Lien Release Woes

NYSpeed Automotive
1

So, a bit of background before I ask my question…

I’m selling my 06 Sentra, and have already found a buyer for it. However, the car HAD a lien on it from me taking out a loan. I paid off the loan in full at the beginning of the month, and am in the process of receiving the lien release letter now. I have spoken with Nissan Finance a few times and they said that the lien release package would be mailed out tomorrow (9/22).

The kid who is buying my car (19 years old) secured a loan on his own through a bank about 2 weeks ago; the bank told him he had to wait until the 22nd to get the check. So he will have the money for the full purchase of the car tomorrow, and is eager to buy (makes sense). However, he obviously cannot register the car until we get the lien release, but he wants to take delivery of it, and pay me in full for the car, finalize the bill of sale, complete the transaction.

If we do this, I plan on picking up my new car (which should be ready) with the money from the sale of the Sentra, taking the insurance off the Sentra and putting it on the new car, and taking the plates and registration sticker off the Sentra.

Where I’m worried is that this kid will take the car out before it is registered and crash it/get pulled over, and the car will technically still be in my name because he has not registered it yet. What liability do I hold in this case, and what am I responsible for?

For the record, I don’t mind waiting until the letter comes, but he is anxious to get the car, and I wouldn’t mind having the new car sooner to chase down any existing issues, if any.

Do I tell the little fucker to stuff it and wait, or do I toss him the keys, pull plates/insurance/reg sticker off the car, and make it his problem/responsibility to worry about?

Thanks in advance NYspeeders.

2

I wouldn’t do it myself, JMHO. But if you were to sign over the title, get a signed bill of sale, turn in your plates and in drop your insurance on the car I don’t see how you could be liable. At that point you are no longer the owner technically, as I understand it anyhow. Note: I’m not a lawyer. LOL

3

You’ve got no worries. pull your info off the car (reg, insp,plates) have him sign a receipt and let him have it. keep a copy of the receipt for your self. i’d mark the mileage at the time of delivery on both receipts. He does NOT need a lein release to register the car. He can register it with your lein (send him the lein realease) and just hold on to the lein release till he gets rid of the car.
might want to send lein rel certified to make sure he gets it

4

^ This guy knows what he’s talking about.

5

Good to know. I didn’t know you could register with a prior lein. So the lein only affects the title change then?

6

the only thing that you can gain by giving him the car is avoiding the loss of the sale. Will he drive the car? probably, he’s 19.

7

I didn’t know it either, but Pauly knows his shit when it comes to DMV stuff.

8

Yeah you can re-title the car into your name, but the lein stays. The only problem with the lein staying, is that it usually means there is an existing loan on the car, and when the loan stops getting paid, they repossess your car.

Either way, pull the insurance and registration. That absolves you of most responsibility. Anything else they try and hit you for, you just show them the bill of sale.

9

my car is already paid off, the account has been closed on the finance website, so the kid has no chance of getting it repossessed.

thank you nyspeeders for the reply, this has been bothering me for 2 weeks figuring out how to make it work, i can finally relax now.

10

Yeah, the only one in this situation who could get screwed would be him, not you.

If you lied and told him it was paid off and it was registered under his name, now you can stop paying the loan. Lol.

11

Heh, i should have done this shit 3 years ago