Question:

Lien on the vehicle?

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I want to purchase a vehicle from a private seller and he has a lien on it. I would be getting a loan through my bank to buy it. If what i am giving him takes care of most of what he owes yet, how does the bank take care of the title? Does he have the title to give to me or does his bank have it and they give it to my bank? Who will actually hold the title while it is registered, me or the bank? Advise please

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4 ANSWERS


  1. His lien has to be released before any transaction can take place.  How he gets it released is his responsibility.  All you need to be concerned about is that you are given a merchantable title when you pay for the car.


  2. If he has a lein on it, it's not his car to sell.  He doesn't have the title to give to you.

    If you get the loan, and give him the money, and he does NOT pay the car off, then you're up a creek.  His bank is NOT going to release the title until they have the money.  

    I'd advise you either hire a title service to handle this transaction, or walk away.  Don't do this yourself.

  3. it depends on what state you are in as to who holds the title. 1st rule is to do the transaction at his bank and have him or you pay off the lein and sign the title into your name right then. If you are smart you will have everything notorized and have them go with you to the license bureau and complete the titling because once he is gone you may find you need an affidavit to complete that process so make a day of it and do it all right then and there. good luck (buying from a dealer is alot safer)

  4. If he has a lien on the vehicle, it isn't his to sell.  If you trust him, go to the bank with him and pay off the lien, they will give him the title and lien release.  At that point he can thank you and drive his now paid for car home.  Or if he's trustworthy he will sign it over to you.

    I'd be careful.
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