How To Sell a Car in Utah

Selling a motor vehicle in Utah requires compliance with state regulations governing title transfer, ownership documentation, odometer disclosure, and sales taxation. Both private-party sellers and transactions involving dealerships must adhere to procedural and legal requirements established by the Utah Division of Motor Vehicles (DMV), a bureau of the Utah State Tax Commission.

What You Need To Know Before Selling a Car in Utah

Title Law and Ownership Requirements

Under Utah Code Section 41-1a-501, a certificate of title is required for most motor vehicles before a valid sale can be completed. The titled owner must hold a clear and unencumbered title to the vehicle, or ensure that all encumbrances are satisfied or properly transferred, before selling the vehicle to a new owner. If a vehicle title lists more than one owner, the relationship between the owners determines the number of signatures required. If the title lists "and" between names, both owners must sign the title assignment. If the title lists "or" between names, only one owner must sign.

Vehicles Exempt From Title Requirements

Not every vehicle requires a Utah certificate of title. Per Utah Code Section 41-1a-504, certain vehicles are exempt from title requirements, including special mobile equipment such as farm tractors and implements of husbandry, as well as specific mobile home categories. For vehicles not subject to title requirements, a bill of sale and registration documentation serve as proof of ownership.

Satisfying an Existing Lien

If an active lien is recorded on the vehicle's Utah certificate of title, the lien must be fully satisfied and released before the vehicle can be transferred to a new owner. When a loan is paid off, the lienholder is responsible for releasing the lien. If the lienholder is enrolled in Utah's electronic lien (e-lien) program, the lien removal occurs automatically. If the title is a paper title, the lienholder must sign the lien release section on the face of the title.

A seller should obtain written confirmation of the release of the lien from the lienholder before completing the sale. If a lien release is not obtained and the title is transferred, the outstanding lien will be recorded on the new owner's certificate of title.

Inspection and Emissions Requirements for Private Sales

Utah does not require a private-party seller to obtain a general vehicle safety inspection before completing a sale. However, if the seller registers the vehicle in certain counties, an emissions inspection may be required at the time of registration. Emissions testing is mandated for vehicles registered in Salt Lake, Davis, Weber, Utah, and Cache counties. The specific inspection requirements depend on the vehicle's model year and the county of registration; these requirements apply to the buyer at the time of registration, not to the seller at the time of sale. New vehicles sold with a manufacturer's statement of origin (MSO) are exempt from emissions testing requirements.

Documents Required To Sell a Car in Utah

Certificate of Title

The original certificate of title is the primary document establishing ownership and must be transferred to the buyer. The seller must complete the assignment section on the back of the title, providing the buyer's name and address, the date of sale, the odometer reading, and the seller's signature. The signature must match exactly the name printed on the front of the title.

If the title is lost or damaged, the seller may request a duplicate title using Application for Duplicate Utah Title (Form TC-123), which allows the seller to assign ownership directly to the buyer without first obtaining a replacement title in the seller's name. The form must be signed by the seller in two places.

If a lien is recorded on the title, the lienholder's signature must appear in the lien release section on the front of the title before the title can be transferred.

Bill of Sale

While a bill of sale is not legally required by the state, many county licensing officials require it, and it is strongly recommended for all transactions. The bill of sale provides proof of the sale date and purchase price for tax purposes. A bill of sale can be handwritten or typed in ink and should contain the following information:

• The full name and address of the buyer
• The full name and address of the seller
• The complete vehicle description, including the vehicle identification number (VIN), make, model, body type, and year
• The date of sale (month, day, and year)
• The purchase price of the vehicle
• The trade-in value, if applicable
• The net purchase price
• Signatures of both the seller and the buyer

An official Form TC-843, Bill of Sale, is available from the Utah Division of Motor Vehicles and may be used for this purpose. The bill of sale does not require notarization.

Odometer Disclosure Statement

At the time of any sale or transfer of a motor vehicle, the seller must furnish the buyer with a written odometer disclosure statement as required by Utah Code Section 41-1a-902. The Odometer Disclosure Statement (Form TC-891) must be completed and signed by both the seller and the buyer. The seller must certify one of the following:

• The odometer reading reflects the actual mileage of the vehicle
• The reading reflects mileage in excess of the odometer's mechanical limits
• The reading is not the actual mileage (odometer discrepancy warning)

Both the seller and the buyer must retain a legible copy of the odometer disclosure statement for at least 4 years. Failure to provide an odometer statement or providing a false statement is a Class B misdemeanor under Utah law.

An odometer disclosure statement is not required for vehicles with a gross vehicle weight rating (GVWR) of 16,000 pounds or more or for vehicles that are 20 model years old or older.

How To Transfer a Car Title in Utah

Step 1: Review the Title Before the Sale

The seller should verify that the title is a current, valid certificate of title for the specific vehicle being sold. The vehicle identification number (VIN) on the title should match the VIN on the vehicle. If the title is held by a lienholder as collateral for a loan, the seller should contact the lienholder to request the title before completing the sale. If the title is lost, the seller may obtain a duplicate title using Form TC-123, Application for Duplicate Utah Title, which serves as a replacement title and may be transferred directly to the buyer.

Step 2: Obtain Lien Release Documentation

If a lien is recorded on the title, the seller must obtain written confirmation from the lienholder that the loan is paid in full. For paper titles, the lienholder must sign the lien release section on the face of the title. If the lienholder participates in Utah's electronic lien program, the lien will be released automatically upon loan payoff, and no additional documentation is required.

Step 3: Complete the Title Assignment

The seller completes the assignment section on the back of the title by printing the buyer's full legal name and address, entering the date of sale, entering the odometer reading (if applicable), and signing exactly as the name appears on the front of the title. The seller must not use correction fluid or make alterations to the title.

Step 4: Prepare the Bill of Sale and Odometer Disclosure

The seller and buyer should prepare and sign a bill of sale containing all required information, including the purchase price. If the vehicle is less than 20 years old or has a GVWR of 16,000 pounds or less, the seller and buyer must complete and sign the Odometer Disclosure Statement (Form TC-891).

Step 5: Deliver Documents to the Buyer

At the time of sale, the seller delivers the following documents to the buyer:

• The original certificate of title, properly signed by the seller in the assignment section
• A signed copy of the bill of sale
• The completed Odometer Disclosure Statement (Form TC-891), if applicable
• Any documents evidencing lien release, if applicable

The buyer must apply for a new certificate of title within a reasonable timeframe to establish legal ownership.

Step 6: Buyer Submits Application Through a Local Motor Vehicle Office

The buyer applies for a new certificate of title by submitting the assigned title and completed Form TC-656, Application for Utah Title and Registration to a local motor vehicle office. The buyer must present valid government-issued identification at the time of application.

Title Transfer Fee Schedule in Utah

In addition to the state fee, a $4.00 duplicate registration fee may apply if a duplicate registration certificate is required. Certain counties may also impose local fees. The buyer may use the Fee Estimator tool on the Utah Motor Vehicle Portal to calculate the total fees and taxes applicable to a specific vehicle.

Sales Tax on Private Vehicle Sales

All private-party vehicle sales are subject to Utah sales and use tax. The buyer pays the applicable sales and use tax when the vehicle is registered with the Division of Motor Vehicles. The sales tax rate varies by locality and is calculated based on the locality where the vehicle is being registered. Sales and use tax is based on the net purchase price stated in the bill of sale or, if no bill of sale is provided, the fair market value of the vehicle as determined by the Tax Commission.

Utah does not provide a sales tax exemption for family-to-family vehicle purchases. Sales tax is also due on vehicle sales between family members. The purchase price stated in the registration documents must reflect the actual price paid. Fraudulently underreporting the purchase price may result in an audit, additional tax assessment, penalty, and interest.

What To Do After Selling Your Car in Utah

Remove the License Plate

Unless the license plate is being transferred to the buyer as part of the sale, the seller must remove it from the vehicle before or at the time of delivery. If the plates remain on the vehicle after the sale, the seller may be liable for any traffic or parking violations incurred while the plates remain on the vehicle.

Report the Vehicle as Sold

The seller should report the vehicle as sold to the Division of Motor Vehicles to release liability. This can be accomplished through one of the following methods:

• Online: Use the Utah Motor Vehicle Portal (MVP) to report the sale or submit an online notification
• By mail: Send written notification to the Motor Vehicle Division, Contact Center, P.O. Box 30412, Salt Lake City, UT 84130, including the vehicle year, make, license plate number or VIN, and the owner's signature; alternatively, submit Form TC-502, Application to Cancel Registration
• By phone: Contact the Division of Motor Vehicles at 1-800-DMV-UTAH (1-800-368-8824)

Cancel Insurance Coverage

After the sale is finalized and the license plate is removed, the seller should contact the automobile insurance provider to cancel coverage for the sold vehicle. Maintaining insurance on a vehicle no longer owned is unnecessary and may result in avoidable premium charges.

Retain Copies of All Sale Documents

The seller should retain a copy of the signed bill of sale, the odometer disclosure statement, and any other transaction documents. These documents may be needed to prove the sale in the event of future liability disputes or insurance claims.

Contact Information

Utah Division of Motor Vehicles
210 North 1950 West, Salt Lake City, UT 84116
Phone: (801) 297-7780 or 1-800-DMV-UTAH (1-800-368-8824)
Official Website: Utah Division of Motor Vehicles