Vermont Title Transfer

By Javier Marín, Editor·Last reviewed September 2026·How we check this

A Vermont title transfer moves vehicle ownership from the seller to the buyer through a single Vermont DMV transaction governed by the VT-005 application. The buyer has 60 days from the sale to complete the transfer along with new registration, the 6% Purchase and Use Tax, and any lien recording. Skipping the transfer is the most common cause of vehicle ownership disputes the DMV has to resolve every year.

Seller's responsibilities

Before handing over the keys:

Locate the original Vermont title (or the Vermont registration if the title is held by a lender).
Complete the assignment of title on the back — printed name, signature, sale date, sale price, and odometer reading at the time of sale.
Complete a bill of sale (form VG-116 works) listing the buyer, seller, year/make/model, VIN, sale price, and date.
Remove the Vermont plates — plates stay with the seller, not the vehicle.
Report the sale to the Vermont DMV using the online "Notice of Vehicle Sold" form to release liability.

Buyer's responsibilities

Within 60 days of the sale, the buyer must:

Apply for the new title with form VT-005.
Apply for new registration using form VD-119 at the same DMV branch visit.
Submit the original title with the seller's assignment fully completed.
Pay the $35 title fee, the registration fee, and the 6% Purchase and Use Tax on the higher of the bill-of-sale price or NADA average trade-in value.
Show proof of Vermont insurance meeting the 25/50/10 + UM 50/100 minimums.
Bring a valid Vermont driver's license or state ID.

Title transfer fees

$35 — standard title transfer.
$5 — lien recording fee, if the buyer financed the purchase.
6% — Purchase and Use Tax based on price or NADA value.
$76 / $140 — 1-year or 2-year passenger registration.

The 60-day deadline

The 60-day window starts on the date written on the title assignment by the seller. Vermont assesses a $10 late fee if the transfer is filed within the next 30 days, escalating after that. The DMV can also charge a backdated registration violation if the buyer was driving on expired or non-Vermont plates during the lapse. There's a strong incentive to handle the transfer in the first two weeks rather than wait until the last day.

Vehicles with a lien

If the seller still owes a lender on the vehicle, the seller must contact the lender to pay off the loan and request the title release before the transfer can be completed. Some Vermont lenders offer "lien-perfected" letters that allow the title to ship directly to the buyer's lender or the DMV. Buyers financing a Vermont vehicle list the new lender on the VT-005 so the lien is recorded on the new title.

Transfers between family members

Vermont treats most family-to-family transfers (parent to child, between spouses, etc.) as exempt from the 6% Purchase and Use Tax when filed with a signed VT-013 "Tax Exemption" affidavit. The title fee and registration fee still apply. Inheritance transfers use a separate form and require a copy of the death certificate plus the executor's appointment.

Out-of-state title transfer

Buyers moving into Vermont with a vehicle titled in another state file the same VT-005, but they bring the out-of-state title (or current registration if the title is held by a lender) instead of a Vermont title. The DMV issues a Vermont title in the new owner's name, applies any sales-tax credit from the prior state, and issues new Vermont plates. A passing safety inspection is required within 15 days of the new registration.

Lost or damaged titles

If the original title has been lost or destroyed, the seller cannot transfer ownership until a duplicate is issued. See Vermont title replacement for the duplicate process. Don't accept a vehicle without a clean title in hand — "title pending" or "the lender has it" excuses leave the buyer exposed.