Wednesday, April 11, 2007

Car bought but title not delivered?

I must put this in the category of learning new things. I get a call about a car dealership not delivering a title within the required thirty days. First time I had to deal with this since I started in 1987. With a little help in the research I found the answer in IC 9-17-3-3. The buyer's remedies are below and they have an interesting twist. Basically, no title means the deal is off. I do notice that the statute has language similar to the Lemon Law statute ("Upon return of the vehicle to the dealer in the same or similar condition as delivered to the purchaser or transferee...") having the potential for litigation. See this post from the Indiana Consumer Lawyer Blog for the problems with this language.

Unfortunately, the potential client wanted the car and the matter went no further. Interesting little statute, though. I get calls about whether a car can be returned in three days (you cannot, see my post here) and I think I need to be asking if the buyer has gotten title to the car.

(c) A vehicle dealer who fails to deliver a certificate of title within the time specified under this section is subject to the following civil penalties:
(2) Two hundred fifty dollars ($250) for the second violation.
(3) Five hundred dollars ($500) for all subsequent violations.
Payment shall be made to the bureau and deposited in the state general fund. In addition, if a purchaser or transferee does not receive a valid certificate of title within the time specified by this
section, the purchaser or transferee shall have the right to return the vehicle to the vehicle dealer ten (10) days after giving the vehicle dealer written notice demanding delivery of a valid certificate of title and the dealer's failure to deliver a valid certificate of title within that ten (10) day period. Upon return of the vehicle to the dealer in the same or similar condition as delivered to the purchaser or transferee under this section, the vehicle dealer shall pay to the purchaser or transferee the purchase price plus sales taxes, finance expenses, insurance expenses, and any other amount paid to the dealer by the purchaser.