To transfer a car title to a family member in Texas, the process varies slightly depending on whether the transfer is a gift or a sale.
General Process
- Complete the Title : The seller (current owner) must sign the back of the original vehicle title in the designated areas, including odometer reading if the car is less than 10 years old.
- Application Form : The new owner (family member) must fill out the Application for Texas Title and/or Registration (Form 130-U), indicating whether the transfer is a gift or sale.
- Gift Affidavit (if applicable) : For gift transfers, both donor and recipient must complete and notarize Form 14-317, Affidavit of Motor Vehicle Gift Transfer.
- Proof of Insurance : The new owner must provide proof of current Texas liability insurance for the vehicle.
- Payment of Fees and Taxes :
- If it's a gift transfer, typically only a $10 gift tax is owed.
- For sales, applicable title and registration fees plus sales tax apply.
- Submit Documents : Both parties or the recipient must submit the signed title, Form 130-U, affidavit if a gift, proof of insurance, and any required fees to the local county tax assessor-collector office.
- Receive New Title : After processing, the new certificate of title is mailed to the new owner.
Specifics for Gift Transfers
- Mark "gift" in the consideration section of the title or Form 130-U.
- Complete the Gift Affidavit (Form 14-317), which requires notarized signatures of both parties documenting the gift and their relationship.
- The recipient pays the $10 gift tax at the county tax office.
- No bill of sale is generally needed for a gift.
- Timing and submission are important to avoid penalties.
What Both Parties Need to Do
- The current owner signs and dates the title.
- The recipient fills out and signs Form 130-U.
- Both sign and notarize the Gift Affidavit for gift transfers.
- The recipient brings all documents, proof of insurance, and required payment to the county tax office.
This process can sometimes be done partially online depending on the county but often requires in-person visit to finalize the transfer. This summary provides a clear guide on transferring a car title to a family member in Texas, focusing on the necessary forms, affidavits, insurance proof, fees, and submission process.
