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Release of liability, What is it?

The release of liability section on a vehicle title is a crucial part of the title document that serves to legally transfer ownership of the vehicle from the seller (the current owner) to the buyer. This section typically includes the following elements:

  1. Seller's Information: The release of liability section will usually start with information about the seller. This includes the seller's name, address, and sometimes their contact information.

  2. Buyer's Information: The buyer's details, including their name and address, may also be included. However, this section primarily focuses on the seller.

  3. Odometer Reading: Many title release of liability sections require the seller to provide the current odometer reading at the time of sale. This is essential for recording the vehicle's mileage and ensuring accurate records for future owners.

  4. Sale Date: The date when the sale occurred is typically recorded in this section. This date is significant for determining the transfer of ownership.

  5. Sale Price: The purchase price of the vehicle is often included. It helps with documenting the financial transaction and may be used for tax and registration purposes.

  6. Liens or Encumbrances: Any liens or encumbrances on the vehicle should be disclosed in this section. This is important for the buyer to be aware of any outstanding debts or obligations associated with the vehicle.

  7. Release of Liability Statement: The release of liability section contains a statement where the seller certifies that they are releasing all claims of ownership and liability for the vehicle. This is a legal declaration that the seller is no longer responsible for the vehicle, its use, or any issues that may arise after the sale.

The release of liability section is crucial in many jurisdictions to protect both the seller and the buyer. By completing this section correctly, the seller ensures that they are no longer legally responsible for the vehicle. For the buyer, it establishes their legal ownership of the vehicle and allows them to register it in their name.

It's important to note that the specific requirements and format of the release of liability section on a vehicle title can vary by jurisdiction. Therefore, it's essential for both the seller and the buyer to follow their local regulations and guidelines when completing this section to ensure a smooth and legally sound transfer of ownership.

If this document is not filled out and submitted to the State, and the buyer is involved in an accident before insurance is placed on the unit, the original Seller remains liable. Most people don't understand this risk and only worries about signing off the title. Don't forget this crucial step!

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