Legal Question in Civil Litigation in Texas
Lien on Automobile in Texas
Before my father died, he gave me a car and the title which was in his name. There were no lien holders listed on the title. I sold the car to a financial institution (bank).
Now the previous owner says that my father owed him money on the car and is threatening to file against me if I don't pay what he claims my father owed. He also says that I sold the car illegally. How can I know if he has a legal claim to the money? or if there was a formal lien placed on the car?
2 Answers from Attorneys
Re: Lien on Automobile in Texas
You would know if the former owner had a claim against your father if he showed you some documentation that your father had used the car as collateral for the loan. When banks or finance companies do this, they take the title. That's one reason it's called a secure loan. If the former owner doesn't have this proof, what is going to file? -- and where? Sounds like he is blowing smoke to me.
Re: Lien on Automobile in Texas
If he had a formal lien it would have been shown on the title.