QUESTION
I am trying to sell a car. The buyer wants me to keep making the payments for no more than six months and then trf loan over completely to him.
Asked on Mar 19th, 2018 on Contracts - Texas
More details to this question:
The buyer wants to sign a notarized statement or get a lawyer to draw one up that states he would be liable for the vehicle, payment, insurance, etc. Would this release me from any liability on the car since the loan and the car will still be in my name until he finalizes a loan, he says in six months? also what would happen if he did not pay the car payment? would I have to repossess the vehicle? This just all sounds fishy to me.
1 ANSWER
You can not be released from liability to the lender unless the lender agrees to it. No agreement between you and any buyer, without the lender, can affect the lender's rights. The most such an agreement would accomplish would be to require the buyer to repay you for any money you had to pay on the car loan, but if the buyer doesn't have the money to cover it, or can't be located, you are still on the hook. Moreover, unless your contract explicitly provides for the right to repossess the car on default before obtaining a judgment, you have no right to do so, and in any event your rights would always be subordinate to the lender's.
Answered on Mar 20th, 2018 at 12:25 PM