How do you sell a car as lien holder?
I own a car clear . I want to sell it to my sister in law. I want to take payments on it, upon her satisfying the balance I want to transfer title.
How would she go about registering and insuring?
Here is in Arizona if it matters, thank yoU!
Update:Doesnt adding someone to insurance just increase the cost?
Comments
You need a bill of sale
I purchase agreement spelling out how much is paid down, what payments are, and when they are due.
The purchase agreement also MUST have the terms of default spelled out very plainly. "If Billy is late more than 3 days, a $20 late fee will apply. If Billy is 10 days late, we reserve the right of repossession."
All paperwork needs to include a VIN and description of the car. Something simple liek "Red 1977 Chevroelt Citation"
You will need to retitle the car in the buyer's name WITH YOU AS THE LIENHOLDER. Failure to put yourself on as lienholder waives all legal rights to the car, and nullifies the right to repossess. You must be the lienholder. If he actually pays the car off, you will give him a lien release and your name will be off the title.
You MUST include this statement "Vehcile is sold AS IS WHERE IS with no promises, warranties or guarantees of condition either expressed or implied. Vehicle sale is final with no rights of recission."
After you have all these documents, make 2 copies of everything. Take them to you bank, or a FedEx Kinkos (they usually have a notary on staff). Sign the documents in the notary's presence. You keep one copy of the papers, the buyer gets a copy.
Then go ahead and start looking at court dates. Thats where you will end up eventually. May as well clear a date on the calendar now.
get a new title in your name and sign it in the lien holders part. she can then take a bill of sale to get the car registered. she doesnt need the title in her name for the insurance or the tag.
Keep it registered and insured under your name and she can make the payments on both car and insurance.