Selling a vehicle in West Virginia requires strict adherence to Chapter 17A of the West Virginia Code, which regulates various aspects of vehicle transactions to ensure legal and transparent sales.
These regulations encompass duplicate title applications, mandatory safety inspections, provision of detailed vehicle history reports, accurate advertising practices, proper lien release procedures, and precise titling requirements.
By following these laws, sellers can prevent legal complications and provide buyers with thorough and accurate vehicle information. Adherence to these regulations significantly reduces sellers' risk of incurring liabilities and guarantees compliance with tax obligations.
It also facilitates seamless ownership transfers, as all necessary paperwork and legal formalities are properly managed. Moreover, compliance promotes fair transactions to enhance the seller's credibility and reputation in the automotive market.
Legal Requirements Before Selling a Vehicle in West Virginia
Before selling a vehicle in West Virginia, it is critical for vehicle owners to comply with several legal requirements for a smooth and transparent transaction. These requirements help guarantee the vehicle's ownership, safety, its history, and the accuracy of information presented to potential buyers.
Duplicating a Title
Having a clear title in the owner or seller's name and providing it to the buyer at the time of sale is vital when selling a vehicle.
If the title is lost and there's no lien on the vehicle, the owner must complete the Affidavit of Duplicate Title for a Vehicle or Watercraft (DMV-4-TR). Along with this, they need to provide a copy of their driver's license and registration card (if available) and pay a $15 fee for a duplicate title.
If a Power of Attorney (POA) is involved, both the registered owner's and the POA's identification must be submitted.
For trailers, ATVs/UTVs, recreational vehicles, or watercraft with a previous lien not released through the DMV, the owner must complete Section D of the DMV-4-TR form. This section requires notarization by the lienholder to obtain a clear title.
Additionally, If the duplicate title is being requested by mail and needs to be sent to an address different from the one currently on file for the vehicle, a self-addressed stamped envelope must be included to receive the title at the new address.
Undergoing a Vehicle Inspection
In West Virginia, vehicles require a safety inspection every two years at licensed stations. Governor Jim Justice signed HB 2310 into law in March 2023, extending the inspection period two years and setting the maximum inspection fee at $19. These inspections ensure the proper functioning of a vehicle's mechanisms, brakes, and equipment.
A valid inspection sticker on the inside of the windshield confirms the vehicle has passed the inspection. When selling a car with a valid sticker, no additional inspection is needed. However, if the car lacks a valid sticker, it must be inspected within three days before the sale.
West Virginia also honors valid inspection stickers from Louisiana, Mississippi, Missouri, New Hampshire, New York, Oklahoma, Texas, Utah, and Wyoming until they expire.
The vehicle must have a valid registration card and a current insurance certificate during the time of inspection.
Getting a Vehicle History Report
A Vehicle History Report (VHR) is essential for buyers and sellers of cars, boats, trucks, and RVs. It provides a detailed account of a vehicle's past.
With this document, sellers can set a fair price and offer transparency that builds trust with potential buyers. A VHR provides peace of mind for buyers by uncovering hidden issues, such as past accidents or flood damage, thereby reducing the risk of future problems.
A VHR can reveal critical information such as:
- Accident history
- Liens on the vehicle
- Airbag deployments
- Maintenance records
- Title history issues
- Faulty odometer settings
- Lemon status
- Past ownership
- Flood damage
- Car title check
While the WV DMV can supply details about a vehicle's ownership and title status (such as any liens, transfers of ownership, and title changes within West Virginia), it does not provide comprehensive VHRs available through third-party services like CARFAX, AutoCheck, or the National Motor Vehicle Title Information System (NMVTIS).
When ordering VHRs from these third-party services, vehicle owners typically need to provide the vehicle identification number (VIN) and additional details such as the vehicle's make, model, model, and year.
Requesting Other Relevant Records
The West Virginia DMV offers an online Vehicle Information Request service that allows sellers to obtain various types of vehicle-related information. Through this service, sellers can access vehicle registration details, lien information, title copies, title history, and records of fees and privilege taxes paid during the titling process, all of which are important for prospective buyers.
In addition to the online system, other irrelevant vehicle records can be requested by completing the "Request for Vehicle Information" form (DMV-100-TR). The form requires the requester to provide their name, contact information, and the specific vehicle details they are inquiring about, such as the year, make, model, license plate number, and VIN.
Requesters must also specify the purpose of their request and provide supporting documentation, such as a signed letter on letterhead or a court docket number, depending on the nature of the request. Additionally, a copy of a state-issued photo ID must be submitted along with the request form.
The DMV charges fees ranging from $1.50 to $25 for different types of vehicle information requests, and these fees are non-refundable. Note that the DMV may redact personal information from the records provided if the request does not comply with the Uniform Motor Vehicle Records Disclosure Act.
Advertising a Vehicle
West Virginia Code sets regulations and requirements for advertising vehicles to guarantee transparency and compliance with state laws.
Sellers must accurately disclose the condition of the vehicle in their advertisements. This includes any branded titles that indicate the car has been salvaged, reconstructed, or has suffered significant damage, such as from floods or fires. Misrepresenting these conditions can lead to legal consequences.
Additionally, state law prohibits certain coercive practices related to vehicle sales. Manufacturers and distributors cannot force dealers to participate in advertising campaigns unreasonably or mandate the purchase of promotional materials that the dealer did not voluntarily order.
Selling a Vehicle with a Lien in West Virginia
Vehicle owners should follow specific regulations and procedures outlined in West Virginia Code Section 17A-4A-12 when selling a vehicle with a lien on its title. Before proceeding with the sale, the lienholder, typically a financial institution, must release its interest in the car.
Releasing a Lien on a Vehicle Title
The vehicle owner must first pay off the outstanding balance on the loan or debt secured by the lien. Once the lien is satisfied, the lienholder, the entity or person with a legal claim on the vehicle due to an unpaid debt, must release their interest in the car within 15 days.
They should furnish the vehicle owner with a release of lien document containing pertinent details such as the vehicle's make, model, VIN, and the lienholder's information and signature. The lienholder must also provide the title certificate to the owner or their chosen representative by mail or in person.
Subsequently, the vehicle owner should submit the release lien document along with the vehicle title to their local West Virginia DMV officeto obtain a new certificate of title and to have the release of the lienholder's interest noted. Additional paperwork, such as the Lien Release form (DMV-12-A-TR), is also necessary.
Moreover, the vehicle owner should cover any applicable fees for releasing the lien and updating the vehicle title, including a $15 title fee and a $10 lien recordation fee.
West Virginia's Electronic Lien and Title Program
The West Virginia DMV's Electronic Lien and Title (ELT) program offers a streamlined process for releasing liens. When a lender participates in the ELT program, they can electronically notify the DMV of the lien satisfaction.
As a result, a new title will be automatically generated and mailed to the vehicle owner's address on record with the DMV. The DMV will update its records to reflect that there is no longer a lien on the vehicle.
The new title issued by the DMV will indicate "Lien Satisfied," along with the date of lien release. This electronic method eliminates the need for manual paperwork, and the vehicle owner has to apply for a clear title.
Critical Considerations for Handling Vehicle Liens
In the case of a manual lien release, where the lienholder has to send a paper copy of the title and lien release to the vehicle owner, It's advisable to apply for a clear title from the DMV.
This procedure is important because the DMV isn't automatically notified of the lien release, and the lien will still be on file unless a clear title is applied for.
If the title is lost and a lien is still on record with the DMV, a lien release from the original lienholder is necessary before a clear duplicate title can be issued. This might delay the sale of the vehicle.
Motor Vehicle Sales Tax in West Virginia
A titling sales tax is applied when certifying vehicle titles in West Virginia. This tax is calculated based on the buyer's actual paid purchase price.
Vehicles with a net purchase price over $500 are subject to a 6% titling sales tax, while those with a net purchase price under $500 incur a flat $30 tax.
If a trade-in is involved, the titling sales tax is calculated by subtracting the trade-in's value from the purchase price, provided that the trade-in is titled in West Virginia and the applicant's name.
In a private sale, the buyer usually pays the titling sales tax. On the other hand, when a vehicle is sold through a dealership, the dealer is responsible for collecting and submitting all necessary taxes and fees to the DMV for the vehicle's registration and title.
Note that non-resident purchasers are exempt from the 6% titling sales tax in West Virginia if the vehicle is not being titled in the state.
Legal Requirements After Selling a Vehicle in West Virginia
Selling a vehicle in West Virginia involves several legal requirements during and after the sale for a seamless and compliant transfer of ownership.
These requirements include drafting a notarized bill of sale, recording the odometer reading, transferring the vehicle title, managing the removal of license plates, canceling insurance, and reporting the sale to the WV DMV.
Filing a Bill of Sale
A notarized bill of sale is essential in West Virginia for selling a boat, mobile home, or motor vehicle. This document is vital for transferring the title and making the transaction legally binding.
A bill of sale ensures the correct sales tax is applied and serves as proof of ownership transfer for private vehicle sales in West Virginia. Without this document, higher taxes based on the vehicle's full value may be charged for lower-value sales.
A notarized bill of sale is required if the vehicle sells for less than 50% of its NADA Clean Loan Guide value, and it must accompany the title application. Even if the sale price exceeds this threshold, a notarized bill of sale may still be necessary.
A motor vehicle bill of sale typically includes the following:
- Make, model, and year of production
- Purchase price (must match the price on the title certificate)
- Whether the title is reconstructed
- Date of sale
- Buyer and seller's names and addresses
- Lienholder information
- VIN
- Vehicle weight
Anyone can draft a bill of sale, including a handwritten version. This is legally valid as long as both parties sign it. The DMV-7-TR form, available on the official WV DMV website, can also be used for convenience.
Providing an Odometer Disclosure
The seller must record the odometer reading on the title when selling or transferring a vehicle. If the title doesn't have a section for this, the seller can use the Odometer Disclosure Statement from the DMV. An odometer disclosure is mandatory unless the vehicle is non-motorized or weighs over 16,000 pounds.
The National Highway Traffic Safety Administration (NHTSA), which is responsible for vehicle safety regulations, changed its rules in December 2020. From January 1, 2021, until December 31, 2030, odometer disclosures are required for vehicles from model year 2011 and newer.
Starting January 1, 2031, any vehicle under 20 will need an odometer disclosure. Vehicles from model year 2010 and older are exempt from this requirement.
Accurate mileage recording helps prevent fraud and protects buyers by showing the vehicle's condition.
Transferring the Vehicle Title
Transferring the vehicle title is a crucial step in making the sale of a vehicle official in West Virginia. The process varies slightly based on whether the sale is private or through a dealership and depends on the vehicle's age.
Private Transaction
When selling a used car privately in West Virginia, the buyer and seller must complete the title transfer process. They must fill out the relevant sections on the back of the title, including:
- Legal name, address, and signature of both the buyer and seller(s)
- Date of the sale
- Odometer reading
- Purchase price
If multiple sellers are listed on the title, the signing requirements depend on how the names are separated. If the names are separated by "and," both sellers must sign the title to transfer it to the buyer. If the names are separated by "or" or "and/or," either seller can sign the title. If no separator is used, both sellers must sign. These rules also apply to multiple buyers.
Additionally, if the seller is from out of state, they must sign the title and include the new owner's name and address. The new owner must then submit the out-of-state title and the Application for Certificate of Title for a Motor Vehicle (DMV-1-TR) to the DMV.
Dealership Transaction
When a vehicle is sold through a dealership, the dealer is responsible for completing the titling paperwork and submitting the necessary fees and taxes to the DMV.
For new vehicles that have never been titled in any state, the dealer must provide the buyer with a manufacturer's certificate or a certificate of statement of origin.
This document, issued originally by the vehicle manufacturer to the dealer, includes essential information such as the VIN, make and model, year of manufacture, and technical specifications. When titling and registering the new vehicle with the DMV, the dealer must reassign this document to the buyer.
Out-of-state dealers must send this document along with an invoice showing the vehicle's purchase price. West Virginia dealers who cannot provide an invoice can certify the purchase price at the bottom of the DMV-1-TR form.
Removing Plates and Canceling Insurance
When a vehicle is sold in West Virginia, the seller must remove its license plates before handing them to the buyer. This step ensures that the seller is not held liable for any violations that may occur after the buyer takes the vehicle.
Once the sale is complete and the plates are removed, the seller can transfer the plates to another vehicle they own, provided it is of the same class. If the seller does not wish to transfer the plates, they must return them to the WV DMV.
After selling the vehicle and removing the plates, the seller should cancel their car insurance to avoid paying premiums for a vehicle they no longer own. The seller must return the registration certificate, plates, and card to the DMV to accomplish this.
Additionally, the seller must notify the DMV of the insurance cancellation and submit the required items within the timeframe specified by DMV regulation.
How To Notify the West Virginia DMV of the Sold Car?
Sellers in West Virginia must inform the DMV once their vehicle is sold to avoid potential liabilities from the new owner's actions. This is accomplished by completing the Sold Vehicle or Watercraft Notice.
They must fill out the form with essential sale details. In addition to the completed form, they must provide the vehicle's license plate number, proof of plate transfer, and proof of insurance.
Once filled out, sellers must submit the Sold Vehicle or Watercraft Notice and necessary paperwork to the designated DMV address.
It is essential for sellers to be aware of the legal consequences of providing false information during this process. Knowingly making false statements, concealing material facts, or committing fraud when reporting the sale of a vehicle can result in serious penalties.
These offenses are considered misdemeanors, and the consequences can include a fine of up to $1,000, imprisonment for up to one year, or both.