Although the Oklahoma Tax Commission administers the registration and taxing of vehicles, the state utilizes a statewide network of private motor license agents who have the capability of processing virtually any vehicle title and/or registration transaction, applying the identical tax and fee structure. Visiting one of these locations may expedite your transaction.
Step 1: Allow the buyer to have the car inspected by a third party
Step 2: Organize and gather all related vehicle documentation
Step 3: Purchase price declaration and odometer disclosure
Step 4: Transfer the title
Step 5: Remove your plates, cancel your registration and insurance
For most vehicle shoppers who buy a car privately, Autotrader recommends a pre-purchase vehicle inspection conducted by a qualified and licensed auto mechanic. Although the buyer pays for this inspection, the seller and buyer must agree on when and where the inspection is to be held. If the inspection does find any issues with the car, it is a good idea for you as the seller to keep the report for your records. Even with some slight issues, the buyer may still want the car. In this case, the buyer/new owner should keep a copy of the report to address future repairs.
Find all maintenance records, owner’s manual and other paperwork related to the vehicle. As of 2020, Oklahoma does not have any requirements surrounding vehicle emissions testing which means the seller will not have to provide any inspection documentation to the buyer nor will buyer need to get an emissions test done to register the vehicle. This also extends to safety and vehicle inspections as well as smog tests.
When a vehicle is financed, the financial institution – usually a bank - will be listed as a lienholder and retains the original title. When a lien has been satisfied on a paper title, the lienholder can issue a lien release either by signing and dating two lien release forms, one of which must be provided to the Oklahoma Tax Commission. Oklahoma provides this detailed information on lien filings and lien release guidelines for vehicles. If the lien is to be carried forward to the buyer, the active lien will be reflected on the transfer title issued. If a lien release cannot be obtained, a notarized statement from the secured party may be accepted by using a Lien Release Affidavit Letter. If you have a lien release you wish to submit, mail the lien release to:
Oklahoma Tax Commission
Motor Vehicle Liens
P.O. Box 269061
Oklahoma City, OK 73126
There is no fee to release a lien. A new title, without the lien listed, can be obtained by paying a title fee at any tag agency.
Oklahoma does not require residents to use a special Bill of Sale but all sellers are legally required to report the final sale price of the vehicle to the Oklahoma Tax Commission by filling out a Declaration of Vehicle Purchase Price (Form 722-1). This form is a comparable to a Bill of sale since it covers the critical information such as:
While the declaration form 722-1 is to be provided to the state, most sellers and buyers find it helpful to keep a copy for themselves as proof of the transaction.
If the vehicle being sold is nine-years old or newer, the seller and buyer are required to fill out, date and sign an Odometer Disclosure Statement, form 729. Generally, most certificate of titles allow space to disclose the odometer reading. Vehicles ten years old or older are exempt.
If the vehicle is being gifted from a family member or obtained due to a divorce or another situation be sure to mark a “GIFT / $0” on Form 722-1. In such cases, no sales tax will be assessed.
If the original certificate of title is lost, stolen or badly damaged, the seller must fill out an Application for Duplicate Certificate of Title for Vehicle/Boat/Motor (Form 701-7) and all owners on the title must have their signature notarized by a Notary Public. If you are utilizing the Power of Attorney to sell on behalf of the original owner or their Estate, then you must submit the Actual Notarized Power of Attorney or a Certified Copy of the Power of Attorney form.
For a duplicate title to be issued, the seller must present either the current Oklahoma registration or evidence of out of state residency. Out of state residency may be proven by showing an out of state registration for the vehicle/boat/motor, a utility bill, rental agreement, or out of state driver license in the name of the record owner. If the Oklahoma registration is not current and out of state residency cannot be established, then the seller must pay all delinquent Oklahoma registration fees and penalties, along with an Oklahoma insurance verification form, for the duplicate title to be issued. Oklahoma law requires a negotiable certificate of title properly assigned to the new owner(s) for all vehicle ownership transfers.
In the case where the owner has passed away and you’ve inherited the vehicle according to the decedent’s will, the will must first be probated. Once probated, you may present the letters of testamentary issued by the court awarding you the vehicle, along with a copy of the decedent’s death certificate to any tag agency to transfer ownership into your name. If the value of the estate was less than $20,000, the will does not need to be probated through the court system and you may visit a tag agent to transfer the vehicle’s ownership.
To change the assignment of title, both the seller and the buyer will fill out the reverse side of the certificate of title. The seller needs to print their legal name, the address of the buyer, purchase price of the vehicle, date of the sale and provide the odometer reading. Both the buyer and seller need to print their name and sign the title in front of a notary public. This is an example of the title sections which must be filled out. After the sale, the seller must submit their current vehicle registration which will be canceled, and the buyer will submit their own application for registration in their name(s).
Sellers may use the notice of transfer by completing Form 773. This is an optional procedure, intended only to notify the Oklahoma Tax Commission of the ownership change. It in no way affects the responsibility of the buyer to transfer ownership of the vehicle in the manner prescribed by Oklahoma law.
Oklahoma law states the seller must remove and keep their license plates after selling the vehicle, either returning them or transferring the plates to a replacement vehicle. After the vehicle’s registration has been cancelled, cancel your insurance.
Under Oklahoma’s Senate Bill 1339 which went into effect on July 1, 2019, the buyer can drive their newly purchased vehicle for up to five days without a license plate before they will be required to register their new vehicle in their name and get a new plate from a local tag agency.
Additionally, under this same law, all car owners are always now required to carry current and valid certificates of registration in their cars. If you don’t know where your registration document is, you can print a duplicate registration using the OkCARS online service.
For more information, visit the Oklahoma Tax Commission’s website.
There are several documents which private sellers of vehicles in Oklahoma will need:
No. However, all private sellers must fill out, sign and submit a Declaration of Vehicle Purchase Price form which contains many of the same key pieces of information as a Bill of Sale.
Yes. Starting in July 2019, Oklahoma private sellers must remove their license plates when they sell their vehicle.