It looks like Friday I will be the owner of a C5. I do have a question though. I'm going to fly in and drive the car home. Now the person has a loan on the car with a local bank and he has a pay off on it. The bank has the title at their office. The plan is to pay cash for the car, then the seller will payoff the car and obtain the title on the spot. Here's my question.

1) After the bank signs over the title to the seller, will he be able to sign the title over to me and let me leave with the title?

-Or-

2) The bank signs over the title to the seller. He sends the title to the DMV and obtains a new title stating he is the owner. He then signs the title over to me and fed ex's it to my home. I sign the title and take it with me when I get the car registered in my state. The DMV takes the title and sends a new one to me with showing I'm the owner

Not sure which one will be the correct one, but I'm assuming the latter?

 

Arrange to make the deal at the seller's bank where the title is located. The bank will take the cash they need to release the title (pay off the loan) and the seller gets the rest.

If you don't want to carry cash, your bank and his bank can set up a wire transfer of funds. It takes about 5-10 minutes to do the transfer and it only costs about $20-$25 to do. Your bank or credit union can explain the procedures. I would not carry any appreciable amount of cash for a car purchase especially flying and having to go thru airports. If your carry-on bag gets inspected, you may have to really explain what you are doing with all that cash.

Once the bank signs off on the tite releasing their interest as legal owner, the part of the title showing the new owner has to be filled out. Get a copy of the bill of sale, the current registration and the signed off title. That will be your proof of ownership if you get stopped along the way. That is all you really need (assuming that the seller's state doesn't immediately require the plates to be returned)

Once you get home, take that title, bill of sale and registration to your CMV and they will issue you new plates. If you took out a loan to get the car, the new legal owner (bank, etc.) will get the new title.

 

oak

 

X 2

well said

 

My bank has a location right next to his. My plan was to fly in then goto my bank to get the cash. I'm not going to finance, so the title should be going directly to me. So there is room on the title for it to be signed over twice? Once to the seller then once to me?

 

Just to add

It should be number 1.

If the title has a lien on it the bank will you give you a lien release along with the title. When you hand in the title and lien release to your motor vehicle you will get a clean title back in your name.

It would only be number 2 if it wasn't a local bank.

Some states are a little different so I would get a bill of sale from your town and let him sign it.

 

The title should already be in his name you don't sign it twice.

 

Gotcha. So the title is never in the name of bank. I thought once you get a loan, the name that goes on the title is the banks. This makes sense now. So all he does is just sign it over to me. I thought this is how it works and unfortunately this is how my bank explained it to me. "The bank is the owner of the title, therefore if his bank was bank of america the title owner would read "Bank of America".

Thanks Guys!

 

My question would be, Are you sure the title is actually at that bank location or being stored at a central location with all the titles that bank is financing??? Then you would have to wait until the title is sent via mail .

 

The title is arriving at his credit union today or tomorrow. They had already requested the title be sent to the bank.

 

Even if there is a loan on the car the title will be in his name. The bank might have a lien on it, if thats the case you will get a lien release along with the title. You take both the title and lien release to your motor vehicle, and you will get a clean title in your name.

 

No need for second signatures. Once the bank releases their interest by signing in the spot for "Legal Owner" and the seller signs off as the "Registered Owner", the title becomes sort of a bearer instrument. There should be a place on the title for the assignment of the new owner showing your name and address as well as the seller's.

Titles are pretty much the same in the different states in terms of information. Also, the seller will be required to write down the odometer reading at the time of the sale. That's a federal requirement. The "Legal Owner" is the name of the bank as leinholder if there is a loan outstanding, The seller's name will usually be shown as the "Registered Owner".

 

c4cruiser is right, I did the same thing minus the flight to pick it up. The only thing that I would add is that have the seller or yourself to contact the sellers bank, and make sure that they can issue a lien release that day (some banks need 24+ hours) and make sure they will accept whatever means you are going to pay off the lien. Good luck and dont get frustrated (like i did) the vette will come!

 

Thanks for all the great info. I will make sure and discuss this with the seller tomorrow to make sure we will be set for Friday.

 

Make SURE you have the current owner fill out EVERTYHING. Make sure your name, address, etc show up, and make sure to sign it if it's required. My son got a car from a guy in Arizona (we live in Indiana) and he got stopped in Illinois. The title did not have his name & info on it. This is called an "open title", and is illegal in most states. He got a ticket for it, and it turned out to be a felony in Illinois. He also got ticketed for not having a plate. He had to hire a lawyer and go to court. He got the open title charge dismissed, but it still cost him $750 for the lawyer, $50 for the other ticket and a day's pay for taking off work.

 

I sell cars in Indiana, so make sure when he signs his name as seller, he signs his name exactly as written on the title..I had the owner on my C4 add his middle initial when he signed off, but the title said his first and middle name. Believe it or not the liscense branch could have made me go chase him down for an affadavit...but I already had him sign one saying he made a mistake...

 

The title will already be in the sellers name---the bank will sign that the lien has been satisfied. It will not be available to him immediately---they usually send it to them. Once you get the title you can then take it and get it transferred. Are you planning on transferring and getting a plate right away? You will take it to a title station or AAA. They will need your proof of ID and insurance to transfer title and issue plates or transfer existing ones (if transferring---bring the old registration). They will give you your temp tag and pink slip then the electronically file with the title for you and you will receive your new one in the mail. AAA requires title transfers to be notarized---I think all transfer stations and states require it. He can send you the notarized title--he does not have to be there with you.

Good luck

 

Smooth transaction with the title in hand! Thanks for the advice everyone!