Ok, I%26#039;m considering buying a car. I plan to get a used one that is only a couple of years old. Because I detest the whole car dealer negotiation thing I will probably purchase from an individual.
Because the cars I am interested in are not very old chances are that the owner still has a loan on them. In this situation exactly how does one go about transferring the title in such a way that both parties are protected from %26quot;dirty dealing%26quot;.
For example, if the buyer simply gives the seller money on the promise that the seller will pay of the loan and hand over the title, what is to prevent the buyer from just running off with the money instead?
Title transfer when buying a car from an individual? When buying a used car you simply don%26#039;t deal with anyone who can%26#039;t produce a valid title. I don%26#039;t even think of parting with my cash until we%26#039;re at the notary%26#039;s office.
Title transfer when buying a car from an individual? if there is a lein then the bank will have the title. you need to get the bank info and contact them.
Title transfer when buying a car from an individual? state laws vary ( but most have outstanding liens listed on the title OR the title is in the name of the lein holder )
Title transfer when buying a car from an individual? You should not do that, because that could happen, you need to find a car that does not have a loan on it and they can show you the title free and clear. Don%26#039;t get burned.
Check the local paper, where you are from.
Title transfer when buying a car from an individual? The owner has to get a %26quot;notice of lein removal%26quot; , that is provided by the lending institution and attach it to the title before the ownership of the vehicle can be legally transferred. Each state is different check with your local Secretary of State or dmv.
Title transfer when buying a car from an individual? Find out who the lien holder is, make payment directly to them so you can get a release, you will need the lien release to get a new title (not register)
Title transfer when buying a car from an individual? find out the amount, who the lien is from and write it for that amount to the lien holder and the lien holder has to send a lien release stating loan is satisfied. also have a paper typed up stating the amount asking for, amount that needs to be paid satisfy the lien and have it notarized by a bank official that has the power to do so and both parties sign it agreeing on the price and that the lien will be satisfied. all titles with lien notes on them will not be able to transfer without that lien release. always have a paper trail to protect yourself
Title transfer when buying a car from an individual? Yeah... Pay off a stranger%26#039;s car loan directly to their bank... Smart advice guys... C%26#039;mon!!!
I can see the trial... He paid off my car loan as a gift... Then we had a falling out and he wants his money back...
Title transfer when buying a car from an individual? You mean, %26quot;what is to prevent the SELLER from just running off with the buyer%26#039;s money?%26quot;
Expect the title when you hand over the money. Otherwise, no deal. When the seller gets the money, the buyer is supposed to receive the title paper at the same time. The buyer then writes his name in the next block of owner information and sends it to the state government for them to record the vehicle with that VIN number as yours.
If the seller doesn%26#039;t offer you the title paper immediately, there%26#039;s something fishy going on, and you probably should expect to be cheated if you give him your money.
Something like this happened to me while I was buying this house that I now live in. The seller was paying off his purchase loan at his bank at the same time that I was paying him for the house. He paid the bank, and I paid him. The way it was supposed to work, I%26#039;d get the title to the property at the same time that he was clear of his home loan debt.
But he cheated. Every month, I paid him $475, all of which he had agreed to pay to the bank. But, instead, he paid only $325 to the bank and kept $150 for himself, going around town spending it. I didn%26#039;t know what was going on because his bank wouldn%26#039;t tell me (privacy laws).
Then this fat old swindler died, and I went to the bank to pay off the whole house loan, just to get it clear of debt. That%26#039;s when I found out that due to the previous owner%26#039;s cheating, there was a $4000 difference between what I%26#039;d contracted to pay the owner and what the owner was obligated to pay to the bank.
I had to pay that Four Thousand Dollars again. That%26#039;s on top of what I%26#039;d expected to pay to the bank to get the lien release.
So don%26#039;t hand over the money unless the seller agrees to hand over the title at the very same time. Not a day later - the EXACT SAME TIME.
