Liability question

California

I tried to sell a car and the buyer only paid a portion of the cost and wont return the car. I have already started a small claims suit for the remaining balance. He has had the car for a year and was supposed to have insurance on it, however I received a notice saying registration was suspended due to no liability coverage.

My question is, if he gets into a wreck or injures someone, how do I cover myself from having it go on my record or being sued? I know there is a release of liability at the DMV, but since I never finished the selling process or signed the title over to him I dont want to fill that out. Is there any way to stop him from driving the car or get the car back until he pays the rest?

sara cantrell said:

California

I tried to sell a car and the buyer only paid a portion of the cost and wont return the car. I have already started a small claims suit for the remaining balance. He has had the car for a year and was supposed to have insurance on it, however I received a notice saying registration was suspended due to no liability coverage.

My question is, if he gets into a wreck or injures someone, how do I cover myself from having it go on my record or being sued? I know there is a release of liability at the DMV, but since I never finished the selling process or signed the title over to him I dont want to fill that out. Is there any way to stop him from driving the car or get the car back until he pays the rest?

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Didn't we already cover this in your prior post?

If the is registered under your name, you are considered the owner. That gives you the right to repossess the car if the buyer refuses to pay or otherwise comply with the terms of the sale.

Being the owner also keeps you in the "liability zone". As the owner, it can be construed that you allowed someone else to use that car (doesn't matter what the situation is). That means as long as you are the owner you remain liable for anything that happens when the car is used by the person who is in possession of it.

Especially since that other driver carries no liability insurance, because that means if/when that driver has an accident, the OTHER driver will be looking for someone else to hold responsible for payment of damages, repairs, medical bills, etc.

So repossess the car already! Before you end up being liable for more than just the missed car payments!!! Hire a tow truck and take the car somewhere off-street where it will be safe from illegal use.

Update on this situation - I didnt reposess the car, but I did win the remaining balance of the car in small claims court.