Do you have to change the car title as soon as you buy it?

Lets say that I want to buy and fix cars and sell them for a profit. I live in texas by the way. Do I have to change the title to my name before I sell the car? Is it illegal if I sell it without ever changing it to my name?Do you have to change the car title as soon as you buy it?Dealing in %26quot;open%26quot; titles is technically illegal. (Ive done it dozens of times)



If your name is written in the back of it, you MUST change it over and wait on the title before you can sell it. (Unless you find a buyer who will buy it without a title)



If not, you may be able to sell it as if you are the original owner...but if %26amp; only if the only thing that appears on the back of the title is the registered owners signature.



There cant be multiple transfers or anything like that.



And you would have to fake a bill of sale pretending to be the original owner.



Again, its illegal. but happens all the time. Ive never heard of anyone going to jail over it.



Worst case scenario ? They make you pay what the taxes would have been and then fine you a few hundred dollars. (Assuming you haven't be caught doing it before)



Depsite the scare tactics of some posters, you arent going to jail over title jumping. But it is illegal, just like going 1 mph over the speed limit.
Do you have to change the car title as soon as you buy it?
%26quot;Title jumping%26quot; is very much illegal.



Curbstoners do it to avoid paying taxes and to sell more cars than allowed by law.



Just like everything in life, you have to weight the pros and cons. Is not paying taxes worth being fined and jailed if caught? Only you can answer that.
Do you have to change the car title as soon as you buy it?
if you plan to deal in cars you need a license from the state of Texas ... you need a tax certificate, a business license, and a dealers license ----- skip all the above and the state catches up with you and you will owe lots in tax revenue ..... I think there is a limit to the number of cars that you can handle with out these licenses ==== you will be well advised to call the DMV and talk all this over with the %26quot;%26quot;%26quot;clerk%26quot;%26quot;%26quot; ==== the dealer License will permit you to have blanket insurance to drive and show the cars and this will protect you from being in a law suit ... you can also talk to the TX Highway Patrol and get answers === please do not mess around with trying to do a shade tree business -- the State of Texas will find you (( or a dissatisfied customer will turn you in to the tax dudes.... respectfully ... a word to the wise...
Then you need to become a licensed car dealer. If you don't, you will have to title and register each vehicle in your name before you can sell it.
It is against the law. Not only that it is fraud. Most state the law says if you have the intent to make a profit you needs a dealers license. Between Licenses, Location, required insurance, and all the other crap you need to be legal, plan on spending about $10,000 a month.



This is pretty much standard in every state.



Source:

Colorado Statutes/TITLE 12 PROFESSIONS AND OCCUPATIONS/GENERAL/ARTICLE 6 AUTOMOBILES/PART 1 AUTOMOBILE DEALERS/12-6-102. Definitions.



12-6-102. Definitions.



(13) %26quot;Motor vehicle dealer%26quot; means a person who, for commission or with intent to make a profit or gain of money or other thing of value, sells, leases, exchanges, rents with option to purchase, offers, or attempts to negotiate a sale, lease, or exchange of an interest in new or new and used motor vehicles or who is engaged wholly or in part in the business of selling or leasing new or new and used motor vehicles, whether or not such motor vehicles are owned by such person. The sale or lease of three or more new or new and used motor vehicles or the offering for sale or lease of more than three new or new and used motor vehicles at the same address or telephone number in any one calendar year shall be prima facie evidence that a person is engaged in the business of selling or leasing new or new and used motor vehicles. %26quot;Motor vehicle dealer%26quot; includes an owner of real property who allows more than three new or new and used motor vehicles to be offered for sale or lease on such property during one calendar year unless said property is leased to a licensed motor vehicle dealer.



See you at the cross bar hotel.