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BavarianDoc
09-22-2003, 11:38 AM
Hi,
I am negotiating to buy a BMW from private party, but the seller has the lien on his tittle - still paying off the car to the bank. How do I go with that and how can I get the clean tittle only with his name? What is the procedure of buying/selling car when seller still owns the $$$ and title is not only to his/her name?


thanks.

TedW
09-22-2003, 12:02 PM
Hi,
I am negotiating to buy a BMW from private party, but the seller has the lien on his tittle - still paying off the car to the bank. How do I go with that and how can I get the clean tittle only with his name? What is the procedure of buying/selling car when seller still owns the $$$ and title is not only to his/her name?


thanks.



You need to get a lien release from the bank which means that the seller will have to pay off the loan prior to transfering the title to you.


Ted

325xi-SteelGray
09-22-2003, 12:26 PM
If you pay the seller with a private check, most generally the bank will wait 7-10 days for your check to clear before issuing a lien release. If you pay with a bank check, certified check, money order, or cash they can release the lien on the spot. I asked HSBC these questions just a couple of weeks ago, some banks may vary on the policy.

SodaJerk
09-22-2003, 02:06 PM
This is always a tricky situation.

Maybe you can make out 2 checks: 1 check payable directly to the bank for the payoff amount from the payoff statement, and the second check payable to the seller for the difference. Mail the bank's check directly to the bank address on the payoff statement.

This way you are somewhat more guaranteed that the seller will take your money and pay off the loan. If the seller does not pay off the loan, you will still have the car title with the lein on it and the car will be subject to reposession by the leinholder.

I would also word something in the sales agreement that the seller is required to forward the lein release to you within a reasonable time (10 days), or there will be some monetary penalty. Also ask the bank if they will send you the lein release directly.

You will still need to negotiate when you recieve posession of the car and when title is transferred.

This is not intended as legal advice: merely suggestions. You should consult a qualified attorney before completing this transaction.

Hope this helps.

325xi-SteelGray
09-22-2003, 02:17 PM
You could definately write 2 checks, agreed. But why not arrange to go to the branch together and get the lien release on the spot? Personally, I'd take the half day to go with the seller because I'm not going to want to wait 10 days. (Keep in mind that person may continue to drive the car until it all clears and while they may not harm the vehicle, there is always the chance of getting whacked by a door, keyed, etc...) I am not sure what you would do if a "non-traditional" financial institution held the loan, ie. something like People's Choice on the internet. :dunno:

It doesn't seem like it has to be that complicated... :dunno:

m3again
09-22-2003, 04:02 PM
Depends on your state registration requirements, too. Check with your dmv web site.

I sold a car to a Maryland resident, and I really had no choice but to pay off the lien first, wait for the title, and then complete the sale with the buyer.