Selling a car is an everyday experience for many people. They gather all of the required information and visit the local DMV offices to transfer ownership from the current owner to a new owner. However, some situations prevent the owner from being physically present to complete the transfer when they are selling their vehicle. An authorization letter to sell a car to someone else can facilitate the sale in these situations.
The seller may be busy at work, traveling, or in the hospital, or perhaps the car is jointly owned, and both owners cannot visit the DMV at the same time. These and many other situations can be addressed by a letter of authorization from the party who cannot attend the DMV. In this post, we will provide more details about authorization letters to sell a car on someone’s behalf, provide a template and provide tips to help you prepare an LOA to sell a car.
What Is an Authorization Letter to Sell a Car on Someone’s Behalf?
An authorization letter to sell a car on someone’s behalf provides the authority to an agent of the seller to sign all necessary documents required to transfer ownership to a 3rd party. The term “3rd party letter of authorization” is also used in some markets.
The letter must be completed by the current owner of the vehicle and include all identifying details of the vehicle as well as the agent to securely designate the specific vehicle and agent. The agent will also need to provide identification consistent with the information contained in the letter to confirm their identity. Identification should include a picture, full name, and address. Many people will use their driver’s license as identification.
Essential Elements of an Authorization Letter to Sell
The essential elements of an authorization letter to sell consist of four parts. The details provided should be triple-checked for accuracy since any errors will prevent the sale and transfer of ownership from being completed.
The elements are:
Scope of authority
- Sale of the car to a confirmed buyer
- Singing of receipts and cash checks for deposit
- Signature on all legal documents
- [Other terms specific to the sale]
Specific exclusions [Add exclusions or actions that your agent cannot undertake]
- Sell the car for parts or sell parts of the car
- Modifying the car in any way
- [Other exclusions as required]
Details of the vehicle
- Plate number: [XXXXXXXX]
- Model: [Make, Model, Year]
- Chassis number: [XXXXXXX] {Vehicle identification number or VIN}
Details of the person who will act as your agent
- Name: [ Add name]
- Identification: [Passport, driver’s license]
- Identity number: [Number on identification document]
Signatures of both parties are required, along with the date the letter is signed by both parties.
How to Write an Authorization Letter to Sell?
Preparing to write an authorization letter to sell a car is straightforward once all of the information has been collected and your designated agent has agreed to act on your behalf. The following steps describe the preparation and writing the letter:
- Contact the person you wish to act as your agent to confirm they are able and willing to act as your agent. They may need to agree that they will be available at a specified time to meet the buyer at the DMV office.
- While it is not required to indicate on the letter why you are using an agent, some consumers will add the reason to the letter
- Gather the car details for inclusion in the letter, including make, model, plate number, and chassis or VIN.
- Decide the scope of the actions transferred to your agent. These are the specific actions your agent will carry out on your behalf. While there is little room for fraud, and you are asking a trusted relative or friend to act on your behalf, adding the scope provides additional security.
- Identify any exclusions that your agent will not be allowed to carry out.
- Discuss with your agent the form of ID they will use for verification purposes and include these details in your letter.
- Once the letter is prepared with all of the required information, both your agent and yourself should sign and date the letter. This step helps to prevent fraud if the letter were lost and falls into the hands of a 4th party.
While some consumers may view all of these details as over the top, especially a relative or good friend, the letter is required by the DMV, and it protects both the seller, their agent, and the buyer from any possibility of fraud by other parties.
Authorization Letter to Sell a Car on Someone’s Behalf (Template)
This template for an authorization letter to sell a car on someone’s behalf can be used to prepare the letter by adding all of the pertinent details. Note: The DMV may have forms that can also be used in this process.
[Owners name]
[Owners full address – street, city, state, ZIP code]
[Date – dd/mm/yy]
[Recipient name]
[Recipient address]
I hereby authorize [Your agent’s full name] to sell my vehicle with plate number [XXXXXX] and complete all legal transactions and actions on my behalf.
Scope of Authority
Sale of the car to a confirmed buyer
Singing of receipts and cash checks for deposit
Signature on all legal documents
[Other terms specific to the sale]
Specific exclusions [Add exclusions or actions that your agent cannot undertake]
Sell the car for parts or sell parts of the car
Modifying the car in any way
[Other exclusions as required]
Details of the vehicle
Plate number: [XXXXXXXX]
Model: [Make, Model, Year]
Chassis number: [XXXXXXX] {Vehicle identification number or VIN}
Details of the person who will act as your agent
Name: [ Add name]
Identification: [Passport, driver’s license]
Identity number: [Number on identification document]
Agents Signature: ___________________
Sincerely,
Owners Printed Name: __________________
Owners Signature: ________________________
Tips to Consider When Preparing an Authorization Letter
- Confirm with a relative or trusted friend that they are able and willing to act as your agent.
- Specify the actions your agent will be asked to fulfill and those they are restricted from completing to prevent fraud.
- Triple-check all details, especially plate and vehicle identification numbers, to avoid mistakes and delays in the sale of your vehicle.
- The authorization letter should follow a business format and keep it to one page in length.
Key points
An authorization letter to sell a car on someone’s behalf enables the owner of the car to delegate the transaction to an agent to complete the transaction on the owner’s behalf. Vehicles that are jointly owned or in situations where the owner is unavailable due to work, travel, or other circumstances can use this approach to complete the sale of their vehicle.
The owners must provide all of the details associated with themselves, the car to be transferred, and the agent they are delegating the transaction to. Both parties must sign the letter of authorization, and the agent must be prepared to present identification consistent with the information shown on the letter. Passports and driver’s licenses are often used for identification.
The owner should specify the actions their agent is to complete and any exclusions they do not need their agent to do on their behalf. Owners should check with their proposed agent to confirm they are available and willing to carry out the duties they are being requested to perform.
