Selling a car question...who to sign title over to?

I'm turning my S2000 over to the new owner today and have a question about who I should sign the title over to? Originally he had a "old used car" loan from Viewpoint bank but they later told him they can't since it's over 100K miles. Then he applied for a personal loan which the seller said is unsecured. The bank will deposit the money into his account when the loan is funded and he said he's giving me cash.

If he's providing me cash/cashiers check in his name directly to me I sign the title to his name, not the lienholder/bank correct? He's meeting me at MY bank to verify the funds are legit and sign the title over.

Thanks in advance.

I would say you sign it over to him and I'm sure his bank will make him sign it over to them before they give him the funds. It does sound strange that he will be giving you a cashiers check PRIOR to the bank funding the loan.

Yep. If the person giving the loan needs the title they're responsible for getting it from him.

Also, make sure you get a bill of sale, and fill out the Texas Title Transfer Form and the Transfer Notification are filed:
http://www.txdmv.gov/vehicles/titles/title_vehicle.htm

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Originally Posted by Flyin96M

I would say you sign it over to him and I'm sure his bank will make him sign it over to them before they give him the funds. It does sound strange that he will be giving you a cashiers check PRIOR to the bank funding the loan.

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Sorry I may have written that wrong. His bank is funding the loan by depositing the $ into his bank account. He's then withdrawing the cash in the form of $ or cashiers check to pay me.

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Originally Posted by goofygrin

Yep. If the person giving the loan needs the title they're responsible for getting it from him.

Also, make sure you get a bill of sale, and fill out the Texas Title Transfer Form and the Transfer Notification are filed:
http://www.txdmv.gov/vehicles/titles/title_vehicle.htm

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Thanks! Very helpful. Is there a standard bill of sale to use? Do I take my plates or leave them with him?

Still sounds strange that his bank would give him the cash without having the title, but as goofygrin said just take the cash and let his bank sort it out.

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Originally Posted by CosmosMpower

Is there a standard bill of sale to use?

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Here's a generic one I've used a few times before.

+1 on what goofy said. If he has a valid cashier's check, you have no responsibility for the titling process or accomodating any potential leinholder. Simply CYA by verifying funds with your bank (ask them if they are positive, so they don't try to come back on you if the cashier's check is fraudulent) and having the buyer sign both the bill-of-sale and the TXDOT Title Transfer forms before you give-up the title. Since you're at your bank, I'd get the BOS notarized.

After that, you are pretty much in the clear no matter what the guy/gal does with the car or the loan. Congrats on the sale, though its sad to see such a clean car go. What's next?

Oh one other thing the state recomends is to take the license plate and scrape the sticker to make sure the new owner titles the car in their name. Your local tax office can give you a temporary tag for them to use that is only good for 5 days. They will also allow you to use the old plate and remaining registration on your new car for $5 transfer fee.

On that bill of sale it looks pretty good, but it should include the statement "as is where is" to further protect yourself.

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Originally Posted by Flyin96M

Oh one other thing the state recomends is to take the license plate and scrape the sticker to make sure the new owner titles the car in their name. Your local tax office can give you a temporary tag for them to use that is only good for 5 days. They will also allow you to use the old plate and remaining registration on your new car for $5 transfer fee.

On that bill of sale it looks pretty good, but it should include the statement "as is where is" to further protect yourself.

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Which sticker are you referring to? How do I "scrape" it?

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Originally Posted by OZMDD

+1 on what goofy said. If he has a valid cashier's check, you have no responsibility for the titling process or accomodating any potential leinholder. Simply CYA by verifying funds with your bank (ask them if they are positive, so they don't try to come back on you if the cashier's check is fraudulent) and having the buyer sign both the bill-of-sale and the TXDOT Title Transfer forms before you give-up the title. Since you're at your bank, I'd get the BOS notarized.

After that, you are pretty much in the clear no matter what the guy/gal does with the car or the loan. Congrats on the sale, though its sad to see such a clean car go. What's next?

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Got it, will def get the BOS notarized. I asked him to meet me at my bank to verify the funds before I sign everything over, I'm all about CYA. I'm a bit sad to see it go too, will be hard/impossible to replicate the same car in the future with all the nice parts from various model years and meticulous maintenance from Clovis and myself.

Will be buying either a 335 coupe or 135i to replace it. Looking forward to the quiet cabin, instant torque and tech goodies. I'll still have the Elise to play with when I want a noisy, high revving fun handling roadster.

I strongly suspect the state round files the Transfer Notification forms. I have sent one in promptly after selling cars, but still receive registration renewal forms, and also received a red light camera ticket for a car I had reported as sold 4 months prior to the ticket date. ::Rant::

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Originally Posted by CosmosMpower

Which sticker are you referring to? How do I "scrape" it?

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The registration sticker

Can't you keep your plates now to force the new owner to register the vehicle?

Link - http://www.txdmv.gov/protection/protect_title.htm

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License plates and registration sticker
For only $5, you can keep your plates and transfer them to another vehicle you buy or own.
Be sure to remove your windshield registration sticker. When you keep the plates, this forces
the buyer to re-title the vehicle in his or her nam

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Originally Posted by POS Racing

Can't you keep your plates now to force the new owner to register the vehicle?

Link - http://www.txdmv.gov/protection/protect_title.htm

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I probably can but how can he drive around this weekend when the DMV is closed without plates? Will probably get pulled over every 5 miles?

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Originally Posted by CosmosMpower

I probably can but how can he drive around this weekend when the DMV is closed without plates? Will probably get pulled over every 5 miles?

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If the previous owner keeps the vehicle’s license plates, you will need to download a free
Vehicle Transit Permit so you can legally drive the vehicle to the county tax office
to re-title it.

You can fill out the online form and get a temporary tag on the site I linked to above.

Just saw that, printed it out for the buyer so he can do it himself. I think I'm all set. Now to find a new car!

Had a couple of 128 loaners... not sure what the price split from 135 to 335 is, but the 128 never felt any smaller or lighter than my 328 WAGON, but it was definitely noisier, rougher and the interior felt cheaper. YMMV, but i'd go 335. Actually, I'd go 328, since ya can't get the 335 wagon stateside... I try and keep my friend with the m3 nervous with the knowledge that his drivetrain will fit nicely in my wagon...

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Originally Posted by Flyin96M

Still sounds strange that his bank would give him the cash without having the title, but as goofygrin said just take the cash and let his bank sort it out.

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He said it's a personal loan. If he used something else as collateral , or just his credit alone I guess, he doesn't need to give them the title. That's how it was when I bought my Z in NJ in 1998. I got a personal loan using my other car as collateral (or whatever they call it when you have a crappy credit score) so the Z title was all mine.

Obviously things have had more than enough time to change, but that's the only experience I have with a personal loan on a vehicle.