Did you just sell your car, and you are wondering what do you do now.. and how do you do it? One of the most important things to do after you have signed off on the title of the vehicle is to report that the vehicle has been sold. Any time you own property, whatever liability arises from its use is YOUR responsibility. In the case of a vehicle, once you sell it, it no longer belongs to you physically, but on paper, it does, and that is why it is imperative that you report to the DMV that it has been sold. So what could happen to you if you don't submit the release of liability to the DMV?
- If the person you sold your vehicle gets a parking ticket & that person has NOT regitered that vehicle into their name, that parking ticket is coming straight to you. Even though you no longer own that vehicle, because the new buyer did not register the vehicle, that ticket is coming to you. You cannot avoid this situation because for the most part it is out of your hands, however, by doing a release of liability at the DMV, it is much easier for you to prove to whoever is giving you that ticket, that you are not the responsible party.
- If the person you sold your vehicle to gets involved in an accident and there is a lawsuit as a result of it, you as the registered owner could be the target of that lawsuit. Because you are the registered owner, some attorney could try to fish for anyone that will pay their client's bills, and that person could be you. Avoid this horrible scenario by simply submitting the release of liability to the DMV.
- If the person you sold your vehicle to is involved in a crime sometimes you may be put in a scenario where the cops are looking for you! Although the police won't take the time to look up the history of your vehicle's registration, it does help in some cases to eliminate you as a possible suspect.