Understanding Liability After Selling Your Vehicle: What You Need to Know
Navigating the aftermath of selling a vehicle can sometimes lead to unexpected legal and financial concerns. Recently, a situation has arisen where an individual sold their car, yet later received notices demanding thousands of dollars in damages—despite having transferred ownership properly. This case highlights the importance of understanding legal responsibilities once a vehicle is sold and the steps to take to protect yourself.
The Scenario
A vehicle owner, after selling their car, obtained a signed pink slip—serving as proof of the transfer of ownership—as well as a certificate of release of liability. The new owner kept the car for approximately a month before being involved in an accident and subsequently facing legal trouble. Unexpectedly, the seller received communication from collections agency AFNI, asserting that they owe $12,000 for damages attributed to the vehicle, even though they had already sold it.
Key Questions
-
Is it legally permissible for a collection agency to pursue the original owner for damages after the vehicle has been sold?
-
What rights does the seller have once they’ve provided proof of sale and the release of liability?
-
How should one respond to such claims to protect oneself from unwarranted liability?
Legal Perspective
Once the vehicle owner has properly signed over the title and submitted a release of liability to the DMV, they generally fulfill their legal obligation, indicating they are no longer responsible for the vehicle. The police report confirming the new owner’s registration further supports the transfer of ownership. Under most circumstances, these actions provide a legal shield against future claims related to the vehicle.
However, collection agencies or insurers may sometimes attempt to pursue the original owner if the proper documentation isn’t thoroughly processed or if there are delays in updating records. It’s essential to maintain copies of all documentation, including the signed title, release of liability, and any correspondence with authorities or insurers.
When Your Daughter-in-Law’s Situation
In her case, your daughter-in-law took the correct steps: she transferred ownership, provided proof of the transaction to AFNI, and even checked with the DMV, which confirmed she is no longer the registered owner. These actions significantly reduce her liability.
Most states recognize the importance of timely reporting of vehicle sales to prevent such issues. If all proper procedures were followed, she should be protected from these claims. Nonetheless, it’s advisable to consult with a qualified attorney familiar with motor vehicle law to review her documentation and ensure her interests are safeguarded.
Recommended Actions
- Gather all relevant documentation: signed title
