My son is selling his car to his friend the title is in my name, he is paying payments until it is paid off?

Question

How can we do this legally so we are assured full payment?

Answer 1

THE FRIEND SHOULD HAVE THE CAR FINANCED SO U GET A CHECK AND HE MAKES THE PAYMENTS TO THE BANK. THAT WAY IF HE IS DELINQUENT, THAT FALLS ON HIM AND NOT U!

Answer 2

If the title is in your name he is NOT legally allowed to sell it.
There are in law things called "good title" and "bad title".
In the "good title" this means that you have legally paid for and own the item, and can there for pass good title onto the person to whom you sell the goods.
"Bad title" means things that you do not own and there for cannot pass good title onto the seller. i.e. if a property is stolen, then you cannot pass "good title" with the goods if you sell. The goods will always belong to the person from whom they were stole. That person still holds "good title" to the goods.
I hope that you are following me!
There fore you son in law cannot sell a car which he does not own, if the car is in your name, then you are responsible for any payments owed on the vehicle.
You cannot legally allow him to sell the car. First make him pay the car off. Or you sell the car and bill your son for the money he has not paid.
The sale is not legal if he sells a car which you own.
Hope this helps even though it might not be what you wanted to hear.

Answer 3

Does your son's friend have trouble getting someone to finance him? That's the only way you'd be assured that he'll pay it off. Get it off of your hands so you are no longer responsible for it. DO NOT PUT THE TITLE IN HIS NAME UNTIL YOU RECEIVE FULL PAYMENT! Sorry to yell, but that's the most important thing. Good luck!

Answer 4

If there is a lien on the car and it is in your name your son cannot sell it unless you sign off on the title and the lien is fully paid out or the lending institution is willing to release (in writing) the lien on the vehicle. If the vehicle is otherwise sold the lending institution may demand payment in full and if not forthcoming they may take legal action against your son and also against you if you cosigned on your son's loan. I strongly suggest if the vehicle is sold the lender be advised and paid in full upon completion of the sale.

Answer 5

You don't need to be a lawyer to write a legal agreement.
State the amount, interest and time period.
When payments are due and the penalty for late payment.

In exchange for the car you shall receive X payment for X years at X interest rate.
Have everyone sign and ta da legal document.

If he doesn't pay you have legal recourse. You can sue and impact his credit score.

Answer 6

Go to the DMV and have your name put on as lein holder just like they do when you buy a new car and have it financed. It doesn't cost but like $20. Then if he defaults on his payments you can repo it and you still get to keep all the money. Make sure you do it though. Don't trust anyone. I still have someone who owes me $3000 from 2 years ago because my husband trusted him and said he's our friend. Guess what? He doesn't come around anymore and we don't have our money and we have no recourse cause we signed the title over.

Answer 7

You can make up a contract (go to Office Max) and take it to a bank or some place where there is a notary public and have it notarized. Make sure everyone agrees before you sign the contract. Or you can always talk to your friends or call around and see if you can find an inexpensive lawyer. But it has been my experience that it's a bad idea to deal with friends when it comes to money matters.

Answer 8

each and every of the workplace artwork interior the international won't be able to assure this. it truly is a stupid aspect to do and that i does no longer recommend doing it. i don't think of your son is interior the placement of turning into his pal's banker. this may ruin the friendship even as the client defaults (and he will default) only supply it time. And what takes position even as this pal totals the motor vehicle and your son nonetheless owns it? in case your son desires to promote the motor vehicle, stumble on a shopper who will pay for it in complete. in case your son needs to assist out a pal (it truly is an honorable aspect to do) have him help in looking the pal a motor vehicle he can discover the money for.

Answer 9

you need a bill of sale and a promissary note signed by both him and his gardians put all the details of when the payments are due as well and a final payout date and list yourself as leinholder on the title and until it is paid in full you do not sign off on the lein

Answer 10

write up a sales agreemnet and have all parties sign in front of a notary.