Question about Titles and Liens.

[glanga]

I have a question for anyone who might be able to answer. I am going to buy a car off of someone, private sale for $16,000. He owes money to the bank so he does not have title in hand. He needs the money from the sale of the car to pay off the bank. I am wondering how we go about doing this? Should I give him the money and have both of us sign a contract saying he will get me the title within an alotted time and have witnesses sign too?

I was planning on giving him the money to pay off the car, get a contract written up for us to sign, take the car home that day also and wait for the title. How do I go about insuring the car and making it legal to drive for me if I don't have the title to it, and it's not registered to me since I don't have the title. I can not go without a car to drive so I am trying to keep myself from driving illegaly for two weeks while I wait for the title.

Should I give him just what he owes to the bank and give him the rest after he hands me the title. Given this will all be in a contract.


Last time I bought a car privately it was in the DMV parking lot and we exchanged cash for title then and there so this is unfamiliar to me.
Also, how binding is a contract just written out by an average person and signed by both parties that is not notarized or written by a lawyer?

 

[mespock]

First off .... I'd check with your DMV to see what they suggest ....

You could go to the bank and pay off the bank.

You could ask him for a note from the bank and you pay the bank the bank would should give you a letter for the DMV.

But the best is to ask the DMV first.

 

[JoshMcMadMac]

I went to the bank with the guy. He was a real stand-up guy (and I could have taken him down if he tried to screw me, lol), so I wasn't worried. I gave the teller the balance that was due, she told us it would be 15-20 minutes to collect the title and clear it. Another lady came out with it, and the owner signed it over right then and there. If it makes you feel better, ask him to give you the keys when you go into the bank. At least that way he has to walk/run from you!

 

[glanga]

well i was going to get the car from him, give him the balance he owes the bank, im not sure if its an actual bank that has it. then both of us sign a promisary note, i take the car that day, then when he gets the title, we exchange the balance i owe him for the title. any flaws?