When you buy a used vehicle and receive the title, are you in the clear? Well, there may be scenarios where you are handed the title for a vehicle, but you still run into major problems. Here’s an example from Hawaii where a buyer purchased a used truck for $10K and ended up with a title problem, even though they were handed the title. How does that happen?
We’ll dive into this case and some other scenarios where you may be handed a vehicle title and it still not be valid. In this case, the buyer realized after the transaction that the name on the title was not the person who sold him the truck, the signature had been forged.
A forged vehicle title is one that has been improperly signed yet misrepresented as authentic. For example, let’s say the front of the vehicle title lists Joe Smith as the owner. You purchase the vehicle, but on the back, they sign the title with a different name, John Jones. Now, this title is invalid because the owner on the front of the title is the only person authorized to sign the title over to a new owner. It’s not necessarily stolen, but it’s a forged vehicle title. Oftentimes to check for a forged title, buyers will look for theft records, but there may not be a theft record if the title is simply forged.
Referencing the Hawaii case from above, in addition to the signature on the title being forged, the title that was produced wasn’t even the original or current copy. A dealership has owned the truck previously and sold it at auction to a third party. However, the title that was produced was a duplicate of the original title and was not the current version according to the DMV. How does this happen?
Let’s say you have a vehicle that is titled in your name and you get a loan for that vehicle. Before you get the loan, you get a duplicate title. The duplicate title is now the valid title with its own unique title number, while the original title is now void. You take the duplicate title to your lender (non-title-holding), get a lien placed on the title, and the lender holds your duplicate title. However, the old title will still look completely valid, even though it is not. Bad actors will often use this to their advantage to defraud buyers by providing a voided title that looks 100% valid. When that vehicle is sold with the voided title and the buyer takes the title to the DMV, they’ll be turned away because the title they have is not the current active title. Titles issued subsequently will void all previous titles.
It’s nearly impossible to know if a title is current just by looking at it unless you’re already the titleholder with knowledge about the vehicle. One of the best ways to avoid forged titles and title fraud is to do the transaction at the DMV. The DMV can look it up right then and there to tell you if it’s a valid title. Additionally, you can use an escrow service that will hold the money until the title is transferred into your name. There may be other methods to use, but first, check with a qualified attorney.
A vehicle title is a legal government document that is taken very seriously by federal and state agencies. Make sure that the person selling you the vehicle is the person signing the back of the title. You may choose to check their photo ID at the time of the transaction to confirm their identity. Verify that the title number is current and not an old title. Remember that any vehicle title issued subsequently will void all previous titles.
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Order Vermont Title LoopholeOrder Deceased Owner Title TransferOrder Bonded Title ProcessOrder Abandoned Vehicle ProcessOrder Prior Owner ContactOrder Lien Release Request LetterPGlmcmFtZSBzcmM9Imh0dHBzOi8vYXBwLmFjdWl0eXNjaGVkdWxpbmcuY29tL3NjaGVkdWxlLnBocD9vd25lcj0xOTQ4ODEyNiZhcHBvaW50bWVudFR5cGU9MjMwNjY0MTAiIHRpdGxlPSJTY2hlZHVsZSBBcHBvaW50bWVudCIgd2lkdGg9IjEwMCUiIGhlaWdodD0iODAwIiBmcmFtZUJvcmRlcj0iMCI+PC9pZnJhbWU+PHNjcmlwdCBzcmM9Imh0dHBzOi8vZW1iZWQuYWN1aXR5c2NoZWR1bGluZy5jb20vanMvZW1iZWQuanMiIHR5cGU9InRleHQvamF2YXNjcmlwdCI+PC9zY3JpcHQ+
If you have a lien on your vehicle title that is old or is from the previous owner, you’ll want to get the lien released from the lender. When a lien is too old, or wasn’t yours, to begin with, the lender will not provide a lien release letter because the lien might not be paid off. Instead, you’ll want to send the lender a letter of non-interest.
A letter of non-interest is used by a lender to inform you that they no longer hold any security interest in your vehicle. A letter of non-interest is typically used when a traditional lien release letter is not applicable.
There are a variety of reasons why a lender may no longer have a security interest in your vehicle, those reasons may be:
Ideally, when requesting a lien release from your lender, you should also request a letter of non-interest. If the lender was bought out and the new company is not able to access your specific records to give you a lien release, they may not get it back to you. When requesting a lien release, always send or request a letter of non-interest just in case.
When it comes to a lien release, a letter of non-interest from your lender is typically sufficient for the DMV to remove the lien from your title.
How do you recoup your losses if you’ve worked on a vehicle, but the owner hasn’t paid the bill or picked up the car? Maybe you’ve done mechanical work on the vehicle, stored the vehicle, or it was simply left on your property and the owner never came back. Depending on the circumstances of how you acquired the vehicle, there are two options to get the title:
If you are a licensed mechanic or automotive shop, you can use your license to go through the mechanic’s lien process or storage lien process to obtain a title. In some states, the storage lien process is known as a garage keeper’s lien. These processes are similar to each other, often including similar or identical steps. However, the process to use depends on the license of the party filing the lien. Typically these processes include contacting the current owner, sending notices, posting advertisements in the Newspaper, and finally selling the vehicle at auction.
If you do not have an automotive license or storage license, you may choose to use the civil lien process in lieu of a mechanic’s lien or storage lien. Civil liens do not require the individual filing to hold a particular license. Filing a civil lien will result in many of the similar steps to a mechanic’s lien or garage keeper’s lien, but often requires the applicant to appear formally in court or informally at the local county courthouse. Depending on your jurisdiction, the court will specify the steps needed for your filing but courts can NOT legally provide you with legal advice. Before proceeding, you may choose to get legal advice from an automotive attorney or attorney of similar practice. Typically the civil lien process requires research into the registered owner, sending notices, and eventually presenting your case to a judge who will decide whether or not to issue you a new vehicle title in your name. Sometimes this process is also known as a court-ordered title, involuntary vehicle title transfer, or vehicle title by declaratory judgment.
The differences between a mechanic’s lien, a storage lien, and a civil lien rest in the party filing the petition. As a licensed mechanic or storage facility, you have the right to use your license to file a mechanic’s lien or storage lien. As a private citizen, you have the option to file a civil lien instead. However, it’s not guaranteed that any of these processes will work. Mechanic’s lien and civil liens are often abused by petitioners and are very heavily scrutinized by the DMV and other regulatory licensing agencies. If you submit a mechanic’s lien or civil lien packet and it is rejected, review your submission and try again. Oftentimes these are rejected on principle, assuming that if the filing is legitimate, the petitioner will return to re-file.
If you are looking to recoup the losses of a vehicle you’ve worked on or stored, whether you’re a licensed mechanic, storage facility, or private citizen, a lien may help get you the funds you are owed.
Military vehicles sold at surplus auctions, such as those on GovPlanet, have faced increased scrutiny in various states over the past year. A notable development in this realm comes from Colorado, where the Department of Revenue, akin to the DMV, sent letters to Humvee owners, canceling their vehicle titles and reclassifying them as OHVs (Off-Highway Vehicles).
The root cause of these changes can be traced back to federal government bulletins issued to Department of Motor Vehicles offices across all 50 states over the last 18 months. These bulletins emphasize that certain military vehicles do not meet the standards set by the Department of Transportation (D.O.T) and the Environmental Protection Agency (EPA) for highway use.
In response to federal directives, states like Colorado are taking definitive actions to comply. The Colorado DMV’s move to cancel titles and issue OHV designations reflects a broader trend. The federal government has employed financial leverage, withholding certain highway funds from states that continue to title military vehicles for road use.
For owners of surplus military vehicles, this change has significant implications. The vehicles, initially considered roadworthy, are now being redefined as off-highway vehicles. While some states may allow exemptions for historical purposes, such as parades or museum displays, regular everyday road use is being restricted.
In Colorado, the DMV stated that these vehicles had only held titles for off-highway use, and vehicle owners would receive new OHV titles. This transition is not unique to Colorado, and many states are reviewing their stance on the road legality of surplus military vehicles. The shift from road-legal titles to OHV titles is becoming a standardized practice.
Owners who have purchased surplus vehicles, hoping to utilize them for regular road use, may encounter challenges. Some states have revoked existing titles, while others are rejecting new applications for road use. Even if a vehicle manages to secure a road-use registration, there’s a looming concern that the federal government may exert pressure on states to rescind these permissions in the future.
For individuals eyeing surplus military vehicles for road use, the cautionary tale from various states underscores the need for diligence. It’s crucial not to rely solely on historical precedents or the presence of these vehicles on the road as indicators of road legality. Instead, prospective owners should proactively engage with their local DMV, seeking written confirmation of the status and permissions associated with surplus military vehicles.
The evolving landscape surrounding surplus military vehicles exemplifies the intricate intersection of federal and state regulations. Vehicle owners, dealerships, and enthusiasts alike must stay informed and adapt to the shifting terrain. As the federal government continues to emphasize non-compliance with D.O.T and EPA standards, the road ahead for surplus military vehicles remains uncertain, requiring a cautious and well-informed approach.
As if the automotive industry didn’t have enough challenges with the ongoing supply chain disruptions, a new and unexpected obstacle has emerged—shortages in title paper. An article from The Wall Street Journal sheds light on this overlooked yet critical component affecting not only dealerships but also government agencies involved in vehicle transactions.
The shortage of title paper may seem perplexing at first glance. After all, why can’t titles be printed on standard laser printers or readily available office paper? The answer lies in the unique nature of title documents. Unlike casual printouts, vehicle titles are printed on specialized security documents. These papers possess features akin to those found on currency or other secure documents, including watermarks, hidden security features, and woven color threads. The goal is to prevent forgery and duplication, given that a title is a legal instrument establishing vehicle ownership.
The scarcity of title paper has far-reaching consequences for the automotive industry and individuals involved in vehicle transactions. Here are some key implications:
Dealerships and individuals applying for titles may face delays as the shortage of title paper hampers the ability to print these crucial documents promptly.
The shortage affects not only the sale of new vehicles but also transactions involving used cars. The transfer of ownership or the release of liens may be slowed down due to the delay in obtaining physical titles.
While electronic titles are an option for newer vehicles, certain scenarios necessitate physical title documents. Transactions involving interstate transfers or those requiring the handover of a physical title to a buyer are particularly impacted.
State DMVs (Department of Motor Vehicles) are grappling with the challenge of insufficient title paper. This, in turn, affects their ability to provide timely and essential services related to vehicle ownership.
This unexpected shortage emphasizes that supply chain challenges aren’t limited to tangible components like computer chips or batteries. The shortage of an invisible yet crucial element—title paper—reveals how interconnected and intricate the automotive supply chain truly is.
As the automotive industry continues to grapple with multifaceted supply chain disruptions, stakeholders must adapt to unforeseen challenges. Whether it’s the scarcity of title paper or other hidden hurdles, staying informed and finding innovative solutions are vital to overcoming these obstacles. The impact of the title paper shortage serves as a reminder that the complexities of the supply chain are both seen and unseen, requiring a resilient and adaptable approach from all involved parties.
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