Private-party transfer in Colorado: closing the sale without surprises
Steps for buyer and seller, documents, payment and state-specific plate conditions.
A private sale calls for checking the title, payment, plate and applicable state procedures. This guide is written for both sides of the table, with Colorado's rules.
The place and the moment
Ask the titling office (At the county Motor Vehicle office where you live, run by the County Clerk and Recorder. The state DMV handles almost no private titles. Only your own county's office can serve you) in advance about accepted signatures, documents, appointments and payments. Where available, coordinate the handover with that office and verify payment with the issuing bank before releasing the car or documents.
Step by step
| # | Seller | Buyer |
|---|---|---|
| 1 | Confirm the title is in your name and lien-free. If there is a loan, get the bank's release before listing. | Ask for the VIN and check title, recalls and history before seeing the car. |
| 2 | Allow an independent inspection. Agree in writing how and when it will take place. | Pre-purchase inspection with your own mechanic. |
| 3 | Agree the total price in writing on a bill of sale: VIN, year, make, model, price, date, names, signatures. Two copies. | Same. The bill of sale is your proof of price for the tax. |
| 4 | On the title: your signature, the buyer's name and address, price, date and the applicable odometer disclosure, including exemptions and any required mileage-discrepancy indicators. Odometer statement on the title or on bill of sale DR 2173, section A (federal law, 49 CFR 580). | Check that the VIN on the title is the car's and that the person signing is the titled owner. |
| 5 | Receive payment: cashier's check verified at the issuing bank, confirmed transfer, or cash inside the bank. | Pay only when the signed title is in your hand. |
| 6 | Handle the seller's plate. Follow the state conditions below for removal, transfer or return. | Confirm the registration, permit and plate you need before driving; do not assume you can use the seller's. |
| 7 | Confirm the applicable sale notice, plate return or registration cancellation; keep written proof of the handover. | Confirm the required documents, fees, taxes and deadline with the agency, including the event that starts the deadline. Bring the applicable insurance or financial-responsibility documents. |
| 8 | Ask your insurer when to cancel or transfer coverage, and first confirm the registration and plate conditions. | Confirm the coverage or proof of financial responsibility required for your transaction and before driving. |
The plate in Colorado
Colorado requires no notice of sale: the seller is released from liability on handing over the car and the signed title (§ 42-3-115(4)). Keep a copy of bill of sale DR 2173. The plates belong to the seller: remove them, and they expire on transfer; they do not move to another car, except personalized or special plates. The buyer may drive for up to 36 hours with the bill of sale signed with time and date and proof of insurance, if bought on a weekend, holiday or between 5 p.m. and 8 a.m.; after that a county temporary plate (up to 60 days) or registration is needed.
What each one must bring
Seller
- Title (or printout of the electronic one)
- Photo ID
- Lien release, if any
- Signed bill of sale
- A screwdriver for the plate
Buyer
- State forms (DR 2395, DR 2173, DR 2698)
- Photo ID
- Insurance card
- Payment for fees and tax
- If out of state: whatever VIN verification the state requires
Three special situations
- Lost title. The seller requests a duplicate before selling. Don't accept "I'll send it later."
- Two owners on the title. If the names are joined by "and," both sign. With "or," one is usually enough.
- The seller is an heir or holds a power of attorney. Extra documentation is needed (estate papers or POA). Confirm at the office before paying.
Keep the records; check the official process
Sources
- Colorado DMV — Titling a Vehicle
- Colorado DMV — Expiring Temporary Tags (60 days, $25/month late fee)
- Colorado DMV — Motor Vehicle Registration Fees fact sheet
- C.R.S. 2024, Title 42 — § 42-6-110 (60 days), § 42-6-137 (title fee $7.20), § 42-3-103, § 42-3-112 (late fee), § 42-3-306 (registration fees), § 42-3-203(3) (temporary plates)
- Colorado Division of Insurance — Auto Insurance (minimum liability)
- Adams County Motor Vehicle — Private party purchase (title fee $7.20, late fee)
- 49 CFR Part 580 — Federal odometer disclosure requirements
This guide informs; it is not legal or financial advice, nor an offer, quote or appraisal. Every figure carries its source and date; check it is still current before you decide.