By Frank LingThe car title or “pink slip” of a car proves ownership, and whether you’re buying or selling a used car, this important document must be filled out correctly and accurately. Something as small as signing your name in the wrong place can void the sale.
Because car titles vary from state to state, the most important thing you can do before you sign one is to find out what the specific requirements are at your local DMV. The steps are not complicated but even a small error can be critical.
One item that you must be aware of is the color of ink that you use when filling one out. Some states will automatically reject a completed car title transfer if the ink isn’t blue or black. If the title is filled out in pencil, it isn’t legal.
Signing on the Lines
There are usually two places for signatures on a car title. One is for the owner of the car, and the other one is for the person the car is being transferred to. Make sure you know which line is which when you sign and sign with your full legal name.
Other important areas to fill out are the date of sale, the car’s selling price, the odometer reading or total miles on the car, and the name and addresses of the buyer and seller.
If you are the seller, don’t sign your signature until you receive payment for the car.
The buyer of the car must pay a filing fee to the DMV.
In some states, the current owner of the car must have it pass a smog test before it can be legally transferred. Check with your local DMV for details.
More than One Owner
In some cases a car title is listed under the name of two individuals. If the title doesn’t have an “or” between the owners, such as “Joe Smith OR Kathy Smith,” both people must sign the title.
If only one person signs, the title isn’t valid for transfer.
Make a Mistake?
Even under the best circumstances, people are prone to make mistakes when filling out a car title transfer. Some states allow these errors to be fixed by simply drawing a single line through the mistake and having it initialed.
In other states there is no recourse to correct errors on the car title, and a new one must be applied for at the DMV.
This process slows everything up so filling out the car title correctly the first time will save you lots of time and hassle, not to mention the additional processing fee you’ll have to pay.
If the car title is lost or missing, you’ll have to apply for a duplicate at the DMV.
Source:
eHow