"Open title" - any advice?

I would have the seller and go to the DMV and do something called title only.....Once that is complete with the state move foward to your new dream purchase

 

Dave has it. It's a Jump title, all to avoid taxes and plate fees. I have been doing Open titles for years, but I'm not selling F-cars either. At the counter, the DMV has no idea, and doesn't ask any questions in my State with 1 signature and why would they. My Dad told me to stay away from "jump" titles 45 years ago and that's what I've done. I would say rub your eyes until they're not so Starry and pass on this one. IMHO GL

 

the problem with open titles and all title is that a title really doesnt convey ownership. it is a secured interest. u really need a BoS as well.

at least that is how john draneas explained it to me

 

Depends on the state. Also typically if a bill of sale is to have any power has to be in notarized bill of sale. Otherwise I can walk up to any Ferrari in the parking lot of the grocery store in California which is a non notary state fill out a bill of sale and sell it to myself and bring it in to the DMV.

Arizona for example will take a notarized bill of sale with a title that is not notarized.

But if you have a Arizona title that is notarized you will not need a bill of sale unless it's from a dealer

 

Same in NY your need a signed title as well as a signed bill of sale and depending on the state they will need a notarized letter from that states DMV saying the title is legit.


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Rule of thumb - The check or any form of payment needs to be made out the the person or entity that is on the front of the title, with the exception of a fully executed reassignment by a licensed dealer. It that case the payment must be made to the dealer as written on the reassignment. Anything other than this can be a huge issue.

 

So I am not recommending that you go through this transaction, that is your call. I can tell you that I just helped a friend through this buying transaction in California with no issues at DMV.

Ferrari 328 titled in New Jersey.
Sold to a Florida dealer ...
Sold by the FL dealer to a CA dealer
Sold by the CA dealer to an individual in TX who never registered the car, never drove it, just put it in his garage for 5 years.
That owner sold the car to a friend of mine in California this year.

NJ title was signed by seller and buyer (the FL dealer) and came with the car, as well as a bill of sale properly executed.
The paperwork went to DMV, new title was issued in CA. Done.

If there has been unpaid taxes in California, that might have been different, I don't know.

 

Why people do this is beyond me.

If you want to mitigate taxes then just legally do so through a Montana LLC registration for a few hundred bucks.

The seller will probably not goto the DMV and pay enormous fines and taxes just to sell you the car. Easiest thing to do for a simple, easy, and legal transaction is have the seller register the car in Montana, get the new Montana title, and sell it to you.


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I agree and have since change my mind about pursuing the deal as it is presented

 

I'd consider if we were in the same state :-

 

Agreed and who knows, maybe prices will soften up a bit (if any of you guys follow Fourwheel Trader on youtube)

 

Wow, that's crazier than my described situation! IDK, maybe I'm now spooked or maybe it's just the wrong thing to consider. Of course, it'd be different if I was looking to buy an Accord/Camry

 

That I hadn't thought of