[PropellerHead]

I learned a valuable lesson (and it didn't cost me a dime, just my time) when I bought my 911T. The seller had a title from 1976. He signed this over to me, notary and all complete with a bill of sale, etc. Everything looked legit and he was trustworthy. I went to get the title in my name and they told me it wasn't valid because a duplicate had been made and that their records showed the most recent title for the car had a lein on it from 1982. Oh, and they took my old 1976 title! Turns out the 1976 title I was given didn't have space to add a lein (the one on it was signed off) when the owner wanted to use the car as collateral when buying something (house maybe?) in '82. So a new title was issued and the lein applied to that. That bank had changed hands several times but I was able to get a lein release from the bank since the loan was paid off in-full in 1983. I went back to the seller and got a power of attorney to deal with all aspects of the car. The local DMV didn't think I'd ever get a bank sign-off and suggested they issue some special lost title claim which would show up in the title history. I didn't want that!
It worked out fine, the seller was the legit owner and honest about selling the car to me. He appologized several times for my trouble and offered to help, etc. It took me 2-3 weeks to get it all sorted out but I have a proper paper trail now with no black marks in the title history either.
The former owner was in poor health, had I waited to register the title in my name it might have ended badly as 6 months later he was gone.

Moral of the story:
1) get a notorized power of attorney from the seller who's name is on the title. This will allow you to sign on their behalf and transfer all documents to you without them present.
2) get a signed bill of sale - check your state law for a guideline, some need to be notorized.
3) if possible, have the seller go to the DMV with you.

After this experience, I'll never buy a car from someone who doesn't have it titled in their name alone and I'll always insist on a limited power of attorney specific to the VIN in question to ensure once we exchange title for cash that I have sole rights to said car and title!