This is from Massachusetts.
This might be long. So here it goes:
Last week, I traded my car for another, with a private person (not a dealer). It was a straight trade involving 2 vehicles. One running one (my mazda) and his non-running one. I understood all the problems with his non running car and was planning on making it a project. So the condition of the car is no a problem, or the issue.
However, recently while attempting to register my new car, I was shocked to find that I cant register it. The previous owner never registered it himself, and the title is still in the name of the owner before the person I bought it from. However, the back of the title was filled out, in effect transferring ownership to the person I got the car from. I also received a bill of sale to go with it. I assumed these 2 things, which prove that the past ownerships of the car, will be enough to prove that I now own it. So I didnt think twice of about this. He even stated I just bring the title and bill of sale and everything should be fine.
What I latter learned was, that the person I got the car from, never registered it, and thus, never paid the sales tax. The insurance agents (2 of them at 2 different locations who both told me the same thing) told me I wont be able to register this car, until its brought up to date. As in, The past "owner" registers it, pays the tax, than signs the clean title over to me, and that he was not legally able to sell a car like this.
When I contacted the seller, he informed me that 1: The trade was as is. And I am now responsible for his debt on the car. And 2: that I should still have no problems as long as I show both the bill of sale and the title. I did that, and its the same story. What it boils down to at the end, is he was not legally allowed to sell the car at all until he registered it. It would have been one thing if he had left the back of the title blank (thus allowing me to sign my name, in effect, bypassing the seller all together and making it as if I bough the car directly from the third party who owned the car before the seller), but he signed it. And so the transaction had to be finished.
Now to make things more complicated. While this was a direct trade (one car for another), we were not sure what to write on the bill of sale, as they needed a price. So when we traded we had to treat the trade as 2 sales. Me "buying" his car for $500, and he "buying" my car for $500. (no exchange of money ever took place)
When this whole thing started falling through with me being unable to register it, I told him to either bring the car up to date (as in me sending him the title back, he registers it, and signs me over a clean title) or return my car and I return his. He began treating the trade as 2 separate deals. Saying the mazda is his and no matter what, its a done deal in regards to the mazda, and that he wont be returning it. I told him that even if we do treat the issue as 2 separate transactions (which they were not, and i stated this as well) it would still be cheaper to just register the car and sign it over to me, rather than me going to court and forcing a return of his car for the $500 i "payed" for it, which he cant afford.
However, after talking to his lawyer, he offered to register the car and send me a clean title, but ONLY if I send him $50 to help him with the expenses of it all because he cant afford it, stating that he doesnt even have to do that because he is protected by the "as is" sale.
Now I believe the "as is" applies ONLY to the condition of the car (which I agreed to) and not to any past debts owed to the state on it (please correct me if im wrong). Because the bottom line is, I cant register it. That must be illegal in itself to sell a car the buyer cant register. And I feel I should not be held hostage like this and pay for something that is purely his responsibility.
So what are my options? I have email correspondence establishing the fact that this was going to be a trade. With info being exchanged on both cars, and both of us agreeing to a trade. My last.."ultimatum" to him has so far gone un-answered.
Do I call the police and press charges? Was this fraud on his part? If I do call the cops, will this "contract" be declared void? And I get my car back, and he gets his? Or will I need to go through small claims or something? Can I drop charges if I press them, if he agrees to bring the title up to date on his own expense? (he has a small child...im angry, but not heartless enough where I put the father away for a time).
Also, to make things clear, THIS IS NOT BUYERS REMORSE! I DONT WANT MY CAR BACK. I would much rather have his. But if it boils down to me not being able to register it, than yeah I would need my car back. So this is not an issue of buyers remorse or anything. I would prefer to keep his car.
Thank you.

