How to Transfer Ownership of a Car in Indiana
Like every other state in the country, Indiana requires vehicle owners to own the vehicle in their name. When a car is bought, sold, or otherwise changes ownership (for example, by gift or inheritance), ownership must be transferred to the new owner in order for it to be legal. There are a few important things you need to know about how to transfer car ownership in Indiana.
What buyers need to know
For buyers, the process is not difficult, but there are some specific steps that need to be followed.
- Make sure the seller completes the fields on the back of the title before handing it over to you. It should include the price, your name as the buyer, the odometer reading, the seller's signature, and the date the vehicle was sold.
- Make sure that if the car is seized, the seller will provide you with a release from the lien.
- Fill out an application for a certificate of ownership.
- If the seller does not provide an odometer reading in the header, you will need an Odometer Disclosure Statement.
- You need proof of residence in Indiana (such as your driver's license).
- You will need to check your vehicle and provide proof of this.
- You will need to pay a property right fee which is $15. If a title has been lost and a new one is needed, it will cost $8. If you don't register the vehicle in your name within 31 days, it will cost you $21.50.
- Take your documents, title and payments to your local BMV office.
Common Mistakes
- Do not get a release from the seller
- Don't make sure the seller has filled in all the required fields on the back of the header.
What sellers need to know
Sellers must follow a few basic steps to ensure that ownership can be transferred to a new owner. This includes:
- Be sure to complete all required fields on the back of the header, including the odometer reading.
- Be sure to sign the back of the title.
- Be sure to include the required information about the buyer.
- Don't forget to remove the license plates from the car. They stay with you and do not pass to a new owner.
Common Mistakes
- Do not remove license plates before selling the car
- Not filling the back of the header
- Not giving the buyer a release from the bond if the title is not clear
Donation and inheritance of cars
Whether you are giving a car or receiving it as a gift, the process is exactly the same as described above. If you inherit a car, things are a little different. The state actually requires that you contact BMV directly for full instructions on the process.
For more information on how to transfer ownership of a car in Indiana, visit the State Bureau of Motor Vehicles website.
