Legal Question in Personal Injury in California
I am selling my car and the person interested in the car wants to take over my payments without taking a car loan , so the car will remain in my name. The person will be getting insurance for the car and himself. We can change the name on the registration to be his an dI will be signing a contract with him transfering all the responsibilities of the car to him and freeing myself of any liabilities.
After all of the above is done, how liable would I be if this person gets in an accident and someone gets hurt?
Thank you
2 Answers from Attorneys
I'm concerned that if the other person stops paying on the loan, you'd still be saddled with the payments -- unless the lender agrees to the change, as well, and agrees that you'd be out of it. Short of that, it's not a great idea, because you'd be taking a huge financial risk.
You can't do what you are describing. First off you can't have the car in your name and change the DMV registration. The DMV registration is what being in your name means. Next, no insurance company will insure a car that the insured does not own. So unless you transfer title to the buyer, he can't get insurance on it. BUT your lender will not let you off title and him on title unless they are paid off, and you can't do it without them, because they hold the registration (pink slip). Find another buyer.
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