Selling without title transfer.

January 26, 2015 4:51 PM

I am selling my car without a title transfer. Need quick advice on how to best protect myself.

I put my car on Craigslist and someone agreed to buy it. When I went to look for the title on Saturday I couldn't find it and went to the DMV right away to order a replacement. The DMV said it can take up to two weeks to arrive, but will probably take about 5 days.

I had agreed with the buyer on Sat. to contact him today when I'd had a chance to check my work schedule and set up a time to meet at the DMV to transfer ownership (this was before I knew my title was lost). I knew I had a busy week at work but couldn't remember what times I had free. He somehow thought that we would go today to change ownership and took work off. I told him I couldn't today b/c I had a bunch of meetings but that I could on Friday provided my title had arrived. He said he really, really needed the car right away as he has two jobs, etc. I agreed to sell him the car tonight and that we would have to go to the DMV to transfer owership as soon as the title arrives.

I've prepared a Bill of Sale (with odometer reading, date, etc) for him to sign and called my insurance company to let them know I'm selling today and will transfer the title upon receipt of my replacement. They wrote me a policy for one month to cover the car (previous policy on it had lapsed). I've also taken a time-stamped photo of the odometer.

Is there anything else I can do to protect myself in this scenario? I'm mainly worried about being liable if he gets into an accident. I have to go meet him in an hour and hand over the keys. He is paying in cash. He has agreed to meet me to transfer the title when I get it and I have no reason not to trust him. He seems decent. My only other (minor) concern is that he won't show up for a title transfer but I figure in a worst-case scenario I could report the car as stolen if for some strange reason I can't get him to meet me.

I'm probably being overly paranoid, but I like to err on the side of caution. Are there any further steps I can take to protect myself against any liability or any other weird thing happening in the short time he will have the car when it's still registered in my name? I know you're not my lawyer and this is not legal advice. I have read this about title transfers in Minnesota. Thanks.

posted by triggerfinger to Law & Government (7 answers total)

Best answer: I think most of the risk is on his side - that you will have his money and not follow-through with the title transfer. In California, as seller, you can file a notice of the transfer of title directly with the DMV to protect you in case the buyer fails to register the title in the new name.
posted by metahawk at 5:05 PM on January 26, 2015 [2 favorites]

I wouldn't take delivery of your vehicle without that piece of paper, or an orderly process to transfer that piece of paper from your lender to my lender.

But since he's insisting, I'd agree that the bulk of the risk is on his side (assuming I'm reading this right and you're getting the payment now). If he never shows for the title transfer I think you have some work to do with the DMV and your insurance company to make sure this is dealt with, but I think it's an acceptable risk. As triggerfinger suggested, get some paperwork in train NOW, especially with your insurance company, to indicate that you've handed over the car.
posted by randomkeystrike at 5:22 PM on January 26, 2015 [2 favorites]

Don't make false police reports, ever. Whatever the car is, it's not stolen.
posted by JimN2TAW at 5:26 PM on January 26, 2015

Response by poster: Sorry, I didn't mean that I would file a false police report. I was just thinking that on the off chance that he was dragging his feet or refusing to meet me to register the title (which means I would have to continue to carry insurance on the car), I'm not sure what my recourse would be. This is a slim risk, but the longer he has the car while it's in my name, the higher the chance that he could get in a bad accident which I could be liable for.

To prevent that, I was thinking that if the car is still in my name, and he was making no effort to change ownership, I could ask for the car back (in exchange for the money) and if he refused, I could call the police.

There is an extremely slim chance of this even happening , just a small risk that had entered my mind.

(sorry, if this seems dumb, I don't really know anything about this sort of thing)
posted by triggerfinger at 5:36 PM on January 26, 2015

Best answer: Yeah, that webpage you linked to has most of the big ones - if the person gets in an accident, or gets towed, or gets a parking ticket, or whatever else while the car is still "yours" (i.e., before the official title transfer), someone could try to come after you for the damage / towing fees / fines, etc.

Maybe you can fill in that DVS "report of sale" form before you formally transfer the title; maybe not. You should do that just as soon as it is allowed, though. I think it is designed to help with some of those problems.
posted by Joey Buttafoucault at 6:16 PM on January 26, 2015

Google doesn't seem to be helping me, but in my state and several others there's an "affidavit of loss" you can sign and file saying "hey i lost the title, but i'm really the owner, and i want it to go to this person". You have to get it notarized.

Then when you file the bill of sale and such with that, it'll go in to the state system that it's not your car anymore and becomes their problem. Then THEY will have to pay the late fees for not transferring and such if they don't get on it and deal with it.

As i said, i can't seem to figure out online whether that exists in Minnesota, but i'd definitely go in to a DMV and ask. I'd be vaguely surprised if they don't have a better solution than "tough shit, wait until we feel like mailing you a title". Then again, it is the DMV we're talking about here.
posted by emptythought at 11:22 PM on January 26, 2015

Allowing a stranger to drive your car puts you at risk of serious financial loss that is out of your control. Parking tickets, traffic camera violations, accident liability, impound fees if car is towed are all on you completely. Even if insurance covered an accident event the increased future premiums and/or excess liability are on you. Your plan is a risky venture. Wait for the title.
posted by imthebadgerdamnit at 1:21 AM on January 27, 2015