Ra,

In response to your Q, yes people sell vehicles without putting the title in their name. It's called title jumping and it is illegal. The main reason people do it is to avoid paying the tax and title fees.

The vast majority of the fees you pay when you title(your ownership document) and register(get plates---called tags in some states) is the sales tax. The tax rate varies from state to state, some having fixed rates multiplied by what was paid for the vehicle by the buyer to the seller and other states having taxes based on vehicle value determined by exactly what method I don't know since WI does theirs on a straight percentage of the sales price. Might be kelly blue book, insurance industry figures---I just don't know.

Any way, the amount collected can be substantial in either scenario, and if someone's buying a vehicle to turn it around and make a quick buck on it, they sure don't want to pay the dept of revenue in their state any of their potential profit if they don't have to. Thus, the title jumping.
They simply don't fill in their name as the purchaser on the title of the vehicle they buy, leaving it blank, and when they find the person they are selling it to, simply give them the title they were given from the previous owner.

The DMV AND the Dept of Revenue here in WI both take a very dim view of this and aggressively pursue this type of activity.

BTW, I should mention that when you are the seller of a vehicle, don't let someone walk away with a title they haven't signed as the purchaser. You don't want to get caught up in their potential problems if they are doing this type of deal.
Once you are in the sights of the revenue dept, you can expect annual hassles and extra scutiny(audits) of your tax returns for years to come. Not to mention lost time spent in depositions, court proceedings etc.

Finally, you should also get a signed "Bill Of Sale" that lists the names and signatures of both parties, description of the vehicle(including VIN) and date of sale. It wouldn't even hurt to put the time of day.
If the buyer does not take that title to their DMV and title the vehicle in their name right away, if they or someone they let drive the car racks up parking tickets, gets into an accident, or worse yet, injures someone, your only line of defense in court is that Bill Of Sale.

1badav