A state title application is a form that your customers will use to apply for a new title for the vehicle they purchase from you. Title applications, up until recently, were normally a three or five page form that was only available from your local license bureau office. More and more states are now using a downloadable title application that you can complete online then print, or print first, then complete.
Any customer that purchases a vehicle from you will be required to pay sales tax and title the vehicle within 30 days. They will use this title application at their local license bureau to pay the appropriate sales tax and then apply for a new title for a vehicle. Most states require you to complete a title application if you take a trade or offer any rebates. Dealers are normally not required to complete a title application with your customers if there are no trades or rebates involved.
It is, however, good customer service if you assist your customers in
completing a title application with every sale. If you have taken a trade or
offered a rebate, you will more than likely be required to complete a title
application and keep it in your files.
When you are completing a title application you will be required to complete
extensive information about your purchaser such as their contact information
and where they would like to have the new title mailed to.
Most title applications also have a section called TOD Beneficiary If
Applicable, or something similar. This is called the Transfer On Death
instructions. If your customer completes this section, the person they name
will normally become the owner of the vehicle if they die. Completing the TOD
section may keep the vehicle out of probate if your customer dies and will
normally allow the TOD beneficiary to keep or sell the vehicle upon their death.
You will need to complete the vehicle description portion of the title application along with the lien information. It is very important that you are aware that completing the lien information on a title application does not file a lien on the vehicle. Many dealers fill out the lien information on a title application expecting the lien to automatically be filed only to find out later the lien was never filed.
Remember to always file a lien directly with your state dealer license bureau or department of revenue to make sure your lien is correctly registered. Completed lien information on a title application does not usually attach a lien to the vehicle.
If you have taken a trade you will usually need to complete a dealer section of the title application with your name, dealership name, and dealer number. You will also need to complete the trade in area of the title application with information about the vehicle you have taken on trade to let your state know that you have taken possession of that vehicle during the transaction.
Although most title applications have an area for notarization a notary’s
signature is rarely required. A notarization may be required if you are
using the title application to apply for a lost or duplicate title but
simple vehicle transactions normally to not require notarization. Be sure to
check with your local motor vehicle licensing office or your state dealer
license bureau to learn if a notarization is required on a title
application.
A title application will normally have a section that includes the fees for
licensing the vehicle. You will usually leave the fee area blank so your
customer’s local license bureau will be able to correctly tabulate the sales
tax fees.
A title application assists your customer in applying for a new title for
the vehicle they purchase from you. Your signature and dealer number are
usually required on this form if you have taken a trade or offered a rebate.