Alabama Certificate of Title: Fees, Transfers, and Liens

An Alabama certificate of title is the state-issued document that proves you legally own a motor vehicle, and any vehicle registered in Alabama with a model year no more than 35 years old must have one. In 2026, that means model year 1991 or newer.¹ Without a valid title, you cannot register the vehicle, legally drive it on public roads, or sell it to someone else.

Which Vehicles Need a Title

Alabama uses a rolling 35-year window. Every January 1 the threshold moves forward by one year, so the oldest model year that still requires a title shifts annually. For 2026 the cutoff is model year 1991.¹ The rule covers passenger cars, trucks, and motorcycles registered in the state.

Starting January 1, 2026, off-road vehicles with a model year of 2026 or later must be titled for the first time.² If you buy a new ATV or UTV in 2026, you’ll need a certificate of title for it the same way you would for a car.

Vehicles That Are Exempt

Not everything with wheels needs a title. Alabama law specifically exempts:³

Motor vehicles more than 35 model years old (1990 or earlier in 2026)
Utility trailers other than folding campers
Trailers, semitrailers, travel trailers, and folding campers more than 20 model years old
Low-speed four-wheeled vehicles with a top speed of 25 mph or less and a gross weight under 3,000 pounds, including neighborhood electric vehicles
Implements of husbandry and special mobile equipment
Mini-trucks and motor-driven cycles
Off-road vehicles more than 10 model years old
Dealer or manufacturer inventory held for sale, even if driven for testing or demonstration
Vehicles owned by the United States or a federal agency

An exempt vehicle may still need registration or a license plate, so confirm with your county licensing office before you assume there’s no paperwork to file.

How to Apply for a Title

You apply through a designated agent, which is typically your county license plate issuing official. Dealerships also serve as designated agents and handle the paperwork when you buy from them. You’ll bring proof of ownership, the vehicle’s identifying details, and the fee.

Proof of Ownership

What you need depends on how you got the vehicle:

New vehicle never titled: the Manufacturer’s Certificate of Origin
Used vehicle with an existing title: the current title signed over by the previous owner in the assignment section
Inherited vehicle: a court order or affidavit of heirship along with the existing title
Divorce: a copy of the decree specifying who gets the vehicle
Out-of-state vehicle: the title from the other state, which the designated agent verifies and collects

If the title is lost or the chain of ownership has gaps, a bonded title may be the way in (covered below). Discrepancies between the documents can usually be cleared up with a bill of sale or notarized statement.

Inspection and VIN Check

Every vehicle not currently titled in Alabama must be physically inspected by the designated agent to confirm the VIN matches the ownership documents.⁴ The application also captures make, model, year, and body type. Rebuilt or reconstructed vehicles need additional documentation, including parts receipts and a rebuilt inspection certificate.

Odometer Disclosure

Alabama follows the federal Truth-in-Mileage Act.⁵ Under the current federal rule, odometer disclosure is required for the first 20 years of a vehicle’s life for model year 2011 and newer vehicles.⁶ In 2026, any vehicle with a model year of 2011 or newer needs an accurate odometer reading on the title assignment. Model year 2010 and older vehicles are exempt. If the odometer has been replaced or is known to be inaccurate, note it on the application.

Title Fees and Taxes

The standard title application fee is $15 for a motor vehicle and $20 for a manufactured home.⁷ The designated agent adds a $1.50 processing commission, and your county license plate issuing official may add another $1.50 for mailing and processing. Some counties charge local fees on top, so the total out-of-pocket varies slightly by location.

A corrected title costs $15.⁸ Replacement titles also cost $15.⁹

When you register a vehicle bought in a private sale, you also owe Alabama’s 2% state auto sales tax on the purchase price, plus any county and municipal taxes.¹⁰ The combined rate depends on the county, so budget for more than the base 2%.

Transferring a Title in a Private Sale

When you buy or sell privately, the seller signs over the title in the assignment section and fills in the buyer’s name, sale date, and purchase price. If a lien is still on the title, the lienholder has to release it before the transfer can go through. A bill of sale showing the VIN, price, and both parties’ contact information helps close out the paperwork. It doesn’t have to be notarized, but a notarized version can prevent disputes.

The buyer then takes the signed title to a designated agent, submits a title application, and pays the $15 fee.⁷ Alabama law requires every owner of a registered vehicle to have a title issued in their own name, so don’t sit on a signed-over title.² Driving on the previous owner’s title creates registration problems and can leave the seller exposed to liability for a vehicle they no longer own.

Joint Ownership and Who Has to Sign

If a title lists two owners, the word connecting their names controls who has to sign during a transfer:¹¹

“And” (or no conjunction between the names): both owners must sign. This is tenancy in common, and neither person can transfer alone.
“Or” or “And/Or”: either owner can sign. This is joint tenancy with right of survivorship, so one owner can handle the transfer without the other’s signature, and a surviving co-owner can sign alone with proof of death.

The distinction matters most in divorce or after a co-owner’s death. If the title says “and,” you can’t sell without both signatures.

Replacing a Lost or Damaged Title

If your title is lost, stolen, or too damaged to read, you can apply for a replacement through any designated agent or online through the Alabama Department of Revenue’s Public Title Portal.⁹ The fee is $15 and is nonrefundable even if the application is denied. Only the titled owner or the recorded lienholder can apply. If someone else needs to file for you, they need a notarized power of attorney.

Once a replacement is issued, the original becomes void. If the old title turns up in a drawer later, don’t use it for a sale or transfer. Only the replacement is legally valid.

Titles With a Lien on Them

When you finance a vehicle, the lender’s name appears on the title as the lienholder. That prevents you from selling or transferring the vehicle until the debt is paid off. Once you pay it off, the lienholder releases its interest and you apply for a lien-free title.

A lienholder can release its interest by:¹²

Completing the lien release section printed on the title itself
Providing a separate release on the lienholder’s letterhead with the VIN, owner’s name, release date, and an authorized signature
Completing Form MVT 5-63 when the title has been lost or is illegible

Take the release, a title application, and the $15 corrected-title fee to a designated agent to get a clean title in your name.⁸

When the Lienholder Is Out of Business

If the lender that held your loan is gone and you can’t get a standard release, Alabama allows an alternative process for most passenger vehicles. You’ll need a sworn affidavit stating the lien is satisfied and the lienholder is no longer in business, an unopened certified-mail envelope sent to the lienholder’s last known address showing the letter was returned, and evidence that the debt was actually paid off.¹² This method doesn’t apply to travel trailers, manufactured homes, or vehicles over 12,000 pounds gross weight.

Alabama also treats older liens as automatically satisfied. A lien is considered satisfied without a release after 12 years from the date of the security agreement on a standard motor vehicle, and after four years for vehicles 12 or more model years old.¹² Those automatic-satisfaction rules also don’t apply to travel trailers, manufactured homes, or vehicles over 12,000 pounds.

Bonded Titles

When you have a vehicle but can’t produce a clean title because it was lost by a previous owner, the chain of ownership is broken, or the documentation is otherwise defective, you can apply for a bonded title. A surety bond backs the title and protects anyone who might later prove a legitimate claim to the vehicle.

Alabama doesn’t base the bond on an appraised value. It uses standardized amounts that depend on vehicle type and age. For passenger vehicles and pickups, the bond is $50,000 under 5 model years old, $25,000 for 5 to 9 model years, and $10,000 for 10 or more. Larger trucks, buses, and RVs use $100,000, $50,000, and $25,000 across the same age brackets. Motorcycles and trailers run $25,000, $10,000, and $5,000. Manufactured homes are $50,000 under 10 model years and $25,000 after that. Salvage vehicles use a reduced schedule.¹³ You buy the bond from a licensed surety company, and the price you actually pay is a fraction of the face amount.

Start by requesting a title history search from the Alabama Department of Revenue to confirm no existing title is on record. If none is found, buy the surety bond, then submit the bonded title application, proof of the bond, and the $15 title fee. The bond remains in effect for three years.¹³ If no one challenges your ownership during that period, the bond expires and the title stands on its own. If someone does come forward with a valid claim, the bond compensates them.

Checking Title History Before You Buy

Before you hand over money for a used vehicle in a private sale, run the VIN through the National Motor Vehicle Title Information System. NMVTIS is a federal database that tracks the current state of title and last title date, brand history (such as “junk,” “salvage,” or “flood”), odometer readings, total loss history, and salvage history.¹⁴

Brand history is the most important thing to look for. If a vehicle was declared a total loss in another state and branded as salvage, that brand follows it permanently, even if it is later rebuilt and titled in Alabama. An NMVTIS report doesn’t show repair history, recall information, or maintenance records, but it will flag the red flags that matter most before you finalize the sale.¹⁴

1
Alabama Department of Revenue. What Vehicles Are Required to Be Titled in the State of Alabama?
2
Alabama Legislature. Alabama Code 32-8-30
3
Alabama Legislature. Alabama Code 32-8-31 – Exemptions
4
Alabama Administrative Code. Alabama Administrative Code Chapter 810-5-75 – Title Procedure
5
Alabama Administrative Code. Alabama Administrative Code 810-5-75-.63
6
National Highway Traffic Safety Administration. Consumer Alert: Changes to Odometer Disclosure Requirements
7
Alabama Department of Revenue. What Is the Cost to Make Application for Alabama Certificate of Title?
8
Alabama Department of Revenue. Motor Vehicle Certificate of Title Fee
9
Alabama Department of Revenue. How Do I Apply for a Replacement Title?
10
Alabama Department of Revenue. Sales and Use Tax Rates
11
Alabama Administrative Code. Alabama Administrative Code 810-5-75-.40
12
Alabama Administrative Code. Alabama Administrative Code 810-5-75-.21 – Release of Lien
13
Alabama Department of Revenue. Alabama Administrative Code 810-5-75-.34
14
VehicleHistory.gov. Understanding an NMVTIS Vehicle History Report