OK, what do I do?

[no_hypocrisy]

I represent a guy who bought a vehicle from an auto repair owner.

The owner had the unsigned title to the vehicle. The owner didn't want to pay for the cost of the repairs and offered the title to the auto shop, which was accepted.

Now this owner is not a licensed dealer. My guy heard about the vehicle being $700 and bought it from the auto repair owner, who called the existing owner to come down to sign the title.

With me, so far?

The Buyer went to DMV to register his new vehicle but was refused because the auto repair owner ruined the title document. Torn and missing the lower third.

I contacted the original owner as she was STILL the owner despite the exchange of agreements and services and money. She agreed to sign the DMV applications for a replacement title. BUT:
1. She refused to go to the DMV to ask for the replacement title.
2. I offered to go to the DMV but they wouldn't do anything without a Power of Attorney, AND she refused to sign a POA.
3. Even if I mail the application, it won't be processed because I need HER photo ID copied -- and she's not about to do that.

Now, I know, I know. If that vehicle is in an accident and there are damages for property loss or loss of life, she's still responsible.

The Buyer doesn't want to return the vehicle b/c he plunked down $2,100 to repair it and that's too much to walk away from.

Technically, this is the fault of the owner of the repair shop, but we're at an impass.

I spoke to a dealer at an automobile dealership. He thinks I've hit a brick wall.

Is the only other choice I have is to go to court to effectuate the contract of sale? (The signatures are on the damaged original title to prove there was a sale.)

[House of Roberts]

1. It takes a while, usually several weeks, to declare a vehicle abandoned,

but the repair shop could help you do that. I've only had to do it a few times when a car was going to cost more to fix than it was worth. That was in the pre-internet days, but it may even be easier now, and as usual, your state may differ in procedure.

[no_hypocrisy]

2. Trouble is to qualify for "abandoned car,"

it can't run. This can run and even better with the $2,100 extra repairs.

[House of Roberts]

6. Customers have been known to authorize repairs, even provide seed money toward parts,

only to fail to raise the remaining funds to complete payment after repairs are done. Then storage charges pile up, until the shop declares the car abandoned to recover their expenses. I never heard of a case where a mechanic's lien was invalid due to repairs being completed.

[AndyS]

3. Is there a Mechanics Lien in your state?

A mechanic's lien allows someone with a labor interest in a property to assume ownership if the lien is not paid and become the legal owner of the property. Takes some time but the shop can file a Mechanic's Lien, get a title and proceed with the sale.

[Mopar151]

4. Offer the previous owner a settlement!

$100 would be well spent. She likely feels ill used, and the $2100 in repairs your client has spent is pretty remote to her.

[Kali]

5. been a few years

But back when the migration was extreme, we were collecting a lot of abandoned vehicles and all we had to do was file with motor vehicle division they come out inspect the car for the VIN number and I think it was about 20 bucks to get a new title. Now, they did make an attempt to notify the last legal owner and we had one asshole come and try to claim it, so there is a chance original owner could dick new owner over. This is AZ.

[discntnt_irny_srcsm]

7. My take; not an attorney.

Three parties are involved:
The shop- has possession of the vehicle, invest in and was paid for labor of repair.
The owner- left the vehicle to be repaired and can't afford the repairs.
The buyer- paid $2800 ($700 plus $2100 for repairs) for the vehicle and can't take possession.

The deal between the shop and buyer can be construed as void since the shop is not able to provide a clear transferable title.
The deal between the shop and the owner is really unclear since ownership was offered and accepted in lieu of payment for repairs.

At this point the buyer is due either a refund of his money or the vehicle. The shop is responsible for making that happen. The buyer has no real way to compel the owner to anything. The is responsible for creating the problem since they failed to responsibly maintain the title. The shop can't come after the owner for repairs which weren't authorized and that have been paid for by another. However, the shop can notify the owner, since said owner is still the legal owner, that beginning today, the owner will be responsible for storage of the vehicle until it is removed. The shop should be responsible for the owner's time and expense to obtain a good title because of their failure to maintain the original.

The owner's continued refusal to either provide a new title to complete the sale or pay the storage and repairs should grounds for a court case. At that point the court can issue a judgement favoring the shop to take ownership.

The shop could also pay for an attorney to either represent the owner in replacing the title or provide a limited POA for the owner to allow the shop to deal with the title issue.

Depending on the location (state) any of this my be invalid.

Lesson learned: IMO do not pay for repairs on a vehicle you don't own.