Sunday, December 3, 2006

Do You Sign a Car Title Before You Have a Buyer in Arizona?

When a person sells a used car in Arizona privately -- as opposed to with the assistance of a dealer -- he is required to sign over the title of the car to the buyer. This title grants the holder ownership of the vehicle to which the title is attached. The owner of a car should only sign the title once he and a buyer have agreed to the sale.

Selling A Car

    When a person sells a car in Arizona, he is required to surrender the title of the car to the individual to whom he is selling it. To prove that he has indeed sold the car, and that the car has not been stolen by the buyer, the seller must sign the back of his current title issued by the motor vehicle division of the Arizona Department of Transportation.

Transferring Title

    A person should only sign the back of his current title when he and the buyer have agreed upon a price. The seller should sign the back of the title in the buyer's presence. He should also only fill out the back of the title specified for the seller. The buyer should fill out the section of the title specified for him to fill out, which should be done in the presence of the seller.

Filling Out Beforehand

    If someone stole your car after you had filled out your section of the title, then he could fill out his half of the title and register it at the DMV. If you claimed the car was stolen, he might be able to claim that the car was legally sold to him, as you had filled out the title. Hence Arizona recommends that sellers not fill out title paperwork beforehand.

Considerations

    After the seller and the buyer signed the title, the buyer takes it to the Arizona Department of Motor Vehicles. The department will then process the sale and issue the buyer a new title. If the new owner wishes to sell the car in the future, then he will repeat the process by signing the back of the title, just as the previous seller did for him.

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