Car Accident and Title??

[Phill's Vette]

I reciently sold a car to one of my employees, she made payments on it and it is now paid off as of last week. The title is still completly in my name but was insured by her. Yesterday she was in a 4 car accident that was not her fault, the car will probably be totaled I'm sure.

So, the car is still in my name; should I get the title transferred to her ASAP?

Do I need to do a Notice of Sale with DMV ASAP? Anything else I need to know or do??

By the way, she is okay, just shaken up sore and brused from the seat belt. She was car number 2 in a 4 car rear-ender so the front and back of the Prelude is wasted.

Thanks for any advice ya'all may have!

[knkayotte]

When you sold the car, the title should have been transfered to her. Check out the back of the title, it has places for the seller and buyer to sign. All of this has to been done in front of a notary.

When the buyer goes over to the DMV with a properly notarized title, the DMV will issue her a new title. You don't need a notice of sale, DMV use their own numbers to calculate registration fees.

To be honest, I'm not sure what your options are now. This could get tricky.

How did she get the car registered?

[Guest UVETTYA]

Hmmm

I bought a car from a friend a few years ago, to help him out. Long story made short - we left the car in his name and I insured it with State Farm. They knew the car was in his name so I was listed as the principle driver and the policy was written in my name.

When I paid off the car and titled it in my name and tried to insure it, State Farm wanted to charge me an arm and a leg, insisting I didn't have a car insured in my name for the last 6 months, since the car was registered in someone else's name. I was only listed as the principle driver and they insisted the car as ACTUALLY insured in the name of the person who's name was on the title, and he would have been the responsible party in the event of a wreck.

When I produced the policy they wrote in my name, they had a conniption. I guess they felt the agent who wrote the policy for me had done so illegally, and they promptly insured me with no penalties for not having insurance for the last 6 months.

So I'm really not sure what the law says about all that, but maybe you should check it out with her insurance company before you stick your neck out...

[Grayeagle]

Do you have any paper?

Gotta have paper .. with signatures an stuff.

Written contract of sale and terms.

If not .. and it's verbal .. got witnesses?

Any time I sell a car on payments, I write up a contract, ..can be as simple as '<you> owe me $lots in exchange for this <beater> to be paid at <a fortune> per month until paid off, mk thx'

..signed by myself and the buyer, witnessed by notary.

Then I feel safe signin the title over .. cause I can take that contract to court if need be.

-Frank

[Eddie44]

Keith gave you good advise above. The title should have been changed when possession of the car changed. If she had been at fault guess whose pockets they be reaching into. She probably doesn't have a perverbial pot to piss in. You'd have been liable for anything over and above that insurance policy. The company may have even tried to worm out of the policy if it wasn't properly issued by their agent.

GOOD LUCK!

[ChadC]

I reciently sold a car to one of my employees, she made payments on it and it is now paid off as of last week. The title is still completly in my name but was insured by her. Yesterday she was in a 4 car accident that was not her fault, the car will probably be totaled I'm sure.

So, the car is still in my name; should I get the title transferred to her ASAP?

Do I need to do a Notice of Sale with DMV ASAP? Anything else I need to know or do??

By the way, she is okay, just shaken up sore and brused from the seat belt. She was car number 2 in a 4 car rear-ender so the front and back of the Prelude is wasted.

Thanks for any advice ya'all may have!

Number 1

you are in trouble. the title is in your name. its your car. period. who pays for insurance, gas, inspection is irrelevant.

..now because its your car the car in the number one slot can sue you to recoup damages. yes, yes I know the car in the number 4 slot is whom caused the wreck, but legally speaking the car in the number 2 slot (hers) should have left sufficient room in-between hers and the number one car.

OK reality check. Insurance companies know that its not practical to leave 100 yards in-between cars at a stop light. So they will sue (recoup loss) the number 4 car [that is they will sue the number 4 cars insurance company]. However if the number 4 car's insurance policy does not have enough insurance to cover the dollar mount of 4 wrecked cars, the number 1 cars insurance company may choose to go after her insurance for the money.

IF her insurance finds out that they can side step a lawsuit by stating "he is the owner, not my client (her) sue him."

Then your insurance company says "hey that car is not on our policy.. you will have to sue him directly"

So they (car 1's insurance company) will sue you directly.... OH? you are an owner of a company? then you have lots of assets to sell! yea! we can make money.

Remember insurance companies (aka lawyers) only go after people who have money.

Number2

when you sell a car in AZ

you need 3 things

The title signed by you. the Buyer field can be blank

bill of sale (no one needs this. this is not sent to any one. you only keep for your records)

Sold notice to DMV

The sold notice is to protect YOU

here is an example..

you sell a car. the buyer never signs the title and AZ thinks you still own the car.

the buyer murders 1000 women and children using your car.

the police come after you.

.....moral of the sotry....

if a buyer is lazy and never signs the title, and submits it to the DMV how does AZ know you sold the car?

they do by you sending in a Sold notice.

here is the online link

https://servicearizona.com/webapp/snotice/

it take about 30 seconds to do.

HERE is a PDF of a bill of sale

http://mvd.azdot.gov/mvd/formsandpub/viewP...FormInfoKey=792

my stories are a bit "over the top" but with lawyers and money, they do whatever they want to get paid.

cheers

cahd

[az57chevy]

my guess is the new buyer couldn't get their own financing?

If so you can't transfer the title without the lien holder's permission (not usually likely)

Words to the wise for the future

[Phill's Vette]

Thanks for the input! Yeah, not a smart thing on my part... I got the title transferred over a few days ago but will have to wait and see what happens. I'll update.

Thanks!

[Phill's Vette]

Update. It was to late to change over the title so it stayed in my name. My employee who paid for the car a week before the crash, got a lawyer for her injuries, but they could not do nothing for the car because its in my name. I dealt with the insurance companies. the main (one was State Farm - VERY good company!) and the repair costs were $6,800 so it was totalled and they cut ME a check for $4,600 which i gave to my employee as she did pay off the car before the crash. She is happy - made $1,200 off the car because I sold it to her for $3,400b But, I get to switch the new custom rims and tires for the stock one's that I replaced 4 months before selling her the car and the alarm system I had installed. So, both of us came out ahead aside from her "injuries" that the lawyers are MILKING

I'm just glad it went this well; could have gone way bad....

Thanks All!

[Guest UVETTYA]

Wow, glad it worked out. I honestly thought you might get the short end of the stick.

[nort99]

Glad it turned out well for you both... That really surprise's me. That just goes to show you what a old plumber knows. :D

[Bigfoot]

[P51tj]

Good news indeed!