Selling a vehicle in Illinois requires following specific legal requirements outlined in the state's Illinois Vehicle Code 625 ILCS 5 Chapter 3. This involves correctly transferring the title and registration and meeting all applicable fees and taxes.
The Illinois Secretary of State (IL SOS) oversees vehicle transactions and mandates a transparent record of ownership and title history. This guarantees that the seller provides accurate information about the vehicle's past.
Failing to meet these obligations can lead to legal repercussions and penalties, potentially invalidating the sale and causing inconvenience and legal issues for both parties. Understanding and adhering to these regulations is essential for sellers, as it fosters a fair and transparent vehicle sales environment in the state of Illinois.
Legal Requirements Before Selling a Vehicle in Illinois
Illinois law mandates specific seller obligations before transferring vehicle ownership. These include providing the necessary documentation, like the title, disclosing any known defects or damage, and completing the required forms accurately.
Fulfilling these legal requirements protects sellers by promoting a transparent and legally sound transaction, avoiding potential disputes, and facilitating a smooth sale transaction.
Title Preparation
Accurate title and registration documentation is a fundamental requirement for selling a vehicle in Illinois. This establishes legal ownership, prevents future disputes, and adheres to Illinois state regulations for vehicle transactions.
The title certificate, a legal proof of ownership, must be accurately completed to facilitate a seamless transfer to the buyer. Proper preparation of this document safeguards the seller's interests in facilitating a smooth sale transaction.
Utilizing a Title and Registration Checklist can be invaluable for further streamlining the preparation process. This checklist serves as a comprehensive guide, which ensures that all necessary documents are accounted for and properly prepared.
Obtaining a Duplicate Title
If the original title is lost or damaged, the seller must obtain a duplicate from the IL SOS before proceeding with the sale. This can be done in person or by mail.
To request a duplicate title, sellers must complete the Application for Vehicle Transaction(s) (Form VSD 190) and pay a $50 fee. The form can be obtained at any IL SOS office or by calling (800) 252-8980.
The vehicle and ownership information on the title, including the buyer's name, odometer reading, and vehicle identification number (VIN), must match the information on the application. The odometer reading must be certified on the Assignment of Title along with the date of sale.
The completed application and payment can be submitted in person at a local SOS office or mailed to:
Secretary of State
Vehicle Services Department
501 S. 2nd St., Rm 424 Springfield, IL 62756
Replacing a Lost Registration
If the vehicle registration is lost, stolen, or damaged, sellers can obtain a duplicate online through the Electronic Registration and Title (ERT) system or by mail. Form VSD 190 is required for both methods, and a $3 replacement fee applies.
This service is available through authorized ERT service providers, who act as intermediaries between the IL SOS and customers, offering convenient access to title and registration services.
In addition, the IL SOS provides an Electronic Registration and Title Status Inquiry service, allowing sellers to check the status of their electronic registration and title transaction by entering the document number.
For those seeking faster processing, the DMV facility provides an expedited title service at an additional fee of $30.
Essential Vehicle Records
When selling a vehicle in Illinois, sellers should be prepared to provide specific vehicle records to potential buyers. These records, protected under the Driver Privacy Protection Act (DPPA), offer transparent insights into the vehicle's history and the seller's driving record, fostering trust and facilitating a smoother transaction.
Note that only the seller can obtain their own driving record abstract in compliance with the DPPA. Additionally, the DPPA prohibits the disclosure of personal identifying information in driving record abstracts.
Therefore, potential buyers will not receive the seller's address or other personal details, but they can access public information such as convictions, withdrawals, and crash information, as allowed by law.
Vehicle History Report and State Vehicle Records
Illinois sellers can enhance transparency and build trust with potential buyers by providing a comprehensive vehicle history. This information can be accessed through the National Motor Vehicle Title Information System (NMVTIS).
The system allows sellers to obtain a detailed vehicle record, including title information, odometer readings, and reports of accidents, thefts, or other incidents. This can be a valuable tool for proactively addressing any concerns a buyer may have. NMVTIS reports are available through approved data providers.
State vehicle records offer additional information about the vehicle's title, registration, and any liens or encumbrances. Sellers can contact the Motor Vehicle Records Division directly to obtain these records, either by mail, phone, or fax through:
Secretary of State
Motor Vehicle Records Division
Record Inquiry Section
501 S. Second St., Rm. 408 Springfield, IL 62756
Telephone: 217-782-6992 or 217-785-3000
Fax: 217-524-0122
Driving Record Abstract
A driving record abstract offers a detailed overview of the seller's driving history in Illinois. This comprehensive report includes traffic violations, accidents, and license status, providing insight into the seller's driving habits.
Although not directly related to the vehicle being sold, a potential buyer may request this abstract. A clean driving record abstract can help the seller instill confidence in potential buyers.
To obtain this record, the most efficient way is to purchase and print the abstract using the Driving Record Abstract system. A valid credit or debit card and a printer capable of printing PDF documents are required. Alternatively, sellers can visit a DMV facility and complete an Abstract Request Form.
To receive the record immediately, a $20 fee is charged. A $1 payment processor fee is added for credit/debit card payments.
Aside from the system and in-person visit, sellers can mail the form and payment to:
Secretary of State
Driver Analysis Section
2701 S. Dirksen Pkwy. Springfield, IL 62723
Vehicle Safety and Salvage Inspections
Selling a vehicle in Illinois involves adhering to specific safety and salvage inspection regulations outlined in the Illinois Vehicle Code.
These inspections protect both parties by verifying that vehicles meet state safety standards and that rebuilt vehicles are roadworthy.
Vehicle Safety Inspections
The Illinois Department of Transportation (IL DOT) mandates periodic vehicle inspections for commercial and privately owned vehicles operating on state highways. This is outlined in the Illinois Vehicle Code (625 ILCS 5/13-101).
When selling a vehicle in Illinois, a vehicle safety inspection may be a relevant step in the sales process. It can offer peace of mind to both the seller and the buyer as the inspection can verify the vehicle's condition. If a buyer requests an inspection, the seller must cooperate to facilitate the sale.
Salvage Vehicle Inspections
In Illinois, a salvage vehicle inspection is mandatory under the Illinois Vehicle Code before a rebuilt vehicle title can be issued. This comprehensive inspection is designed to guarantee the vehicle's roadworthiness and safety, safeguarding both drivers and the public.
The SOS Police, following the guidelines of the Illinois Vehicle Code 625 ILCS 5/3-308, conducts thorough inspections of salvage vehicles that are eight model years old or newer. This meticulous process entails identifying essential parts and verifying all requisite documentation, such as:
- Properly assigned Illinois Salvage Certificate or foreign salvage title
- Completed title application for a rebuilt vehicle
- Affirmation Supporting Salvage Certificate (RT-11.13 Form) listing all used and new parts with their origins
Upon successful completion of the inspection at an Illinois Official Testing Station, the on-site SOS auto body specialist signs a salvage vehicle inspection report, which is approved by the SOS investigator in charge.
Whether selling a standard or salvage vehicle, specific documents and fees are mandatory. For salvage vehicles, sellers must furnish buyers with a Disclosure of Rebuilt Vehicle form detailing the vehicle's history.
Note that a $94 inspection fee is required for salvage vehicles, which can be paid online. However, if the inspection request is denied before the physical inspection begins, the fee will be refunded.
It is recommended that sellers of salvage vehicles schedule an appointment for the inspection and ensure that all necessary documentation is prepared beforehand.
Emission Requirements
In compliance with Illinois Compiled Statutes 13C Sec. 625, vehicle emissions testing is mandatory in certain areas of Illinois to maintain air quality standards.
If the vehicle fails the emissions test, the seller bears the responsibility for any repairs necessary to achieve compliance. This ensures the vehicle meets state environmental standards and prevents complications during ownership transfer.
After passing the emissions test, the seller will receive documentation confirming compliance. This documentation is essential for the transfer of ownership and should be included with the other necessary paperwork during the sale.
To locate the nearest emissions testing station and for comprehensive information about specific requirements, exemptions, and testing procedures, sellers are encouraged to visit the Illinois Air Team portal or contact their Call Center at 844-258-9071.
Selling a Vehicle with a Lien in Illinois
In Illinois, selling a vehicle with a lien requires specific steps to promote a smooth transaction for both the seller and the buyer. The lienholder, typically a bank or financial institution, holds the title until the loan is paid off.
The seller must first obtain a payoff amount from the lienholder, detailing the exact amount needed to satisfy the loan. This payoff amount is crucial as it determines the funds needed to clear the lien.
Once the payoff amount is received, the seller can proceed with the sale. If the buyer is paying the seller directly, the seller must use those funds to pay off the lienholder. In return, the lienholder will issue a lien release, signifying the removal of the lien from the vehicle. The seller can then transfer the title to the buyer, completing the transaction.
Alternatively, if the buyer is financing the purchase, their lender will typically handle the lien payoff directly with the seller's lienholder. This simplifies the process, as the lenders will coordinate the necessary paperwork and ensure the lien is cleared before the title is transferred to the buyer.
In both scenarios, it's essential to keep copies of all documentation, including the payoff amount, lien release, and bill of sale. These records serve as proof of the transaction and can be helpful for future reference.
Motor Vehicle Sales Tax in Illinois
In Illinois, the sale of motor vehicles between private parties is subject to the Private Party Vehicle Use Tax. This tax applies whether the vehicle was purchased, gifted, or transferred.
The tax rate is not a fixed percentage of the sale price. Instead, sellers should consult the Illinois Department of Revenue's Use Tax Rate Table to determine the exact tax liability based on the vehicle's purchase price or fair market value.
Individuals moving to Illinois who have purchased a vehicle from an out-of-state licensed dealer must submit a completed Tax Form RUT-25 (Vehicle Use Tax Transaction Return).
When applying for the vehicle's title, the completed RUT-50 or RUT-25 form, along with the calculated tax payment, must be submitted within 30 days of the purchase, gift, or transfer date.
To obtain the form, submit a request to the Illinois Department of Revenue.
Legal Requirements After Selling a Vehicle in Illinois
Completing a vehicle sale in Illinois involves crucial steps to facilitate a seamless and legal transfer of ownership. This section details the necessary procedures for Illinois sellers to follow both during and after the sale, promoting a smooth transition of ownership and compliance with state regulations.
Odometer Disclosure Requirement
Effective January 1st, 2021, a new federal rule mandates odometer disclosure for vehicles manufactured in 2011 and later for a 20-year period. This means sellers of these vehicles must complete the Odometer Disclosure Statement for Title Transfer, entering the current mileage.
The SOS Vehicle Services Department will not accept paperwork for sales of 2011 or newer vehicles without the odometer disclosure. Paperwork such as the Application for Duplicate Title and Bill of Sale or a non-secure Power of Attorney will not be processed without this information.
Ownership Title Transfer
After selling a vehicle in Illinois, the seller is responsible for completing specific actions to ensure the proper transfer of ownership.
The seller must complete the "Assignment of Title" section on the back of the vehicle's title. This includes:
- Printing the buyer's full legal name and address
- Entering the odometer reading at the time of the sale
- Signing their name as the seller
- Printing their name as it appears on the front of the title
The seller does not need to submit any documents directly to the IL SOS. It is the buyer's responsibility to submit the necessary documents to transfer the title and registration into their name.
The seller should keep copies of all documents related to the sale, including the completed title, bill of sale, and Odometer Disclosure Statement, for their records.
Failure to complete these steps can result in the seller being held liable for any future issues related to the vehicle, such as parking tickets or accidents.
Title Transfer from a Deceased Owner
The process of transferring a vehicle title after the owner's death depends on the specifics of ownership and estate administration. If the deceased was the sole owner and their estate is undergoing probate, the transfer can only occur after the probate process is complete. In this case, an executor designated by the court will be responsible for the transfer.
If the vehicle was jointly owned or the estate isn't in probate, the surviving owner or heir can typically initiate the transfer by providing the required documentation, such as the death certificate and proof of their relationship to the deceased.
License Plates Removal
Prior to transferring vehicle ownership in Illinois, the seller must remove the license plates from the vehicle. License plates are tied to the individual, not the vehicle, and remain in the seller's possession.
If registered under the seller's name, the plates can be transferred to another vehicle owned by the seller by completing an application. Alternatively, if the seller doesn't want to keep the plates, they can be returned to any SOS office. Meanwhile, the buyer will need to obtain new plates for the vehicle.
Pick-a-Plate Tool
Pick-a-Plate offers vehicle owners the opportunity to personalize their license plates. Eligibility hinges on the vehicle being correctly titled and registered in the owner's name, with the address on the registration card matching official records. Vehicles under lease, held in trust, or registered by a business do not meet the criteria for this service.
For a seamless Pick-a-Plate experience, sellers should have the following information readily available:
- The VIN
- The current license plate number
- The last name of both the primary and secondary owner (if there is one)
- The driver's license numbers
- The last four digits of their respective Social Security numbers (SSN)
Additionally, vehicle owners can check when their license plates are due for replacement by using the License Plates Status service.
Temporary Registration Permits
If the buyer has submitted a valid registration application but is still awaiting new license plates, they will be issued a Temporary Registration Permit (TRP). This temporary plate, valid for 90 days, serves as a legal authorization to operate the vehicle while the permanent plates are being processed.
The TRP is a yellow and black polymer plate that should be securely fastened to the vehicle's rear plate bracket, the same location where the permanent metal license plate will eventually be mounted. This placement is helpful for easy visibility among law enforcement, who can quickly access essential vehicle information using the TRP.
Once the permanent license plates arrive, the TRP should be promptly removed and discarded as it is no longer valid. It is crucial to remember that TRPs cannot be renewed and must be replaced with permanent plates within the 90-day period.
How To Notify the Illinois SOS of the Sold Car?
Sellers are required to notify the Illinois SOS within five days of the transaction. This notification is done by completing the Seller's Report of Sale (Form VSD-703), which serves as an official record of the transfer of ownership and releases the seller from future liability related to the vehicle.
The form, available online or at any local SOS office, must be signed by both the seller and buyer. It is crucial to include the buyer's name and address on the form to promote a seamless transfer of ownership and prevent any potential issues.
Completed forms can be submitted in person at an SOS facility or mailed to the specified address. Timely completion and submission of this form are crucial steps in finalizing the sale and protecting the seller's interests.