Am I liable for tickets or accidents if I sell my car and the new owner never registers it in their name?
I am selling my car to a private party, but since I still owe money on it, I am getting the money from the buyer, giving them the car, and then using the sale proceeds to pay off the loan balance. Since the car has a "paperless title" I'll need to wait 2 weeks for the DMV to send me the title, which I can then sign and give to the new buyer for a full transfer of ownership.
I thought that would be fine, as I am submitting a Notice of Release of Liability (NRL) form to the DMV as soon as I get paid for the car, but I heard that that would not prevent me from remaining liable should the owner get into an accident or receive tickets, etc. while we wait for the title. Is this true?? If so what's the use of that NRL form??
Even with the title what if the owner never registered the car with the DMV? Wouldn't that be the same scenario??
Any suggestions or useful info will be appreciated. Thanks.
When you file the notification of sale, it is date stamped and filed with the records for that auto. In the event, the buyer failed to transfer, you could use the notification of sale, to show the court that you sold the car on a certain date, and therefore released your interest. You should not be liable, if the notification of sale is filed in a timely manner. Most states, say ten days after sale, the form must be recorded, I say, as soon as you hand over the title, file the form. You would be liable during the wait time for the title, as the buyer cannot transfer without the title, but I do wonder how they will insure the car, during the wait time. It would seem to me, that with the paperless title situation, and many lending institutions go with the paperless title these days, that it would be best to not turn the car over, until the sale is complete, and you have released your interest on the title also. That way, his money is secure with the lender, and you are secure with the car, until the title is released. The buyer may scoff at this arrangement, feeling they may end up with no car. You can go directly to the lender, and pay the loan in person. They can give you an affidavit in lieu of title, and the buyer can use it, along with the bill of sale, to transfer in a timely manner. Working directly with the lender, should solve a problem for both of you.
