• A new saleluxury car - model toy car image by alma_sacra from Fotolia.com
  
  A Certificate of Title is the only legal document that conclusively proves your ownership of a vehicle. You should transfer title of a vehicle into your name immediately after purchasing it--in fact, the laws of many states require this. If you buy from a dealer, the dealer will take care of the paperwork for you. If you buy from a private party, however, you and the seller will have to complete the process.
  
  

The Bill of Sale

• Most states require a Bill of Sale to transfer a Certificate of Title into a new owner's name. In some states, in case of a gift the price can be set at zero. In other states, a special form is required to document a gift. The Bill of Sale should include the make, model, year, color and Vehicle Identification Number of the vehicle. It should also list the date of sale, the sales price, and the names of both the buyer and the seller. In some cases the odometer reading must be listed. The buyer and seller should both sign this document.
  
  

Seller's Certificate of Title

• The Certificate of Title contains a section that must be filled out by both buyer and seller. The buyer and seller should both check the vehicle's odometer reading. The odometer reading at the time of sale should be written onto the Certificate of Title, and both the buyer an the seller should sign to confirm that the reading is accurate. In some states, the odometer reading need not be recorded if the vehicle is more than a certain number of years old. The buyer and seller will also have to sign and date the back of the Certificate of Title to record the date that the vehicle was sold.
  
  

Application for a New Title

• The application for a new title can normally be completed and signed by the buyer alone, although information may be required that is listed on the seller's Certificate of Ownership. This application may have to be signed in the presence of a Notary Public, which will require you to present a photo ID. You will need to present the notarized application, a filing fee, the Bill of Sale and perhaps the seller's Certificate of Title to the state office of vehicle licensing (or equivalent office). If you mail in the form, you will receive your new title within a few weeks. If you walk into the office, you may be issued a new title on the same day.