What Happens If One Sells a Car & the Owner Does Not Transfer the Title?
In the world of auto sales, the title is the document which proves ownership of the vehicle. A title is necessary to register a vehicle, as well as to insure it. When a car is sold, the title is signed over to the new owner.
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Bonded Title
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Without a title, the new owner cannot register her vehicle. If there is not a title available (because the car is a salvage vehicle or because the paperwork got lost at some point), the buyer can attempt to get a bonded title. An investigation will be done to determine if there are any liens on the title. If the title is clear, a bonded title will be issued, after a fee is paid. The amount of the fee varies from state to state, as the process varies from state to state, as well. Check with the Department of Transportation in a given state to pursue this process.
Implications for the Seller
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If the title is not transferred over to the buyer, the seller may be held responsible for tickets or other violations that the new owner incurs, as there would be no evidence that the new owner does, in fact, own the vehicle. It, therefore, is always in the best interest of the seller to transfer the title to the buyer.
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Considerations
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If the seller indicates a title is not available, the buyer may want to check the Vehicle Identification Number (VIN). This is generally located on the driver's side, underneath the windshield. The VIN can be used to run a report on the vehicle to make sure that all the facts are as the seller says. This can save the buyer from a world of trouble, in preventing the sale of a stolen vehicle.
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References
- Photo Credit a car in a car show image by Gary from Fotolia.com
