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  1. #1
    Join Date
    Nov 2008
    Posts
    1

    Default Selling Car to Son - How to Title/Lien

    My question involves vehicle registration or title in the state of: Texas

    I am selling a 1996 Toyota Camry to my 20 year old son. The purchase price is $3300. I am self financing all but $1200. He does not have a stellar record with regard to repaying me for debt that he owes. I would like to make certain that I have some recourse in the event that he fails to repay the loan. I intend to have him sign a promissory note that lists the vehicle as a security interest. He will be providing full insurance coverage on the vehicle under his own insurance policy.

    My questions are:

    1) Should I show him as the owner of the vehicle and myself as the lien holder on the title or list both of our names as owners on the title, with no lien.

    2) If both of our names are on the title, can I legally sell the vehicle without his consent/signature?

    3) If I show myself as the lien holder, what is involved in repossessing the vehicle should he fail to repay the debt.

    4) If I show both of us on the title as owners, what are the potential ramifications to me, personally, should he be involved in some sort of serious at-fault accident?

    I have attempted to keep this a short as possible, but still provide enough information. If more info is needed, please let me know. If these questions are better suited for a face-to-face with an attorney, please advise what type of attorney would be most capable.

    Thank you in advance.

  2. #2
    Join Date
    Jan 2006
    Posts
    38,648

    Default Re: Selling Car to Son - How to Title/Lien

    1) Should I show him as the owner of the vehicle and myself as the lien holder on the title or list both of our names as owners on the title, with no lien.
    that is up to you but if you title in both names, you have 2 ways of doing it; "or" "and". If it is or, either can sell the car without the others signature. If it is "and" neither can sell it without the others sig. Tough situation when somebody is pissed at you.

    2) If both of our names are on the title, can I legally sell the vehicle without his consent/signature?
    see above. (he can do the same thing though)

    3) If I show myself as the lien holder, what is involved in repossessing the vehicle should he fail to repay the debt.
    repo actually has nothing to do with the lein. What the lein does is prevent the title holder from selling the vehicle without the lein being released.

    4) If I show both of us on the title as owners, what are the potential ramifications to me, personally, should he be involved in some sort of serious at-fault accident?
    It will make you a joint defendent in any lawsuit.



    Your contract is what allows you to, or not, repo the car. You will have to have verbiage that states when the loan is delinquent and how long it has to be delinquent for you to be allowed to repo.

    The problem is getting title in your name once it is repo'd. Not sure how to do that but I do not imagine it is a walk in the park.

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