Your car and its title share at least one thing in common: they both require maintenance. If you neglect to properly handle the necessary paperwork when you buy or sell a vehicle, you may find yourself fined or penalized for someone else's mistake.

Whenever a vehicle is sold in Texas, state law requires it to be titled in the buyer's name within 20 business days. Not all purchasers comply with this requirement, however, causing thousands of vehicles to remain titled in the name of the previous owner.

What can I do to protect myself?

Knowing and following the rules for vehicle title transfers is the best protection.

If you are selling a vehicle, review the seller's checklist:

Vehicle Title - Sign, date, and enter the odometer reading on the back of the title.
Application for Texas Certificate of Title (Form 130-U) - The new buyer needs this form to apply for a new title in his or her name. Sign it and write in the sales price.
VIN / New Owner Information - Keep the Vehicle Identification Number (VIN) from the title and the buyer's contact information for your records.
Texas Registration Receipt - Provide the vehicle's registration receipt.
License Plates and Registration Sticker - For only $5, you can keep your plates and transfer them to another vehicle you buy or own. Be sure to remove your windshield registration sticker. When you keep the plates, this forces the buyer to re-title the vehicle in his or her name.
County Tax Office - Go to your local county tax office with the buyer to fill out the required paperwork and complete the sale.
Vehicle Transfer Notification - If you can't go to the county office, you need to file the free Vehicle Transfer Notification online within 30 days. This lets TxDMV know you no longer own the vehicle, and removes you, the seller, from being held liable for anything the new owner may do with the vehicle.

If you are purchasing a vehicle, review the buyer's checklist:

Vehicle Title - Be sure to get the vehicle title and have the seller sign, date, and enter the odometer reading on the back.
Application for Texas Certificate of Title (Form 130-U) - File this form within 20 business days from the sales date to apply for a new title in your name. The previous owner must sign it and write in the sales price. If you don't apply for a new title within 20 business days, you will automatically be charged a $25 penalty, plus another $25 for every month you're late.
VIN / New Owner Information - Keep the Vehicle Identification Number (VIN) from the title and the seller's contact information for your records.
Texas Registration Receipt - Ask for the vehicle's registration receipt.
Vehicle Transit Permit - If the previous owner keeps the vehicle's license plates, you will need to download a free Vehicle Transit Permit so you can legally drive the vehicle to the county tax office to re-title it.
County Tax Office - Go to your local county tax office with the seller to fill out the required paperwork and complete the sale. Even if the seller can't go with you, make a trip by yourself to apply for a new title.

For more information on titling, download our Protect your title, Texas brochure or visit us on Facebook.

Late Fees

When you buy a vehicle, it's your responsibility to apply for a new title. If you don't apply for one within 20 business days of the sale, you'll be fined a $25 late fee and will continue to be fined $25 a month until the vehicle is correctly titled in your name.

Instructional Audio

Protect Your Title Audio Tips	Format
Protect Your Title Audio Tips	QuickTime	MP3
Protect Your Title, Texas (Audio - English)
Protect Your Title, Texas (Audio - Spanish)

Instructional Videos

Protect Your Title Videos	Format
Protect Your Title Videos	WMV
Protect Your Title, Buyers (Video - Lo)
Protect Your Title, Buyers (Video - Medium)
Protect Your Title, Buyers (Video - High)
Protect Your Title, Sellers (Video - Lo)
Protect Your Title, Sellers (Video - Medium)
Protect Your Title, Sellers (Video - High)