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Old 08-07-2012, 03:29 PM
 
837 posts, read 2,334,428 times
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Hi City-Data Fam.
Hey, if I wanted to purchase a car (in payments) from someone, but wanted to protect my interest by having a legal claim of right to the property . . . will the DMV allow private party lien holders on titles?
How would this process work?
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Old 08-07-2012, 03:45 PM
 
Location: Rural Michigan
6,343 posts, read 14,683,204 times
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You can do that, I've done it myself. Just fill out the "leinholder" info on the back of the title. When the Lein is paid, sign a release for the buyer.
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Old 08-07-2012, 06:11 PM
 
3,391 posts, read 7,160,625 times
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Have you checked the MVD website?
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Old 08-08-2012, 07:29 AM
 
Location: LEAVING CD
22,974 posts, read 27,005,313 times
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Quote:
Originally Posted by trudawg View Post
Hi City-Data Fam.
Hey, if I wanted to purchase a car (in payments) from someone, but wanted to protect my interest by having a legal claim of right to the property . . . will the DMV allow private party lien holders on titles?
How would this process work?
The current owner (seller) would be the lien holder, you would be the registered owner. As for your interests, have a bill of sale/sales contract stating the terms. This should include the total cost,length of payments,interest rate,due dates etc. Basically the same sales contract you'd see at a dealer. You can find these at most office stores or online. If you don't document the exact terms you'd be leaving yourself wide open to the seller doing whatever they want when they want and having to sue to get what was yours back.

Not to be funny but just watch Judge Judy or one of those type shows for a month and I'll bet you'll see several cases revolving around this issue. If it's that common on there my guess is it's even more common in real courts.

Edit: This is not meant to be legal advice as I'm not a lawyer. Just someone who's been there and done that.
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