I am selling my car to a relative. The sale price is $5,000.00. They are putting down $1,000.00, then making payments of $500 per month until the balance is paid (8 total).
I have prepared a promissary note, etc. for legal purposes. Should I hold on to the title until I am paid in full? Reason tells me "yes", but how should documentation (DMV, etc.) be handled in the interim, so that the relative can legally use the car for the next 8 months?
2007-09-11 10:43:26 · 13 answers · asked by Dano_Slokes 1 in Cars & Transportation ➔ Buying & Selling
You can release the title to them, With you as the lein holder on the title.
2007-09-11 10:56:46 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Where I live there is a spot on the back of the title for a lien holder. You can fill in your name before you sign the title over. That way your name is still on the car if anything happens you can take it back. When they finish paying it off just do a release of lien and the car is theirs.
2007-09-11 17:57:05 · answer #2 · answered by walkerhound03 5 · 1⤊ 0⤋
Have the note notarized. That makes it a legal document. They will need the title to move forward with the DMV.
2007-09-11 17:52:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋
They'll need the title to put the car on the road and insure it. As others have said get a promissory note signed by a notary public.
2007-09-11 17:50:52 · answer #4 · answered by Country Boy 7 · 0⤊ 1⤋
I would collect post dated checks.
I would still have a promissory note.
but transfer all the liabilty to them by transferring the ownership to them and let them have their own insurance.
My friend had a similar case. He gave the car to a relative.
the relative left the car outside his house. The city and county fined the legal owner and that was my friend.
a contract is binding to you and your relative but third parties will pursue the legal owner.
2007-09-11 17:56:00 · answer #5 · answered by dbondocoy@yahoo.com 3 · 0⤊ 0⤋
Selling anything to a relative is not a good idea. You can legally place a lein on the property, but if something goes wrong with the car your relatives will hold you to blame.
2007-09-11 17:50:34 · answer #6 · answered by Teacher 6 · 2⤊ 1⤋
depending on THEIR insurance the car may not be able to be insured without the title in their name. a promissary note with an official witness or notary (even better) would be the best way to go!
2007-09-11 17:47:43 · answer #7 · answered by LoveDior 3 · 1⤊ 1⤋
havea contract and have it signed, all contracts are legally binding (of they dont pay you can take them to the people's court ;0) ) and do give the title so they can pay DMV their taxes, and in case the cops stop them, and notify DMV ASAP otherwise you get a fine for not telling them that the car is no longer in your possesion.,
2007-09-11 17:48:54 · answer #8 · answered by beebee 4 · 0⤊ 1⤋
Don't sign over the title until paid in full!!!!!!!!!!!!!!!!!!!!!!!!
You'll have to keep the car and insurance in your name until then but it's better to be safe than sorry. Have them also compensate you for insurance.
2007-09-11 18:02:33 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Notarize the promissory note and give the title! I'm sure you'll know where to find them if necessary!
2007-09-11 17:49:39 · answer #10 · answered by HEC 3 · 0⤊ 2⤋