I sold my car years ago and handed over the title — then police told me it’s still under my name and could come back to haunt me. What do I do?

But after recently receiving a speeding ticket for the very same car he sold a few years ago, he discovered that the buyer never bothered to complete the title transfer process. The car is, effectively, still in David’s name.

Now police are telling David that this could come back to haunt him — in more ways than just a speeding ticket.

How to avoid title issues when selling your car

If you’re planning to sell your car, you have a few options. You could sell it to a dealership or through a private sale (such as an online private seller exchange or local options, like Facebook Marketplace or Craigslist).

But, with a private sale, you’re still considered the legal owner of the vehicle if the title isn’t transferred properly. That could mean receiving parking or speeding tickets for a car you previously sold, or, even worse, being held liable for a car accident or criminal activity.

When you sell your car, don’t just shake hands on it. Fill out a bill of sale that includes a description of the vehicle (make, model and year), as well as the vehicle identification number (VIN), date of sale, purchase price and odometer reading. It should be signed by both the buyer and seller.

“Once you sign off on the title, the odometer reading provides proof of the moment in time the car is no longer legally yours. Don’t round it up — the buyer could have an accident within two miles of the sale and claim you are responsible,” according to advice from Kelley Blue Book.

While the rules vary by state, it’s a good idea to contact your DMV to find out which steps you need to take to report the sale of your car. For example, you may need to return your license plates to the DMV (it’s good practice to remove them anyway, even if it’s legal in your state to let the new owner take your plates).

How to properly transfer the title of your car

After you’ve agreed on a sale, both you and the buyer need to complete the ownership transfer with your state’s DMV. While the exact paperwork varies by state, the process generally requires the seller to sign over the title, submit a notice that the vehicle has been sold or transferred (often called a Notice of Transfer and Release of Liability), and the buyer to apply for a new title and registration while paying any required fees.

The sale isn’t fully complete until the buyer finishes their side of the process. If they don’t, the vehicle may still appear in your name in state records, leaving you vulnerable to tickets or other legal headaches.

For example, the California DMV website states that reporting the sale or transfer of a vehicle to the DMV doesn’t constitute a transfer of ownership: “To permanently transfer the vehicle record, the new owner must complete all transfer requirements and pay appropriate fees.”

The safest approach is to meet the buyer at the DMV and complete the transfer together. That way you can confirm the paperwork is filed before handing over the title and canceling your insurance.

Only once the transfer of ownership is complete should you cancel your car insurance. And don’t give up the title (or hand over the keys) until the payment has cleared.

What to do if the buyer never transferred the title

If you find yourself in David’s situation, don’t assume there’s nothing you can do. Start by contacting the buyer and asking them to complete the title transfer. If you never filed a Notice of Transfer and Release of Liability, submit one as soon as possible. Although many states require the form to be filed within a certain time after the sale, some will still accept a late filing.