02:16
Faizan
You open the front door and find a process server thrusting a stack of papers stamped “Civil Lawsuit” at you. Thumbing through it, you realize that the car you sold last year was involved in a hit-and-run accident after the buyer struck a poodle and fled the scene. Since the buyer failed to register the car with the DMV, you are listed as the registered owner and are now being sued for the deceased poodle’s vet bills and funeral costs – all of which could have been avoided if you hadn’t forgotten to send in the required notice of sale.
Notice of Vehicle Sale
In some states, such as California and Alaska, when you sell your car, you are required to file a notice of sale with the state’s department of motor vehicles, or DMV. The notice of sale informs the state authorities that the vehicle was transferred to a new owner. The time frame in which the notice must be filed depends on the laws of your state.
Purpose of the Notice
For many people, once the title documents are signed and money changes hands, the deal is finalized and new owner drives off. There is no way to know or control whether the new owner registers the car with the DMV. As a result, a significant amount of time may elapse before the vehicle is shown as being officially registered to someone other than you.
What Can Happen
Whether it takes the new owner a long time to register the car or not, a lot of things can happen between the time you sell it and the new owner registers it. For example, if the new owner parks illegally, you, as the registered owner of the vehicle, will be assessed the parking tickets. You will either have to pay the fines or go to traffic court to prove the tickets were incurred by someone else.
As well, if the vehicle is involved in an accident, you could be sued at a later date. In order to avoid a judgment, you will have to file an answer to the lawsuit, appear in the case and prove you weren't the driver. This may be difficult to do if enough time passes, and even more difficult if the new owner sells the vehicle to someone else without registering it at all.
How to Avoid Traps
The easiest way to avoid potential liability is by circumventing it before it happens. Filing a notice of sale with the DMV can do just that. First, it protects you by alerting the DMV of the vehicle transfer. Once received, parking tickets and other issues will be assessed to the new owner. Second, if you are sued at a later date, the filed notice of sale will be powerful evidence of the vehicle sale date and help you prove that you are not responsible for any wrongful actions of the new owner.
Notice of Vehicle Sale
In some states, such as California and Alaska, when you sell your car, you are required to file a notice of sale with the state’s department of motor vehicles, or DMV. The notice of sale informs the state authorities that the vehicle was transferred to a new owner. The time frame in which the notice must be filed depends on the laws of your state.
Purpose of the Notice
For many people, once the title documents are signed and money changes hands, the deal is finalized and new owner drives off. There is no way to know or control whether the new owner registers the car with the DMV. As a result, a significant amount of time may elapse before the vehicle is shown as being officially registered to someone other than you.
What Can Happen
Whether it takes the new owner a long time to register the car or not, a lot of things can happen between the time you sell it and the new owner registers it. For example, if the new owner parks illegally, you, as the registered owner of the vehicle, will be assessed the parking tickets. You will either have to pay the fines or go to traffic court to prove the tickets were incurred by someone else.
As well, if the vehicle is involved in an accident, you could be sued at a later date. In order to avoid a judgment, you will have to file an answer to the lawsuit, appear in the case and prove you weren't the driver. This may be difficult to do if enough time passes, and even more difficult if the new owner sells the vehicle to someone else without registering it at all.
How to Avoid Traps
The easiest way to avoid potential liability is by circumventing it before it happens. Filing a notice of sale with the DMV can do just that. First, it protects you by alerting the DMV of the vehicle transfer. Once received, parking tickets and other issues will be assessed to the new owner. Second, if you are sued at a later date, the filed notice of sale will be powerful evidence of the vehicle sale date and help you prove that you are not responsible for any wrongful actions of the new owner.
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