If you've read my initial blog on vehicle title skipping, you already have a glimpse of what title skipping is. Adding to that thought; in this post, I'm going to highlight those who create title skipping, red flags to look for in title skipping and how to protect yourself from title skipping.
Creators of Auto Title Skipping
Creators of auto title skipping are those who either do so directly or indirectly. In a sense, you have those who create title skipping intentionally or those who do so by mistake or simply a lack of knowledge. Let's examine the two cases:
A. Intentional Title Skipping:
Individuals who sell vehicles and or pass titles along with the intent to defraud with either a title being present or absent, and or a case in which the title hasn't been transferred properly. Examples are:
- Individuals "flipping cars" while portraying themselves to be legitimate dealers
- Car Thieves
- Persons who still owe payments on their vehicle, but will try to sell the vehicle unlawfully; usually with the purpose of quick financial gain
B. Unintentional Title Skipping:
Individuals who title skip with no intention on title skip with no intention to defraud. In this case a title may or may not be present; and the title may or may not be transferred properly. Examples are:
- An individual who bought a vehicle and later changed their mind and decided to sell the vehicle before actually getting it titled into their name first
- An individual who decides to sell his vehicle without a title, can't find the title or simply doesn't want to be bothered with the DMV to get a duplicate title
Note: Regardless of the action; intentional or unintentional, title skipping is illegal and can place one in the hot seat with DMV and law enforcement.
Red Flags of Auto Title Skipping
Being proactive with auto title skipping issues is important. Some red flags to be aware of are:
- Someone selling a vehicle without presenting a title in their name
- Multiple ownership sections on the title filled out without being properly reassigned
- The seller giving excuses as to why they can't produce a legitimate title to the buyer
- Individuals that alleged to be "dealers" but flip vehicles instead
- The seller is reluctant to provide legitimate documents pertaining to the vehicle (clear title in their name, lien release if necessary, bill of sale, dealer license number (if dealer), etc.
- A seller that is selling a late-model vehicle at a value that is significantly lower than book value!
How to Protect Yourself From Auto Title Skipping
To avoid becoming a victim of title skipping, the following are tips that you should adhere to:
- If the person selling you the vehicle is an individual; ask to see their I.D. and ensure that they are the person on the title
- Always get a Bill of Sale form the seller
- If the person selling you the vehicle is claiming to be a dealer; ask for their dealer license number, a buyer's order and an odometer disclosure (MEET THE DEALER AT THE DEALERSHIP ONLY AND NO WHERE ELSE)!!
Note: Legit dealers are only authorized to do deals at their legal place of business only.
If you are involved in a title skipping situation, Wisdom & Authority Title Solutions LLC is able to provide you with the guidance and consultation necessary for your situation.
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In this post, I will address what a skipped car title is and the problems that arise from skipped car titles.
Unfortunately, many people aren't aware of what a skipped car title is or fail to realize that they are in a skipped car title situation, until the DMV rejects them, due to a skipped car title issue. With that being said, I want to share with you what a skipped car title is. A skipped car title is a title that hasn't been transferred legally. A skipped car title situation occurs in one of two ways.
A. A Title is Physically Present: In this scenario the person who signs as buyer doesn't get the title transferred into his or her name, but instead will pass the title on to someone else, who in turn signs as buyer (on the next section) and it continues from person to person.
B. There is No Title Present: In this scenario, there is not title present and the seller may just present a bill of sale to paint of picture of "legality". The buyer may decide that he/she doesn't want the vehicle and will sell the vehicle to another person, and this situation will continue from person to person.
Before I highlight the problems associated with skipped car titles, I want to mention that when it comes to signing over or reassigning a title; only licensed auto dealers can sign over a title without having the vehicle transferred into their name.
Having a skipped car title can cause serious consequences. Thus, the problems that arise due to skipped car title issuesare:
1. A high possibility that the vehicle is stolen
2. The vehicle could have a lien on it
3. The Department of Motor Vehicles will not grant you a title or registration because of the title skipping matter you are in (DUE TO NO LEGAL PROOF OF OWNERSHIP) Note: a bill of sale isn't proof of legal owner alone, it just basically shows that a financial transaction occurred!
4. Financial Loss due to not being able to get your money back from the seller (SELLER IS UNREACHABLE ON PURPOSE BECAUSE THEY SCAMMED YOU) and you now have a vehicle that you can' t title or tag or even sell legally (TO RECOUP THE LOSS).
Wisdom & Authority Title Solutions LLC is the vehicle title expert and source for all title matters. Title skipping consultation is one of it's top service demands. If you have a title matter, whether it's very basic or extremely complex; submit your request for help today.
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I can't begin to tell you how many times I've come across customers (while working at the DMV), who were actually trying to avoid getting a vehicle titled in their name (to avoid title and tax fees) or people who I come across now who are victims of title skipping. What is title skipping? Title skipping is when a person has acquired a vehicle and a title (the title is signed over to them as well). Rather than get the title changed into their name; they don't and when they decide to sell the vehicle they take the title that they received, and try to sign the title over to someone else or a buyer.
What happens in cases of title skipping?
- The "final" or last "buyer's" name on the title, goes to DMV to acquire a title in his name. Unfortunately, DMV informs the person that they can't get a title in their name because the person whose name was before their's on the title, need to get the vehicle titled in their name.
- In lengthy title skipping situations, there may be 5 or more parties involved, meaning that all of the reassignment sections have been completed on the title and that basically the alleged buyers of the vehicle have basically been tossing the title from one buyer to the next.
- The victim of title skipping, usually the last person to have the titled signed over to them end up going a location spree, with hopes of locating the person who sold the vehicle to them; and then that person must try to locate the person who sold the vehicle to them and so on.
- Many times during title skipping the prior seller/s can't be located because they are actually avoiding the titling responsibility or they have relocated. As a result the last person who signed on the title, experience frustration and delay as a result of the title skipping process.
Why do people skip titles?
1. To avoid paying sales tax (MAIN REASON)
2. Want to avoid the DMV
3.Don't want to be bothered by the titling process
On a final note, title skipping is illegal and serious consequences can follow. In essence, the only way a reassignment section can actually be transferred without each person having to get a title in their name is when a dealership reassigns a vehicle to another dealer. In this situation; the last name on the dealer reassignment must take ownership of the vehicle and get the vehicle titled in their name. When it comes to getting a vehicle titled; it pays to follow titling procedures correctly; versus trying to take the route of "title short-cuts".
If you are stuck in a case of title skipping, get the expert advice of Wisdom & Authority Titling Solutions to put you in vehicle titling compliance.