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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
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Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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where can i get information on laws concerning lien holders

Resolved Question:

where can i get information on laws concerning lien holders and change of ownership and title transfer for a motorcycle. Also who is responsible for paying for fixes after a loan has been paid off
Submitted: 1 year ago.
Category: Legal
Expert:  chrishere0 replied 1 year ago.

christopher :

Hello how are you

christopher :

Where are you located?

christopher :

Laws vary depending on location

Customer: replied 1 year ago.


I'm in NC

Customer: replied 1 year ago.
Relist: Other.
no answer yet
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking.

Can you please describe your situation for us?

Did you buy the vehicle used? Did the seller give you the title and sign the back of the title and give you a bill of sale?

What do you mean about "paying for fixes after the loan is paid off?"
Customer: replied 1 year ago.


My husband who is deployed now sold his bike and we did an over the phone transfer of funds. She paid directly towards his loan. I dont know what the law is on if that means she is now the owner. When they drove away with it, I received a phone call from her later on that day saying that there was something not right with the 5th and 6th gears. I asked my husband about it and he said he had that problem once before but it didnt persist. he took it to the mechanic amd he said eventually the transmission needed to be worked on. When they took it to that mechanic he told them they needed a new transmission, really they only needed to fix those gears. we felt responsible because he did not mention that. He drove it for a year no problems. we offered to pay for the transmission fix and only that. The buyer said if anything came up like another serious problem that we were liable to pay for it and we didnt agree with that. Since their name is XXXXX XXXXX the title they dont want to sign for it but since they paid for the loan directly it lifted the lien and they are now resposible. Thats what I was told by USAA that is the bank we did the transfer with. I need to know the laws and see if we are responsible or should worry because they are sueing us for everything

Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your response.

If this was a sale of a used vehicle, the sale is considered as is unless you have them a written warranty. In an as is sale, this means the buyer is liable for any latent defects, except perhaps for those known by the seller and not disclosed at the time of sale (under implied warranty of good faith and implied warranty of merchantability). You are NOT liable for everything that goes wrong with the bike.

Once she paid off the loan and you have signed off on the title, the bike is there bike, whether or not they ever transfer the title to their name.

In an as is sale the courts hold "caveat emptor" or "buyer beware" to indicate it is the buyer's liability for any hidden defects.

All you need to do is provide them the title signed on the back and a bill of sale. If you had a license plate on the bike, you need to notify DMV to cancel the plate and that the new owner has been given a signed copy of the title and the remainder is on the buyer.

If they try to sue you for any defects or problems with the bike, you need to answer and deny the suit with the response it was an as is sale and as such there was no warranty. The courts will not hold you liable for any of this and your only liability is to sign the title over to them.




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Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 91845
Experience: JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
Law Educator, Esq. and 15 other Legal Specialists are ready to help you
Customer: replied 1 year ago.

so were liable to fix the transmission then?

Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your response.

The transmission is the borderline issue. If your husband was aware of the issue and did not disclose it and they show it was worked on before, then they can argue that you knew about a defect and failed to disclose it and as such it was a breach of the implied warranty of good faith. On your side, you would argue that while there may have been a prior issue, there had been no recent issues with the transmission and as such no breach of the implied warranty of good faith.

This is going to be a close factual issue for the court to decide and if there truly had been no recent issues with the transmission, it is likely that the court will find that in the as is sale the burden and liability is on the buyer. However, one can never tell what a judge will do or what the evidence is that will be produced in court and in many of these cases if they push the issue on the transmission, you may want to settle only on the transmission, nothing else as you are not liable for anything else (the liability on the transmission is questionable).
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 91845
Experience: JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
Law Educator, Esq. and 15 other Legal Specialists are ready to help you

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