Legal Question in Civil Litigation in California
Sold car, but I am still listed as registered owner
I entered into an agreement with a friends that would allow theme to pay the monthly car note and insurance premium, but the car is still registered in my name until final payment for the balance has been made. There were several stipulations that they must not allow others to drive the car, maintain the vehicle in the condition in which I sold it to them, pay parking fines, and do all things reasonable to not have the car stolen, broken into, or get into an accident. I took repossession of the vehicle yesterday, because they had not paid parking fines from a year ago, maintained the condition of the car, had allowed others to drive the car, and drive with open alocohol containers. They always paid on time. Now their lawyer has contacted me stating that I have to give back car (this month's coverage ends on the 12th). I said I won't do so until they get their own insurance, and register the car. I am within my rights? Also, can I make them get their own financing? I don't want to continue with the liability exposure.
2 Answers from Attorneys
Re: Sold car, but I am still listed as registered owner
It was a potentially serious mistake to have permitted
the buyers of the car to leave your name as the
registered owner. The only advantage to that would be
that it was easier for you to repossess the car
than it would have been had you permitted the buyer to
change registration. On the other hand, the
registered owner of the car is statutorily liable
under certain circumstances for accidents in which the
car is involved, and the registered owner could be
liable beyond that under such theories as "negligent
entrustment." My rule of thumb: as soon as a car
leaves your possession file the appropriate documents
with the DMV to remove yourself from the registration.
Re: Sold car, but I am still listed as registered owner
You are within every right to demand that they register the car in their own name, provide their own insurance and finance the car in their name. You were extremely gracious to do them the favor of not requiring this in the first place. Even though they paid for the insurance should there have been an accident and the insurance not been adequate you could have been sued. Their attorney should make no demands until these conditions have been met. If you need an attorney to insist on this point for you I would be happy to help. I doubt that it would take more than a letter and a few calls to settle this matter. If you would like a free consultation on your rights and the next course of action please feel free to contact my office at 888-563-8529. I look forward to speakin with you.
John
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