I just sold (not officially) my 1999 328i 5 speed to a friend. The bank owns the title, but he wants to take the car tonight if possible. He wrote me a check already, but obviously the banks won't be open until tomorrow to pay off the note. How do I relieve myself of liability in the meantime while i wait to receive the title?

He is going to insure the car on his plan, but I want to make sure I am in no way responsible for the vehicle. Like I said, he is a friend of mine, so I know there is no shady business going on, but from a legal standpoint I want to be assured that I have no ties to it should any accidents happen.

Do I need to hold on to the car until I get the title in hand, or is it safe to hand over the keys? Any help would be great, as I've never sold a car that I didn't have the title for in the past. Thanks.

 

I would tell him to be a patient adult and wait two days.

Even with a notarized bill of sale I am not 100% sure you're clear of liability.

 

There should be a release of liability form on the state motoring website. Both parties will sign; you will release liability and his signature stating he is accepting liability.

 

Yeah under normal circumstances I agree. He lost his car due to hurricane Sandy though, and his loaner goes back tomorrow so it is a unique situation. I empathize with him, but at the same time I also want to make sure I am protected.

Thanks I will check the njdmv site for that

 

Hai Frank

 

I've purchased several cars with a lien on them from another private owner. My last being only a couple weeks ago. I wrote a personal check to the individual, wrote up a bill of sale on the spot (two witnesses signing also), called my insurance company and added the car to my policy. I used the previous owners license plates to drive the car until he received the clear title from his lender. Myself as the buyer, I just showed proof to the seller that I had the money. We contacted my bank as well a logging into my bank account.

Personally, I dont know if I would trust someone to write a $XXXXX check for a vehicle I own, but I guess it's rapport that you have to build with the seller. The fact that he is your friend I wouldn't worry too much about it. Just make sure you do have a bill of sale with at least one witness signing also. I'd tell him to go ahead and call his insurance company also and print the card and leave it in the glove box with the bill of sale.

I also did a wire transfer straight from my bank to the seller, of my wife Vette, directly to his bank. Took about 2 hours but they verified the funds instantly and I left with the title and car. I drove home with no license plates and kept the bill of sale, title, and insurance card on me during the drive to the DMV to register her Vette.

 

I appreciate the help. What I ended up doing is similar to what you did. I wrote up a bill of sale had my friend, myself, and a third party sign it. He wrote me the check, and insured the vehicle on his policy. I cashed the check yesterday, paid the loan off in cash, got the title same day, and signed it over to him last night. The car is gone, and I am now searching for something new.

 

Good day sir