How to Transfer a Car Title to a Family Member in Arkansas

Correctly transferring a car title in Arkansas is crucial both for you and the new owner. An incomplete or improper transfer can lead to significant legal and financial complications.

This guide provides a simple, step-by-step process to help family members navigate the car title transfer process in Arkansas smoothly and avoid potential pitfalls.

Importance of a Clear Car Title for Loans

When life gives you lemons, you might find it helpful to explore different lifelines – one of which could be a title loan.

In Arkansas, a clear car title is absolutely essential for obtaining a title loan. Here’s why:

• Proof of Ownership: The title loan uses your vehicle as collateral. A clear title in your name unequivocally proves you are the rightful owner, allowing the lender to confidently use your vehicle as security for the loan.
• Lien-Free Status: A clear title indicates that there are no outstanding liens or debts against the vehicle. This is crucial because lenders need to ensure that they have the first claim on the vehicle in case of default.
• Eligibility for Loan Amount: The loan amount is often determined by the vehicle’s value. A clear title helps lenders accurately assess the vehicle’s worth, ensuring you receive a fair loan offer.

Do you want to learn more about car title loans in Arkansas? We’ve got you covered. With Titelo, finding the right, trustworthy lender in your area won’t be a problem. Apply through our website and enjoy a quick and easy process – no hidden fees and predatory practices!  

How to Transfer a Car Title in Arkansas

What do I need to transfer a car title in Arkansas? Here’s a step-by-step guide to transferring a car title in Arkansas:

1. Gather Necessary Documents

To transfer a car title to a family member, you’ll need a set of documents, which we will outline in a later section. You must:

• Deliver the original Arkansas Certificate of Title.
• Complete the Application for Title and Registration (Form 10-381). Sign the title and ensure both parties complete the appropriate sections. 
• Submit the Bill of Sale.
• Gather all supporting documents.

2. Visit an Arkansas Office of Motor Vehicles (OMV) Office

• Locate the nearest OMV office and visit during their business hours.
• Present all the required documents to the OMV representative.
• Pay the necessary fees.

3. Obtain Your New Title and Registration:

• The OMV will issue you a new title and registration in your name.
• Ensure all information on the documents is accurate.

Required Documentation

Here’s the detailed list of documents you will need to transfer a car title in the state of Arkansas successfully. 

• The original Arkansas Certificate of Title. Ensure the title is signed by the seller (in that case, it’s you) and reflects the correct odometer reading.
• Application for Title and Registration (Form 10-381): This form is used to apply for a new title and registration in the name of the new owner. It requires information about the vehicle, the buyer, and the seller. You can obtain this form from the Arkansas Department of Finance and Administration website or from your local OMV office.
• Bill of Sale: This document outlines the sale price and vehicle information. Both buyer and seller must sign it.*   
• Odometer Disclosure Statement (Form 10-313): This form is typically included on the back of the title or can be obtained separately. It requires the seller to certify the actual mileage of the vehicle at the time of sale.
• Official Release of Lien or Permission to Issue a Replacement Title (Form 10-315): If the vehicle has a lien, this form is required from the lienholder.   
• Proof of Insurance: You’ll need to show proof of insurance for the vehicle.
• Identification: Both the buyer and seller will need to present valid identification (driver’s license, state ID).

*Even if you plan to gift a vehicle to a member of your family, providing a Bill of Sale is still required. This ensures a clear record of the vehicle transfer, which will be useful to facilitate future transactions.

Fees and Tax Information

As you can expect, a title car transfer is subjected to certain fees and taxes. It’s important to educate yourself on this topic before you finalize the transfer. Let’s talk about it in more detail. 

Fees 

In Arkansas, the title transfer fee is typically around $10 – $15. This fee covers the administrative costs associated with processing the title transfer, such as updating the state’s vehicle records and issuing a new title in the buyer’s name. It’s important to note that this fee is a standard charge regardless of the relationship between the buyer and seller, including family members.

Taxes

Sales tax in Arkansas is typically 6.5% of the vehicle’s sale price.

However, there are limited sales tax exemptions for certain transfers, such as when the sale of the vehicle does not surpass $4,000 (ACT 753 of 2011).

Also, if the car was transferred without a sale (as a gift), you can avoid federal gift tax if its worth does not exceed $17,000. 

If you have questions about potential sales tax exemptions or any other tax implications related to the vehicle transfer, it’s highly recommended to consult with a qualified tax professional for personalized guidance.

Example Scenarios

Let’s analyze a few real-life examples of car title transfers in Arkansas to get a better idea of how this procedure works and what you can expect. 

A parent transferring their car to an adult child attending college

Let’s say a parent in Arkansas wants to gift their car to their adult child who is attending college out-of-state. To begin, they would gather the necessary documents, which include the original vehicle title signed by the parent as the seller, a bill of sale clearly stating the vehicle is a gift, the odometer disclosure statement, proof of insurance for the child and valid identification for both the parent and child.

With these documents in hand, the parent and child would then visit a local Arkansas Office of Motor Vehicles (OMV).

A sibling gifting a car as part of a family agreement

In this situation, the process looks very similar. To initiate the process, the sibling gifting the car (the seller) would need to gather the necessary documents.

After reviewing the documents and addressing any inquiries, the sibling gifting the car would pay the applicable title transfer fees. Once the process is complete, the OMV will issue a new title and registration in the name of the receiving sibling, officially transferring ownership.

A spouse transferring a vehicle title after refinancing or buying out a lease

Let’s consider the scenario where a spouse in Arkansas is transferring the vehicle title after refinancing a car loan or buying out a car lease.

If there was a previous lien on the vehicle (such as from the original loan), you would need to obtain a lien release from the previous lender in order to transfer the title. This document confirms that the loan has been fully paid off, and the lien has been removed from the vehicle.

Common Mistakes and How to Avoid Them

Incorrect Signature Placement

One common mistake when transferring a car title in Arkansas is failing to sign the title in the correct section. This oversight can cause significant delays in the process. The Arkansas title has a specific area designated for the seller’s signature. Carefully review the title and ensure the signature is placed in the correct location to save yourself some headaches.

Missing Bill of Sale

Another mistake is forgetting to include the Bill of Sale. This document is essential as it outlines the terms of the vehicle sale, including the purchase price and the names of the buyer and seller. Failing to provide the Bill of Sale can hinder the title transfer process and may even result in the transfer being denied.

Missing Submission Deadlines

Finally, missing Arkansas OMV submission deadlines for title transfer paperwork is a common mistake that can lead to penalties or fines. It’s crucial to submit all necessary documents within the designated timeframe. Familiarize yourself with the applicable deadlines and ensure timely submission to avoid any complications.

Conclusion

Successfully transferring a car title to a family member in Arkansas requires careful attention to detail. Completing the transfer correctly is crucial to avoid potential legal and financial complications down the line.

To ensure a smooth and hassle-free transfer, it’s essential to double-check all requirements with the Arkansas Office of Motor Vehicles (OMV) or your local OMV branch. They can provide the most up-to-date information on fees, taxes, and any specific procedures.

If you have any further questions or require assistance with any aspect of the car title transfer process or car title loans, the Titlelo team is available to help. Please don’t hesitate to contact us for guidance and support.

FAQ Section

Are there tax exemptions for family transfers in Arkansas?

In the state of Arkansas, there are no specific tax exemptions for tax family transfers. 

Do I need a Bill of Sale for a family transfer in Arkansas?

Yes. A Bill of Sale is generally required for all vehicle transfers in Arkansas, including those between family members.

What happens if the vehicle has a lien?

If the vehicle has a lien (such as a loan), you must obtain a lien release from the lienholder before you can transfer the title. The lienholder must provide written consent to release their interest in the vehicle. 

Can I transfer a title online in Arkansas?

Yes, you can transfer a title online in Arkansas. For this, you need to go to MyDMV official site and follow the instructions outlined there. 

What if the previous owner is deceased?

If the previous owner is deceased, there are specific procedures for transferring the vehicle title. You will need to provide a certified copy of the death certificate. Depending on the circumstances, you may need to involve the estate administrator or executor to complete the title transfer.