While knowing how to transfer a car title to a family member may not seem like vital knowledge, it can become a necessity in some instances. Having full ownership of a car is necessary in various situations, like when the driver wants to take a title loan.
In the following segments, we will take a closer look at all the integral aspects of Alabama car title transfer. This includes a step-by-step guide, the required documentation, and even frequently asked questions.
What Is A Car Title?
A car title is the legal document that indicates who is the legal owner of a vehicle. In Alabama it is a legal requirement for all vehicles that have been made in the last 35 years. Any vehicles older than that don’t require a title.
How to Transfer Car Ownership to Family in Alabama: Step-By-Step
Our step by step guide will help you learn everything you need to know about how to transfer a car title in Alabama.
Transferring a Title at the DMV
Transferring a vehicle title in Alabama is fairly simple. Here’s a step-by-step guide:
- Gather all the required documentation (listed below).
- Ensure that all the previous title holders have signed the vehicle title.
- Present the documentation to the country office, and pay the required fees.
- Bring in the vehicle for inspection and corroboration.
- Wait for the completion of the transfer. It can take anything from a few weeks to two months.
Transferring Ownership of a Titleless Vehicle
In Alabama, vehicles older than 35 years don’t require a title. So, if you’re transferring ownership of an older vehicle, you won’t need to concern yourself with the absence of a title for the vehicle.
However, in the case of newer vehicles, a title is required. The best option is to get the seller (if you’re making a purchase) to apply for a replacement title, which will cost around $15 in this state. It should take about fifteen business days for the seller to get the new title, then you’re ready to do the transfer.
If you, or another family member, are the current owner of the vehicle and a replacement title isn’t available, you’ll need to apply for a new title. This may incur fees, and you’ll likely also have to run a check on the vehicle’s VIN.
The documents required by the county office for issuing a new title may include some or all of the following:
- A Certificate of Origin from the Manufacturer
- A Bill of sale
- A Bonded Title Application
- A Motor Vehicle Ownership Surety Bond
- A Statement of Fact from a Tax Collector Hearing
- A Copy of your driver’s license
If you are struggling to get a new title, it’s best to talk to your county office and get their recommendation about how to proceed.
It isn’t always recommended to buy a titleless vehicle, since it may be stolen or have other issues.
Transferring a Title Online
While there is an online titling system in this state, it is only available to financial institutions and car dealerships. As a result, you’ll need to do the title transfer in person at the closest county office.
Family Title Transfer in Alabama: Required Documentation
When you’re trying to transfer a car title to a family member in Alabama, there are several steps that you need to follow. The first is to assemble all the required documentation. Here’s a list of the different documents you’ll need:
- A title application form – When transferring a title, the buyer and seller will need to fill out an application for a replacement title form.
- The original vehicle title – It’s essential that you bring the original vehicle title with you when transferring the title. If you don’t have access to the original title, then you will need to apply for a duplicate title before you can complete the transfer.
- Transfer of ownership – On the vehicle title, there is a transfer of ownership that needs to be completed by both parties.
- Proof of auto insurance valid in Alabama – In order to transfer a vehicle title in Alabama, the new owner will need to prove that they have valid auto insurance for the state.
- The new owner’s driver’s license – The new owner will also need to provide proof that they have a valid driver’s license if they want access to the title.
- Proof of residency – The new owner will also need to prove that they are a resident of the state.
- A Bill of Sale – If you sell a vehicle to a family member, it’s advisable to bring the bill of sale for the vehicle.
Family Title Transfer in Alabama: Related Fees
When doing a vehicle transfer in Alabama, there are several fees that you’ll need to pay. The first is the title transfer fee, which is $18.
The second, and more significant, is a sales tax of between 2.6% and 3.1%. In the case of a private sale, the lower fee applies, dealer sales require the larger tax.
Registration fees and license plate fees will be due at the same time. If you transfer a license plate, the fee is $1.25. If you purchase a new license plate, the fee is $23, as well as a $1.25 issuance fee. There may also be additional sales tax involved.
Real-Life Examples of Family Title Transfer in Alabama
While it’s readily apparent that you may sometimes need to transfer a car title to a family member, it’s difficult to understand exactly why it may become necessary. Let’s look at a few real-life examples.
Transferring a Car Title From A Deceased Owner in Alabama
Unfortunately, this is a very common reason for transferring a car title to a family member. When an elderly family member passes away, or a family member passes away prematurely, then it is necessary to transfer the vehicle title to the beneficiary of their will.
You may require additional documentation in this case, including a copy of letters testamentary or letters of administration issued by the court. In the case of an estate that isn’t going through probate, the executor or signatory of the estate will need to provide a Next of Kin Affidavit (MVT 5-6). You’ll also need a copy of the deceased owner’s death certificate.
Transferring Ownership of a Vehicle to a Son or Daughter
It is also relatively common for a parent to buy a vehicle for their child, or to give them one of the family’s vehicles. In this case, the regular transfer process applies,
However, you’ll need to fill out an Affidavit of Motor Vehicle Gift Transfer form. If you are buying a new car for your child, then you might want to consider taking them to the dealership and having them buy the car directly. This will eliminate the need for a title transfer, and the potential for paying sales tax twice.
Final Thoughts
If you started reading this article not knowing how to fill out a car title transfer in Alabama, you should now understand all the steps and basic requirements. As you can see, it is a fairly simple process that requires some basic preparation and nothing particularly complex.
Bear in mind that a full title and ownership is required if someone wants to take out a title loan in the state of Alabama. It is also useful to have a full title in a range of other situations.
Family Title Transfer in Alabama: Frequently Asked Questions
What is needed to transfer a car title in Alabama?
Several essential documents are required when transferring a car title in Alabama, including the following: the original Alabama title (signed over to the buyer, a bill of sale, an unexpired driving license for both the seller and the buyer. proof of insurance (clearly showing both the NAIC number and the policy number, Proof of identification, and proof of VIN inspection.
You’ll also need the various fees in order to process the transfer.
Do I need a bill of sale if I have the title in Alabama?
It depends on the situation. In some cases you can successfully sell your car, and transfer the title, using only the original Alabama title. However, in other cases, a bill of sale may be required. When at all possible, try to take the bill of sale when transferring a vehicle’s title.
What do I need to register my car in Alabama from out of state?
When you’re transferring a vehicle title in Alabama, but from out of state, you will require: the original certificate of title, as well as valid, unexpired driver’s licenses for both parties, and proof of vehicle insurance.
You also need to bring in the vehicle at the time of transfer to allow for certification of the car’s mileage and VIN number.
Does Alabama require a notary for title transfer?
No, Alabama does not require a notary for title transfer. However, if you’re transferring from out of state a notarization may sometimes be required to complete the transfer.
In his role as our dedicated “numbers guru,” Tracy takes charge of Titlelo’s financial planning, analysis, and forecasting. With an impressive 20-year accounting background working alongside CPA and high-tech firms, we rely on him to steer our fiscal ship towards continued success. Tracy’s invaluable contributions to our team are characterized by his hands-on approach and unwavering commitment to precision. With his expertise, we are empowered to implement inventive, pragmatic, and results-focused financial strategies, propelling Titlelo’s clients to new heights.