What are the consequences if a buyer fails to transfer the vehicle into their name?

When a buyer fails to transfer the vehicle into their name, the consequences primarily include accrual of fees and penalties, while the registration continues to remain under the seller's name. This situation can lead to a few critical issues.

Firstly, the seller is still considered the legal owner of the vehicle in the eyes of the Department of Motor Vehicles (DMV). This can result in the seller being held responsible for any tickets, fines, or incidents associated with the vehicle. For instance, if the vehicle is involved in an accident or gets towed, the seller may face legal or financial liabilities due to the ongoing registration in their name.

Additionally, various states impose specific time limits within which the transfer of ownership must be completed. Failure to adhere to these regulations can lead to the accumulation of late fees and penalties, further complicating the situation for the buyer. Not actively completing the transfer can also impede the buyer's ability to obtain proper insurance coverage or resell the vehicle in the future.

Overall, it’s crucial for buyers to ensure they complete the title transfer promptly to avoid such complications and maintain clear legal ownership of the vehicle.