Authorization letters are common in personal and business transactions. This letter bestows on the named party (referred to as an agent or representative) the right to carry out functions and responsibilities specified in the document on behalf of the authorizing party (referred to as the principal in the letter). To communicate what the agent is permitted to do or not, this letter uses precise legal terminology. Ordinarily, the letter grants the agent or representative the powers for a specified period, after which it becomes null and void unless renewed by both parties. If such a letter is used in a vehicle transfer, it is referred to as an authorization letter to transfer vehicle ownership. It allows the representative to sell a vehicle or transfer its ownership to a new owner if the current owner is absent or unavailable due to unforeseen circumstances, such as death.
What is an Authorization Letter?
An authorization letter to transfer vehicle ownership is a legal document that grants an individual or entity the right to sell (transfer ownership) or perform other functions related to the sale of a vehicle on behalf of the vehicle owner. The letter allows a seller to transfer a vehicle’s title or register it under their name. This will usually be after the buyer has paid an agreed-upon price for the vehicle.
Involved parties
A vehicle transaction involving an authorization letter to transfer vehicle ownership typically involves three parties. They include:
- Seller or the first owner of the vehicle: The first party is the primary owner of the vehicle. The owner is the vehicle’s seller and the principal in the authorization letter. The principal may be the person whose name is on the vehicle’s registration.
- The registering authority: The second party is the person or entity awarded the rights to officiate the vehicle ownership transfer on behalf of the first party (the seller or first owner of the vehicle) and the buyer.
- Buyer or the new owner of the vehicle: The third party is the individual or entity obtaining vehicle ownership from the vehicle’s owner. The vehicle documentation should be transferred into the buyer’s name.
How to Write an Authorization Letter?
An authorization letter should include all pertinent information to avoid misunderstandings and situations where the designated authority exceeds its authority. Each letter will have its unique stipulations. However, the following essential elements should appear on a typical letter to transfer vehicle ownership:
Header
The first component of the letter is a header. The header is meant to accommodate details about the seller and buyer. Since the letter is in a standard business format, it should be structured as indicated below:
Sender’s details
At the beginning of the header, indicate the seller’s details. This will typically include the full name, physical address, phone number, or other contact details. In addition, some sellers include an email address or fax number.
Date
Since an authorization letter is a legal document, it should be dated. The authorizing agent should see when the letter was written for record-keeping. The date should be written appropriately to indicate the day, month, and year.
Recipient’s details
After the date, details about the registering authority should be provided. This should include the company’s name or official business name, a physical address, a valid phone number, or any other contact information.
Subject of the letter
An authorization letter is a formal letter; it is best to indicate the subject of the document. Give the book a short but comprehensive title. For example, the title can be
“Authorization letter for car ownership transfer.”
Professional greetings
After the subject line, greet the recipient with a formal greeting. A formal greeting can be written in two ways: one when the recipient’s name is known and another when it is not. Examples are
“Dear Miles Hugh” or “To Whom It May Concern.”
For example:
Jimmy Saw,
7663 Claw Avenue
Miami, FL 3746
10th December 2022.
Grandy Autos,
Peach Street,
New York, NY 2034
RE: Authorization letter for vehicle ownership
To Whom It May Concern
Note: The vehicle’s buyer and the seller must submit their IDs for verification.
Introduction
The next item should be a brief but effective introductory statement that includes the letter’s purpose, declares that the vehicle’s ownership is being transferred, and indicates to whom it is being transferred. For example:
I am officially transferring the ownership of my vehicle to Jamie, which I rightfully own. Therefore, I urge you to transfer ownership of the said vehicle to him.
Body
After the introduction, discuss all the specified authorization and car ownership transfer details. The following details can be discussed in this section:
Date of transfer
Indicate the date the ownership transfer is going to take place. This is the effective date of the buyer’s or new owner’s ownership of the vehicle. Make sure to indicate the day, month, and year.
Essential details of the vehicle
Mention details about the vehicle to specify which car will be transferred from the principal to the buyer. This section can cover the following information:
- Vehicle registration number: A vehicle registration number is a unique number assigned to each registered vehicle.
- Model: The vehicle model is necessary to document as it is a distinguishing characteristic of any vehicle.
- Colour: The car’s color must be documented as it is necessary to identify the car to transfer ownership of the vehicle.
- VIN of the vehicle: A vehicle identification number is a number given to each vehicle by the manufacturer, and it is used for differentiating vehicles.
Amount paid
The exact amount of money received from the buyer in exchange for ownership should be stated. The paid amount should be specified in figures, words, and the appropriate currency.
Request to change the ownership of the vehicle
Afterward, an official request to the registering authority to transfer ownership to the new owner (the buyer) should be provided. The request should be clear and direct so that it cannot be misinterpreted for any other request other than the transfer of the vehicle’s ownership.
Reference to the attached documents
Ordinarily, an authorization letter to transfer vehicle ownership will be accompanied by supporting documents to officiate the transfer of authority and ownership. The following documents can be attached to this letter:
- Identity cards of the seller and buyer: Copies of the seller and the buyer’s ID must be given for verification purposes. The registering authority can verify the parties’ identity (buyer and seller) using copies of their ID document.
- Deed of the sale: A copy of the sale deed should also be submitted. The deed of sale typically outlines all the terms of the sale and information about the transaction.
- LTO, OR, and CR: A CR is a certificate of registration that shows the vehicle was registered within the same jurisdiction. The LTO OR and CR are technical documentation of the vehicle, such as chassis number, number of cylinders, motor number, etc.
For example,
Ms. May has fulfilled her terms of the contract of sale by paying $5300 as a purchase fee for my blue sub-urban Model 302G. We intend to finalize the transaction by Dec. 13. Through this letter, I request that you change the vehicle’s ownership to the new owner of this vehicle.
I have attached copies of the following documents:
• Deed of sale
• Certificate of registration
• LTO and OR
Conclusion
Afterward, the authorization letter can be concluded. The conclusion should contain an appreciation statement, a complimentary close, the buyer and seller’s signatures, and details. The letter can also be finalized with a notary public acknowledgment or witness statement. For example:
Thank you for being so cooperative.
Yours Sincerely,
Seller’s signature
Buyer’s signature
Notary public signature
The letter can be notarized if necessary. However, it is worth considering since the notary public can increase the legal enforceability of the document.
Note: Any authorization letter to transfer vehicle ownership should be typed. Handwritten letters should be avoided as they can sometimes be illegible.
Template Authorization Letter
[Seller’s name]
[Seller’s address]
[Contact information]
[Date]
[Recipient)
[Address of the recipient]
[Contact Information of the recipient]
Subject: Vehicle transfer of ownership
Dear [full name of the recipient],
Or
To whom it may concern,
I [the seller’s name] have transferred ownership of my vehicle to [the buyer’s name], and as a result, they can act as the new owner of the vehicle. Therefore, this document shall be legal as of [date], as [name of the buyer] has been appointed a new owner due to purchasing this vehicle.
[Buyer name] has already paid [amount] as a term of sale. The vehicle has the following features;
• [Registration number]
• [Model]
• [Color]
• [VIN of the vehicle]
I appreciate your consideration. Contact me at 532-945-9837 if you have further questions.
Yours faithfully
[seller’s signature]
[buyer’s signature]
[notary public’s signature]
Related: 14 Free Vehicle Inspection Forms (Editable) – Word, Excel
Sample Authorization Letter
[Seller’s name]
[Present address]
[Date]
[Company name]
[Address]
RE: Vehicle ownership transfer
To Whom It May Concern,
On Nov. 10, I am transferring ownership of my Honda Civic to Vito Corleone. This document will legally serve as proof of his ownership of this vehicle as of today. The vehicle’s VIN is 0765694HV. Mr. Vito has paid $3500 for the vehicle and is the vehicle’s new owner.
Attached are copies of IDs, a deed of sale, and a registration certificate.
I do hope for your kind consideration.
Thank you.
Yours Sincerely,
[seller’s signature]
[buyer’s signature]
[notary public’s signature]
Sample Letters and Examples
Conclusion
Vehicle or automobile owners can transfer their vehicle ownership to a buyer without getting involved in several complicated steps. The seller or previous owner of the vehicle needs to write an authorization letter to transfer vehicle ownership to the buyer or new owner of the vehicle. The letter becomes a legal admission that the seller relinquishes ownership to the named buyer. It is submitted when the buyer registers the vehicle in their name. Therefore, authorization letters to transfer vehicle ownership make automobile sales convenient for two people in different regions, like county-to-county or state-to-state.
