Lien on car title?

Question

I am going to buy a car from a guy close by and he has his title but there's a lien on the title. He paid it off 5 years ago and just forgot to go get a new title. He is going to have mitsubishi fax the paper saying the lien was released.

Now if I take that and the title to the DMV will they register me a clear title? I believe so, but I am just double checking if someone actually knows for sure.

I live in WI btw, if that matters!

Thanks!

Answer 1

No !! The owner needs to resolve this before you pay him anything, who is to say the letter is valid ? I could write a fake letter to make you believe the lien was satisfied !!  Be careful, alot of scams out there !!  Good luck !

Answer 2

I'd make him go with me, with the title and lien release, to make sure the DMV will transfer everything, before I paid him the money. I have financed a lot of cars and never had to "get a new title". The lender ALWAYS sent me a clear title shortly after  the lien was payed off. I don't trust people who can't come up with a title, for whatever reason, no matter who they are. I got burned on a deal like that once and once is enough.

Answer 3

Doesn't matter where you live...you need a Certified (or notarized) Lien Satisfied from the lienholder.  Don't settle for anything else.  I would also back myself up and get a signed Bill of Sale from the seller.  

Doesn't hurt to be prepared!

Answer 4

The owner should sort this out before you pay any money out.

Answer 5

Some states will require an original document that has been notarized.  In those states a fax would not do any good.  You didn't mention state.  Call the DMV and ask.  I wouldn't pay not knowing for sure if you can register the vehicle in your name.

It's hard to believe he didn't look at the title in 5 years and realize it wasn't clear.  Usually paying off a debt is cause for celebration, not something you "forget" about.

Be careful.

Answer 6

... when a car is paid off, the lien release is sent immediately. (even though the title may still state the lienholders name)   Why would the guy now have to get a (another) lien release ?  In any case, When you have both the title and the lien release in your hands, take the seller with you and go  to a Wis. DOT walk-in service center and get your new title.  If there should be a problem, they will be able to tell you about it immediately as opposed to sending all of the stuff in to Madison and having to wait 6 weeks only to find something is amiss.  When you have your new title, then pay the guy.