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  1. #1
    Michelle's Avatar
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    Question Is it a felony to sell a car with a lien?

    I know of someone here in California who is thinking of selling their car that has a lien from a auto finance company. Once they sell it they will pay off the lien, but I had read some where that it would be a felony.
    Is it true that it is a felony?

  2. #2
    BigDawg's Avatar
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    Well you can't sell something that someone else owns. And basically the bank owns the car not the person driving it. Thats why the bank holds the title to it. Once you pay the bank off then you own it and can sell it. What they need to do is get the bank involved in the sale. The buyer can write two checks, one to the bank for the payoff and one to the driver for the difference. Then the bank will release the title right there and then and noone is breaking the law.

    Just my advise, and this is from someone who doesn't know the law in CA. mind you.
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  3. #3
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    Last edited by Willowdared; 10-31-06 at 01:17 PM.
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  4. #4
    Michelle's Avatar
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    Quote Originally Posted by PDawg View Post
    Couldn't find if it was a felony in that link. Couldn't find out if it was a felony when the DMV was called either.

    Either way, I think my friends best bet is to call the lien holder up and get something in writing from them first.

    I was just curious if it could be a felony or not.

  5. #5
    Ducky's Avatar
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    If the leinholder isn't in on it, as soon as the buyer went to get a title it would be denied. So yeah, get the leinholder involved or there'll just be a bunch of pissed off people.
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  6. #6
    Willowdared's Avatar
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    Michelle - it would be a felony if your friend did not handle the sale of the vehicle on the up and up. It would be 10851

    You cannot transfer a title if you don't hold a title.

    I just figured the DMV link might provide info needed to legally handle the sale.
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  7. #7
    Michelle's Avatar
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    Thank you PDawg- the code helps too!

 

 

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