OT: Need to find out details on CA DMV

[914turbo]

We are "hopefully" going to purchase a Porsche in LA, but we just found out a couple of days before flying out there to buy it that the owner took a lein out against the car. How quick will the CA DMV get us a title, and/or what is the process? This is what we found online....

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"Requirements after paying off your car loan.

After you pay off your loan, the lienholder will sign the title and mail it to you. If the lienholder is in DMV’s Electronic Lien and Title Program (ELT), the title will be automatically mailed to you. The ELT is a voluntary program for lienholders that provides the lienholder with an electronic (paperless) certificate of title in lieu of a paper title."

Submit your title to DMV within 30 days to remove the lienholder's name, and DMV will issue a new title in your name. "
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The only thing it does not state is if we can actually go to the DMV with a lien release and get a title immediately, or have to wait for one to be mailed. We don't want to take the car without knowing we have a title in hand, and we can't fly out there and wait for it. He told us he had a clear title..otherwise we would not have made the travel arrangements.


Any info is appreciated!

[TerryH]

He said he had title in hand and suddenly he has a lien? Why would there be a lien unless he owes money on the car. Usually the lienholder is the bank or lender that financed the car. This sounds bad to me or else I'm misunderstanding it.

[aigel]

The California title document has a line for the buyer to sign the title over to you. This is the same everywhere I suppose. But in addition, there is an additional line for the lien holder (if there is a lien holder on the title) to sign off.

Usually, if a car is sold that still has a lien on it, you go with the seller to his bank, you deposit the $, the bank rep signs the title, the seller signs the title and that title is then in your name. Your name is entered in the back as a new title owner and the front is signed by both the bank and the owner to release interest. Of course, you have to be careful here, as the seller needs your $ to get the car from the bank but you can not give him the $ ahead of time!

If you pay of a loan on a car here in CA, the bank will sign the title as clear. You can then get the title from them. That is enough to sell it to a new owner. Some people however want the lien holder off there completely and get a new title, with just their name on it. This is some of the stuff you read on the DMV web page. Again, for you to own the car, all you need is the bank and owner's sig on the front.

If you buy the car from out of state, you would not send the title to the CA DMV to get a replacement. You will submit the CA title (signed by the bank and your seller) to your local DMV. They will then issue you a new title from your state.

I hope this clarifies your question? As long as you meet the seller on a business day and can go to his bank with him, you are fine. I would not work it any other way. Frankly, I have never bought a car that was not free and clear. I have bought cars however, that had a lien holder signature on there but it had been paid off before I got into the picture.

George