Title Jumping: What It Is and Why It Is Illegal
Title jumping happens when someone sells a vehicle without ever transferring the title into their name. It is illegal in every U.S. state and creates serious problems for the final buyer.
What Is Title Jumping?
Title jumping (also called title skipping or passing title) occurs when Person A sells a vehicle to Person B, who then sells it to Person C — but Person B never officially transferred the title into their name. Person C receives a title where the legal chain of ownership has a gap.
The final buyer (Person C) often cannot register the vehicle, may inherit unpaid taxes or liens, and can face legal complications proving ownership.
How Title Jumping Typically Happens
Curbstoning
An unlicensed dealer buys vehicles, avoids title transfer fees and dealer licensing requirements, then sells with original title.
Flipping without transfer
A private buyer flips a car quickly without transferring the title to save the $15–$150 title transfer fee.
Inheritance or gifting
A deceased owner's vehicle is sold by a family member without going through proper estate transfer — creating an invalid title chain.
Risks for the Final Buyer
- ✗Unable to register the vehicle — DMV will not issue plates with a gap in title chain
- ✗Inherited liens — undisclosed lienholder from a prior owner's loan
- ✗Back taxes owed — state may assess sales/use tax on skipped transactions
- ✗Difficulty reselling — next buyer faces the same title problems
- ✗Cannot obtain proper insurance without valid registration
- ✗Vehicle may have hidden recall or safety issues never disclosed
Penalties by State
California
Misdemeanor — up to 1 year + $1,000 fine
Texas
Class B Misdemeanor + dealer licensing violations
Florida
Third-degree felony (intent to defraud)
New York
Misdemeanor or felony (VTL § 392)
Illinois
Class A Misdemeanor; felony for repeat offenders
Ohio
First-degree misdemeanor (ORC § 4505.19)