Did I have the right to reclaim a vehicle I gifted?

[ConfusedTex]

What is the name of your state (only U.S. law)? Texas

Like the title says. I had gifted a vehicle to my sister in Jan. of 2014. I told her to get the title put in her name and to get it insured. Unfortunately she never did get it insured nor the title transferred into her name. So I kept the vehicle insured since I was liable for the car since it was in my name. I stayed patient with her as she was my sister and didn't want to screw her by taking the vehicle away. All the way till June of this year 2015 I have kept it insured. At that time I started to go through rough financial times. So I decide that maybe I should put it in writing that the car was her and then remove the insurance.

Shortly after doing so she was pulled over by the police and the registration was out and there was no insurance on the car and she had an expired license. Which come to find out she had a warrant for her arrest. They took her to jail and no insurance meant car was taken to impound. So since she didn't have a job and I just did want to car to sit there and eventually go to auction I decided to pay to get it out.

I held onto the car for a couple of days till she got out of jail. When she did we made an agreement through text messages that I would give the car back to her under 2 conditions. First, she had to get her drivers license by that following Friday or I was taking the car back. Second, if she did the first part then she would have to have me paid back in full what I spent to get the car out of pound. Which was the tow/impound fee and insurance because there was a no insurance hold on it and lastly the cost of me having to go and get a new title cause she had lost the one I gave her. She agreed to both conditions and come Friday she hadn't contacted me to tell me she had got her license. So I tried to get in touch with her and she said she had gotten it and I asked for proof and she never gave it to me. I tried all weekend to get a hold of her and she ignored all communication. So on that following Monday I had a locksmith make me a key and I took back ownership of the vehicle.

Did I have the right to do this? Can she sue me or do anything to me legally over this? Sorry for the long winded post.

Thank You in advance for any and all input.
Confused Tex

 

[justalayman]

Is there something about; you gave the car to her that you don't understand?

If Texas allows a person to file a notice of sale or whatever with the DMV so even if a person does not transfer the title in a timely manner, file such document.

Here, I'll help you out;

https://vision21.txdmv.gov/Vehicle/MainTransferNotification.aspx


While I understand your reasoning behind demanding she obtain her license and procure insurance, the truth of the matter is you had no right to do either.

 

[latigo]

Unlike justalayman I don't think that her claim to ownership by way of gift is all that legally solid. Theoretically at least.

It is true that according to personal property law title/ownership of goods passes from the donor to the donee when there is evidence of the intention to gift the property coupled with the transfer of possession. (Or the donee is in possession or has exclusive control of the item prior to the expression of donative intent.)

But here I think it could be reasonably argued that your intent to donate the car was expressed on a condition that she has yet to perform; to-wit: transferring the title. And a crucial condition considering the laws regarding vicarious liability of the registered owner of a motor vehicle for negligence resulting from permissive use of the vehicle. On the other hand all she would need to do to complete the gift is to complete the transfer of title.

However, I certainly agree that you cannot impose other conditions. But what is the hang up? Why the delay in registering? If it is due to the other 2 demands you are now making, you have lost your edge. You don't need an operator's license to own a motor vehicle and her being cited for not having one is no skin off of your nose. Plus you voluntarily paid the impound fees.

And then there is the problem with you subsequently having acknowledged "in writing" that the car is hers. Which could void the condition/argument that she first do the registration.

Whatever, but I have the suspicion that you have plans for the car that doesn't involve sis. Otherwise you wouldn't be in here.

 

[ConfusedTex]

Unlike justalayman I don't think that her claim to ownership by way of gift is all that legally solid. Theoretically at least.

It is true that according to personal property law title/ownership of goods passes from the donor to the donee when there is evidence of the intention to gift the property coupled with the transfer of possession. (Or the donee is in possession or has exclusive control of the item prior to the expression of donative intent.)

But here I think it could be reasonably argued that your intent to donate the car was expressed on a condition that she has yet to perform; to-wit: transferring the title. And a crucial condition considering the laws regarding vicarious liability of the registered owner of a motor vehicle for negligence resulting from permissive use of the vehicle. On the other hand all she would need to do to complete the gift is to complete the transfer of title.

However, I certainly agree that you cannot impose other conditions. But what is the hang up? Why the delay in registering? If it is due to the other 2 demands you are now making, you have lost your edge. You don't need an operator's license to own a motor vehicle and her being cited for not having one is no skin off of your nose. Plus you voluntarily paid the impound fees.

And then there is the problem with you subsequently having acknowledged "in writing" that the car is hers. Which could void the condition/argument that she first do the registration.

Whatever, but I have the suspicion that you have plans for the car that doesn't involve sis. Otherwise you wouldn't be in here.

Latigo thank you for your response. I didn't know at the time why she didn't get title transfer done but later I found out that she had a warrant and refused to take care of it. It then got to the point that her license expired and since she had a warrant she couldn't renew it. The other 2 demands were 18 months later that I was tired of having the liability on my hands so I made her agree to get that all that done so she could get the car in her name. The main reason for the license was because she was driving the car with an expired license and the car was in my name.

Justalayman thank you for your response as well. Unfortunately for I didn't know that I could do that till about a week ago. My first time ever selling/giving a car to someone. Not that that is a good excuse but it's the truth.

Latigo you are right I do have plans for the car that don't involve her. I would like to just sell it off so I don't have this headache anymore. Not that this is relevant but my sister has been taking advantage of me and our family for a long time and I would like to put an end to it all. I could go all day when it comes to her abusing our family.

Again guys I really do appreciate all of the input.

Thanks
Confused Tex

 

[justalayman]

Given sis has so many legal problems i suspect she may not take action to dispute you reclaiming the vehicle but if you do sell it and she is willing to push the issue I would be concerned about criminal conversion. That is where a person takes control of another's for their own benefit and describes your actions to a T.

To avoid the possibility, if you do go forward, you might consider giving sis the profits of the sale. At least you would have an arguable point that your actions were not intended to benefit you, financially at least.

 

[latigo]

. . . Latigo you are right I do have plans for the car that don't involve her. I would like to just sell it off so I don't have this headache anymore. Not that this is relevant but my sister has been taking advantage of me and our family for a long time and I would like to put an end to it all. I could go all day when it comes to her abusing our family. . . .

With that in mind and considering that you have (IMO) done more than necessary to accommodate her, your tolerance drained and her seeming ingratitude, I would just go ahead and do as you please with the vehicle with her deserving nothing.