When you buy or sell a car privately in New Jersey, the title transfer is the step that makes it official. It isn't complicated, but a missing signature or a late visit to the MVC can cost you time and money. Here's exactly what each side does.

What the seller does

1. Sign the back of the title over to the buyer. Fill in the buyer's name and address, the sale date, the odometer reading and the purchase price. Don't leave anything blank.
2. Write a bill of sale that shows the buyer's name and address, the date of sale, the odometer reading and the sale price, and give it to the buyer with the title.
3. Keep your license plates. In New Jersey, plates stay with the seller, not the car. Surrender them at an MVC agency or move them to another car you own.
4. Clear any loan first. If a lender is listed on the title, you'll need the lien release (or a new title without the lien) before the buyer can transfer it.
5. Cancel your insurance on the car only after the sale is complete and the plates are off.

What the buyer does

1. Sign the back of the title as the buyer and fill in your driver's license number.
2. Get New Jersey insurance on the car — you'll need proof of coverage to register it.
3. Go to an MVC agency within 10 working days of the sale. After that there's a $25 late penalty. Many agencies work by appointment, so check nj.gov/mvc first.
4. Bring:

• The signed title
• The bill of sale
• Your driver's license or other accepted ID
• Proof of NJ insurance
• A completed registration application if the agency asks for one
• Payment for tax and fees

5. Pay the sales tax and fees and leave with your new registration and plates.

You can't drive the car on the seller's plates. Plan how you'll get it home — many buyers register first, then come back to pick the car up with their new plates.

What it costs

Sales tax in a private sale is paid at the MVC on the price written on the title and bill of sale. A car given as a genuine gift can be exempt when "gift" is written on the purchase-price line — don't write a false price or "gift" to dodge tax. Private sales don't get a trade-in tax credit; that only applies when you trade a car in at a dealer.

Out-of-state titles

If the car was titled in another state, bring that state's title signed over to you. After you register it in New Jersey, the car must be inspected within 14 days.

Common mistakes to avoid

• Buying a car whose title doesn't match the seller's ID, or whose VIN doesn't match the car.
• A lender listed on the title with no lien release.
• Crossing out or correcting information on the title — this can void it. Ask the seller to get a duplicate from the MVC instead.
• Leaving the price or odometer blank.

Selling your car? See how to sell your car privately in NJ, or skip the paperwork entirely and get a cash offer.