How to Transfer a Car Title in Alabama: A Step-by-Step Guide

Transferring a car title is a critical piece of the puzzle when buying or selling a vehicle in Alabama. Understanding the state's title regulations and requirements is crucial to a smooth transaction.

Below, we will explain how to transfer a car title in Alabama, including the step-by-step process, necessary documents, fees, and more.

Overview of Car Title Transfer in Alabama

An Alabama car title transfer shifts vehicle ownership from one individual or entity to another. The process is straightforward but requires careful attention to prevent complications and delays.

You want to begin the title transfer process soon after selling or purchasing the vehicle. Any delays in transferring the title may cause issues.

Required Documents for Title Transfer in Alabama

Before transferring a car title in Alabama, you want to make sure you have all the documents you need to complete the transfer. The documents you’ll need include:

• Original Alabama title properly assigned to the buyer
• Bill of sale
• Driver’s license
• Proof of Alabama auto insurance
• Proof of residency
• Odometer disclosure statement, unless exempt
• Application for title

Let’s review a few of these required documents in more detail.

Bill of Sale

Within 20 days of purchasing a vehicle, the purchaser must obtain a bill of sale from the seller. This document shows all the sale details that the state needs to process the ownership transfer.

The minimum information you need on a bill of sale includes:

• Purchaser’s name
• Purchaser’s complete physical address
• Date of sale
• Vehicle identification number (VIN)
• Vehicle year, make, and model
• Vehicle body type
• Seller’s name
• Seller’s address

Odometer Reading Disclosure

Alabama often requires an odometer disclosure statement to complete a title transfer. This form certifies the odometer reading is either accurate or inaccurate.

Three types of vehicles are exempt from this disclosure, including:

• Vehicles 10 model years or older
• Vehicles with a gross vehicle weight rating (GVWR) of at least 16,000 pounds
• Non-self-propelled vehicles, such as trailers

Title Application Form

To officially transfer the title, the buyer and seller must complete the Alabama "Application for a Certificate of Title," form number MVT 20-1. You can get this form online or through the local Department of Revenue office.

Fill out this form completely and double-check all the details. Any missed details or mistakes can cause delays.

Proof of Alabama Auto Insurance

Alabama requires proof of auto insurance to transfer a title into your name and register the vehicle. However, not just any insurance will do. You must have a liability policy that meets the state's minimum requirements, which are:

• $25,000 bodily injury liability limit per person
• $50,000 for all bodily injuries to be paid for any one accident
• $25,000 for property damage per accident.

Where to File the Paperwork in Alabama

With all the documents in hand, it’s time to submit them and get the title transferred. You must submit the paperwork through a designated agent of the department, which includes:

• County license plate issuing officials
• Licensed Alabama motor vehicle dealers
• Alabama financial institutions, such as banks or credit unions

Associated Fees for an Alabama Title Transfer

The fees for transferring a title assignment in Alabama are pretty straightforward. The standard title transfer fee is $15, but the designated agent or license plate issuing officials can add up to a $1.50 commission on each application.

Additional fees may apply depending on the county you live in. Contact your local license plate issuing official for more information on these county-specific fees.

Different Situations for Title Transfers in Alabama

While the Alabama title transfer process is fairly straightforward, there are some nuances to keep in mind depending on how you obtained the vehicle. Let’s review some of these nuances.

Transferring a Title Between Family Members

Transferring a title between family members follows the standard title transfer process. However, given you’re dealing with family, you likely have more access to the seller and can more easily get the documents you need if you initially forget.

Transferring a Title During Private Sales

You'll still follow the same standard title transfer process in a private vehicle sale that doesn’t involve a family member. The key difference is you may not have access to the seller after completing the required documents. So, you want to be diligent in making sure the seller has completed every document accurately.

Buying a Used Car From a Dealership

Purchasing a used car from a dealership often streamlines the title transfer process. Typically, the dealership will process the title transfer for you, so you have nothing to do but drive off in your new vehicle.

However, make sure the dealer completes the title application. It should provide you with copies of the application with your sales paperwork.

Get Insured Today: Compare Quotes for the Best Rates!

You need proof of car insurance in Alabama to transfer a title, making now the perfect time to verify you have the best insurance rates. EverQuote can help. We allow you to compare multiple auto insurance rates for free in one place to find cheap car insurance in Alabama.

FAQs

We’ve covered a lot above, but you may have some lingering questions. Let’s review some frequently asked questions about Alabama title transfers.