 | The examples and perspective in this article may not represent a worldwide view of the subject.(September 2023) |
In the United States, the certificate of title for a vehicle (also known as a car title, automobile title, or pink slip) is a legal form, establishing a person or business as the legal owner of a vehicle. Vehicle titles in the U.S. are commonly issued by the Secretary of State in the state the vehicle was purchased by the Department of Motor Vehicles (DMV).
Each state in the US has its own distinct process for the Certificate of Title. When filling out the title during a vehicle transaction, the rules in one state do not always apply to a different state. For example, most states do not require a notary when filling out the title, while other states in the U.S.A. make this mandatory for most parties when buying or selling a vehicle.
Some states have different versions of the same title.
The certificate of title normally specifies (in most states & versions):
When a vehicle is financed, the certificate of title is normally held by the lender, who must release it to the purchaser once the balance is paid off. In some states, such as New York and Maryland, the transferred title is sent directly to that individual, but the name of the lender or lienholder appears on the title as well. In order to release the lien upon full payment, the lender sends a notarized release or other complementary document to the individual.
When a car is sold from one owner to another, the title must be transferred to the new owner. This is achieved by requesting approval by the state DMV.
When the vehicle title is lost, the owner on record may replace the lost title by completing an application with the state that issued the current title. Online lost title applications are available for several states including Maine, Wisconsin, Virginia, Michigan, New York, Indiana, Maryland, South Carolina and Massachusetts, as well as Washington, D.C..
The name "pink slip" has its origin in California certificates of ownership before 1988, which were printed on pink paper. Current California titles have broad vertical stripes of teal, yellow, and pink with a green border; while Illinois titles are blue, pink, and blue with a purple border; Pennsylvania and Nevada titles are blue with a blue border.
Many illegal street races of the 1950s, glorified in movies, featured racing for vehicle titles, hence the popularity of the term "racing for pink slips," and the 2005-08 Speed series Pinks was developed from it. In The Price Is Right, the pricing game Gas Money features contestants trying to avoid the actual retail price of the car; that price is marked with a pink slip. Also, in the 1978 film Grease , the characters mention racing for "pink slips, ownership papers". [1]
In the United Kingdom, vehicle titles are not used; instead, there is a document of equivalent function known as the vehicle registration document, and it is issued by the Driver and Vehicle Licensing Agency (DVLA). The current version has the reference number V5C. Prior to computerisation, the title document was called the 'log book', and this term is sometimes still used to describe the V5C. The V5 document records who the Registered Keeper of the vehicle is; it does not establish legal ownership of the vehicle. These documents used to be blue on the front. However, they were changed to red in 2010/11 after approximately 2.2 million blank blue V5 documents were stolen, allowing thieves to clone stolen vehicles much more easily. [2] [3]
Vehicle titles are also used for car title loans, in which a car owner gives the vehicle lender their vehicle title as collateral in exchange for a loan. In addition to the vehicle title, lenders often also require the borrower to provide a set of keys for the car and/or purchase a roadside service plan. Car title loans frequently involve high interest rates, a short time to repay the loan (often 30 days), and a loan amount less than the car's monetary worth. The borrower also risks losing the car to the lender if the loan is not paid back. These type of loans are marketed as small emergency loans.
The Driver and Vehicle Licensing Agency is the organisation of the British government responsible for maintaining a database of drivers in Great Britain and a database of vehicles for the entire United Kingdom. Its counterpart for drivers in Northern Ireland is the Driver and Vehicle Agency. The agency issues driving licences, organises collection of vehicle excise duty and sells personalised registrations.
A mortgage is a legal instrument of the common law which is used to create a security interest in real property held by a lender as a security for a debt, usually a mortgage loan. Hypothec is the corresponding term in civil law jurisdictions, albeit with a wider sense, as it also covers non-possessory lien.
A deed is a legal document that is signed and delivered, especially concerning the ownership of property or legal rights. Specifically, in common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferring (conveyancing) title to property. The deed has a greater presumption of validity and is less rebuttable than an instrument signed by the party to the deed. A deed can be unilateral or bilateral. Deeds include conveyances, commissions, licenses, patents, diplomas, and conditionally powers of attorney if executed as deeds. The deed is the modern descendant of the medieval charter, and delivery is thought to symbolically replace the ancient ceremony of livery of seisin.
A department of motor vehicles (DMV) is a government agency that administers motor vehicle registration and driver licensing. In countries with federal states such as in North America, these agencies are generally administered by subnational entities governments, while in unitary states such as many of those in Europe, DMVs are organized nationally by the central government.
Title insurance is a form of indemnity insurance, predominantly found in the United States and Canada, that insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. Unlike some land registration systems in countries outside the United States, US states' recorders of deeds generally do not guarantee indefeasible title to those recorded titles. Title insurance will defend against a lawsuit attacking the title or reimburse the insured for the actual monetary loss incurred up to the dollar amount of insurance provided by the policy.
In the United States, a car dealership is a business that sells cars. A car dealership can either be a franchised dealership selling new and used cars, or a used car dealership, selling only used cars. In most cases, dealerships provide car maintenance and repair services as well as trade-in, leasing, and financing options for customers.
In United States law, a lis pendens is a written notice that a lawsuit has been filed concerning real estate, involving either the title to the property or a claimed ownership interest in it. The notice is usually filed in the county land records office. Recording a lis pendens against a piece of property alerts a potential purchaser or lender that the property’s title is in question, which makes the property less attractive to a buyer or lender. Once the notice is filed, the legal title of anyone who purchases the land or property described in the notice is subject to the outcome of the lawsuit.
A bill of sale is a document that transfers ownership of goods from one person to another. It is used in situations where the former owner transfers possession of the goods to a new owner. Bills of sale may be used in a wide variety of transactions: to sell goods, exchange, give, or mortgage objects. They can be used only to transfer ownership of goods that people already own or to transfer ownership of moveable tangible goods and only by individuals and unincorporated businesses.
A vanity plate or personalized plate ; prestige plate, private number plate, cherished plate or personalised registration ; personalised plate or custom plate is a special type of vehicle registration plate on an automobile or other vehicle. The owner of the vehicle pays extra money to have their own choice of numbers or letters, usually portraying a recognizable phrase, slogan, or abbreviation, on their plate. Sales of vanity plates are often a significant source of revenue for North American provincial and state licensing agencies. In some jurisdictions, such as British Columbia, vanity plates have a different color scheme and design.
Repossession, colloquially repo, is a "self-help" type of action in which the party having right of ownership of a property takes the property in question back from the party having right of possession without invoking court proceedings. The property may then be sold by either the financial institution or third party sellers.
The Vehicle Identity Check (VIC) was a regulation concerning car ownership that was in force in the UK between 2003 and 2015.
Motor vehicle registration is the registration of a motor vehicle with a government authority, either compulsory or otherwise. The purpose of motor vehicle registration is to establish a link between a vehicle and an owner or user of the vehicle. While almost all motor vehicles are uniquely identified by a vehicle identification number, only registered vehicles display a vehicle registration plate and carry a vehicle registration certificate. Motor vehicle registration is different from motor vehicle licensing and roadworthiness certification.
The Vehicle register in the United Kingdom is a database of motor vehicles. It is a legal requirement in the UK for most types of motor vehicle to be registered if they are to be used on the public road.
A tax sale is the forced sale of property by a governmental entity for unpaid taxes by the property's owner.
A registered owner is usually the person or entity that is on the government records as being the legal owner of certain property, such as real estate or a motor vehicle, as well as ships. The registration of shares in a company is usually required to be managed by the company. The registered owner of a property in question is normally presumed, sometimes conclusively, to be the legal owner of the property and is said to “hold the title” or is “registered on the title”.
A vehicle registration certificate is an official document providing proof of registration of a vehicle. It is used primarily by governments as a means of ensuring that all road vehicles are on the national vehicle register, but is also used as a form of law enforcement and to facilitate change of ownership when buying and selling a vehicle.
Car ownership is the ownership of a car. Car ownership typically requires far fewer permits than driving that car on public roads.
Electronic lien and title, also known as ELT, is a program offered by various US States allowing for the electronic exchange of lien and title information with lienholders in lieu of a paper certificate of title.
In the used car market in the United States and Canada, buy here, pay here, often abbreviated as BHPH, refers to a method of running an automobile dealership in which dealers themselves extend credit to purchasers of automobiles. Typically, purchasers of cars at BHPH dealerships have poor credit history, and loans have high interest rates. BHPH can provide options for those unable to meet credit standards elsewhere.
Vehicle registration plates are the alphanumeric plates used to display the registration mark of a vehicle, and have existed in the United Kingdom since 1904. It is compulsory for motor vehicles used on public roads to display vehicle registration plates, with the exception of vehicles of the reigning monarch used on official business.