Legal Question in Personal Injury in Oregon
Who is liable
If I sell an automobile to someone, give them the signed title and
notify my insurance company but the person buyer fails to transfer the
title and is involved in a traffic
violation or accident, am I still
liable for any injuries sustained?
2 Answers from Attorneys
Re: Who is liable
In almost all circumstances I can imagine, you would NOT be liable after you sell the vehicle for injuries to third parties. If there was something fraudulent about the sale (such as a post-dated sale to avoid liability for an accident), liability is improbable. Unfortunately, if the buyer is involved in an accident and the injured third party sues for his injuries, he would have to file suit against the seller (whom the injured guy assumes is the owner, not the seller) as well, in case there were any liability for negligent entrustment (eg, for letting a drunk borrow the car) against the presumed owner. Then, you'd have to at least respond to the suit to get rid of it.
To be safe, and avoid these problems, I recommend bringing the buyer to DMV, and having the documents executed and registered there. I believe there is a registration document that is at least to be sent to DMV in the event of sale, as well as the title itself. Check with DMV.
Re: Who is liable: CORRECTION
In my first reply, the second sentence SHOULD have read "UNLESS there was something fraudulent about the sale (such as a post-dated sale to avoid liability for an accident), liability is improbable." It erroneously read "IF there was something fraudulent..."