Title transfer is a legal document i.e. a certificate of proof of ownership of the vehicle belongs to such and such person. Vehicle title transfer is essential at the time of transaction of a used vehicle. As many times as the ownership of the vehicle changes, the title will change too. The ownership is in the form of a title and is an essential requirement that must be fulfilled before buying or selling a vehicle. Every state has its own state specified laws regarding vehicle ownership. The degree to which these laws are applicable vary from state to state, but in almost all the states of the US title transfer is a necessary requirement.
In Virginia vehicle title transfer must be done as soon as possible once the transfer of a vehicle has been done whether it is a new or a used one. In cases other than the transaction of a vehicle, for instance when the vehicle has been inherited or has been donated or given as a gift etc, title transfer is required. Any change in the ownership of the vehicle would require a title transfer. In Virginia vehicle title transfers are dealt with by the department of motor vehicle of the state and it is important that the DMV receives the transfer of certificate of lien information form that must be completed and signed by both the parties.
For the seller the vehicle must now transfer the title ownership from the ‘seller’ to the ‘buyer’. If the vehicle is new then the ‘Manufacturer’s Certificate of Origin’ must be provided. Proof of sale price and odometer reading must be disclosed on the title. In case the title does not provide with enough space then additional documents like the bill of sale and an odometer disclosing statement must be provided. After the required documents have been completed a fee of $10 must be paid along with the 4% of motor vehicle sales and use tax based on the sale price of the vehicle.
However the Department of Motor Vehicle does not require certain family members to pay the required tax when transferring a vehicle. This exemption of tax is only applicable to parents, spouses and children.