What must be done with a vehicle's title before it is sold?

Before a vehicle is sold, it is essential to transfer the title from the seller to the buyer while ensuring that any existing liens are resolved. This step is critical because the title serves as legal proof of ownership and contains vital information regarding the vehicle, including any liens or claims against it.

Transferring the title is not only a legal requirement but also protects both parties in the transaction. The buyer receives a clear title, which signifies that they truly own the vehicle free of any encumbrances. Conversely, the seller ensures they are not held liable for any future claims against the vehicle once the title has been officially transferred.

The process of title transfer typically involves signing the title over, completing any necessary documentation, and sometimes notifying a motor vehicle department or agency to update their records. Each state, including Colorado, may have specific rules governing this process, but the essential principle remains the same: a proper transfer of title is fundamental to the legitimacy of the sale.