An Ohio Motor Vehicle dealer is required to provide a new title within thirty days of the purchase of a new vehicle. The dealer must have the owner's name exactly as it should appear on the title.
When buying a vehicle from an individual, the purchaser is responsible for the transfer of title. The application on the reverse side of a title must be completed before a Notary Public or Deputy Clerk. All signatures must be notarized.
Once a sale has been made, the seller must complete the "Assignment of Ownership" section of the original Ohio Certificate of Title. The seller must fill in the proper name and address of the buyer, as well as the vehicle's sale date, selling price and odometer reading when applicable. The seller must sign his or her name exactly as it appears on the original title. If there is more than one seller, all sellers must sign the title. Any erasures or alterations void the title assignment. The full completion of this section must be witnessed by a Notary Public or Deputy Clerk, who will affix his or her signature and seal which will officially complete the seller's part of the title transfer process. Note that all of the aforementioned steps must be completed before a Certificate of Title will be issued.
Once the seller completes the "Assignment of Ownership" section of the title, the buyer must complete the "Application for Certificate of Title" section. This is a sworn statement that must be fully completed and witnessed by a Notary Public or Deputy Clerk. The buyer can opt to bring the assigned title to any Clerk of Courts title office to complete this section and obtain a new title at the same time. If there is more than one buyer, all buyers must sign the title. The buyer is required to show a photo ID.
State and federal laws require the buyer to complete an odometer statement for most vehicle transactions. The odometer statement is located on the back of Ohio Certificates of Title. Vehicles weighing 16,000 pounds or more are exempt and do not require a Federal Odometer Statement.
There is a late filing fee of $5.00 if the new title is issued later than 30 days from the date of notarization of the assignment of title.
If the debtor uses a vehicle as collateral for a loan, the lender must file an application for title in the Clerk of Courts office and the lien will be recorded on the new title issued to the lender. The vehicle owner must have a memorandum title for registration purposes.
Upon satisfaction of the lien, the debtor should receive the original Certificate of Title from the lender. The title should contain the lender's printed name, signature and the date that the lien was satisfied. There will be a cancellation stamp on the returned title if the lien has been officially cancelled by the Clerk of Courts. If there is no stamp, the debtor must bring the title to any Clerk of Courts title office to have the lien officially cancelled. A lien cancellation may or may not have been filed electronically.
If the lien is being cancelled on a non-printed title, the lender can provide written, faxed or electronic confirmation to the Clerk of the satisfaction of lien.
When a vehicle has a lien, the vehicle owner will receive a memorandum Certificate of Title as proof of ownership DO NOT DESTROY THIS DOCUMENT. This is a copy of the original title that is used to obtain the registration and first set of license plates (transfer of ownership cannot be performed with the memorandum copy).
An individual may sign for, or act on behalf of, another individual with a notarized Power of Attorney. The Power of Attorney is attached to the application for Certificate of Title and becomes part of the permanent file. (The BMV requires that the Power of Attorney be specific for motor vehicles).
In the event of default, the lienholder can obtain a repossession title by completing the Application for Certificate of Title, found on the back of the original title, in the presence of a notary public or deputy clerk. The lienholder must submit the title, Buyers Affidavit, and a copy of the security agreement to any Clerk of Courts title office and a new title will be issued in the lienholder's name.
If the vehicle is factory new and has never been titled, the sales tax is based upon the purchase price of the vehicle or the difference between the purchase price and the trade-in amount. Used vehicle sales tax is based solely upon the vehicle's purchase price. If the buyer purchases an out-of-state vehicle for use in Ohio, the buyer may receive a written tax credit to the other state for any tax paid, if the law provides and proof of payment is supplied.
To change a title from multiple owners to one owner, both parties must complete the assignment of ownership in the presence of a notary public or deputy clerk. After a new title is issued to a single owner, the vehicle will require new plates and registration.