X Driving Tests
Vehicle Registration

Transferring Vehicle Ownership in Illinois

3 min read

Transferring ownership of a vehicle in Illinois requires attention to specific steps to ensure the legal transfer of title and proper registration with the Illinois Secretary of State (SOS). Whether you're selling, buying, gifting, or inheriting a vehicle, it's important to follow state regulations carefully to avoid penalties or delays.

Key Documents Required

Both the seller and the buyer must complete several essential documents to transfer ownership:

  • Vehicle Title (Certificate of Title): Must be signed by both parties. The seller completes the Assignment of Title section, including the odometer reading if the vehicle is under 10 years old.
  • Application for Vehicle Transaction(s) (Form VSD 190): Required for title transfer and registration. Available online via the Illinois Secretary of State’s Electronic Registration and Title (ERT) System.
  • Bill of Sale (optional but recommended): Documents the terms of the sale, including the sale price and date.
  • Valid ID: Required for both buyer and seller.
  • Lien Release (if applicable): If there's a loan on the vehicle, the lienholder must provide a written release.

Buyer Responsibilities

Once the vehicle is purchased, the buyer must:

  1. Obtain the Title from the Seller: Ensure it is properly signed and that any liens are released.
  2. Complete and Submit Form VSD 190: Use the ERT System to fill out the form and calculate fees.
  3. Pay the Applicable Fees: This includes title transfer, registration, and tax fees. For details, refer to the Illinois DMV Fees for Licenses, Plates, and Permits.
  4. Submit Documents to the SOS: Can be done in person or by mail, though in-person is recommended for faster processing.
  5. Get New License Plates: Unless the old plates are transferred, new plates will be issued.

Seller Responsibilities

The seller must:

  • Remove the license plates (they stay with the seller, not the vehicle).
  • Complete the Assignment of Title section.
  • Submit a Notice of Sale to the SOS, which protects against liability if the buyer fails to register the vehicle.

Gifted or Inherited Vehicles

When a vehicle is gifted or inherited, the process slightly differs:

  • Gifted Vehicles: Still require a title transfer using Form VSD 190. Mark the “gift” option and provide a signed and notarized gift affidavit.
  • Inherited Vehicles: The executor of the estate must provide legal documents such as a death certificate and court order or Small Estate Affidavit.

Special Circumstances

  • Out-of-State Titles: Must be converted to an Illinois title. A vehicle inspection may be required.
  • Vehicles Purchased from Dealers: The dealership often handles the paperwork, but always confirm that the title has been properly transferred.

Fees and Taxes

Typical fees include:

  • Title Transfer Fee: $155
  • Registration Fee: $151 (standard passenger vehicle)
  • Sales Tax: Based on the sale price or fair market value

Refer to the Illinois Vehicle Registration Renewal Options for ongoing registration requirements.

Useful Resources

For related topics, explore:

Always verify current forms and fee amounts on the official Illinois Secretary of State website. Following these guidelines helps ensure a smooth and legal vehicle ownership transfer.