Can You Sell a Car with the Title in Someone Else’s Name

Selling a car when the title is in someone else’s name is possible but comes with legal and logistical challenges. You’ll need proper documentation, the title holder’s cooperation, and adherence to state laws to complete the sale legally and safely.

So, you’ve got a car you want to sell—but there’s a catch. The title isn’t in your name. Maybe it’s in your spouse’s name, your parent’s, or even a friend’s. You’re not the legal owner, but you’re the one handling the sale. Can you still sell it? The short answer is: yes, but it’s not as simple as handing over the keys and cash.

Selling a car with the title in someone else’s name is legally possible, but it requires careful planning, proper documentation, and cooperation from the actual titleholder. Think of it like borrowing a friend’s laptop to sell online—you can do it, but you need their permission and proof that you’re allowed to act on their behalf. Without that, you risk legal trouble, failed transactions, or even accusations of fraud.

This situation comes up more often than you might think. Maybe you’re helping an elderly parent sell their old sedan, or you’re managing a vehicle for a family member who’s out of town. Perhaps you co-signed a loan, or the car was gifted to you but never officially transferred. Whatever the reason, understanding the rules is crucial. In this guide, we’ll walk you through everything you need to know—from legal requirements to practical tips—so you can sell that car smoothly and safely.

Key Takeaways

• Legal ownership matters: Only the person named on the title can legally sell the vehicle unless they authorize someone else in writing.
• Power of Attorney (POA) can help: If the title holder can’t be present, a notarized POA allows another person to sign on their behalf.
• Joint ownership simplifies the process: If the car is co-owned, both parties must sign the title for the sale to be valid.
• Gifted or inherited cars require extra steps: Transfers due to gifting or inheritance often need additional paperwork like affidavits or probate documents.
• State laws vary significantly: Always check your local DMV rules—some states allow third-party sales with limited documentation, while others are stricter.
• Avoid scams and fraud: Never accept cash-only deals or pressure to sell quickly without proper paperwork—these are red flags.
• Use a bill of sale: This document protects both buyer and seller by recording the transaction details, even if the title isn’t in your name.

Understanding Car Title Ownership

Before you can sell a car, you need to understand what the title actually means. The car title—sometimes called a certificate of title—is a legal document issued by your state’s Department of Motor Vehicles (DMV) that proves ownership of a vehicle. It lists the legal owner(s), the vehicle identification number (VIN), and other key details like the make, model, and year.

Only the person or people named on the title are considered the legal owners. That means they have the right to sell, transfer, or dispose of the vehicle. If your name isn’t on the title, you don’t have the legal authority to sell the car—even if you’ve been driving it for years or paid for it outright.

For example, imagine your mom bought a used SUV and put it in her name, but she lets you use it daily. You’ve been paying for gas, insurance, and maintenance. But if she passes away or decides to sell it, you can’t just list it on Craigslist and hand it over to a buyer. The title is in her name, so she—or her estate—must authorize the sale.

This principle applies whether the title is in one person’s name or multiple names. If it’s jointly owned (like “John and Jane Smith”), both parties must agree to the sale and sign the necessary documents. If it’s in someone else’s name entirely, you’ll need their explicit permission and cooperation.

Why the Title Matters in a Sale

When you sell a car, the buyer wants assurance that they’re getting a legitimate, lien-free vehicle they can legally register in their name. The title is the key to that assurance. During the sale, the seller (or authorized agent) signs over the title to the buyer, who then takes it to the DMV to register the car and get new plates.

If the title isn’t in your name, you can’t sign it over. That’s why trying to sell a car without being the titleholder—or without proper authorization—can lead to serious problems. The buyer may refuse to complete the purchase, the DMV might reject the transfer, or worse, you could be accused of misrepresentation or fraud.

In some cases, people try to work around this by creating fake documents or forging signatures. That’s not just risky—it’s illegal. Forgery and title fraud are serious crimes that can result in fines, penalties, or even jail time. Always follow the legal process.

Common Scenarios Where the Title Isn’t in Your Name

There are several real-life situations where you might find yourself wanting to sell a car that’s not in your name:

– **Family vehicles:** A parent, spouse, or sibling owns the car but trusts you to sell it.
– **Inherited cars:** A relative passed away, and the car is still in their name, but you’re handling the estate.
– **Gifted vehicles:** Someone gave you a car, but the title was never transferred.
– **Co-signed loans:** You co-signed a car loan, but only the other person is on the title.
– **Business-owned vehicles:** The car belongs to a company, but an employee is managing the sale.

In each case, the solution depends on the relationship, the titleholder’s availability, and state laws. But the core rule remains: you need legal authority to sell.

Legal Ways to Sell a Car When You’re Not on the Title

So, how do you legally sell a car when the title is in someone else’s name? There are several legitimate pathways, depending on your situation. The key is to get proper documentation that proves you have the right to act on behalf of the titleholder.

Option 1: Get the Title Transferred to Your Name First

The simplest and most straightforward solution is to have the title transferred into your name before listing the car for sale. This process is called a “title transfer” and is typically done through your local DMV.

Here’s how it works:
1. The current titleholder signs the back of the title, transferring ownership to you.
2. You complete a title application form (usually Form VR-18 in many states).
3. You pay any required fees, such as transfer taxes or registration costs.
4. The DMV issues a new title in your name.

Once the title is in your name, you can sell the car just like any other vehicle. You’ll sign the title over to the buyer, and the transaction is clean and legal.

This option works well if the titleholder is available, cooperative, and the car isn’t tied up in a loan or lien. However, it can take time—especially if you need to wait for a probate process or if the titleholder lives far away.

Option 2: Use a Power of Attorney (POA)

If the titleholder can’t be present to sign the title—maybe they’re out of the country, hospitalized, or otherwise unavailable—you can use a Power of Attorney (POA) to act on their behalf.

A POA is a legal document that gives someone else (the “agent” or “attorney-in-fact”) the authority to make decisions or take actions on behalf of another person (the “principal”). In this case, the principal is the titleholder, and the agent is you.

To use a POA for a car sale:
1. The titleholder must sign a POA document that specifically authorizes you to sell the vehicle.
2. The POA must be notarized—this means a notary public witnesses the signature and stamps the document.
3. You present the POA along with the signed title when completing the sale.

Not all POAs are created equal. A general POA might not cover vehicle sales, so it’s important to use a specific POA for motor vehicle transactions. Some states even have DMV-specific POA forms you can download and use.

For example, in California, you can use the DMV’s “Power of Attorney for Vehicle Transactions” form (REG 260). This form clearly states that the agent can sign title documents, register the vehicle, and handle related DMV tasks.

Option 3: Joint Ownership and Co-Signing

If the car is jointly owned—meaning two or more people are listed on the title—all owners must sign the title for the sale to be valid. This is true even if one person is handling the sale.

For instance, if the title says “Maria and Carlos Rodriguez,” both Maria and Carlos must sign the back of the title when selling the car. If Carlos is out of town, he can sign the title and mail it, or use a POA to authorize Maria to sign for him.

Some titles use “and” between names (e.g., “John and Jane”), which means both parties must sign. Others use “or” (e.g., “John or Jane”), which allows either person to sign alone. Always check the wording on the title to know what’s required.

Option 4: Selling on Behalf of an Estate

If the titleholder has passed away, the car becomes part of their estate. In this case, you can’t sell the car unless you’re the executor of the estate or have legal authority to act on its behalf.

The process usually involves:
1. Obtaining a copy of the death certificate.
2. Filing for probate (if required by your state).
3. Getting court approval to sell the vehicle.
4. Signing the title as the estate representative.

Some states allow small estates to bypass formal probate through a simplified process, such as an affidavit of heirship or small estate affidavit. This can speed things up and reduce legal costs.

For example, in Texas, if the estate is worth less than $75,000, the executor can use an “Affidavit of Heirship” to transfer the car without going to court. The affidavit is signed by someone who knows the family and is notarized.

Option 5: Business-Owned Vehicles

If the car is owned by a business—like a company car or fleet vehicle—the sale must be authorized by the business. This usually means getting a signed letter from a company officer (like the owner or manager) stating that you’re authorized to sell the vehicle.

You may also need:
– A copy of the business’s registration or articles of incorporation.
– A resolution from the company’s board (if applicable).
– The business’s tax ID number.

The title will be in the business’s name, so the authorized representative must sign it. If the business is dissolved or inactive, additional steps may be needed, such as contacting the state’s business division.

State-Specific Rules and DMV Requirements

One of the biggest challenges in selling a car with the title in someone else’s name is that rules vary widely from state to state. What works in Florida might not work in Oregon. That’s why it’s essential to check your local DMV’s guidelines before proceeding.

How to Research Your State’s Rules

Start by visiting your state’s DMV website. Look for sections on “selling a vehicle,” “title transfers,” or “power of attorney.” Most DMVs provide downloadable forms, FAQs, and step-by-step guides.

For example:
– **California:** Allows POA for vehicle sales with form REG 260. Requires smog check and release of liability form.
– **Texas:** Permits third-party sales with a notarized POA or estate affidavit. Requires a vehicle inspection.
– **New York:** Requires the title to be signed by all owners. Allows POA with notarization.
– **Florida:** Accepts POA for title transfers. Requires a bill of sale and odometer disclosure.

Some states are more flexible than others. In Arizona, for instance, you can sell a car with just a signed title and a bill of sale—even if you’re not the owner—as long as you have the titleholder’s permission. But in states like Illinois, the DMV may require additional documentation or verification.

Common DMV Requirements Across States

While specifics differ, most states require the following when selling a car:
– A properly signed title (by the owner or authorized agent).
– A bill of sale (recommended even if not required).
– Odometer disclosure (for vehicles under 10 years old).
– Release of liability form (filed by the seller to avoid future tickets or fees).
– Smog or emissions test (in certain states).

If you’re using a POA, the DMV will likely want to see:
– The original POA document (or a certified copy).
– Proof of notarization.
– Identification for both the titleholder and the agent.

Always call your local DMV office if you’re unsure. They can clarify what documents you need and whether your situation qualifies.

Protecting Yourself and the Buyer

Selling a car with the title in someone else’s name adds complexity—and risk. To protect both yourself and the buyer, it’s important to follow best practices and avoid common pitfalls.

Use a Bill of Sale

A bill of sale is a written agreement that records the details of the transaction. It includes:
– Names and addresses of buyer and seller.
– Vehicle description (make, model, year, VIN).
– Sale price.
– Date of sale.
– Signatures of both parties.

Even if your state doesn’t require a bill of sale, it’s a smart idea. It proves the sale happened and protects you if the buyer later claims the car was stolen or misrepresented.

If you’re not the titleholder, the bill of sale should clearly state that you’re acting on behalf of the owner (e.g., “John Doe, agent for Jane Smith, owner”).

Verify the Buyer’s Identity

Always meet the buyer in a safe, public place—like a DMV office or police station. Ask to see their driver’s license and verify that the name matches the one on the bill of sale.

Avoid cash-only deals, especially for high-value vehicles. Use a cashier’s check or bank transfer, and wait for the funds to clear before handing over the keys.

Avoid Red Flags

Be wary of buyers who:
– Pressure you to sell quickly.
– Offer to pay more than the asking price.
– Ask you to ship the car or meet in a remote location.
– Refuse to provide ID or contact information.

These could be signs of a scam. Legitimate buyers will respect the process and want to ensure the sale is legal.

File a Release of Liability

After the sale, file a release of liability form with your DMV. This tells the state that you’re no longer responsible for the vehicle. If the buyer gets a ticket or causes an accident before registering the car, you won’t be held liable.

Most DMVs allow you to file this form online or by mail. Keep a copy for your records.

What Not to Do

While there are legal ways to sell a car with the title in someone else’s name, there are also dangerous shortcuts to avoid.

Don’t Forge Signatures

Signing someone else’s name on a title—even with their verbal permission—is forgery. It’s a felony in most states and can lead to criminal charges.

Don’t Sell Without Documentation

Never hand over the car without a signed title, bill of sale, and proof of authorization. The buyer needs these to register the vehicle, and you need them to prove the sale was legitimate.

Don’t Ignore Lienholder Requirements

If the car has a loan or lien, the lender must release the title before it can be sold. Contact the lienholder to arrange payoff and title release. Selling a car with an active lien can result in legal action from the lender.

Don’t Assume Verbal Permission Is Enough

Even if the titleholder says it’s okay to sell the car, you still need written proof. Verbal agreements aren’t enforceable in DMV transactions and won’t protect you if something goes wrong.

Real-Life Example: Selling Mom’s Car

Let’s say your mom owns a 2015 Honda Accord, but she’s moved into assisted living and can’t drive anymore. She wants you to sell the car and use the money for her care.

Here’s how you could do it legally:
1. **Get a POA:** Mom signs a notarized Power of Attorney authorizing you to sell the vehicle.
2. **Gather documents:** Collect the title, registration, and maintenance records.
3. **List the car:** Advertise the Honda online with clear photos and details.
4. **Meet the buyer:** Arrange a meeting at the DMV. Bring the signed title, POA, bill of sale, and odometer disclosure.
5. **Complete the sale:** The buyer pays you (via cashier’s check), you sign the title as “Jane Doe, agent for Mary Smith,” and hand over the keys.
6. **File release of liability:** Submit the form online to protect yourself.

This process ensures everything is above board and protects both you and the buyer.

Conclusion

Selling a car with the title in someone else’s name is definitely possible—but it’s not a simple handshake deal. You need the right documentation, the titleholder’s cooperation, and a clear understanding of your state’s laws.

Whether you’re using a Power of Attorney, transferring the title first, or acting on behalf of an estate, the key is to follow the legal process. Don’t cut corners. Don’t forge documents. And always protect yourself and the buyer with proper paperwork.

By taking the time to do it right, you can sell that car smoothly, avoid legal trouble, and ensure a fair transaction for everyone involved. When in doubt, consult your local DMV or a legal professional. It’s better to be safe than sorry.

Frequently Asked Questions

Can I sell a car if the title is in my spouse’s name?

Yes, but your spouse must sign the title or grant you a Power of Attorney. If you’re legally married and the car is jointly owned, both signatures may be required depending on how the title is written.

What if the titleholder is deceased?

You’ll need to act as the estate representative. This usually involves probate court approval or a small estate affidavit. The death certificate and legal authorization are required to transfer the title.

Can I sell a car with just a notarized letter from the owner?

A notarized letter may help, but most DMVs require a formal Power of Attorney or signed title. Check your state’s requirements—some accept letters, but others don’t.

Is it illegal to sell a car if I’m not on the title?

It’s not automatically illegal if you have proper authorization. But selling without the titleholder’s permission or legal authority can lead to fraud charges. Always get written proof.

Can a friend sell my car for me?

Yes, if you give them a notarized Power of Attorney. They can then sign the title and complete the sale on your behalf, as long as they follow DMV rules.

What happens if the buyer can’t register the car?

If the title isn’t properly signed or authorized, the DMV may reject the transfer. This can delay registration and cause frustration. Always ensure all documents are correct before finalizing the sale.