How to Transfer Ownership of a Car in Alabama

Title is an important document that indicates the ownership of the vehicle. If you don't own your car, then there is no actual proof that you own it. However, there are many reasons why you might not have this title. For example, if you still owe the bank on the loan (you have a lien on the title to the property), then the title belongs to the bank and you will receive it when you repay the loan. In this case, you will have what is called a certificate of ownership, and the State of Alabama will not transfer ownership.

Whenever you decide to transfer ownership of your vehicle, ownership must be transferred to another person. This can happen for a variety of reasons, including:

• You decide to sell the car.
• You give your car to a brother or sister or one of the children of your driving age.
• If you have inherited the car from someone else, the ownership will also need to be transferred.

Steps to Transfer Ownership of a Car in Alabama

In fact, it takes very few steps to transfer ownership of a car in Alabama. The government makes it relatively easy, and whether you're selling a car, buying it from a private seller, gifting a car to someone, or trying to transfer ownership of an inherited car, the process is very similar.

Step 1. Transfer the title to the new owner.

The current owner must physically transfer the title to the new owner. If you are a buyer, then the current owner will be the seller. If you give a car to someone, then you are a seller. Required fields to be filled in are on the back of the header. Make sure you complete them all.

Step 2: Fill out the bill of sale

After the ownership has been transferred to the new owner, the seller must complete the bill of sale. If the car is over 35 years old, no title is required and you only need a bill of sale to register it in the name of the new owner. Note that each county in Alabama has its own bill of sale structure requirements, so check with your county office to make sure everything is done correctly.

Step 3: Contact the county office and pay the fees.

You will need to present both the signed title deed and the bill of sale to your county's licensing office. The state also requires you to pay a $15 title application fee, a $1.50 processing fee, and a $15 title duplication fee. Please note that additional fees may apply in your county, so please contact the licensing department first.

Caution: If you inherit a car

One caveat here if you are inheriting a car from someone who has passed away. Provided that the property did not require a will, you will complete all the fields on the back of the title deed yourself (both buyer and seller). You will then need to complete an affidavit of transfer of ownership of the vehicle from the deceased owner whose estate does not require a will (MVT Form 5-6) and submit it to the licensing department in your county.

For more information about transferring car ownership in Alabama, visit the Alabama Department of Revenue website.