Understanding Liability After Vehicle Sale: What You Need to Know
Selling a vehicle can be a straightforward process, but it also comes with important legal considerations to protect yourself from future liabilities. Recently, a situation has come to light where an individual sold their car, yet faced unexpected financial claims due to subsequent events involving the vehicle. Here’s a detailed look at what happened and what sellers should keep in mind.
The Scenario
A vehicle owner completed the sale of their car, signing over the title and obtaining proof of release of liability. Shortly after, the buyer was involved in an accident and was found to be driving without insurance. Despite the sale, the new owner faced a claim from a collection agency demanding $12,000 in damages for the accident.
Key Details
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The original owner had legally sold and transferred the vehicle.
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They possess documentation confirming the release of liability and the police report indicating the buyer is the registered owner at the time of the incident.
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The new owner’s insurance was not in effect, and the vehicle was involved in an accident causing property damage.
Questions Raised
The primary concern is whether the original seller can be held liable or financially responsible for damages after selling the vehicle. Despite having proof of sale and release of liability, the collection agency (AFNI) is demanding payment, citing damages caused by the vehicle while under the new owner’s control.
Legal Considerations
In most jurisdictions, once a vehicle is sold and the seller has duly filed a release of liability with the DMV, they are typically no longer responsible for incidents involving that vehicle. The police report affirming the transfer of ownership supports this position. However, if the new owner was driving without insurance, and the claim is directed towards the seller, it raises questions about the comprehensiveness of the release and local laws.
What You Should Do
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Maintain thorough documentation of the sale, including the signed title and proof of liability release.
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Notify your insurance provider and the DMV about the sale and ensure these documents are properly filed.
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If contacted by collection agencies or legal entities, consult with a legal professional to understand your rights and obligations based on your jurisdiction.
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Consider seeking legal advice if you are faced with claims for damages after a vehicle has been sold.
Conclusion
While selling a vehicle correctly and filing the necessary paperwork generally shields sellers from future liabilities, it is crucial to ensure all steps are properly followed. Keep detailed records and stay informed about your local laws regarding vehicle transfers to protect yourself from unexpected claims and financial
