"Open title" - any advice?

Nope, that's illegal. Anytime a party buys a car, they are required by law to transfer the title to their name BEFORE they can legally sell it on to the next buyer. Even if they sell it the day after they buy it, they still have to get a new title in their name and then sign their name to the back of it before the new buyer can transfer title into their name and register the car for their use. Every bit of my research indicates the CA dealer that sold the car to FL is guilty of a felony. You shouldn't be trusting either one of these parties, IMO.

Here's some reading you can do for yourself:

https://blog.suretysolutions.com/suretynews/title-jumping-when-the-sellers-name-is-not-on-the-title

https://www.cargurus.com/Cars/articles/what_to_do_if_a_buyer_never_registers_a_car_you_sold

 

Yep, though something tells me that these transactions may happen frequently between dealers. I imagine the problems really crop up when an individual buyer gets involved. It appears a bonded title may be an option, but be careful if you decide to go down that road. It can help you establish title and facilitate registering the car, but it won't protect you from the risk if a past owner comes forward with a claim on the title. Good luck in whatever you decide to do.

 

Sorry if I missed it but is the guy who is selling it to you a dealer or a private individual?

Cheers,
Tom

 

i had this exact situation with a 550 that i had to pass on.

it is not open. it has already been assigned.

another fchatter bought the car (it was a deal). i did get to have a good 1/2 hr call with patrick otis out of it

u might want to inquire in the 550 section

 

normally the buyer would have to title / pay the tax on the car and get a clean title once this is done

black with 575 wheels?

 

just thought i'd ask.... u never now given that most conspiracy theories are six months from becoming facts

normally, the assigned buyer would have to go down and title / pay tax on it and get a title in his own name.

 

That is a huge red flag and it's going to be an expensive mess to clear up. 1st of all the title is going to have have to be filed at dmv and taxes collected on a sale price that is for sure. Once titled into the current owner's name, you will have to purchase it and pay taxes a second time.
Only legit car dealers are allowed to keep an open title this is a mess and I would not buy it unless it is corrected.

 

P.S. This recently happened to a friend of mine and I told him to walk away and he did not follow my advice....Long story short when he finally cleared up the title mess after having bought the car, the title came back as a SALVAGE title!

 

Speaking from 1st hand experience, when you go the bonded title route ( in Texas at least ) If for some reason someone makes a claim for the vehicle, they do not get the vehicle back. They get paid by the bonding company for the amount of the bond.

I would also suggest that if the OP follows through with this transaction, they hire a company that specializes in the process, to handle the evaluations , inspections, the official affidavits, and bond.

Steve

 

Interesting. What you described is essentially title insurance, which I imagine would be pretty expensive on a car like a 458.

 

There is another way you can do this. Physically go to the DMV with the seller, cashiers check, cash or wire transfer ready to go and do the deal in person. You can pay extra and they will print the actual title right there.....in real time. You will be able to double check VIN, lien status and if it's salvage or not. This is how I did my first Ferrari deal with a 328.

 

Bonded titles are tricky. They are really only good if you know you have clear ownership of the vehicle but have a technical problem of some sort with the title. They are NOT insurance. So, if you purchase a surety bond and someone else makes a valid claim against the bond you will reimburse the surety company: “If someone makes a successful claim against your surety bond, you are obligated to pay the full amount of the bond. Plain and simple.” That quote is from this article, which has a good explanation as to how vehicle surety bonds work: https://www.dirtlegal.com/blog/vehicle-surety-bonds-101-how-they-work-and-all-the-risks

Stolen vehicles have their own set of problems. Here is a summary from a legal encyclopedia:
“The owner of stolen goods is not divested of title therein by the theft, and even though an innocent subsequent purchaser may be treated as having title as against everyone but the rightful owner, a sale by the thief ... does not vest title on the purchaser as against the owner.... .... The true owner may recover a stolen motor vehicle ... from a good-faith [(bona fide)] purchaser even though the thief had also stolen, or forged a title certificate, or obtained a title certificate in another state and delivered it to the purchaser.”
67 Am.Jur.2d Sales § 447 (1985) (citations omitted) (emphasis added).

That’s just a general summary and may not be true in a particular jurisdiction. I don’t know that any of this is a concern here, but OP might want to talk to a real lawyer about this before risking serious money.

 

FWIW the registry in Nathan’s book shows it as a 1999 Nero over Tan with Nero calipers, no other options noted when it was added to the list.

Enjoying this story.

Personally love the hunt and excited for you on your hunt. I’ll subscribe to this thread, keep us appraised and then visit our subsection when you take it or another Maranello down.

 

If the title is not in his name, he can't sell it. He is trying to avoid the confiscatory sales tax, or the whole thing is a scam. He needs to get a proper title in his name, so he can legally transfer the car to you. If he can't do that... walk. It will far more trouble than it's worth.