Understanding Liability After Selling a Vehicle: What Sellers Need to Know
Selling a car can be a straightforward process, but complexities can arise if you’re not fully aware of your ongoing responsibilities. Recently, I came across a case highlighting some critical points that every vehicle seller should consider, especially concerning post-sale liabilities.
The scenario involves a seller who transferred ownership of her vehicle, complete with a signed pink slip and proof of Liability Release. Despite completing these steps, the seller received a notice from a collection agency demanding over $12,000 for damages linked to an accident involving the vehicle—a car she had already sold.
The Situation Explained
In this particular case, the new owner was involved in an incident that resulted in legal repercussions and damages. Interestingly, the seller provided documentation such as the signed Pink Slip and a police report indicating that the vehicle was registered to the new owner at the time of the accident. She also notified AFNI, the collection agency, of her relinquishment of ownership and confirmed she was no longer responsible.
Further, she visited the Department of Motor Vehicles (DMV), which confirmed her status as no longer being the registered owner of the vehicle. Despite this, AFNI continues to seek payment from her, alleging she owes for damages.
Is This Legally Valid?
Legally, once a vehicle is properly transferred and the seller has submitted a release of liability, they generally are protected from future claims regarding that vehicle. The key steps include:
- Signing and submitting a pink slip or title transfer to the DMV
- Notifying the DMV and any relevant agencies of the sale, including the release of liability
These actions serve to inform the state and third parties that the seller no longer owns or is responsible for the vehicle. However, complications can sometimes arise if the proper procedures are not followed or if there are delays in processing.
Important Considerations for Vehicle Sellers
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Documentation Is Crucial: Always retain copies of the signed title, proof of transfer, and any correspondence with authorities or agencies. These serve as evidence that you sold the vehicle and fulfilled your legal obligations.
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Notify Authorities Promptly: Submit the release of liability immediately after the sale. Some jurisdictions have online forms or specific processes to ensure your name is removed from the vehicle’s record.
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Follow Up With DMV: Confirm in writing that your name has been removed from the registration. This can prevent future liabilities.
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In Cases of Accidents Post-Sale
