Legal Question in Real Estate Law in California

bought a vehicle from a private party title reg in there name clear title get a call from a dmv investigator that vehicle is on hold come to find out the the register owner prior passed away and supposedly left them the vehicle from whom i purchased it from the family of the deceased man was the one who put a dmv hold on it they say they have the title and that the people i bought it from fraudently duped the title and they now want the vehicle back i had retailed the vehicle already to another person i am a auto dealer i have spoken with police and dmv investigators the police say i have done nothing wrong dmv tried to say the vehicle is stolen but now they say it is not the police have written a letter to dmv to lift the dmv hold which they now have but i am to appear in court to have a hearing with the family of the deceased man the lawyer tell me i am not to sell the vehicle but that is to late i am trying to see where i stand to me it sounds like a civil matter between the family and the gentleman that sold me the vehicle

Asked on 8/17/10, 12:52 pm

4 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

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The person who bought the vehicle from you has clear title pursuant to the Uniform Commercial Code, because he is a Bona Fide Purchaser (BFP) and you are an auto dealer. The general principle is that a merchant who acquires goods with a defective title can deliver good title to a BFP (a BFP is an innocent third party who pays value for the goods and who does not have notice of any defect in the title). As to you, you are correct in that the dispute is, or ought to be, between the estate and whomever sold you the vehicle. Good luck in court.

Answered on 8/22/10, 1:08 pm

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Bryan Whipple Bryan R. R. Whipple, Attorney at Law

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Is the court appearance pursuant to a subpoena or a warrant? The former usually identifies the matter as civil, whereas the latter denotes a criminal proceeding. In either case, don't fail to appear, bringing your entire file on the matter.

Also, I'd be cautious about applying the "bona fide purchaser without notice of title defect" theory. The title to an automobile is searchable and it seems possible to me that the buyer has constructive notice of title defects. Also, the Uniform Commercial Code is sometimes not applicable to vehicle transactions, where it may be superseded by conflicting provisions of the Vehicle Code.

Obviously, I have not done any research on this question.... the aforestated cautions are based on recollections from previous cases, years ago.

Answered on 8/22/10, 1:21 pm

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