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What is a skip title, and how does it impact the seller?

A skip title is when someone purchases a vehicle and doesn’t get the title in their name before selling it to someone else.

This, FOX 2 says, was the issue facing Shakman.

A person who is involved in this sort of “title jumping” bypasses requirements like paying title transfer fees, taxes and registration fees. There ends up being a gap in the vehicle’s history.

According to Kelly Blue Book, a title proves ownership, while a car’s registration allows a vehicle to be legally driven. You usually can’t register a car without a title.

Shakman told reporters that his initial check to register the trailer was cashed. However, he didn’t find out about the deficiency in his paperwork — there was no sales price in the title — until almost a year later.

When he attempted to provide more paperwork, the Department of Revenue told him he needed affidavits. “And then after I talked to the state, it was now the only way you’re getting a title is by suing us, and here’s how to do it,” Shakman said.

Shockingly, state government officials instructed him to sue the state in order to get his title.

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Why did Shakman take such drastic measures?

In November, Shakman filed a petition asking for the state of Missouri to give him his title and to pay back some of the fees he paid. On April 1, he appeared in court and was finally awarded his title.

In mid-May he was in court again and was awarded $100, a portion of the fees he had paid for the registration.

“I can’t believe the man-hours that must’ve gone into processing that action I submitted,” he said. “It just doesn’t make sense.”

How to avoid skip titles

To avoid purchasing a vehicle with a skip title, do your research.

Verify the identity of the seller and ask them to provide proof of ownership history. The documentation could include copies of registration documents, the title in their name and any maintenance records.

You’ll also want to verify whether there is still a lien and how this person intends on settling the debt.

If you’re purchasing a car from a dealer, keep all documentation as they’re obligated to ensure a proper title transfer. Usually the dealership will also register the vehicle for you.

Whether you purchase from an individual seller or a dealership, register the vehicle as soon as possible and verify that the title has been transferred in your name.

If you realize you have been title jumped, you may have to take legal action. Consult an attorney about next steps.

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Sarah Li-Cain, AFC Freelance contributor

Sarah Li-Cain, AFC is a finance and small business writer with over a decade of experience.

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