer the license plates to another vehicle you own. Ask the car dealership to transfer the plates to your new vehicle. If it was a private sale, go to your local county tax office.
  • Make sure you keep a record of the sale date, vehicle make, model, Vehicle Identification Number (VIN), and the buyer’s name, address, and phone number.
     

Questions?

See our tips for buyers.

 

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