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Friday, February 14, 2025

If Two Names Are on a Car Title Can One Person Sell It? A Detailed Guide

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aving a car with someone can bring problems, especially when it comes to selling the car. One question that always crops up is, “if two names are on a car title can one person sell it?” In this article, we will answer this question and examine the legalities, procedures, and hurdles, if any.

What Does It Mean To Have Two Nams on A Car Title

When a vehicle has two names on its title, it shows that both names are owners. This can occur for several reasons:

Spousal Ownership: Couples often share ownership of a vehicle.
Parent and Child: A parent may co-own a car with their child.
Business Partners: Two parties may jointly own a vehicle for business purposes.

The arrangement of the title significantly impacts whether one owner can sell the car independently.

Joint Ownership Types On A Car Title

For you to know if a single person can put a car on sale, it is important to know the type of joint ownership on the title. The two major types include:

Joint Tenants With Right of Survivorship (JTWROS)

Car belonging to both owners is accessible by both of them. When one of the owners dies, the surviving owner automatically assumes complete ownership of the vehicle.Usually, both parties must agree and sign before a car is sold.

Tenants in Common

  • Ownership does not have to be equal; one party could own a larger share.
  • Ownership does not transfer automatically if one owner passes away.
  • Selling may still require both owners’ signatures unless otherwise stated.

The quick response is no, except for certain situations. In the majority of owners, both owners need to agree to the sale of a car before it is put on the market. Here’s why:

In instances where there is a car that has two names on the title, both people are considered owners. In this case, selling such a car without the consent of one owner may lead to arguments.

Type of Title

  • If the title includes “AND” between the names, both parties must sign to authorize the sale.
  • If the title uses “OR”, one party can sell the car without the other’s permission.

State Laws

Laws regarding joint ownership vary by state. One party selling the car may be allowed in some states, while in others, both owners will have to be present for the transaction.

Selling a Car During Joint Ownership

When you are selling a car that is jointly owned, these steps would help you.

  • Review the Title: Read the title wording in a way to find out whether both owners’ signatures are needed.
  • Talk to Your Co-Owner: Talk to the other owner of the car about the sale to make sure there are no disagreements.
  • Collect All Relevant Documents: Make sure you have all the documents like titles, bills of sale, and anything else needed.
  • Submit Documentation to DMV: In cases where both co-owners signatures are needed, you will have to go to the Department of Motor Vehicles after you have all the bills ready to sign.

In a few cases, one person can sell the car without the other’s consent:

  • Power of Attorney: One of the owners can give a power of attorney to the other person. In this case, the second person can legally complete the transaction.
  • Court Decision: Courts may approve one untitled owner to complete the sale due to other legal matters like disputes or settlements.
  • Death of Co-Owner: When one of the co-owners dies, the other one automatically gains the right to the car depending on how the title was.

Ownership Scenarios

Ownership TypeSale Authorization
Joint Tenants (AND)Both signatures required
Joint Tenants (OR)One signature sufficient
Power of AttorneyGranted owner can sell
Court OrderCourt determines authorization
Deceased Co-OwnerDepends on the title type and will

FAQs

Is it permissible for one party to sell the car if the title says “OR”?

Indeed, it is permissible. When one title owner sells a vehicle and “OR” is between the parties, that person can sell the car without the other person’s signature.

In this scenario, both owners have to agree to the sale. However, with a court order or a power of attorney, one party can override the other owner’s decision and go ahead to sell the car.

How does one change ownership when a co-owner dies?

That depends. You need to provide the death certificate as proof. You may also have to go to your local DMV to transfer the title to your name.

Is it possible to sell the vehicle and delete one name from the title?

Yes, it is possible. However, both owners should be present to update the title, which can be done at the DMV.

What documents are required to sell a car that is shared by two or more people?

Generally, they will include trust deeds, sale documents, and copies of personal identification cards for both owners.

Conclusion

As with most legal answers, this one too is accompanied by an ‘it depends.’ Selling a car with two names on the title can be quite easy or very difficult. It all depends on the form of ownership and the state of residence. In almost all instances, all the owner(s) must agree unless other provisions are stated in the title or some other legal exceptions exist. As a rule, there shouldn’t be any arguments regarding ownership forms. Always inform the other owner and ensure this communication is followed by the correct legal actions to enable a single-step transaction.

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