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My son-in-law bought a 5th in AZ but registered it in CA.

When he bought it he...
My son-in-law bought a 5th in AZ but registered it in CA. When he bought it he was aware that it had had a sink leak (that had been fixed, but it was flagged on the AZ title). CA gave him a clean title. Some months later he sold the 5th wheel to someone who also obtained a CA title. The buyer was told about the sink issue, but it was not put in writing. The buyer than sold it to someone in AZ who tried to get a loan and was denied because of a note on the title about the sink leak. My son-in-law's buyer is now calling and saying that we need to buy it back because of fraud. Anything to this?
JA: Because consumer protection law varies from place to place, can you tell me what state this is in?
Customer: It's all explained above. We are in CA, but the 5th wheel was purchased originally in AZ.
JA: Have you contacted the manufacturer?
Customer: This is a used vehicle.
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
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Answered in 1 minute by:
10/22/2017
Legal Eagle
Legal Eagle, Lawyer
Category: Legal
Satisfied Customers: 6,034
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Hello! I am a licensed attorney, admitted to practice in state and federal court. I have a nearly 100% satisfaction rating (click here for more info) so all that means is that you can count on me to help today. Because I want to provide you with the most accurate answer possible, do you mind if I take a moment to review your question?

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I'm sorry to hear about your situation. There's non issue of fraud here. Basically, fraudulent misrepresentation is one someone intentionally makes material statement or makes a material omission that induces someone else to enter into an agreement. The other party can also be held liable for negligent misrepresentation if they state a fact that induces the other party to enter into an agreement without having reasonably checked on the accuracy of their statements. A fraudulent or negligent misrepresentation can lead to the rescindment of a contract in addition to a payment of damages to the other party who was misled. In this case, if it was listed on the AZ title that there was an issue with the leak and if your son in law told the person about the leak, then there is no issue of either intentional or negligent misrepresentation.

Also, although I provided an initial answer, it’s important that you are 100% satisfied. If you feel I have done so, please rate me 5 stars and let me know if you have any follow up questions. As a side note, you can also click here in the future to request me individually.

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Customer reply replied 1 month ago
To be crystal clear, when my son-in-law (SIL) sold the trailer to his own buyer, my SIL had already registered the trailer in CA and CA had given him clean title as CA does not require the sink leak to be disclosed. As my SIL understands it, my SIL's buyer also registered it and received clean title in CA. It was my my SIL's buyer that subsequently was selling it to an AZ buyer that was unable to obtain a loan because of AZ's note on the original title.1. Did my SIL have an obligation to even disclose to his buyer the note on the AZ title, when my SIL had clean title in CA?
2. Does my SIL have an obligation to any subsequent buyers (beyond his own buyer), in this case if his own buyer tries to sell the trailer to a buyer back in AZ.
3. Under these circumstances, can my SIL's buyer sue him to make my SIL buy back the trailer?
Customer reply replied 1 month ago
I don't need a call yet. Please answer these specific questions.

1. No. if the title was clean in CA, then the title was clean and there was no need for him to reasonably disclose any potential defects.

2. No. Your SIL has no obligation to any subsequent buyers beyond the original buyer.

3. They could sue, but they would not be successful unless they could prove that your SIL acted negligently or intentionally to defraud them, but if there is clean title, there's a presumption the 5th was not defective.

Did you have any other questions for me?

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Customer reply replied 1 month ago
I have no additional questions. Thank you.

you're welcome!

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