If you want to get a deal on a quality used car, looking at a local estate sale might be the answer. Once an auction house gets involved, the surviving family has every right to sell the vehicles and they often won’t care about getting top dollar for them. The problem is the family might have trouble finding the title for the car. Here’s how to obtain a title from an estate sale and enjoy your new vehicle.
Try Working With the Family to Get a New Title
If there’s no title to sign over at the estate sale, you could ask the family to apply for a duplicate title before buying. It will be easier for them to get a title than it will for you, but either way works.
They would need to take their paperwork to the DMV including proof of ownership and the governing body would issue them a new title. Generally, they will want to have the vehicle’s registration, a notarized copy of the will or court-issued document, death certificate, photo ID and payment for the fees.
This won’t be as difficult as they might think – it should take a single trip to the DMV. Have them call ahead to confirm the details, or to sweeten the deal, offer to call the DMV for them to determine the necessary steps. Of course, you could offer to pay for the title replacement as well.
A Good Title Could Still Be Out There
Just remember, an active title may be out there. It may have simply been lost or misplaced by the owner. A detailed VIN check 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.
If You Leave the Auction With No Title, You Can Still Get One
Before the auction company can sell a vehicle, they must check with the local DMV to ensure it is paid off, not stolen, and can legally be sold. 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.
If you end up with no title after buying a car at an estate sale, take the following documents with you to the DMV and request a replacement title:
Auction receipt with you to the DMV
Copy of the auction advertisement, preferably featuring the vehicle
Written bill of sale from the proprietors of the estate sale
Any other documentation you can provide
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 – unless they’re running a shady practice – but instead due to some problem in the car’s history.
Transferring the Title After an Estate Sale
Once the title is present, transferring it after the estate sale is a breeze. You would follow the same basic steps to transfer it as you usually would.
Make sure the title is properly assigned by the seller, the family, or the auction company
You may want a legal heir to join you at the DMV for the title transfer. They will need to show the death certificate and notarized copy of the will. In some states, they could provide you with those documents without coming along.
You will also need to fill out some additional paperwork, so take your photo ID and have a payment method ready.
As I said earlier, it is almost always easiest for the family member to transfer the title to their name first. Then, they can simply sign the title over to you as if it were a regular sale.
I Heard About a Lost Title Bond?
If the previous title is unobtainable, voided, or destroyed, and even if it isn’t, there is another way to get a replacement title after an estate sale: get a bonded title.
Sure, this path takes a little more work, but it’s a valid option if you buy a car at an estate sale with no title. The DMV may not issue a title to you just because you purchased a vehicle during the estate sale. They have to ensure you didn’t steal it; they need some assurance and a legal paper trail.
That’s why you might have to purchase a surety bond first. This will allow you to get a bonded title which protects the state from any previous owners coming forward with a valid claim of ownership. A surety bond will award you ownership of the car after a specified time.
To get this process started, you will want any information you can gather from the transaction. A good place to start is the bill of sale and documentation from the estate sale.
What if Someone Claims the Estate Sale 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.
If someone steps forward later claiming to be the owner of the vehicle, that would be a good time to have the Lost Title Bond in place. Just keep in mind that if someone does come forward and there happens to be validity to their claim, the surety company would pay out on the suit and you would have to repay them for the damages.
Chances are though, if you bought from a reputable auction company or can document the events of the estate sale, you’re in the clear. If you rightfully obtained ownership of the vehicle, but there simply wasn’t a title, then you don’t need to worry about that happening.
Rest Assured, You Have Options
Obtaining a car title isn’t always an easy situation, especially when estate sales are part of the picture. That’s why you need experts on your side to help you navigate the sticky terrain 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 to help you gather the facts before buying or selling a vehicle at an estate sale.
If you need a replacement title for a car bought at an estate sale or auction, we ask that you contact us for a no-obligation chat to see if our services are a match for your needs.
We are not attorneys. This article is not legal advice. Cover image source
Technically, a bonded title is considered to be a provisional document. Some states allow the bonded title to be challenged up to several years after the issue date, so if there is any chance you don’t own the vehicle outright, you need to know how long that window is in your state.