Did you know Minnesota counties reject over 6,500 title transfer applications each year because of simple errors? A single typo or missing signature can cost you weeks of delays and extra fees.
Whether you’re buying, selling, or gifting a vehicle, mastering the title transfer process guards against costly missteps and keeps you compliant with state law.
Key Takeaways
- Verify every signature matches the printed name exactly
- Cross-check the 17-character VIN on all documents
- Obtain notarization for bonded, out-of-state, and gift transfers
- Include odometer disclosure for vehicles under ten years old
- Provide proof of relationship for tax-exempt family transfers
- Submit transfers within 30 days to avoid penalties
Understanding Minnesota Title Requirements
Transferring a title in Minnesota demands strict adherence to state statutes and DMV rules. Every Certificate of Title must include:
- The seller’s signature must exactly match the name printed on the title.
- Required for out-of-state titles, bonded titles, and certain family transfers.
- Mandatory for vehicles under ten years old, either on the title or via PS20041.
- The 17-character VIN must be identical on the title, application, and bill of sale.
When vehicles transfer as gifts between spouses, parents and children, siblings, or grandparents and grandchildren, Minnesota waives the 6.5 percent motor vehicle sales tax.
All other transactions incur this tax based on the vehicle’s market value. Transfers must be completed within 30 days of sale or gift to avoid late penalties.
Top 5 Title Transfer Mistakes
1. Missing or Incorrect Signatures
Even a single missing middle initial will trigger rejection. Always compare each signature to the name printed on the title.
2. VIN Typos
A single wrong digit in the VIN halts processing. Copy the VIN directly from the title’s barcode area or dashplate.
3. Skipped Notarization
Bonded titles, out-of-state transfers, and certain gift affidavits require notarization. Verify requirements on PS2000B and PS20054 before you sign.
4. Odometer Disclosure Oversights
Vehicles under ten years old need odometer readings. If omitted, the DMV flags your application and demands additional verification.
5. Insufficient Proof for Gift Transfers
Gift transfers require PS20054 plus proof of relationship (birth/marriage certificates). Without these, the sales tax exemption is invalid.
How to Double-Check Your Documents
Before you leave home, run through this checklist:
| Error Type | Solution |
| Signature mismatch | Re-sign in front of notary, compare spelling carefully |
| VIN discrepancy | Verify VIN on title, vehicle frame, and registration |
| Missing notarization | Schedule a notary at your bank or registrar office |
| Odometer disclosure missing | Fill out PS20041 or add reading to title |
| Absent relationship proof | Attach certified birth or marriage certificate |
Bringing a printed checklist to your appointment prevents frustration and rework.
Avoiding Pitfalls with Special Transfers
Family Gifts
Complete the Gift Motor Vehicle Affidavit (PS20054) and attach a marriage or birth certificate. This secures your tax exemption and speeds processing.
Bonded Titles
When no title exists, file PS2000B and purchase a surety bond for 150 percent of the vehicle’s market value. Allow two to four weeks for state review and issuance.
Dealer “As-Is” and Out-of-State Purchases
Dealers selling “as-is” may lack full title documentation. Insist on clear titles or walk away. Out-of-state titles need additional forms and notarization—check county rules before you buy.
Best Practices for a Smooth Transfer
- Schedule an Appointment at the deputy registrar to skip lines.
- Bring Extra Copies plus digital backups of all forms.
- Organize Documents in a labeled folder by owner name and VIN.
- Confirm Payment Methods accepted by your county for fees.
- Obtain a Receipt to track your application status.
Why Local Auctions Help Ensure Clear Titles
- Preview vehicles in person to confirm VIN plate, odometer reading, and title brands.
- Review condition reports that note flood damage, salvage history, or structural repairs.
- Access original title documents and lien-release paperwork on-site to avoid hidden liens.
- Use mobile inspection services or on-site mechanics to validate title data against physical condition.
- Bid with confidence knowing you’ve flagged any title issues before purchase.
Why Auctions Are a Smart Choice for Car Purchases
Auctions can be an excellent source for late-model vehicles with clear chains of title and affordable pricing. Twin Cities Auctions, based in Minnesota, is one such reputable auction house that offers a wide range of vehicles at competitive prices.
Key Benefits of Buying from Auctions:
- Wide Selection: Auctions like Twin Cities Auctions offer a variety of vehicles, from low-budget cars to high-end models.
- Competitive Pricing: Auctions often offer vehicles at prices below retail value, enabling dealers to maximize their profit margins.
- Transparency: Auctions provide full vehicle history reports, so you know exactly what you’re buying.
- Convenient Bidding: Many auctions offer online bidding for your convenience, making it easier to source vehicles without being physically present.
Twin Cities Auctions: A Smart Vehicle Sourcing Choice
For those in the automotive industry, Twin Cities Auctions offers an excellent platform for sourcing quality vehicles at competitive prices.
Whether you are just starting or expanding your business, this auction house provides transparency, competitive pricing, and a broad selection.
| Feature | Description |
| Inventory Variety | Wide range of cars, trucks, and SUVs available |
| Competitive Pricing | Below-market pricing allows for higher profit margins |
| Vehicle History Reports | Detailed history reports for every vehicle |
| Online Bidding | Convenient online bidding options for dealers |
| Financing Options | Financing available to help with inventory purchases |
Conclusion
Avoiding common title transfer mistakes in Minnesota comes down to preparation, attention to detail, and using trusted sources.
Verify every signature, VIN, and notary requirement before you submit, and employ checklists to prevent costly oversights.
When possible, source vehicles from transparent venues like Twin Cities Auctions to start with clear titles and expert support. With these strategies in place, you’ll navigate the DMV process confidently and drive away without delays.
Find Your Next Ride Online at Twin Cities Auctions—No Dealer License Required
Searching for your next vehicle? Twin Cities Auctions offers an online, transparent car auction experience that’s accessible to everyone, no dealer license needed. Browse and bid on a diverse selection of quality vehicles from the comfort of your home.
Whether you’re a first-time buyer or an experienced trader, our clear, honest bidding process ensures you can make informed decisions in a supportive environment. Join our next online auction and discover how effortless and enjoyable finding your next car can be with Twin Cities Auctions!
Looking for more options? Explore our comprehensive list of all available car auctions across the United States. Your next deal might be just a click away!
FAQ
What should I do if my title transfer is rejected?
Contact your county registrar to identify errors, correct documents, and resubmit promptly.
How soon must I complete a title transfer?
Transfers must occur within 30 days of sale or gift to avoid late fees.
Can I mail in my title transfer?
Some counties accept mail-in transfers for out-of-state titles; check your county’s website for details.
Do I need insurance before transferring a title?
Yes; proof of insurance is required to register a vehicle in Minnesota.
How do I spot a cloned VIN?
Compare the VIN stamped on the frame, dashplate, and title—any discrepancy is a red flag.
Is a bonded title valid outside Minnesota?
Bonded titles are recognized in-state; other states may require additional documentation.
What fees apply beyond the title transfer?
Expect registration fees ($30–$120), plate renewals, and any county-specific surcharges.
Where can I access official Minnesota DMV forms?
Visit the Minnesota DVS forms page: https://dps.mn.gov/divisions/dvs/forms-documents/Pages/application-for-certificate-of-title.aspx
Source Links
https://www.revenue.state.mn.us
https://www.printfriendly.com/document/motor-vehicle-gift-affidavit-form-mn
https://dps.mn.gov/divisions/dvs/vehicle/vehicle-titles/vehicle-title-transfer
https://bluenotary.us/vehicle-title-transfer-mn
https://titlebonds.us/common-mistakes-in-title-bond-applications-what-to-avoid/
https://www.washingtoncountymn.gov/3263/Transfer-of-Minnesota-Titles