When is a car title transfer necessary in Colorado?
A title transfer is a necessary procedure for a variety of reasons. However, this transfer is primarily conducted when a vehicle is sold from one legal entity to another. In addition, this is an important procedure when an out-of-state vehicle is brought to Colorado to be operated within state lines. This can take place when a new resident moves to CO, or when a current resident buys a car from a different state. Furthermore, vehicle owners who have changed their legal names may need to perform a car title name change on an existing title. Some of the most common procedures related to transferring the title of a vehicle include:
- Out-of-state transfer – This type ofvehicle title transfer takes place when avehicle that wasregistered in another state is moved to Colorado. Car owners have 90 days from the date that the vehicle was transferred to CO to perform this titling procedure.
- Buying or selling a vehicle –A title must be transferred between two legal entities whenever a vehicle changes ownership. Thus, regardless of whether you purchase a vehicle from a car dealership or through a private transaction between two individuals, the vehicle title must be transferred.
- Receiving a vehicle through donation, gift or inheritance – You must request a car transfer title if you receive a vehicle as a donation, gift or as part of an inheritance.
- Removing a lien – Once you pay off the loan on your car, you must apply for anauto title transfer from the lien holder to you.
Car owners must be mindful that all of the procedures listed above incur a title transfer cost. However, each process may include different fees, as established by the Colorado DMV.
How to Transfer a Car Title in Colorado
In order to perform atitle transfer, vehicle owners must fill out an application form. In Colorado, applying for a title is a very similar process in comparison to applying for a car registration. Furthermore, if a car has more than one owner, all of the relevant parties must fill out a designated section of the application form, where all of the owners must be listed accordingly. Overall, aDMV title transfer also requires the following:
- Proof of car insurance in Colorado
- A valid form of identification of all of the listed owners
- Documentation verifying the weight of the vehicle, such as an original car title, a registration certificate or a certified weight slip
- Verification of vehicle identification number (VIN) in the case of out-of-state cars, which must be filled out by a law enforcement officer, car dealer or emissions inspection station
- Payment of fees and taxes to the Colorado DMV
After requesting a car title transfer, a new vehicle title will typically arrive within six weeks. However, if you have a lien on your vehicle, the lien holder will receive the title. Conversely, you may receive the title once the lien has been paid off.
Buying and Selling a Vehicle in Colorado
If you sell your car, you must conduct a vehicle title transferin order to hand over the ownership rights to the new owner. Furthermore, both parties involved in a private sale are responsible for requesting aDMV title transfer in CO. Conversely, if you purchase a vehicle from a car dealer, the establishment will typically handle all of the required paperwork for you. In any case, upon the sale of a car,a seller must provide the buyer a signed Colorado title that includes the date of the sale, the price of the vehicle, an odometer reading and the name and address of the buyer. If the county in which the new owner lives requires an emissions check, that must also be included. A bill of sale may also be required in certain instances. On the other hand, buyers are generally responsible for paying the car title transfer fees required by the DMV.
Out-of-State Title Transfer in Colorado
A Coloradotitle transfer for an out-of-state vehicle typically requires additional information from applicants. For example, the state DMVrequiresapplicants to submit a document that certifies a vehicle’s weight, such as an original car title, a valid registration document, the manufacturer’s statement of origin or a certified weight slip.
In the case of out-of-state vehicles, acar title transfer may also require a vehicle identification number (VIN) verification. This procedure must be completed by a law enforcement officer, a car dealer or an emissions inspection station.
Vehicle Title Transfer for Donated, Gifted or Inherited Vehicles in Colorado
A DMV title transfer isslightly different when a car is obtained through instances that did not include a monetary agreement or transaction. These circumstances include receiving a car by the means of a donation, gift or inheritance. In any case, a car title transfer must be completed in order to transfer the ownership of a vehicle even if it was received through one of these methods.
As an example, if you donate a vehicle to a Colorado charity, you must perform a car transfer to the name of that organization. Conversely, if you inherit a vehicle, you must complete anauto title transfer in order to take ownership of it. Moreover, if you are receiving a car from an individual who has passed away, the DMV will require you to produce a copy of his or her death certificate in order to transfer ownership.
Removing a Lien From Your Title in Colorado
After paying off the loan on your vehicle, you must request a title transferin order to gain ownership of the car. Thus, after completing the terms of your loan, you may request a title with the lien removed by providing the DMV with the following information:
- The year, make, model, and VIN of the vehicle
- Names of all owners
- Lienholder’s signature
- Date the lien was satisfied