Tuesday, April 26, 2011

Can I Transfer a Car Title If I Owe Fees?

When you sell or donate a car, the buyer takes full ownership of the vehicle and title. If you happen to owe certain fees related to the vehicle as the current owner, this is a matter of concern for both you and the prospective buyer. Often, the agencies who issue these car-related fees suspect that it will be difficult to collect after the driver has transferred ownership of the car to another individual.

Title Transfer Process

    Transferring a title is usually a simple matter of signing it and giving it to the new owner. The new owner must then submit the title, bill of sale and new registration paperwork to the state department of motor vehicles to officially transfer ownership into his name.

Types of Fees

    The most common type of fee that may be associated with a vehicle is an unpaid parking ticket. The ticketing agent commonly writes the car's vehicle identification number, or VIN, and description on the ticket. Ticketing agents may also write information from the car's registration sticker, if applicable, on the ticket. In certain cases, a ticket due to a moving violation, such as a speeding violation, may also include identifying information about the car, as well as the individual owner.

The License Plate

    Though these car-related fees may include data regarding the vehicle, they're commonly associated with the registered license-plate number, so the fee is issued to the registered individual rather than the car. However, it's important for you to send your plates into the department of motor vehicles as soon as possible to avoid issues. Confusion may occur if the department of motor vehicles believes that you're still in possession of the vehicle, and thus responsible for new fees related to the vehicle. Also, if you use the same plates on another car, you must contact the department of motor vehicles to officially record the transfer.

Considerations

    You can usually transfer the vehicle title successfully if you owe fees related to the car. However, there are state-specific exceptions to this rule. In Hawaii, for example, the buyer is responsible for covering parking tickets related to the car if you don't do so before transferring ownership. If the new owner runs into problems registering the car, be prepared to help resolve those issues as the seller. Also, before you assume that the car is clear of all fees, contact the department of motor vehicles and pay for a full vehicle history report. Contact your local parking authority as well to see if you owe any outstanding tickets associated with that VIN.

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