Is it time to remove the other name from a title certificate? Not to worry, this guide covers how to remove a name from a car title.
When you break away from the other party, sell or gift another person a car that belongs to you, removing them from your title is an option. However, before you remove them from the title, inform them. They may have to sign the title to authenticate the for name removal.
Also, if the other party placed a lien on the car, you must complete the loan payment before you remove the lien from the title legally. The procedures to get rid of someone from a title are easy. We’d be discussing it briefly.
How to Remove a Name from Car Title
Before you begin the steps to remove someone from a car title, inform them. Suppose you have informed the party about this removal. Then follow the steps below regarding how to remove a name from a car title:
Handle the Name Removal as a Car Sale
When removing a name from a title, you handle the removal as a vehicle sale. The other person may have to sign the back of the title or pink slip like someone selling the vehicle to you.
The remaining name of the title, perhaps your name, is then considered the buyer. However, the car must be registered at the local motor vehicle department to show that the car belongs to you and no other person has a name in it.
Confirm the Title
Looking at the title, does the title ownership or names registered on the title use ‘And/Or’? If yes, you can remove the person without their signature because of the use of ‘Or’. If the title uses ‘And’, the other name or owner must sign the title before you remove them to put it in your name.
In Arizona, ‘And/Or’ is recognized as ‘And’, meaning that the other person must sign the title before you can transfer it into your name legally.
Let’s make a simple illustration. Suppose two spouses bought a car and registered it in their name. When they divorce, one party wants to keep the vehicle. If the vehicle uses ‘Or’, any party can claim the car. but if it uses ‘And’, the other party must sign the title for the transfer to occur.
As seen in the example about Arizona, make sure your state does not treat ‘And/Or’ as ‘And’. Otherwise, the other person in the title must sign it. To know your state laws regarding ‘And/Or’, you may use the comment section or contact your DMV.
Inform the Other Party
As mentioned earlier, the other person should know about the name removal, whether you can remove it without them or not. In for them about the new development if they don’t already know.
If they have to sign the back of the title, get them to do so to transfer the title to your name only. You can mail the title to the person. After putting their signature, they mail it back to you.
Check for Lien
If there is a lien, could be a mechanic lien, on the car, get the lien holder to remove their name from the car title. Typically, you must complete debt or loan for them to remove their name. If the lienholder does not agree to remove their name because you still owe on the car, you can’t transfer it to your name. The lienholder has to provide a lien release notice before the DMV can register the car in your name.
Complete the Title Transfer Application
When the second party and lienholder (if any) sign the title, you also have to complete the form on the back of the title. The person assumed as the buyer is the name that will be left.
You want to avoid a mistake or crossing mistakes on the title. Otherwise, the DMV may reject the title, meaning you have to request a duplicate car title to be able to sign over to your name.
You may have to notarize the signatures, depending on your state. Refer to your DMV’s website for a statement in this regard. You may use the comment section for our assistance. Finally, make an appointment with your local motor vehicle department to reduce your wait time.
Contact Your Local DMV
Submit the required paperwork at the DMV. The title name transfer may have to be done in person. You need a valid photo ID and title application. The bill of sale is not valued as it can be forged easily. You can take the paperwork to the nearest DMV or mail it to them with the processing fee.
Removing a Name from Vehicle Title on Special Cases
- Gift. If you must gift the car to someone, you must remove both names on the title. Let the other person know about it. They also have to sign the back of the title for the recipient to register it in their name. Complete the application form as a transfer at a $0 sale price. Since the car is a free car, the recipient does not pay a sales tax.
- Death. To transfer a car title where one of the names on the title is a deceased person, the other name or registered owner must find out the documents required to process the title transfer. Typically, a death certificate is required. If the vehicle was given to someone in a Will, the estate executor must present the death certificate and title.
- Donation. If you are donating the car to a charity organization, it must be corrected to show a donation. When you donate a car to the charity, you take the value as a tax deduction if the charity home is recognized by the state. When filing the title transfer application, complete it using the name of the charity organization as the buyer. The sales price must be $0 to keep the charity from paying sales tax since they do not pay for the vehicle. Send the completed paperwork to the charity to complete the transfer process in their name. Ensure to remove the existing lien on the car.
- Divorce. After a divorce, one party may have to keep the car or register it in their name to avoid ownership claims by the other party in the future. If there’s a lien on the car, the remaining name will be responsible for paying it off. Make sure your ownership changes match the divorce agreement.
This article is a general guide on how you can remove a name from a car title. Although the procedures are similar in most states, you should still refer to your DMV. Use this article as a guide to know the steps applicable when removing another person’s name from car ownership.
Meanwhile, you may be interested in how you can remove a cosigner from your car.