Legal Question in Civil Litigation in New York
Private auto sales problem
I recently sold a car via private sale. The car was in an accident in the rear passenger quarter panel, which was covered and repaired as per the insurance co. estimates. One week after the sale, the buyer called to notify me that the rear differential was faulty and would need approx 1000.00 to repair. During the sale of the car I let the buyer know about the accident, and described as best as possible the extent of the damage. Apparantly the rear diff was replaces using a salvage yard part that was OK'ed by the insurance co. The buyer wants to reverse the transaction, however has taken full possesion and insured and registered the vehicle. He mentioned that he called a 'title' company that stated he could have the transaction reversed if information about an accident and subsequent repairs was withheld. I was unaware of the Supplemental Claim for the rear diff as submitted by the collision shop, and thus had relayed as much info about the accident as possible, What are my responsiblities to the buyer? Can the transfer of title be reversed under these circumstances? Any other things I should consider?
2 Answers from Attorneys
Re: Private auto sales problem
If you told him about the accident, then it was his responsibility to take the car to get it checked out before buying it. It's his car now. You have no further obligations to him. You may have to decide if it's worth your stress to deal with an unsatisfied buyer, but even if he sues you, no judge should make you pay for additional repairs. I imagine the worst case scenario (in Court) would be that the transaction is voided and the car is returned to you in exchange for the money. If you didn't do anything wrong, don't be intimidated by his threats.
Jason L. Stern
212.208.2470
Re: Private auto sales problem
If you have sold three or more used vehicles within the past twelve months, you would be considered a "dealer" under used car "lemon law." I assume you are not.
In a purely private transaction, the smart practice is always to give a Bill of Sale which states the vehicle is being sold "as is," which is generally sufficient legally to disclaim any warranty. If you didn't do that, then it's left open to the local small claims court to sort it out. I'm not aware of any law specifically requiring a private seller to disclose a prior accident with the vehicle. There is an MV form (which I believe is a public record in Albany) which you were required to have filed concerning the accident (basically stating whether or not the repairs were actually made); I wonder if that's what he's saying you didn't file.
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