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Whenever a vehicle is sold in Texas, state law requires the vehicle be titled
and registered in the buyer’s name within 20 working days. If you sell your
vehicle but the title is not transferred out of your name, you could receive
parking tickets, toll violations or possibly have your property seized if the
vehicle was used to commit a crime.
New: In 2008,
new late penalties [pdf, 1 page, 18kb] go into effect for late transfers of
title and registration.
How to Change Vehicle Ownership
Seller: Simply signing the back of the title does not
transfer ownership. When you sell a vehicle, the buyer must submit a
vehicle title application
[pdf, 2 pages, 157kb] to the
county tax office.
After the tax office processes the application, you will no longer be shown as
the
owner of the vehicle.
If the buyer does not transfer the title, the vehicle will remain in
your name, and you
could be charged for parking tickets or toll road bills issued to that vehicle.
For this reason, we encourage you to accompany the buyer to the tax office to ensure the title
application is filed.
If you sell or trade-in your vehicle to a licensed motor vehicle dealer, the
dealer is not required to title the vehicle under the dealership's name. The
vehicle stays in your name until it is sold to an individual, which may take
months or even years. To protect yourself, file a
vehicle transfer notification [pdf, 2 pages, 272kb].
Buyer: Avoid unwanted surprises about your purchase by having the
seller accompany you to the county tax office. Before you submit the title
application, a tax office representative can
tell you if the title being signed over to you is correct and if it has any
legal or salvage issues.
If you buy your vehicle from a dealer, the dealer is required to file the
title papers on your behalf, so you will not have to visit the tax office. Make
sure the dealer provides you with a receipt showing the vehicle has been titled
in your name within 20 working days.
What if the buyer will not go to the county tax office?
If you sell your vehicle but the buyer is unwilling to go to the tax office, you should submit a
vehicle transfer notification [pdf, 2 pages, 272kb]. The transfer notification is based on a
state law that helps protect you.
After we receive this notification, we will update your motor vehicle record
to show you sold the vehicle and the date you sold it. Submitting this
form is important even if you sold or traded your vehicle to a dealer.
More Advice for Buyers and Sellers
Buyer: In addition to the title, ask the seller to provide you with the
vehicle registration receipt, signed vehicle title application and any other supporting documents, such as a release of lien or power of attorney. Keep a written
record that includes the name and address of the seller, date of sale and full
vehicle information (including the vehicle identification number).
Seller: Provide the buyer with a properly signed title, which
includes filling in the date of the sale and odometer reading and a signed
vehicle title application with the sales price shown. Keep a written
record that includes the name and address of the buyer, date of sale and full
vehicle information (including the vehicle identification number).
Fees When you apply for a vehicle title, you must pay the motor vehicle
sales tax, which
is 6.25 percent of the purchase price, or if buying a used vehicle from a
private party, the
standard
presumptive value. You will also be charged a title transfer,
registration and local fees. Your county tax office can tell you the exact
amount you must pay.
Proof of Insurance
You must provide proof of liability insurance when you title and/or
register your vehicle. If you do not provide proof of insurance, the tax office
will not process your application.
For more information about vehicle title transfers, please read our
FAQs, call us at (512)
465-7611 or send us an e-mail.
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