Colorado Title Transfer
A Colorado vehicle title transfer happens at the buyer's county motor vehicle office and must be completed within 60 days of the purchase date to avoid the late filing penalty. The seller's signature on the back of the title, together with the buyer's application and supporting documents, is what actually moves ownership in the state's eyes.
Seller responsibilities
Under § 42-6-109, the seller of a Colorado-titled vehicle must:
- Sign the assignment section on the reverse of the title.
- Print the buyer's name and address exactly as it appears on the buyer's ID.
- Write the actual sale price.
- Disclose the odometer reading at the time of sale (federal requirement on vehicles 9 years old or newer).
- Provide the buyer with the title, a bill of sale, and any maintenance records or smog/emissions certificate that applies to the buyer's home county.
- Remove the license plates — Colorado plates stay with the seller, not the vehicle.
The seller should also file a Notice of Sale (DR-2173) within 5 days through myDMV. Filing the notice ends the seller's exposure for any tickets, accidents, or tolls the buyer accumulates before formally transferring the title.
Buyer responsibilities
The buyer takes the signed title, bill of sale, and emissions certificate (if applicable) to the county motor vehicle office in their home county. Bring:
- The signed title with completed odometer disclosure.
- A completed DR-2542 Application for Title and/or Registration.
- Bill of sale showing the purchase price and date.
- Government-issued photo ID matching the buyer's name on the title.
- Proof of Colorado insurance on the vehicle effective the date of purchase.
- Emissions certificate if the buyer lives in one of the 9 designated Front Range counties.
- VIN verification (DR-2698) if the vehicle was titled outside Colorado.
- A notarized Lien Release if the title still shows an active lien.
Fees and taxes
Title transfer fees in Colorado:
- Title fee: $7.20.
- Registration fees: based on weight and vehicle type — typically $30-$100 for passenger vehicles.
- Specific Ownership Tax: prorated for the partial year — see the SOT schedule.
- Sales/use tax: state 2.9% plus local rates (Denver area combined ~8.81%, Colorado Springs ~8.20%, Boulder ~8.845%).
Use tax applies on the purchase price unless the buyer can show full sales tax was paid in another state. New residents transferring vehicles into Colorado pay the difference between Colorado's rate and the prior state's rate.
The 60-day deadline
Colorado law gives the buyer 60 days from the date of sale to title and register the vehicle. Filing on day 61 or later triggers a $10 late fee per month, capped at $100. The 60-day window applies whether or not the buyer plans to drive the vehicle — a vehicle stored at home but not registered still has to be titled within the deadline.
Secure Power of Attorney
If the original title is held by a lender or otherwise unavailable at the time of sale, Colorado allows a Secure Power of Attorney (DR-2173) to be used as a substitute. The form is registered with the DMV, requires both buyer and seller to sign before a notary, and authorizes the dealer or buyer to obtain the title from the lender and complete the transfer. SPOAs are valid for 90 days from execution.
Title-only transactions
Buyers who intend to store the vehicle long-term can file a title-only transfer (no registration). The title fee and use tax apply, but registration fees do not. To put the vehicle back on the road, the owner returns to the county office, completes a regular registration, and pays the registration fees prorated to the next renewal month.
Out-of-state titles
For a vehicle being titled in Colorado for the first time:
- Surrender the out-of-state title (the prior state mails it to Colorado on completion).
- Complete a VIN verification (DR-2698) by a licensed Colorado law enforcement officer, motor vehicle dealer, or emissions station.
- Provide the most recent registration card from the previous state.
- Pay any difference between Colorado's combined sales tax and the rate paid in the prior state.
Inheritance and transfer on death
Colorado allows a Transfer on Death (TOD) beneficiary designation on a vehicle title — when the primary owner dies, the listed beneficiary inherits the vehicle without probate. To complete the transfer, the beneficiary brings a certified death certificate, the original title, and a completed DR-2542 to the county office. Without TOD, vehicles transfer through probate or, for small estates under $80,000, through the small-estate affidavit process.
Once the title is in the new owner's name, future renewals can be completed online through myDMV.
