How to transfer ownership of a car in South Dakota

In South Dakota, the name of the car shows who owns the vehicle. This is an important document and in the event of a change of ownership, whether by purchase, sale, gift or inheritance, the title must be updated to show the name of the current owner and remove the previous owner from the records. This is called title transfer. There are several specific steps that must be followed in order to transfer ownership of a car in South Dakota.

Information for buyers

For buyers working with a private seller, it is important to follow these steps:

• Make sure the seller has filled in the fields on the back of the title, including the odometer if the vehicle is under 10 years old.

• Be sure to complete the sales contract with the seller. The bill of sale must contain some specific information, including the date of sale, the value of the vehicle, the make, model, and year of manufacture, and must have both your signature and that of the seller.

• Get a release from the seller.

• Complete an application for obtaining ownership and vehicle registration.

• Bring all of this information, along with money to pay the transfer fee, taxes, and registration fees, to the county treasury office. The transfer fee is $5 and the tax will be 4% of the value of the vehicle. Registration will cost $75.60 for vehicles under 10 years old or $50.40 if the vehicle is older than that age.

Common Mistakes

• Do not get release from arrest
• Did not bring money to pay registration fees

Information for sellers

For private sellers in South Dakota, the process also requires specific steps. They are:

• Apply for a vendor's permit at the county treasury office or the DOR website. You cannot sell your car without permission.

• Fill in the fields on the back of the header for the buyer.

• Complete the bill of sale with the buyer and make sure both of you sign it.

• Get a lien release.

• If the vehicle is less than 10 years old, complete the odometer disclosure section on the Vehicle Ownership and Registration Statement.

• Complete the seller's sales report and submit it to the county treasurer. You have 15 days to do this.

Common Mistakes

• Do not get release from arrest
• Don't Get Seller's Permission
• Do not notify sale status

Donating and Inheriting a Car in South Dakota

The donation process in South Dakota is the same as described above. However, if the title is transferred to a family member, they will not have to pay tax on the gift. Inheriting a car is a different story, and the subsequent process depends on whether the will was bequeathed or not.

If a will was made, you will need a title, as well as a copy of the appointment papers, a driver's license, and a social security number for everyone who will now be on the title. You will need to complete the South Dakota Exemption Form and also pay a transfer fee.

If a will was not made, you will need an Affidavit of Probate Ownership of the Vehicle, as well as details of each heir (DL and SS numbers). You will also need a title deed and a completed application of title and vehicle registration. Transfer fees apply.

For more information on how to transfer ownership of a car in South Dakota, visit the state DOR website.