Car titles explained: types, transfers and problems

A car title (formally a certificate of title) is the state document that records who owns a vehicle, any lender with a lien on it, and any brand such as “salvage” or “rebuilt”. Every sale, including selling a junk car for scrap, runs through it. Get it right and the car leaves your name cleanly. Get it wrong and you can end up responsible for a car you no longer have.

What’s on a car title

Layouts differ by state, but most titles show:

• Vehicle details: VIN, year, make, model and body type.
• Owner or owners: names and address. If two owners are listed, check whether both must sign to sell.
• Lienholder: the bank or lender with a security interest, if any.
• Brands: words such as “salvage”, “rebuilt” or “nonrepairable” printed on the title.
• Odometer reading at the last transfer, where required.
• Assignment section: the space on the back (or an attached form) where the seller transfers ownership.

New York’s title, for example, has a transfer section on the back with an odometer disclosure (required for vehicles from model year 2011 or later until they’re 20 model years old) and a damage disclosure statement that must be completed for every vehicle, whatever its age.¹

Types of car titles

States use different names, but most titles fall into one of these groups.

Clean title

A clean title has no brand: no state has recorded the car as salvage, rebuilt, flood or junk. Most cars on the road have one.

Salvage title

A salvage title marks a car as badly damaged, usually after an insurer declares it a total loss. Each state sets its own threshold:

• Texas: a salvage vehicle is one damaged, or missing a major part, so that the cost to repair it is higher than its actual cash value before the damage.²
• New York: a salvage vehicle is one transferred to or acquired by an insurance company with a salvage certificate because it has significant damage from a collision, theft, vandalism or water, or repair costs above 75% of its pre-damage retail value. Cars with another state’s salvage title, or declared a “wreck” by the owner at sale, also count.³

A salvage car generally can’t be driven on public roads. Texas says a salvage or nonrepairable vehicle “may not be operated on the public roads at any time.”² See salvage title for more.

Rebuilt title

A salvage car that’s repaired, and in many states inspected, can be titled as rebuilt. In Texas, a salvage vehicle can be repaired and titled as a rebuilt vehicle, and the title states on its front that the vehicle has been rebuilt.² The brand stays in the car’s record, and a branded history can affect what a buyer should pay.⁴ See rebuilt title.

Junk, nonrepairable and parts-only titles

These brands mean the car can’t legally return to the road:

• Texas brands a vehicle “nonrepairable” when its only value is as a source of parts or scrap metal. It can’t be repaired or rebuilt and is always branded nonrepairable.²
• New York won’t examine or title a rebuilt vehicle whose out-of-state title or salvage certificate is marked “parts only”, “non-rebuildable”, “non-repairable”, “scrapped” or “destroyed”, and calls these vehicles not roadworthy.³

Some states issue a certificate of destruction instead of a title for cars headed for the crusher.

Branded titles in general

“Branded” covers any title with a permanent mark about the car’s history: salvage, rebuilt, flood, fire, nonrepairable, and others depending on the state. The National Motor Vehicle Title Information System (NMVTIS) is designed to make brands follow the car across state lines. Once a brand is applied, it “becomes a permanent part of the vehicle’s NMVTIS record.”⁴ NMVTIS also collects reports from insurers, auto recyclers, and junk and salvage yards.⁴ See branded title and NMVTIS junk and salvage reporting.

How to transfer a car title

The steps are similar everywhere. The details, like notarization, forms and deadlines, are set by each state.

1. Check the title before the sale

• Your name is on it exactly as you’ll sign.
• Any lien is released (see below).
• There are no cross-outs or alterations. New York warns that changing any information can void the title.¹

2. Fill in the seller’s section at the moment of sale

Don’t fill anything in ahead of time. New York’s instructions say: “Do not fill in any information until you actually make the transfer to the new owner.”¹ Then complete:

• Buyer’s full name and address. Never leave the buyer blank.
• Sale date and price, where asked.
• Odometer reading, where required.¹
• Damage disclosure, where required.¹
• Your signature and printed name, matching the front of the title.

Signing transfers ownership right away. New York says that once you sign the seller’s line, “the vehicle will immediately belong to the new owner.”¹

3. Notarize, if your state requires it

Not every state requires a notary for a private sale, but some do. Pennsylvania requires the seller’s signature on the title to be notarized or verified, and the seller must show proof of identification to the authorized PennDOT agent.⁵

4. Hand over the title, lien release and bill of sale

The buyer needs the signed title and, if there was a loan, the lien release.¹ Keep a bill of sale and photos of the signed title for your records.

5. Tell the state you sold it

Some states have a notice of sale or release of liability with a short deadline (California’s is 5 calendar days⁶), and others, such as New York, tell sellers to remove the plates instead.¹ The buyer then applies for a new title in their name.

Our step-by-step guide to signing over a car title covers common layouts and mistakes. For a junk car sale from start to finish, see how to junk a car.

Title problems that come up when selling a junk car

Junk cars often sat for years before they’re sold, so title problems are common. The usual ones:

The title is in someone else’s name

If you bought the car but never retitled it, the previous owner’s name is still on the title. Some states let the person who bought it from the titled owner use a no-title scrap route. New York’s MV-35 covers an owner who “purchased the vehicle from the titled owner and … never titled the vehicle in [their] own name”.⁷ Elsewhere, you may need to title the car in your name first. If the owner has died, see selling an inherited car.

Two owners are listed

Check how the names are joined. Whether the title says “and” or “or” between the names can decide whether one or both owners must sign, and states treat this differently. When in doubt, have both sign. In Texas, all recorded owners sign even to request a copy of the title.⁸

The car is owned by a business

The person signing must have authority to act for the business. Pennsylvania requires that person to be authorized, or to provide proof of that authority, when the seller is a business.⁵

The title was signed wrong or written on

Don’t try to fix it. Corrections and cross-outs can void a title, and New York says you’d need a duplicate title before transferring.¹ Contact your DMV, which may accept a correction form or require a duplicate.

The VIN doesn’t match

Check that the VIN on the title matches the plate on the dashboard and the sticker on the door jamb. A mismatch stops most sales until the DMV sorts it out. Our VIN decoder confirms what a VIN should say about the car.

Keeping your title safe

• Store it at home in a safe place, not in the glovebox. A thief who takes the car would also take the proof of ownership.
• Never sign it until the moment of sale, and never hand it over “open”, with the buyer’s name blank.
• Photograph both sides before you hand it over.
• If you lose it, apply for a duplicate before you list the car for sale, so a buyer isn’t kept waiting.

Lost, stolen or damaged titles

You can order a duplicate (often called a “certified copy” or “replacement” title) from the state that issued the original. Two examples:

• Texas: apply for a certified copy of title on Form VTR-34. Every recorded owner signs, and the fee is $2 by mail or $5.45 in person. If a lien is still recorded, you need the lienholder’s original release letter (faxes and photocopies aren’t accepted), and you must wait 30 days after the last certified copy was issued.⁸
• California: a missing title is replaced or transferred using form REG 227. Section 5 of the REG 227 must be notarized only if the vehicle has a legal owner or lienholder.⁹

Some states let you transfer the car on the duplicate-title application itself. California’s REG 227, for instance, is an application for replacement or transfer of title.⁹ See how to get a duplicate title.

Titles with a lien

A lien means a lender has a legal claim on the car until the loan is paid. You can’t give a buyer clear ownership until it’s released.

• Paid off but the lien still shows? Get the lien release from the lender. New York tells owners to keep it and give it to the buyer along with the title.¹ Texas needs the original release letter even to issue a copy of the title.⁸
• Still owe money? The loan usually has to be paid off as part of the sale, and the lender releases the title afterward. See selling a car with a lien.
• Lender out of business or merged? California notes that the DMV keeps a list of financial institutions to help owners trace lienholders that have closed or merged.⁹

Out-of-state titles

A title belongs to the state that issued it, and replacements come from that state too. California is a clear example: if your registration says “Nontransferable/No California Title Issued”, you can’t use California’s REG 227. You have to get a title from the state where the car was last titled. If that state can’t issue one, you may need to show proof of that, and a motor vehicle bond may be required.⁹

If you’ve moved, check whether the car was ever retitled in your new state. If it wasn’t, the old state’s title is still the ownership document, and that state’s rules apply to a duplicate.

Selling a car without a title

Without a title, most private buyers can’t register the car, so your options narrow. Some states have a narrow exception for scrap. In New York, an owner without a valid title can use Form MV-35 to transfer a car worth $1,250 or less and at least eight model years old. It can go only to a DMV-registered dismantler, itinerant vehicle collector or certified scrap processor, never to a private person, tow driver or charity, and the car “may never be titled again.”⁷

Other states set different value and age limits, require a bond, or have no exception at all. Read how to sell a car without a title for the options, and check your state on the junk car laws pages.

How title rules vary by state

Any of these can differ from one state to the next:

Rule	Examples
Notarization	Required on the title in Pennsylvania.5 California requires it on REG 227 only when there’s a lienholder.9
Salvage threshold	Repair cost above actual cash value in Texas;2 above 75% of retail value in New York.3
Duplicate title form and fee	Texas Form VTR-34, $2 by mail;8 California REG 227.9
No-title scrap sales	New York’s MV-35 for cars worth $1,250 or less and at least eight model years old.7

For your state’s forms, fees and deadlines, start at junk car laws by state. For example, the Texas, California, New York and Pennsylvania pages cover the rules mentioned here.

References

1. New York State DMV, “Information and instructions about your certificate of title”, https://dmv.ny.gov/brochure/information-and-instructions-about-your-certificate-of-title ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷ ↩⁸ ↩⁹ ↩¹⁰

2. Texas Department of Motor Vehicles, “Salvage dealer license”, https://www.txdmv.gov/dealers/licensing/salvage-dealer ↩ ↩² ↩³ ↩⁴ ↩⁵

3. New York State DMV, “Salvage vehicles”, https://dmv.ny.gov/salvage/salvage-vehicles ↩ ↩² ↩³

4. National Motor Vehicle Title Information System (U.S. Department of Justice), “Consumers”, https://vehiclehistory.bja.ojp.gov/nmvtis_consumers ↩ ↩² ↩³

5. Pennsylvania DMV (PennDOT), “Buying or selling a vehicle”, https://www.pa.gov/agencies/dmv/vehicle-services/title-and-registration/buying-or-selling-a-vehicle ↩ ↩² ↩³

6. California DMV, “Notice of transfer and release of liability (NRL)”, https://www.dmv.ca.gov/portal/vehicle-registration/titles/title-transfers-and-changes/notice-of-transfer-and-release-of-liability-nrl/ ↩

7. New York State DMV, Form MV-35, “Statement of vehicle owner who does not have a valid title” (6/22), https://dmv.ny.gov/forms/mv35.pdf ↩ ↩² ↩³

8. Texas Department of Motor Vehicles, “Get a copy of your title”, https://www.txdmv.gov/motorists/buying-or-selling-a-vehicle/get-a-copy-of-your-title ↩ ↩² ↩³ ↩⁴

9. California DMV, “Title transfers and changes”, https://www.dmv.ca.gov/portal/vehicle-registration/titles/title-transfers-and-changes/ ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶