How to Transfer Car Title in California? 5 Simple Steps

When buying or selling a car in California, it is required to transfer the title. This step ensures that ownership is officially transferred from one person to another. To finalize the transfer, you must fill out particular paperwork, pay the required fees, and present documents such as evidence of insurance. In this article, we’ll walk you through the process of how to transfer car title in California.

What Is Car Title Transfer?

A car title transfer is the process of officially transferring ownership of a vehicle from one person to another. This is a very common procedure when buying or selling a motorcycle or car. 

Transferring the car title assures that the state recognizes the new owner as the lawful owner of the car. This process often requires you to complete paperwork, present documentation, and pay fees at the local Department of Motor Vehicles (DMV).

Who Needs to Transfer a Car Title?

Several circumstances demand a car title transfer such as:

• When Purchasing a Vehicle: If you’re buying from either a dealership or a private party, the title needs to be transferred into your name.
• When Selling a Car: You as a seller will need to transfer the title to the buyer. This means signing the title over to them and filing a Notice of Transfer and Release of Liability with the DMV.
• Gifted Vehicles: If you are given a car as a gift, the title needs to be transferred from the name of the giver to your name.
• Inherited Vehicles: When you inherit a vehicle, you must put the title in your name, usually involving proof of inheritance and some extra forms.
• Donated Vehicles: If you donate a vehicle to charity, the title must be transferred to the organization you are donating to.

How to Transfer Car Title in California?

Transferring a car title in California requires many important steps for both the buyer and seller. Here is how you can do it:

1) Gather the Documents 

Before starting the transfer of title, both parties require getting key documents. The seller should get the original title for the vehicle and an executed Notice of Transfer and Release of Liability. The buyer must provide evidence of insurance and anything else that will be needed by the DMV.

2) Fill in the Title Transfer Section

To start the transfer, the seller must sign the title in the provided space and fill in any required fields. The seller must pay off any regular or emergency loans on the vehicle before it can be transferred. The buyer should also check to make sure all areas are filled in correctly.

3) Pay Fees

There are many fees paid to transfer the car title such as the title transfer fee and a possible smog certificate. The sales tax depends on the value of the purchase price of the car and must be paid out by the purchaser. The seller is possibly in charge of a smog certificate if mandated by law by vehicle age or state.

4) Take the Documents to the DMV

After all the forms are completed and fees are ready, the buyer and seller need to file them with the California DMV. This can be done in person at a DMV location or online.

5) Get the New Title

After processing, the buyer will have a new title in their name confirming that they own the vehicle. The DMV will also send the purchaser a new registration sticker and card. 

Fees Involved in Title Transfer

Transferring a car title in California requires many fees:

• Title Transfer Cost: When changing car ownership, a normal $15 cost is charged.
• Sales Tax: Private sales are subject to a 7.25% sales tax which is computed depending on the vehicle’s MSRP.
• Smog Certification: If the car is more than four years old, a smog certificate is needed which requires additional fees.
• Registration Fees: Registration fees can apply based on the vehicle’s worth and other considerations.

Conclusion

When you follow the proper requirements, it is simple to transfer a car title in California. Both the buyer and seller must acquire the required documents, fill out the forms, and submit them to the DMV. After the process is completed, the new owner will get the car title which confirms their legal possession. Following these steps will result in a smooth and legal title transfer for both parties concerned.

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