A quitclaim is the process that a property owner follows to forfeit his ownership of a piece of property to another party. Although the term "quitclaim" is generally more often used when referring to a piece of property — not an automobile — being transferred from one individual to another, you may still transfer an automobile from one person to another. It's more appropriate to refer to this process as removing a name from a car title to avoid confusion.
You can't simply remove your name from a car title in all situations: You must have the proper permission to do so. If the wording on the back of your car title says "And/Or," at the top where it refers to the owner of the vehicle, you don't need to receive permission from another party to remove your name. However, if the title says "And" only, you need permission from the other party on the vehicle title. If a name is listed with the word "And" and is followed by another name, this means that both parties have legal ownership of the car.
If yours is the only name on the title, no further permissions are needed. You may receive permission by asking the other party to sign a title and registration application, available from the your state's department of motor vehicles.
Sign your name on the back of the car title to release the car title from you to another person. You can fix mistakes you make when signing your name; however, don't scratch out these mistakes. Instead, simply draw a line through your name and re-sign it. Scratching out a mistake may lead a DMV employee to believe that you've scratched out something important or that you're trying to hide something that was written.
Simply signing off on the title doesn't immediately release you from all obligations associated with owning the vehicle. The person to whom you sign over the title must register it with the department of motor vehicles in your state so that the title is now in his name and no longer under your name.
Gifting a Vehicle
If you plan to gift a vehicle to another party, there's additional paperwork that you must fill out. Your state's department of motor vehicles requires that you fill out a gift affidavit, which includes information concerning the worth of the vehicle, its make and model and its VIN.