What Is "Transfer Of Equity"�?

A transfer of equity is done when a person sells his automobile to another person before the mortgage is recorded on his title has been fulfilled. There is no requirement for a separate bill, presenting the act of sale is not essential, keeping in mind the act of sale and statement or transfer of equity particularly states what amount the buyer paid the seller for his equity. Sales Tax is balance and liable on the amount the buyer paid the seller, for his equity as well as due main balance of the lien, as the combine amount is the total cost of the vehicle.

If the lien holder fails to provide a detailed breakdown of the principal, interest and insurance in the unpaid balance, then there is no other way but to levy sales tax on the entire unpaid amount.