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Title Jumping is More Illegal Than Jumping a Car

Today’s scams come in all shapes and sizes. What might seem like an innocent mistake on a car title could easily be a felony in disguise. I wish this was a clickbait scare tactic to grab your attention, but it’s 100% true.

You may have heard stories about someone selling a car that wasn’t titled in their name. You may have encountered a title the seller didn’t sign (an “open title”). Or perhaps you’ve considered leaving a title blank to avoid paying taxes and fees on that car. These things happen all the time and they involve a felonious fraud tactic known as title jumping.

Title jumping is the act of transferring an open title that is not signed or dated. Why is that so serious? Read on to find out.

Summary

Jumping a car title (also called skipping or floating) is an illegal practice where the buyer of a car fails to title it in their name, causing the title history to skip an owner. This can result in the wrong person incurring taxes, fees, and moving violations. Some states classify title jumping as a felony.

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What is Title Jumping?

Whether you’re the first buyer to not title the vehicle in your name or the third buyer in a row who hasn’t, title jumping is illegal just the same.

The act of transferring a car with an open title, title jumping is a common occurrence. Also known as floating or skipping, title jumping is an illegal action – a felony in some states – and could cause problems for you and any subsequent or previous owners of the car.

Why would someone jump a car title?

Private sellers: Title jumping is a common tactic to avoid paying taxes and fees on a vehicle. It also prevents a paper trail of ownership, allowing a dishonest seller to disappear without a trace.

Car dealerships: Once a dealer sells a certain number of cars per year, they need additional licensure. Shady dealerships use title jumping to skirt the legal requirement of reporting every car they sell. By never legally owning their vehicles, dealers can dodge the law while avoiding substantial fees and taxes – and risking everything to do so.

Scammers: When a car’s title is branded with a degraded status like “salvage” or “flood damaged,” that branding sometimes isn’t reflected on the printed title until the next time it’s transferred. That means a seller could hand you an open title, claim the title is “clean,” and you won’t know until you title the car in your name. If you then sell the car someone else without putting it in your name, suddenly you could be found at fault when the next buyer eventually realizes what has happened.

Of course, that’s not the only problem caused by open titles.

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How do I avoid this?

If you buy or sell a car without signing the title, you’re committing title jumping.

As a seller, you should never sell a vehicle which isn’t titled in your name and you should always sign and date the title.

As a buyer, you should always sign and date the title at the time of sale and promptly register the vehicle in your name.

Why should I care?

In addition to being a crime in every state (and a felony in some), title jumping causes serious problems for everyone involved. Let’s look at some real-world examples of that.

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Why You Should Always Title a Car in Your Name

Title jumping causes all kinds of problems for all kinds of people. In each of these examples, someone has committed fraud in the form of title jumping – whether they meant to or not.

Michael the Macho

Known for their glitzy signs and annoying commercials, Kevin’s Auto Sales routinely “forgets” to title their cars in their name before selling them. When Michael shows interest in a lifted Tacoma, the salesperson explains: “It’s still titled to the last guy. Getting a new title would take weeks, or we could just do it this way. Saves us money, saves you money. There’s a line of dudes waiting for this Tacoma, Mike, are you in or out?” Mike agrees, having no clue he’s committing a crime.

What’s wrong with that? A week later that beautiful Tacoma is wrapped around a telephone pole. A tie rod failed during a rainstorm, sending the truck into a tailspin. The injured Michael soon realizes that Kevin’s Auto Sales never performed an inspection on that truck; if they had, they would have caught the failing tie rod. Michael wants to sue the dealership for negligence but there is no record of that truck ever being titled in their name! This legal battle just got a lot more complicated.

Ryan the Hoon

The Germans sure know how to make a fast car, and Ryan has come to embrace that. He runs red lights, he skips out on tolls, he blows past speed cameras while flipping the bird. Life in the fast lane. Except Ryan never titled his shiny BMW in his name.

What’s wrong with that? Since none of those citations were tied to Ryan’s driver’s license, all the tickets are getting sent to the previous owner, Robert. Except Robert recently moved to Florida and his old address is no longer valid – so he has no idea. Upon being pulled over for not using his blinker, Robert learns his license has accrued so many points that it’s been suspended. He might even be arrested. The rustled Robert now contemplates the daunting legal battle ahead and what he might do to Ryan if only he had the chance.

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Jim the Mechanic

Jim just bought a project car on Craigslist. It’s an easy fix and he plans to sell it for a big profit. Since Jim won’t own the car for very long, he sees no reason for paying to title the car in his name. He soon sells the car to Toby who is thrilled with the finished product.

What’s wrong with that? When Toby titles the car, he finds a surprise: it has a salvage title! Suddenly Jim is nowhere to be found and Jim’s information is not on the title. The disgruntled Toby is now stuck with a car that’s worth far less than he paid for it.

Pam the Busy Mom

Her new Honda Odyssey does everything from taking the kids to soccer practice to bringing home furniture from Ikea, but in all the hustle and bustle of family life Pam forgot to title the van in her name. Hey, mistakes happen. Years later Pam goes to sell the van to Creed.

What’s wrong with that? Creed doesn’t know much about titles, so when Pam explains why it has an open title, he’s completely unphased. That is, until he goes to title the van and encounters over $1000 in back taxes that must be paid in full before the title is assigned (in some states that number would be even higher). Pam apologizes and says she can’t produce that kind of cash, so the perturbed Creed is forced to pay those taxes himself.

Dwight the Pizza Boy

There’s no better way to deliver pizzas than with a quick, roomy, and economical Honda Civic. Dwight just scored a high-mileage example for pocket change and put it straight to work delivering hot pies. The previous owner left the title open to avoid paying the taxes, and so did Dwight – but he got a bill of sale from the seller just in case he ever needs a paper trail.

What’s wrong with that? The next night an officer pulls Dwight over because the Civic has a license plate light out. That’s an easy thing to miss during a purchase, so Dwight explains that he just bought the car a couple days ago. To prove it he hands over the title and the bill of sale. But wait, those names don’t match! And the title hasn’t been signed, dated, or written on at all! The arrested Dwight just got nailed for title jumping by the long arm of the law.

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How to Protect Yourself from Title Jumping

As a buyer, there are a few things you should always do to protect yourself from scammers and schemes.

  • Be aware. Never buy a vehicle with an open title. Ask the seller for at least one form of ID and compare that to the name on the title. If they don’t match, ask why.

  • Be diligent. Don’t believe the seller’s story as to why the title isn’t in their name. Run a VIN check to ensure you aren’t buying a stolen car, a salvage car, or one with a hidden lien.

  • Be empowered. Remember that you can always walk away from a deal. Unless you’re buying an extremely rare vehicle, chances are another opportunity will come your way. Run a VIN check before the sale to make sure the details line up.

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Dirt Legal Can Help – We Can Fix It!

We are a small group of vehicle specialists who are passionate about combating title fraud. We offer quick and easy VIN Checks and to equip you with the details to avoid title jumping in all its forms. If you need a replacement title, we can get you one! Shop now or bookmark for later:

Contact us with any questions. Our staff is well-versed in all manner of title issues including title jumping. If you encountered a strange situation and need to ask someone about it, or if you have questions about title jumping and open titles, contact us for a no-obligation chat.

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We are not attorneys. This article is not legal advice.