A car title issued by the state department of motor vehicles proves that you legally own the car. However, removing the name from a car title is a relatively simpler procedure. This blog will address all the queries you have related to the process.
When should I remove a name from a car title?
There are quite a few instances when one considers removing the name from the title of their car. However, removing doesn’t essentially mean taking your name off your car title or abandoning it forever. These are the following situations that demand a vehicle transfer title.
- Selling or buying a car
- Transferring your car
- In case of a divorce
- If you are inheriting a vehicle
- Gifting a car that requires the removal of the owner’s name
- When you are paying off a loan
How to remove the name from a car title
Each state follows a different procedure for the same. However, there are a few basic steps one can follow irrespective of the state you belong to. The removal of a name from a car title is treated the same way as a sale.
Firstly, obtaining consent is of importance. This becomes easier if it is your own name that needs to be removed. Otherwise, consent should be received from the person whose name is to be removed. Secondly, the person must complete the back section of the title.
In this process, the person whose name is to be removed will remain as the seller, and whose name will stay is, the buyer. It is this person who needs to take the signed title to the DMV for the new title.
If you require to remove the name due to the death of the title holder, then the filled documents and the death certificates need to be submitted. The executor of the estate must submit a certificate or affidavit with the transfer application if the car is given to someone by will.
What should be done if my car title has multiple names?
If there are multiple names on the title, you must check the document to determine your next step. For instance, if the title contains “and/or” or “or” in the name field, you can remove one name from the title with the consent of only that one individual. Here, both parties on the title are required to sign as “sellers,” while the remaining party will be listed as “buyer.”
In case the title contains only the word “and,” then both parties must agree to the removal of one or both names from the title. Here, that person will be the seller while the others will remain as buyers.
This stands the same for every state except for the state of Arizona. In Arizona, if names on the title are joined by “and/or,” both parties listed must sign as sellers. In this case, the names joined by “and/or” are treated as joined by “and.”
How do I remove my name from a car title if there is a lienholder on my car?
If a lienholder is listed on the title, the process becomes complicated. It is advisable to pay off the lien first if you are in a position to pay it off. The lienholder would then offer a notice of lien release for the title transfer.
If you are unable to pay off the loan, then you require the permission of the lienholder to proceed. Also, in some states, you can’t change the title to only be in your name if the lienholder doesn’t agree to take their name off. This could be because they still owe money on the car or need to refinance. Your bank or another financial institution that takes care of your car loan can help you figure out what to do about the lien.
Ultimately, it is the decision of the lienholder that will let you proceed further with the name removal.
How much does it cost to remove a name from the car title?
The amount to be paid depends on the state of your residence. However, DMVs charge only a small amount for the same. For example, in Washington, it is $15, while in Ohio, it is $10 in Nebraska.
How do I correct the name on the car title in case of a divorce?
In the case of name removal arising due to a divorce, one should submit proof for the same. The legal documents supporting the ownership as per the order. The person who gets the full ownership becomes the buyer, and the other title holder becomes the seller.
The title gets changed to that of the buyer after you submit the paperwork with the DMV.
How much does it cost to remove the name from a car that’s being gifted or donated?
In both these cases, you sign the back of the title certificate as a seller. The charity trust or the person whom you are gifting the car to becomes the buyer. Here the sale price would be $0.
After that, the completed documents can be taken to the DMV. If the car is donated, then the organization carries out the rest of the process.