How To Sell a Car in Delaware

A private motor vehicle sale in Delaware must be completed through the state title and registration system administered by the Delaware Division of Motor Vehicles (DMV). For a Delaware-titled vehicle, ownership passes through the certificate of title and the related DMV filing process rather than through informal sale documents alone.

What You Need To Know Before Selling a Car in Delaware

Title And Ownership Requirements

Under 21 Del. C. § 2510, the owner of a motor vehicle for which a certificate of title is required may not sell or transfer the vehicle unless the title has been obtained, properly assigned, and delivered to the purchaser at the time the vehicle is delivered. Parties must not substitute a bill of sale or registration card for a title when the vehicle is Delaware-titled.

Vehicles Exempt From Title Requirements

Delaware does not identify a general age-based title exemption for ordinary passenger vehicles that are required to be registered. Chapter 23 of Title 21 applies broadly to motor vehicles, truck tractors, trailers, and motorcycles presented for titling and registration, so an ordinary private transfer should be completed through the certificate of title.

Lien Satisfaction And Lien Release Procedures

A recorded lien should be satisfied before the sale is completed as a lien-free transfer. The lien shown on the title must have been released by the lienholder, and the release should identify the vehicle, the seller, and the amount and date of satisfaction. If the title is being held by a lender, Form MV35 is used to request the title from the lienholder for DMV processing.

Inspection And Emissions Requirements

Delaware performs both safety and emissions inspections through its vehicle inspection program. The inspections are performed without a fee. For a routine sale of a vehicle already titled in Delaware, there is no separate pre-sale inspection certificate that must be obtained before advertising or transferring the vehicle. However, under 21 Del. C. § 2503, the transferee must complete the required titling, registration, and inspection steps before operating the transferred vehicle, subject to the exceptions contained in that section.

Other State-Specific Pre-Sale Obligations

If the catalytic converter has been removed, 21 Del. C. § 2515 requires written notice to the purchaser and the purchaser’s signed acknowledgment that the converter is missing and that the vehicle may not pass inspection.

Delaware also limits unlicensed private-party selling activity. A private party may sell up to four personally owned vehicles during a twelve-month period without a dealer’s license.

Documents Required To Sell a Car in Delaware

Certificate Of Title

For a transfer between Delaware residents, Section 1 on the back of the title must include the buyer’s name and address, the date of sale, the purchase price, and the odometer disclosure.

Signature requirements depend on the ownership designation shown on the front of the title:

• If ownership is shown as AND, all sellers must sign and print their names.
• If ownership is shown as AND/OR, one owner may complete the seller section.
• The buyer or buyers must also sign and print their names in the assignment section.

Delaware titles do not require notarization. If someone other than the owner signs title documents, Form MV212 requires original authority, and a representative signature must be supported by an original signed and notarized power of attorney.

Seller’s Report Of Sale And Registration Card

A completed Seller’s Report of Sale must be sent to the DMV after the transfer. The detachable report appears at the bottom of newer Delaware titles, and the same filing is available as the official Report of Sale form.

The form calls for the following information:

• Seller’s name
• Buyer’s name and address
• Vehicle year, make, model, and VIN
• Tag number
• Odometer reading
• Sale date
• Selling price
• Seller’s signature
• Buyer’s signature
• Buyer’s driver license number

The form is required by 21 Del. C. § 2502, and incomplete or illegible submissions will not protect the former owner from continuing liability associated with the vehicle record.

Bill Of Sale

A bill of sale is not the ownership document for a Delaware-titled vehicle. Even so, it remains important in a private transfer because 30 Del. C. § 3002 provides that the purchase price used for the motor vehicle document fee is evidenced by a notarized bill of sale.

A private-sale bill of sale should clearly identify the seller, buyer, vehicle, sale date, and purchase price. When it is being used to establish the purchase price for the document fee, notarization is required.

Odometer Disclosure Statement

In an ordinary private sale, Delaware generally records the odometer disclosure on the title itself rather than through a separate transfer form. Mileage disclosure is mandatory when ownership is transferred for motor vehicles of model year 2011 and newer.

The seller must enter the mileage in whole miles, without tenths, and certify one of the following:

• The mileage shown is the actual mileage
• The mileage exceeds the odometer’s mechanical limits
• The odometer reading is not the actual mileage

For the following vehicles, mileage reporting is encouraged but not mandatory:

• Model year 2010 or older vehicles
• Commercial vehicles over 16,000 pounds gross vehicle weight
• Non-motorized vehicles

Lien Release

If a lien appears on the title, the lien should be released before the vehicle is transferred as a lien-free sale. Original lien-release documentation is required in title transactions, and the title record should show that the lienholder’s interest has been satisfied before the buyer applies for the new title.

Damage Disclosure Statement And Title Brands

A separate damage disclosure form for an ordinary transfer between private parties is not available in Delaware. Instead, the title itself should be examined for brands such as “flood”, “salvage”, “rebuilt”, “reconstructed”, “restored salvage”, “specially constructed”, and “homemade”, because those notations remain part of the official ownership history.

How To Transfer a Car Title in Delaware

Step 1: Review the Title Before the Sale

Before the sale is completed, the title should be checked to confirm that the VIN on the vehicle matches the VIN on the title, that the owner names match the selling party, and that any recorded lien has been released. Branded-title notations should also be reviewed before the assignment is completed.

Step 2: Complete the Title Assignment

The seller completes Section 1 on the back of the Delaware title by entering the buyer’s name and address, the date of sale, the purchase price, and the odometer disclosure. All required sellers must sign based on the ownership designation printed on the front of the title, and the buyer must sign and print the buyer name in the same assignment section.

Step 3: Prepare the Bill Of Sale and Disclosure Paperwork

The Seller’s Report of Sale should be completed at the time of transfer. A notarized bill of sale should also be prepared when the purchase price must be established for the document fee. If a lien was previously recorded, the lien release should be assembled with the title paperwork. If the catalytic converter has been removed, the written disclosure required by 21 Del. C. § 2515 should be completed before delivery of the vehicle.

Step 4: Deliver Documents to the Buyer

At delivery, the buyer should receive the properly assigned original title and any supporting papers needed for titling, including the bill of sale and lien release when applicable. For an out-of-state buyer, Delaware requires the removal of the plate, and a temporary tag may be obtained from the DMV for travel to the state where the vehicle will be titled.

Step 5: Buyer Applies for Title at DMV

The buyer must apply for title immediately after purchase and no later than 30 days after the purchase date under 21 Del. C. § 2503. A late application results in the penalty set by 21 Del. C. § 2508.

For a Delaware-to-Delaware transfer, the buyer completes the purchaser application on the back of the title and presents proof of Delaware liability insurance together with a Delaware driver license or accepted proofs of Delaware residency at a DMV office.

Title Transfer Fee Schedule in Delaware

The current motor vehicle fee schedule related to title charges is as follows:

Sales Tax on Private Vehicle Sales

Delaware does not impose a general sales tax, as per the Division of Revenue. Under 30 Del. C. § 3002, a motor vehicle document fee on the sale, transfer, or registration of a new or used motor vehicle in the State is imposed.

For a private-party vehicle sale, the owner pays the document fee, and the DMV collects it when the buyer applies for title and registration. The document fee is 5.25% of the purchase price or NADA book value, whichever is greater, with a minimum fee of $8.00. Section 3002 also requires a notarized bill of sale to evidence the purchase price.

What To Do After Selling Your Car in Delaware

After the sale, the Delaware plate should be removed from the vehicle unless the DMV has already processed an authorized retention or transfer. The plate must be removed and returned when the vehicle is sold to an out-of-state buyer, and an unreturned plate may expose the former owner to toll, parking, or red-light violations connected with the vehicle.

If the seller intends to keep the plate number for another vehicle, Delaware provides a tag retention process for plates from vehicles that are sold, traded, or gifted. Certain sold-out-of-state situations may also be handled through the online sold-out-of-state process.

A completed Seller’s Report of Sale should be returned promptly after the transfer. License plates must be surrendered before liability insurance is cancelled on a vehicle with an active registration, and a completed seller’s report of sale should be filed when the vehicle is no longer owned.

Copies of the signed title, bill of sale, lien release, Seller’s Report of Sale, and any record showing plate surrender or retention should be retained with the transaction records. Those records may be needed to establish the date of transfer and the identity of the purchaser if ownership or liability questions arise later.

Contact Information

Delaware Division of Motor Vehicles
303 Transportation Circle, Dover, DE 19903
Phone: (302) 744-2500
Official Website: Delaware Division of Motor Vehicles