Unveiling the Dangers of Open Titles
The subject of open titles or title jumping is a common concern in vehicle transactions. When you have a title certificate, it typically contains vehicle details on the front and a section on the back where the owner can sign their name as the seller to the new buyer. Title jumping occurs when the owner signs their name but leaves the buyer’s section blank.
The Temptation of Open Titles
Buyers often request open titles, especially when flipping vehicles. They may ask sellers to sign the back without specifying the buyer’s name, intending to fill it in later. While this may seem convenient for the buyer, it can create significant problems for the seller.
The Risks for Sellers
As a seller, signing an open title can expose you to various risks. When you sign without knowing the buyer’s identity, you remain liable for the vehicle. If the new owner delays transferring the title, you could face consequences for actions related to the vehicle. Moreover, if the buyer engages in tax evasion, you might be held accountable for aiding in the illegal activity.
Most states explicitly advise against signing a blank title, highlighting the potential legal repercussions. Violating this rule can lead to fines, penalties, and even imprisonment. Title jumping is considered a crime in almost every state, and intentional violations can result in severe consequences for sellers.
Protecting Buyers: Potential DMV Impoundment
Buyers who unknowingly purchase a vehicle with an open title may face challenges at the DMV. If the title isn’t filled in when presented to the DMV, they might seize it and, in some cases, impound the title and the vehicle. However, buyers caught in this situation have potential solutions, such as pursuing a bonded title, a court order title, or a magistrate title.
The Truth About Bonded Titles
Contrary to common misconceptions, obtaining a bonded title doesn’t necessarily entail exorbitant costs. The price of a title bond is often around $100, providing a viable solution for buyers facing title-related issues. However, it’s crucial to note that there are approximately 10 states where obtaining a bonded title isn’t an option. In such cases, a court order title becomes a valuable alternative.
Navigating the Title Maze: Visit CarTitles.com
For comprehensive information on bonded titles, court order titles, and dealing with title-related challenges, visit our website at CarTitles.com. Ensure a secure and legal vehicle transaction by understanding the risks and responsibilities associated with open titles. Remember, when buying a vehicle, insist on a certified title transfer to protect your investment and avoid potential legal pitfalls.