South Carolina is moving toward a statewide electronic vehicle titling system under a new law designed to modernize the way vehicle ownership and liens are processed.
The law requires commercial entities involved in vehicle titling, including automobile dealers, lenders and auctions, to use the South Carolina Department of Motor Vehicles’ electronic title system. The system will allow businesses to electronically transfer vehicle ownership, apply for and release liens, and complete other title-related transactions.
The new electronic titling system is required to be operational for commercial entities no later than March 31, 2027. The system will be funded through transaction fees paid by commercial entities involved in vehicle titling.
South Carolina already uses electronic systems for certain vehicle transactions. The SCDMV’s Electronic Registration and Titling program allows authorized business partners to electronically submit title and registration applications for newly purchased vehicles. The existing Electronic Lien and Title program also allows participating lenders to record and service vehicle liens electronically.
Under the new system, paper titles will still be available in certain circumstances. The law specifically allows paper certificates for casual vehicle sales between individuals and other situations directed by DMV policy.
The transition is intended to reduce reliance on paper documents and streamline title transfers and lien processing for businesses and vehicle owners.
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