Many people turn to auctions in order to find low-cost vehicles, but what happens if the car doesn’t come with a title? What happens if the auction company never had the title for the vehicle, a common occurrence at estate sales and storage auctions? Here are some things you should know about getting a title after an auction.

A Good Title Might Still Be Out There

When you attend an auction, you will notice a variety of lights that have meaning. It’s vital you pay attention to what these lights mean if you want to find the best deal. For example, at major auto auctions, a blue light tends to stand for Title Unavailable or Title Absent, depending on the auction house.

It is the auctioneer’s way of communicating with you that there is no title present at the time of the sale. It’s the responsibility of the auctioneer to present this information to you; otherwise, they face arbitration for misrepresentation.

Other than when clearly specified, you can rightfully assume that any other vehicle at the auction comes with a title. You will receive it when you pay for the vehicle and they turn the paperwork over to you. And remember, you can always ask.

Still, an active title may be out there. A detailed Vehicle History Report will reveal the title history of the vehicle, including any active titles that may be floating around. The information in this report will prove critical in getting a replacement car title.

The Storage Auction or Estate Sale Didn’t Have a Title

You don’t often find too many vehicles during storage auctions, but it does happen occasionally. You might just stumble upon a tractor, boat, ATV or car that requires a title with purchase. Unless you hope to scrap it for parts, getting a title is something you want to think about before making a bid – and the same goes for estates sales as well. You will not be able to register, insure or sell the vehicle without the title in your hands.

Some bases have already been covered. Before the storage facility can even sell that vehicle, they must check with the local DMV to ensure it is paid off. If there is a lienholder involved, they must contact them and figure things out. Some states also require additional steps before auctioning a vehicle.

For example, in Texas, the storage owner must get a VTR-265-SSF form. This is given to the winning bidder to make transferring ownership easier. The facility owner should also provide you with a copy of the tenant’s lease showing the foreclosure terms and the signed VTR-265-SSF form and proof of their legal right to sell the vehicle. You would also need verification of the title and registration and evidence that a Notice of Claim letter was sent to the original owner during the transfer of ownership to the auction house.

You should always take your auction receipt with you to the DMV along with a copy of the advertisement for the storage auction, preferably one featuring the vehicle in question. Thankfully, most of the legwork is performed by the storage facility, so there’s not much you have to do.

Before you bid, check your local laws regarding purchasing a vehicle from a storage auction. And remember, if you end up not being able to get a title, that probably won’t have anything to do with the auction house – unless they’re running a shady practice – but instead due to some problem in the car’s history.

What if Someone Claims the Auction House Stole Their Car?

If you find yourself being challenged for ownership by a previous owner after an auction, contact an attorney. It is uncommon for these arguments to be proven valid in a court of law due to the numerous steps taken by reputable auction companies to avoid situations like these. In many cases, the previous owner simply feels they have been wronged – generally speaking, you would usually have nothing to worry about.

Getting a Title Might Be More Complex Than Usual

When you don’t have a car title, there are some options available to you. You can always start to apply for a new title with your bill of sale, but that doesn’t always work. Otherwise, you might be required to purchase a surety bond instead – not a great route, but if the DMV won’t work with what you have, your options are limited.

Using a Title Recovery Service

Sometimes, it’s best to avoid the hassle entirely and use a title company to lead you in the right direction. Leave the hard work to the experts if you are unsure how to navigate the world of car titles.

Dirt Legal can obtain a new title and registration for cars, motorcycles, and almost anything with wheels. We also offer VIN Checks and Vehicle History Reports to help you gather the facts before buying or selling a vehicle at auction. Click the links to learn more about our services.

We are not attorneys. This article is not legal advice. Cover image source