US Car title question from a Canadian eh?

[speedracer]

Hey guys,

I am looking to purchase a US 911 and import it into canada in the next few weeks. Our title and registration system works differently here.

From what I gather from talking with US sellers is that generally they either have the title in hand (car fully paid for) or the lien holder has the title (example: bank). My question is.......

How do I get the title and buy a car if the owner owes money on it? I was thinking I would give both a cheque to the seller and a cheque to the lien holding bank on the seller's behalf. Does this seem correct?

If so, how long will it take for me to get the title? Is it handed over right then and there as I hand them the cheque?

I will need the title to pass back through customs..... and I don't want to have to further narrow my search for a clean 911 by only looking at fully paid cars.....

Any comments would be appreciated. Thanks

[TerryH]

If a local bank or credit union is lien holder, then consummate the transaction inside. If the lien holder is out of state, then it might take 2 days or more to get title in hand.

You get notorized bill of sale and keys to car, but no title until it's paid off.

[speedracer]

Thanks Terry.

[Steve Carlton]

You'll need to provide the payoff amount up to the amount of the purchase price, and certified funds will allow them to release the title faster. Get permission to discuss the transaction with the lienholder, as you want to make sure the title comes to you. How quickly you can get the title depends on the lienholder, from instantly (on site) to two weeks. Some states have "paperless" titles, and the lienholder requests the state to issue one when title transfers.

You'll need to get your ducks in a row by discussing it with the DMV as well to make sure you've got the right paperwork for a clean transfer. You want to be secure, since you've paid off someone else's loan!

You could also consider putting a deposit on a car and asking the seller to get the title in hand for the final payment and transfer. Doing that in person at the DMV would be a good idea.

[glenncal1]

Be very careful especially with these paperless titles, they can be a real PITA, check with both the bank and the state where the car is titled to make sure you follow procedures exactly. I purchased my car in CA and the bank released the paperless title to the original owner and not me. Fortunately they were stand up people and signed and sent the title to me right when they received it. It could have been a real mess. I would see if the bank that is holding the title will escrow all funds until you have title in your hands.

[speedracer]

Thanks Jim. These are the concerns that I have. This helps alot.

[Steve Carlton]

Your welcome.