Selling an out-of-state car in PA (Harrisburg, York: sales, vehicle registration, lender)

[paltz]

Hi, I'm kinda new in PA.

I would like to sell my New York state titled car in PA, do I have to go to the DMV or notarize my signature to transfer title?

When I was in NY, the seller was not required to go DMV or notary to sell the car, but my friend told me to I must go to DMV.

Thank you

[Wells5]

Look in the yellow pages or online for "auto tag service." If you're an AAA member, tag services are discounted.

[briantroutman]

I can speak with some degree of experience on this matter having worked at a couple of AAA offices during my high school and college years. Even though I didn’t process title work myself, I had to know enough to answer the questions of people waiting to speak to the frequently overwhelmed title agents.

First thing first: In a vehicular title transfer, the transfer procedure is really a transaction executed on behalf of the buyer, not the seller. As a result, the transfer is subject to the laws and regulations of the state in which the buyer resides (and plans to register the vehicle). Where the seller resides and where the car was previously titled is almost irrelevant (except for some details on how the previous title is to be signed). So if you’re selling your car to someone who lives in New Jersey, New York, or another state, the buyer will need to process the transfer in that state, and Pennsylvania won’t enter the picture at all.

Ultimately as the seller, your only part in the transfer process is to sign the back of the title and fill out any blanks that the seller is required to complete. Different states’ titles are different, and some state titles specify that they must be signed in the presence of a notary.

Once you’ve signed the title properly, you’re out of the picture, and it’s up to the buyer to complete the transaction. You could simply part ways with the buyer at that point, although you’re relying on the buyer to complete the transaction on his/her own. The vast majority of buyers will follow through, although I’ve heard a few rare horror stories of people receiving summonses for parking violations or red light tickets on a car they sold months prior...only to find out that the buyer never completed the transaction, and therefore the old owner was still the registered owner of the car as far as the state was concerned. You could still probably unravel a situation like that, although if you want to be extra cautious, you could avoid it altogether by going with the buyer to get the title transfer processed.

Now, assuming you’re selling the car to someone who lives in Pennsylvania, has a PA driver’s license, and plans to register the car in PA, here’s what the buyer needs to know:

Local public-facing PennDOT offices (Driver License Centers) handle only driver licensing and don’t process any work related to motor vehicle transactions. The state operates one center where you can process title transfers directly with PennDOT, and it’s in Harrisburg (1101 S. Front St., Harrisburg, PA). There, you can process everything in-person in a single visit and with no surcharges in addition to the standard fees that the state charges.

Because going to Harrisburg would be inconvenient for most Pennsylvanians, PennDOT also works with a network of private agencies that can process title transactions, and this includes most AAA offices in the state. PennDOT has an online search tool that allows you to find locations near you. Simply enter your zip code or select your county under Step 1, then scroll down to the bottom and select “Transfer Vehicle Registration” under Step 2. These private tag agencies charge a fee over and above the state's fees for their services. In my experience, AAA is among the least expensive, especially if the buyer is a member (remember, the transfer is a service to the buyer—it doesn’t matter if the seller is a AAA member).

Since your car currently has a New York State title, the buyer will need to get the VIN and odometer reading verified in order to get the car titled and registered in Pennsylvania. This can be done by a licensed PA vehicle inspection mechanic or a police officer, and you can obtain the required MV-41 form from almost any authorized title transfer agency (including AAA) or print from PennDOT’s website. You can save a little time by getting this done ahead of time.

I hope the above helps!

[Wells5]

Brian, what about a bill of sale? I know that a BOS is not required to sell a car in PA, but properly signed (and notarized) by the buyer, it will protect the seller if seller does not complete the transaction or the buyer has an accident before the transaction is processed.

[Gypsy3n8]

If the car is titled in NY but you are selling it here, you must have the title in hand and go to the notary with the buyer. Your signature on the back of the title must be notarized, then you can leave. They will also likely have you sign a form indicating the sale price and they will check to make sure it's in line with fair value for the condition.


The buyer then must complete the transfer process and have their signature notarized. Open titles are illegal in PA, so they can't at that point walk out of the notary with the title.


The Notary will submit the title to the state DMV and they will take care of transferring the title from NY and will issue the buyer a PA title that will be sent to them in the mail in about a week or 2.


You can not sell a vehicle with only a bill of sale, you must be the registered owner whose name is on the title.

[briantroutman]

Originally Posted by Wells5

Brian, what about a bill of sale? I know that a BOS is not required to sell a car in PA, but properly signed (and notarized) by the buyer, it will protect the seller if seller does not complete the transaction or the buyer has an accident before the transaction is processed.

You’re right—a bill of sale isn’t legally required, but it’s a good idea to have one. I’d certainly insist on having a bill of sale if I was buying or selling a vehicle.

Originally Posted by Gypsy3n8

If the car is titled in NY but you are selling it here, you must have the title in hand and go to the notary with the buyer. Your signature on the back of the title must be notarized, then you can leave. They will also likely have you sign a form indicating the sale price and they will check to make sure it's in line with fair value for the condition.


The buyer then must complete the transfer process and have their signature notarized. Open titles are illegal in PA, so they can't at that point walk out of the notary with the title.


The Notary will submit the title to the state DMV and they will take care of transferring the title from NY and will issue the buyer a PA title that will be sent to them in the mail in about a week or 2.


You can not sell a vehicle with only a bill of sale, you must be the registered owner whose name is on the title.

Your post is mostly correct, but a few points should be clarified.

Yes, you must have a clear vehicle title (i.e. with no lender liens on the vehicle) in hand before beginning the transfer. Pennsylvania title forms require notarization, but not all states do—or even have a space for the title to be notarized. As far as I can tell, New York titles do not have a space for notarization.

As to open titles being illegal in Pennsylvania—yes, that is true, but it doesn’t mean quite what you seem to be implying. What it means is that the buyer is not allowed to sign the back of the title without also filling out the buyer’s information at the same time. But once the seller has signed the title and the buyer’s information is properly recorded (and it is notarized, if applicable), the buyer is free to take the signed title elsewhere to complete the transaction later. In Pennsylvania, the seller has 20 days to do so.

The prohibition on open titles is intended to prevent the practice of “title jumping” or “title skipping”.
- Person A sells a car to Person B (who isn’t a licensed auto dealer but acting as one)
- Person B has Person A sign the title—without listing Person B as the buyer (this is the illegal open title)
- Person B resells the car to Person C, finally filling in Person C’s information on Person A’s original title

Thus, Person B has “flipped” a car without having a dealer’s license, paying sales tax on the car, or having a new title issued (and paying the corresponding fees). That’s what’s illegal.