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

Transferring a car title in Nebraska is a crucial step when selling, gifting, or inheriting a vehicle, especially within a family. While transferring ownership to a family member might seem straightforward, failing to properly transfer the title can lead to a number of headaches down the road. This can include complications with vehicle registration, potential legal disputes, and difficulties with selling the vehicle in the future.

This guide provides a simple, step-by-step walkthrough of the process for transferring a car title to family members in Nebraska. 

Clear Car Title for Loans – A Must? 

In Nebraska, if you’re considering using your vehicle as collateral for a title loan, having a properly transferred and clear car title is an absolute must.  

Title loans are secured loans where the borrower’s vehicle title is used as collateral.  Lenders need to confirm that the borrower has full ownership rights to the vehicle before they can approve a loan.

This is where a clear title comes in. A clear title shows that the vehicle is free of any liens or encumbrances, meaning there are no outstanding loans, debts, or legal issues tied to the vehicle. Without a clear title, securing a title loan in Nebraska is virtually impossible.

Need fast cash in Nebraska? A car title loan could be the answer. Apply online today and get the funds you need quickly and easily!

How to Transfer a Car Title in Nebraska

1. Gather necessary documents (more on this later). 

2. Complete the Title Transfer

• Seller’s Responsibilities:
  • Complete the seller section on the back of the title, including the date of sale, selling price, and signature.   
  • Print their name clearly.
  • Complete the odometer disclosure section.
  • Remove license plates from the vehicle.

• Buyer’s Responsibilities:
  • Complete the buyer section on the back of the title, including their name, address, and signature.   
  • Print their name clearly.

3.  Visit a County Treasurer’s Office

• Take the required documentation to your local County Treasurer’s office.
• Pay the $10 title transfer fee.
• You’ll receive a temporary operating permit while you wait for your new title.

4. Receive Your New Title

Your new title will be mailed to you within a few weeks.

Important to note: Whether you’re selling your car or transferring the title to a family member, the process stays the same. You are still required to transfer the title and fulfill all the formal obligations outlined above. The person gifting the car should be listed as the seller, while the receiver will be listed as the buyer. 

Required Documentation

What do I need to transfer a car title in Nebraska? 

• Original car title: Signed over by the seller(s).
• Bill of Sale: Proof of the transaction can be a generic form or Nebraska Department of Revenue Form 6.
• Odometer Disclosure Statement: Required for vehicles less than 10 years old.
• Valid Nebraska driver’s license or ID card: For identification.
• Proof of insurance: Showing the vehicle is insured in Nebraska.
• Application for Certificate of Title (Form RV-707): Available online or at any Nebraska DMV office.

Fees and Tax Information

There are certain fees and tax implications associated with title car transfer in the state of Nebraska. Let’s shine more light and what those are.

Fees 

The base fee for transferring a vehicle title in Nebraska is $10. 

Additionally, there are other potential fees you might be subjected to. Those include: 

• Lien Notation Fee: If there’s a lien on the vehicle, a $7 fee applies to record the lien on the new title.   
• Duplicate Title Fee: If you need a duplicate title, the fee is $14.
• Late Fees: If you don’t transfer the title within 30 days of the sale, you may incur late fees.  

Sales Tax 

Nebraska levies a sales tax on vehicle purchases, which generally applies to private-party sales. The Nebraska state sales and use tax rate is 5.5%, but the sales tax rate can vary by county. Here’s the list of Local Sales and Use Tax Rates in the state. 

Family Exemption

Nebraska offers a sales tax exemption for vehicle transfers between immediate family members. This typically includes spouses, parents, children, siblings, grandparents, and grandchildren. To qualify, you’ll likely need to provide proof of your relationship.

Example Scenarios

Scenario 1: A Parent Gifting a Car to Their Child

Imagine a parent decides to gift their used car to their teenager who just got their driver’s license. In this case, the parent would need to gather the necessary documents, including the original car title, a bill of sale, and an odometer disclosure statement if the car is less than 10 years old. 

The parent, as the seller, would complete their portion on the back of the title, including their signature. The teenager, as the buyer, would then fill out their information and sign. Since this is a gift between immediate family members, they would qualify for a sales tax exemption.  

They would take the completed paperwork to the County Treasurer’s office, pay the $10 title transfer fee, and receive a temporary operating permit. The new title with the teenager’s name will be mailed to them a few weeks later.

Scenario 2:  A Spouse Transferring a Car After Refinancing

In this situation, let’s say a spouse refinanced a car loan or paid it off completely. The lienholder (the original lender) would issue a lien release. To transfer the title into the spouse’s name alone, they would need the original title with the lien release, a bill of sale, and the other standard documents. Both spouses would sign the title – one as the seller and the other as the buyer.  

They would then visit the County Treasurer’s office, pay the title transfer fee, and potentially a small lien notation fee to record the release of the previous lien. Again, they’d likely qualify for the family exemption from sales tax.

Scenario 3: A Sibling Transferring Ownership

Perhaps siblings have a family agreement where one sibling decides to transfer ownership of their car to another. This scenario would involve a similar process. Both siblings would need to complete the necessary paperwork, including the title, bill of sale, and odometer disclosure (if needed).  

They would both sign the title accordingly. However, since they are siblings, they would also qualify for the sales tax exemption for family transfers. They would submit the paperwork and pay the title transfer fee at the County Treasurer’s office.

Common Mistakes and How to Avoid Them

Even though transferring a car title within a family might seem like a simple process, there are some common mistakes that can cause delays or complications. Here’s a quick overview of those pitfalls and how to avoid them:

1. Incorrect Signatures: It seems obvious, but make sure everyone signs in the correct places on the title. The seller needs to sign in the seller’s section, and the buyer needs to sign in the buyer’s section. Double-check this before submitting the paperwork.

2. Missing Odometer Disclosure: If the car is less than 10 years old, an Odometer Disclosure Statement is a must-have. Forgetting this can halt the transfer process. Always confirm the age of the vehicle and include this statement if required.

3. No Proof of Relationship: When claiming the sales tax exemption for family transfers, you’ll need to prove your relationship to the other party. This could be a birth certificate, marriage license, or another official document. Don’t assume they’ll just take your word for it!

4. Missing Deadlines: Nebraska has a 30-day deadline to transfer the title after a vehicle sale. Missing this deadline can lead to late fees and potential complications. Mark the deadline on your calendar and prioritize submitting the paperwork promptly.

Conclusion

Transferring a car title within your family in Nebraska doesn’t have to be a complicated process. By following this guide and paying attention to the details, you can ensure a smooth transfer and avoid potential headaches down the road. Remember to double-check all the required documents, meet the deadlines, and take advantage of the family exemption for sales tax savings.

Need more information? Always confirm the latest requirements and procedures with your local Nebraska DMV or County Treasurer’s office. Their expertise can help ensure a successful title transfer.

Looking for a title loan in Nebraska? Titlelo offers a super easy online process with competitive rates.  

Contact the Titlelo team today to learn more and get the financial assistance you need!

FAQ Section

Are there tax exemptions for family car transfers in Nebraska?

Yes! Nebraska offers a sales tax exemption for vehicle transfers between immediate family members, such as spouses, parents, children, siblings, grandparents, and grandchildren. To qualify, you’ll need to provide proof of your relationship, such as a birth certificate, marriage license, or other official documentation.   

Do I need an Odometer Disclosure Statement for a family transfer?

Yes, if the vehicle is less than 10 years old, an Odometer Disclosure Statement is required, even for transfers between family members. This helps ensure accurate mileage records for the vehicle.   

Can I transfer a title online in Nebraska?

Unfortunately, no. Nebraska currently requires you to visit a County Treasurer’s office in person to complete a car title transfer.

What happens if the vehicle has an outstanding lien?

If there’s a lien on the vehicle, it must be released by the lienholder before you can transfer the title. The lienholder will issue a lien release document, which you’ll need to include with your other paperwork.   

How do I transfer a title if the original owner is deceased?

Transferring a title when the owner is deceased requires additional steps and documentation.

You’ll likely need to provide a copy of the death certificate, an Affidavit of Inheritance (if applicable), and potentially other legal documents. It’s best to contact your local County Treasurer’s office or the Nebraska DMV for specific guidance in this situation