Legal Question in Business Law in California
Can't get a title for a recently purchased car
My husband and I purchased a vehicle May 5th and was told by the seller that we would need to wait approximtely 10 days for the lein to be satisfied. When that time-frame expired, I placed several calls and heard back from the seller May 22nd. She indicated the bank would be releasing the lein promptly. Waiting a few additional weeks, my husband called the seller today (6/14/06) and was told that she had been waiting for a letter indicating the loan was paid in full and she would fax that document to him upon receipt. Not trusting what the seller was telling him, my husband called the bank and spoke to the DMV representative who told him the loan had not been satisfied. I'm in posession of a copy of the cashiers check (made payable to the financial institution)and I too also spoke with the same DMV rep. who indicated the lein was still intact - she requested that I contact the owner and have her call to discuss. We like the vehicle and have paid the taxes and purchased new tires. I've discovered that the seller should have also had the smog testing done and she did not. We're new to California and are still learing the ropes. At this point, what's our recourse/next steps? Thanks so much!
2 Answers from Attorneys
Re: Can't get a title for a recently purchased car
See if the bank on which you drew the cashier's check has satisfied the check. If not, stop payment on it and have the bank issue another check. Then take it directly to the lender. Good luck.
Re: Can't get a title for a recently purchased car
The lien may have been larger than the amount of the check by the time the check was tendered.
In its simplest terms, this case is a breach of contract. You agreed to pay a certain sum, on behalf of the seller, in exchange for clear title to the car. You didn't get clear title. You should consider a small-claims suit against the seller and the bank (which appears to be a third-party beneficary of the contract between the seller and you). The small claims limit is $7,500 plus costs. You should be able to get a judgment requiring the seller to pay the remaining balance to the bank. The bank may have a defense to your money-damages claim against them, but in simplest terms you paid for a car and the bank is holding the title. Naming it as a co-defendant may help get its cooperation in settling out of court before trial.
You can get a paperback book on how to prepare, file, and win a small claims case.
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