Understanding The Automobile Buying Process
Transactions that provide consumers with the ownership of automobile and homes require specific steps to complete. With these transactions, ownership is transferred according to the information found on the property title. If the title verifies that an outstanding lien is present, the seller or the buyer must fulfill these obligations before a clear title is available.
The Buying Process
For automobiles, the seller must provide the buyer with the title and a bill of sale to complete the transaction. If the automobile has an existing lien from a lender, the seller is unable to provide the title. The only way to acquire a new title is for the lender to receives the full outstanding balance. When the balance is unknown, the buyer may contact their lender to verify this value.
However, if the seller obtained the vehicle through a salvage yard, it's possible that they were instructed to file for a lost title. The best way to approach this task is to conduct a lien search online to identify any outstanding balances. The Department of Motor Vehicles have the ability to conduct these liens, but they cannot provide detailed information to the buyer. If a lien exists, the DMV cannot submit a request for a new title without adding this lien to the new title.
Preventing a Potential Repossession
Automobile buyers who take possession of a vehicle without a title could face difficulties. For example, if the lender has started the repossession process, the new buyer could lose the vehicle if they don't settle the seller's debt with the lender. Equally, the lender won't provide them with a title if the lien isn't settled. This is why they should learn how to do a lien search and take this opportunity to prevent a potential repossession or financial loss.
Consumers who choose to buy automobiles from private sellers or salvage yards should acquire a lien search. This prevents them from losing the vehicle through repossession or facing unnecessary delays in acquiring a title. Any consumer who wishes to obtain a lien search could begin an automobile title search by province today.
