Is it legal to sell a car without a title in Texas?

By Product Expert | Posted in Community, Texas, Tips and Tricks on Saturday, May 11th, 2019 at 7:12 am

Selling a Vehicle Without a Title of Ownership

A vehicle title is the most important document in a car sale, as it is the certificate which confirms the car’s ownership status. There are a variety of reasons, however, that you may not have a title for a vehicle in your possession, and you may still want to sell it.

If this is the case, you’re likely wondering: is it legal to sell a car without a title in Texas?

Texas State Title Regulations

It is illegal to sell a car without a title in Texas. Texan law requires an official title for all vehicle sales. This ensures that the seller actually owns the vehicle they are selling.

Now that you know you need a title, you may be wondering: how can I get a title for my vehicle that I legitimately own? Well, that depends on the reason that you don’t have the title.

Related: Can I sell a car that doesn’t have my name on the title?

What to do if you lose your title:

If you lose your title, it’s not that big of a deal. To apply for a new one, just go to the Texas DMV website and scroll over the “Motorists” tab at the top. In the long list that emerges, several topics are title-related, including “Get a Copy of Your Vehicle Title.” Click that, and you’ll get clear steps on how to obtain a certified copy of your vehicle title.

What to do if the bank has your title:

If you have taken out a loan on your vehicle, the bank may have taken the title of the vehicle until you pay the loan off. In this case, work with the bank and the buyer to transfer the title.

Generally, the buyer’s money can be used to pay off the rest of the loan, and the bank will give the title to the seller, who will then give it to the buyer. Alternatively, the bank might be willing to give the title directly to the buyer.

Sell/Trade-In Your Used Vehicle in Austin, TX or the surrounding area

If you’d like to trade-in or sell your vehicle, we’ll be happy to work with you here at Third Coast Auto Group. We have five dealerships, with two located in Austin and the rest in the greater Austin area. Feel free to contact us today!

A vehicle Title certificate lays underneath a Certificate of Origin for a Vehicle.