Skipped Titles

[schwarz633]

Is there any liability to a buyer who's purchasing a car from a flipper who's skipping the title? It would seem that the seller name on the bill of sale not matching the owner name on the title could be a potential DMV problem. The scenario I'm interested in would involve a title from one state, a flipper from a second state, and a buyer from a third state. Anyone have any experience with this? Thanks.

[LvSteveH]

What's with all the recent hysteria with "skipped" titles? States have laws, and the DMV has their policies. I've never had a problem with a clean title, properly released from it's former owner. Some states require a notary, others do not.

Even if you have a car without a title, most states have a simple process to go about clearing it up. The main things to look for when dealing with a title are:

1. Make sure that the name on the title and the signature match EXACTLY. If it says John Q. Crook, make sure it is signed off that way.

2. Make sure the VIN of the car matches the title. Some states will allow for small errors, but more than a digit or two incorrect and it can be difficult to correct.

3. Make ABSOLUTELY sure that no one else has been filled in as the new owner, be it a private party or dealer. If so, then it's erasure affidavit time, not fun tracking everyone down.

4. Check with the state you plan to title the car in, some will require a bill of sale, others will not. Some don't charge tax on private party sales, others do. Some determine the sales tax on the bill of sale price, others just depreciate the vehicle from new and tax on the estimated value.

5. The DMV does not want to hear all the boring details surrounding the transaction, they deal in facts. Find out what paperwork you need prior to going in. Present them with what you have, and pay the nice lady. If there is an issue, they will tell you. If something is really screwed up, they do not have the authority to do just let it slide, and contrary to what you may hope for, they will not risk getting fired for customer 488A.

6. The DMV understands that sometimes a car and title change hands without being properly retitled. I've seen cases where a car went through half a dozen owners while still using the 1978 title. It's a fact of life. The DMV is just happy that someone is in there trying to get the mess straightened out, and they are generally pretty accommodating to help someone who wants to do things properly.

7. The third party DMV services that title and register cars for people are your friend. They usually have a standing appointment at the DMV and can wade through the mess faster and more efficiently than you can.

[EarlyPorsche]

No problems with a "skipped title". There are many people that just buy and keep cars like others buy and keep stock in IBM for a sale later in life.

[scylla6]

This is a non issue. I've got cars I've had for years without re-titling. Who wants to wait in line and throw away money.

[Todd Simpson]

You don't have a choice in NJ. You want to register it you retitle it and pay the tax.

My M3 title was not signed by the guy who traded it it to the dealer I bought it from. I had to send the title back to the dealer in FL and they had to contact their seller and get him sign, then send me back the title. Either that or I forged his signature, can't remember.

My brother also had a deal fall through, the flipper had not gotten the correct signatures from his seller years before. NC would not allow him to register the car and he had to undo the deal.

Whatever you do, read the title and make sure all the signatures are where they need to be.

[rrsrsr]

There are enough scams out there- I wouldn't even consider buying a used car if the seller does not have a title in his name and prepared to sign it over to me on receipt of payment!

There are plenty of other cars out there with valid sellers/titles!

[blau911]

Originally posted by schwarz633
Is there any liability to a buyer who's purchasing a car from a flipper who's skipping the title? It would seem that the seller name on the bill of sale not matching the owner name on the title could be a potential DMV problem. The scenario I'm interested in would involve a title from one state, a flipper from a second state, and a buyer from a third state. Anyone have any experience with this? Thanks.

BAD IDEA!!!!!!!!!

I wouldn't do it either. The guy selling it to you is simply looking to skip paying taxes on the flip so he can pocket even more money selling to you.
If the sller is a registered dealer in the state where the title is issued, selling to you w/out retitling in his name first is not a problem. However, if he is not, then (at least in FL) he is required to title and/or register the car in his name before he is legally allowed to resell.

In Florida, you are required to provide a Bill of Sale as well as a signed over title. If you simply have a blank title signed over into your name from the previous title (with no accompanying BofS), then how is DMV suppossed to calulate state sales tax? In order to get the car titled, DMV will require that you go back to the previous seller - if you can find him - and get a signed Bill of Sale. Of course, you can consider forging one. But if DMV finds anything suspicious about it, they will require that the seller fill out an affidavit under oath confirming the price. Then you have a real problem. If you are caught in Florida playing this game, you will pay something like 2 times the cost of the vehicle. Or worse, it is a misdemeanor and you will have a criminal record if caught forging...
All of this is now yOUR problem because you let some greaeball convince you that he didn't need to title the car in his name before selling to you.
Smartest thing to do if you really want the car, is to have both of you sign a letter of Agreement stating that you will buy the car for $xxx on a certain date subject to his being able to produce clear title in his name. Anything else makes you a sucker and it will be YOUR hassle. Don't ask me how I know all of this........