Car title

September 30, 2005 7:30 AM

What is the proper procedure for signing over a vehicle title and ensuring a kosher, risk-free transaction.

This is a long-range deal where the buyer of my car is clear across the country, so a face-to-face deal is not possible. The buyer asks for a copy of the signed-over title in order to secure financing. If I sign over the title without my money in hand, am I leaving myself open to a possible problem? Note - there is no indication whatsover to be suspicious; I just want to protect myself.

posted by terrier319 to law & government (7 comments total)

I have never signed over a title without money in hand and I don't think you should. AAA warns against this

CAUTION: Do not fill out these areas until you are certain that the transaction is definitely happening. Do not sign over the title until you get paid by the buyer. You should accept only cash or a certified bank check. Don't take a personal check or a promise to pay.

posted by jessamyn at 8:00 AM on September 30, 2005

Note - there is no indication whatsover to be suspicious

But... this seems suspicious to me:

The buyer asks for a copy of the signed-over title in order to secure financing.

I would think maybe you can set up something with a third-party escrow or get a trustworthy local agent to hold the title until the money is paid. (Maybe even give power of attorney to the local agent for this purpose and don't sign the title at all.)
posted by Doohickie at 8:13 AM on September 30, 2005

Or maybe a sales contract, indicating that upon funding, you will sign the title over. That might be good enough to secure funding.
posted by Doohickie at 8:14 AM on September 30, 2005

I wouldn't even take a certified check unless you have a couple months to sit on it, they can and have been forged.

It would seem that his bank would want to have originals rather than copies, it's pretty easy to forge something and have it pass muster if you only need to get it to fax quality.
posted by Mitheral at 8:16 AM on September 30, 2005

Talk to the manager of your bank & see if they can't handle the transaction with a local bank at the buyer's location. You don't sign the title as seller until the money's deposited in an escrow account, as confirmed by your bank. Fedex the title to the receiving bank & they then electronically transfer the money to your account. Once the transfer is confirmed they hand the title over to the buyer. (or something like that)
posted by Pressed Rat at 9:01 AM on September 30, 2005

If I sign over the title without my money in hand, am I leaving myself open to a possible problem?

If you sign the title over, you have given or sold your car. It is no longer yours. I'd consider that to be a serious problem without the money.
posted by odinsdream at 9:32 AM on September 30, 2005

there is no indication whatsover to be suspicious

Uh, actually, his request that you sign the title over before payment is a pretty good indication to be suspicious.

Suppose it wasn't a car, it was a diamond, and Mr X was buying it from you in person. Here's the analogy:

Mr X takes the diamond from you.
Mr X makes you sign a paper which states that you have given him the diamond and that he is now the owner in law of the diamond.
Mr X then promises you that he is going to go to the bank, show them his new diamond, and use it as collateral to secure a loan, the monies from which he will then give to you.
Mr X then leaves.

I don't trust Mr X, and I don't think you should either.
posted by ikkyu2 at 1:15 AM on October 1, 2005