Sold my car signed pink slip also have proof of release of Liability. Guy got into an accident didn’t have insurance now AFNI is sending something saying I owe them 12k for damages on a car he hit with no INSURANCE. Even though I had already sold him the car prior. Is this legal?

Understanding Liability After Selling a Vehicle: Legal Considerations and Best Practices

Selling a vehicle can be a straightforward process, but complications can arise if the vehicle is involved in an incident after the sale. Recently, there have been reports of former owners being pursued by debt collectors or insurance companies for damages caused by a vehicle they no longer own. If you find yourself in a similar situation, understanding your legal rights and the steps you’ve taken can help clarify your liability.

Case Overview

In one instance, a car owner sold their vehicle, complete with a signed pink slip and proof of release of liability. Despite transferring ownership, the new owner was involved in an accident and subsequently faced legal and financial repercussions. The original owner received notices demanding payment for damages, even though the vehicle had been sold prior to the incident.

Similarly, another scenario involves a mother-in-law who sold her car to a buyer. After the sale, the buyer was involved in an accident and was arrested. The former owner provided the necessary documentation—such as the release of liability and police report—to insurance agencies and DMV authorities, confirming her lack of ownership at the time of the incident. Nonetheless, she received notices indicating that she might still be financially responsible.

Legal Implications of Vehicle Sales

Ownership transfer procedures are crucial in establishing your liability. Generally, once you sign over the title and file the release of liability with your state’s DMV, your responsibility for the vehicle ends. However, complications can occur if:

• The transfer was not properly documented or processed.
• The DMV or insurance companies fail to update their records promptly.
• The new owner misuse or fails to insure the vehicle.

In many jurisdictions, the key document is the signed title and proof of filing a release of liability. These serve as evidence that you are no longer the owner. Nonetheless, some entities may still attempt to pursue former owners, especially if the transfer was not effectively recorded.

Best Practices to Protect Yourself

To minimize the risk of future liabilities after selling a vehicle, consider the following steps:

1. Complete the Transfer Properly: Sign over the title, and ensure all required fields are filled out correctly.

2. File a Release of Liability: Submit this form to your DMV or relevant agency promptly. Keep copies for your records.

3. Confirm Record Updates: Follow up with the DMV to verify that the vehicle’s record reflects the transfer.

4. Notify Your Insurance Provider: Inform your insurer once the sale is finalized, and verify that coverage has been discontinued.

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