Process When Buying from Private Party

[Bill N]

I think we are really discussing various systems of showing a clear title vs encumbered title. The only thing I have seen as a title in the past 9 years in my state is the title I have in my possession issued by the state upon my purchase of a vehicle.  That title will either have a lien shown on it or not if it is clear.  When the lienholder is satisfied they send a letter to the title holder who then takes the title and letter to the local vehicle registration office to have the lien removed and a clear title issued.  I do recall when living in another state (actually several other states) that the title itself was held by the lienholder and just a certificate of registration was held by the vehicle owner.  Then when the lien was satisfied, the cleared title would be physically sent to me.  Either system works I guess

Bill

 

[SeilerBird]

I have owned cars in a half a dozen states and in every one the lien holder kept the title. But I guess other states do it differently. ???

 

[kdbgoat]

In Delaware, the lienholder has physical possession of the title, and the title has the lienholder info typed on it.

In Maryland, the vehicle owner has physical possession of the title, and the title has the lienholder info typed on it.

In Delaware, once the lien is satisfied, the lienholder will mail the title and a lien release to the vehicle owner. It is then up to the vehicle owner to take both documents to the DMV to get a clear title.

In Maryland, once the lien is satisfied, the lienholder will mail a lien release to the vehicle owner. It is then up to the vehicle owner to take the title they have in hand, along with the lien release to the DMV to get a clear title.

 

[YLBlues]

In California the lien holder has possession of the title and the registration lists the lien holder information.

When the lien is satisfied, the lien holder processes with the DMV and you are sent the title in only your name.  I think you are sent a new registration with only your name as well, but memory eludes me.

 

[Mauleman]

In California the lien holder has possession of the title and the registration lists the lien holder information.

When the lien is satisfied, the lien holder processes with the DMV and you are sent the title in only your name.  I think you are sent a new registration with only your name as well, but memory eludes me.

  we are going through this right now here in San Diego... bought a La Palma from a private party in Menifee Cal and had to go to his credit union with a cashiers check so he could pay off his loan.... only problem we had was the credit union wouldn't accept a cashiers check and stated nothing could be done till the check cleared, which it did three days later...they then said it would take 7-10 days, but didn't say working days, for DMV to send the title back to the owner... this is known as the pink slip.,.. we pick up the MH on Wed at which time he signs the title over to us...we then are required to register it in our name with DMV...

 

[YLBlues]

  we are going through this right now here in San Diego... bought a La Palma from a private party in Menifee Cal and had to go to his credit union with a cashiers check so he could pay off his loan.... only problem we had was the credit union wouldn't accept a cashiers check and stated nothing could be done till the check cleared, which it did three days later...they then said it would take 7-10 days, but didn't say working days, for DMV to send the title back to the owner... this is known as the pink slip.,.. we pick up the MH on Wed at which time he signs the title over to us...we then are required to register it in our name with DMV...

forgot to say that my experience has only been with auto purchases and paying them off with the lender.  Waiting for the title is not an issue there, like it would be if waiting to take the new toy home.

 

[Mauleman]

well the owners credit union is the worst... the teller got that deer in the headlights look when we told her we were paying off his loan and she immediately called her manager who looked just like her when we told him;... he had to call his home office to find out what to do... they told him he couldn't accept the cashiers check even though we had called his home office the week before and were advised a cashiers check would be fine... we think they lost his title somewhere along the line and had to have time to get a copy from DMV...anyway we spent the day learning systems and procedures with the owner that day and are picking it up today... so the adventure begins... i know I'll have many questions to get answered by you experts here on the site...already have read for hours old threads on stuff.... 8)