Transferring an Arkansas Vehicle Title

An Arkansas title transfer is the legal handoff of vehicle ownership from one party to another. Both buyer and seller have responsibilities, and Arkansas's 30-day deadline for the buyer to record the transfer at a Revenue Office is enforced through penalty fees and possible citation. The same rules apply to a private-party sale, an inheritance, or a gift between family members.

Seller's responsibilities

The seller of an Arkansas-titled vehicle should complete the assignment section on the back of the certificate of title. That includes:

• The buyer's full legal name and address.
• The sale date and the agreed price.
• The current odometer reading (required for vehicles 9 model years old or newer).
• The seller's signature.

The seller should also keep a copy of the title for their records and submit a written notice of sale to the DFA. Although Arkansas does not have a formal "release of liability" form like California's REG 138, written notice limits the seller's exposure if the buyer fails to register on time and a citation is issued against the previously recorded owner.

Buyer's responsibilities

The buyer has 30 days from the purchase date to bring the title and supporting documents to a Revenue Office:

• The properly assigned original title (or, for a new vehicle, the manufacturer's statement of origin).
• A bill of sale showing the price — Form ARMV-1 or any signed equivalent — for sales-tax calculation.
• Form 10-381 Application for Title and Registration.
• Proof of Arkansas auto insurance in the buyer's name.
• The current Arkansas safety-inspection sticker.
• Proof that the buyer has assessed the vehicle with the county assessor for the current year.
• The buyer's Arkansas driver's license.
• Lien information if the vehicle is being financed.

Sales tax at title transfer

Arkansas collects state sales tax of 6.5% on the purchase price, plus the local rate that applies in the buyer's county and city of residence. Combined rates typically land near 9.46%. Arkansas vehicles selling under $4,000 are exempt from sales tax; vehicles between $4,000 and $10,000 are taxed at a reduced 3.5%. The tax is paid at the Revenue Office at the time of registration. If the buyer has paid sales tax in another state on the same vehicle, a credit is allowed against the Arkansas tax with proper documentation.

The title fee and registration

The title fee in Arkansas is $10. A lien recording fee of $10 applies if the vehicle is financed. Registration fees range from $17 to $30 for most passenger vehicles, scaled by weight. The Revenue Office collects all fees in a single transaction, issues a temporary cardboard plate or transfers existing plates, and records the lien with the lender. The new title is mailed by the central title office in roughly 4 to 6 weeks.

Family transfers and gifts

A vehicle gifted between immediate family members (spouse, parent, child, sibling, grandparent, grandchild) may be eligible for a sales-tax exemption. The transferor and transferee both sign the assignment, indicate "gift" on the bill of sale, and submit a notarized affidavit. The title fee, registration fee, and personal-property tax assessment still apply. Inherited vehicles use a similar process with the addition of probate documents (small-estate affidavit, letters testamentary, or court order).

Lien releases

If the title shows a lien from a paid-off loan, the seller must include a written lien release from the lender. Most Arkansas lenders mail the release with the satisfied title; if you cannot find it, contact the lender for a duplicate release on company letterhead. Without a clear lien release, the Revenue Office will not process the buyer's transfer — see title replacement if the original title or release is lost.

Out-of-state titles

If the vehicle has an out-of-state title, the buyer brings the assigned out-of-state title plus a VIN inspection completed by an Arkansas State Police trooper or DFA-authorized agent. The Revenue Office converts the out-of-state title to an Arkansas title at the same visit. New residents should also file a registration within 30 days of moving.

Late title transfer penalties

A buyer who misses the 30-day deadline incurs a penalty fee that grows by month and may be cited for operating an unregistered vehicle. The DFA also flags the prior owner's record if the new owner has not transferred the title, which is one reason sellers should keep proof of the sale and submit the written notice of sale to the DFA.