Buying or selling a car is an exciting milestone, but the paperwork that follows often feels like a speed bump. While the exchange of keys signifies a new chapter, the legal transfer of ownership isn’t complete until the title work is finished. In Indiana, navigating the Bureau of Motor Vehicles (BMV) requirements is critical to ensure you aren’t left liable for a vehicle you no longer own—or driving one you can’t legally register.
Many Hoosiers underestimate the precision required during this process. A single crossed-out signature or a missing odometer reading can render legal documents invalid, forcing you to start over and potentially pay duplicate title fees. Whether you are handing over the keys to a family member or finalizing a sale with a stranger, understanding the rules prevents headaches down the road.
This guide breaks down the Indiana title transfer process into clear, manageable steps. We will cover exactly what documents you need, how to handle special circumstances like liens or gifts, and the common pitfalls that trip up even experienced drivers.
Step-by-Step Guide to Transferring an Indiana Title
To successfully transfer a title in Indiana, both the buyer and seller must complete specific sections of the certificate of title. Missing a step here can lead to rejected applications at the license branch.
1. Gather Your Documents
Before a pen touches the paper, ensure you have the correct documents. The most important piece is the Certificate of Title. If the original title has been lost or destroyed, the seller must apply for a duplicate title before the sale can proceed.
While the title is the primary document, a Bill of Sale (State Form 44237) is highly recommended and often required. It serves as a receipt for the transaction and provides a record of the purchase price, which determines the sales tax the buyer will pay.
2. Complete the Seller and Buyer Sections
The Indiana title has distinct sections for the seller and the purchaser.
- For Sellers: You must print and sign your name exactly as it appears on the front of the title. You also need to fill in the date of sale and the final selling price.
- For Buyers: You must sign and print your name in the purchaser’s section. This acknowledges you are accepting ownership of the vehicle.
3. Record the Odometer Reading
Federal and state laws require a precise disclosure of the vehicle’s mileage at the time of transfer. The seller must enter the current mileage in the dedicated odometer section on the back of the title. This transparency protects against odometer fraud. If the title does not have a space for this, or if the vehicle is exempt due to age (generally 20 years or older), you may need a separate Odometer Disclosure Statement (State Form 43230).
4. Remove the License Plates
This is a crucial step often overlooked by sellers. In Indiana, license plates belong to the individual, not the vehicle. The seller must remove the license plate before the buyer drives away. The buyer is responsible for obtaining their own registration and plates. Sellers can transfer their old plate to a different vehicle they own, but they should never let a stranger drive off with their plate attached.
5. Submit the title to the BMV
Once the paperwork is signed, the ball is in the buyer’s court. As the new owner, you must take the completed title, proof of insurance, and your driver’s license to a BMV branch.
- The 45-Day Rule: Indiana law requires you to apply for a new certificate of title within 45 days of purchasing or acquiring the vehicle. Failing to meet this deadline results in an administrative penalty fee.
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Navigating Special Title Scenarios
Not every transfer is a straightforward sale between two people. Life events and financial obligations can complicate the process.
Transferring a Title With a Lien
You cannot transfer a title if a lender still has a legal claim to the vehicle. If you are the seller, you must pay off your loan and obtain a lien release.
- Lien Release: The lienholder (usually a bank) will either sign the lien release section on the front of the title or provide a formal letter stating the loan has been satisfied.
- Missing Title: If the lienholder holds the actual title, you may need to visit a branch to complete a Request for Title (State Form 1014), which asks the lender to send the title to the BMV for processing.
Deceased Owner Transfers
Dealing with the estate of a loved one is difficult, and vehicle paperwork adds stress to an emotional time. If the title features a Transfer on Death (TOD) beneficiary, that person can transfer the title into their name by presenting the title and a copy of the death certificate to the BMV.
If no beneficiary was named, the process depends on the estate. For smaller estates, a surviving spouse or heir may be able to use an affidavit (such as Form 18733 for transfers without administration) to claim ownership without going through lengthy probate court proceedings.
Gifting a Vehicle
Generosity has its own set of paperwork. If you are giving a car to a friend or family member for free, the “selling price” is zero. However, simply writing “$0” on the title isn’t always enough to satisfy the tax requirements.
The new owner may need to complete a Certificate of Gross Retail or Use Tax Exemption (Form ST-108E). This form certifies that the transfer is a gift and exempts the recipient from paying the standard 7% sales tax on the vehicle’s value.
Common Mistakes That Stall the Process
The Indiana BMV is strict about the condition of title documents. A messy title is often an invalid one.
- Crossing out errors: If you write the wrong name or put the signature in the wrong box, do not use whiteout or scribble it out. Altering a title typically voids it, requiring the seller to apply for a duplicate title and start over.
- Leaving sections blank: Never sign a title that is not fully filled out. “Open titles”—where the seller signs but leaves the buyer’s name blank—are illegal and risky.
- Ignoring the 45-day deadline: Buyers often delay their trip to the BMV, only to be hit with late fees. Mark the purchase date on your calendar and handle the transfer promptly.
Final Thoughts
Properly transferring a vehicle title is about more than just bureaucracy; it is about protecting your financial and legal interests. For sellers, it ensures you are no longer liable for parking tickets or accidents involving the car. For buyers, it proves the vehicle is truly yours and protects your investment.
If you find yourself staring at a form you don’t understand, it is always better to pause and ask for help than to guess. The Indiana BMV website offers downloadable forms and guidance, and branch employees can assist with specific questions before you sign the final line. Taking the time to get it right the first time saves you money and gives you peace of mind on the road.
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