Auto Purchase from private party
I’m giving a private party a certified check for their used vehicle. Before I get title they must go to their finance company and pay off their loan to get clear title. What should I do to ensure compliance with the terms of our contract? Is a simple bill of sale enough protection? Would it be adequate to have a notarized bill of sale? Thank you.
Re: Auto Purchase from private party
I suggest that you get a payoff statement from the lienholder and pay the lien off yourself, giving the seller the balance. Usually the owner has the title with the lien noted on it, and the lienholder will have to release the lien. If they have the title, it’s better for you, but you’ll probably need an authorization letter from the owner in order to get cooperation from the lienholder. I’d ask the seller for his account number and a phone number that you can call to find out what procedure the lienholder will follow to make sure you get clear title to the vehicle for your money.
Robert Sher
Wagshal and Sher
4824 Edgemoor Lane
Bethesda, MD 20814