Consumer Rights Law Blog

You never become the owner, that's what. But you may not be totally stuck because there are laws to protect innocent buyers against crooked and ripoff car dealers.

Not only will you have lots of legal rights, but selling a car in Ohio and not delivering title can be a criminal act too.

First, let's talk a little about the law and your rights. Then, we'll talk about how to get your money back.

The Law on Car Title Fraud

In Ohio, like most states, the only way a person can have a legal interest in a motor vehicle is if their name is on the vehicle title. Nothing else counts. That means you have to have a title issued in your name to be the vehicle's owner. It also means that you can’t own a car and you can’t legally sell a car without having the title in your name either.

If you buy a car and never get title to it, then in Ohio, again like most states, you have the right to cancel the sale and get your money back.

If you bought a vehicle from a car dealer and have not gotten the title yet, then the first thing to do is contact them and ask where it is and when you will get it. If you don’t want to wait any longer then you may already have the right to cancel the sale since failing to deliver the title to the buyer would be a breach of the sale contract.

Car dealers who don’t deliver title to their buyer often do that for several reasons. One is that they haven’t paid off the finance company that loaned them the money to buy it in the first place. Another may be that the person or dealer they bought it from has not gotten title yet either. Whatever the reason, it does not matter.

The obligation to put the title into the buyer’s name is on the car dealer to live up to. If the don’t do it within the time allowed by the law in your state (Ohio says 40 days and most states say between 30 and 45 days), then they lose. It can be that simple.

Okay, so you are right and the dealer is wrong, but you still don't have a title. Now what? There are two legal things you can do and lost of non-court things you can do.

Your Legal Rights

Legally, your options are limited. You can file a claim with the state or you can sue the dealer.

Ohio's Rescission Fund

Like many other states, Ohio has a Rescission Fund administered by the Ohio Attorney General. If you buy a car and never get the title then you can file a claim your money back from the state. If you succeed in the process, then they will refund your out of pocket money and take the vehicle and then the Ohio Attorney General has the right to go after the dealer to recover the money they pay to you.

Sue The Dealer

Or, you can sue the dealer to make them take it back and refund your money. Failing to deliver title is not just a breach of the sale contract but also a violation of the Ohio Consumer Sales Practices Act, the Ohio Commercial Code, the Advertisement and Sale of Motor Vehicles law, the Motor Vehicle Dealer Licensing Law, and probably Fraud in the first place.

Bottom line? If you don't get your title within 45 days, then start complaining to the dealer and make your complaint short and sweet. If you want to cancel the sale, tell them. If you just want the title so you can keep the car, give them a deadline. Put it all in writing, a short one page letter, and tell them if they don't answer you within, say, 7 or 10 days, then you will contact the state, etc.

And when the deadline passes, it's time to act.

Other Things You Can Do

Other consumers need to know what car dealers can not be trusted too and there are ways you can help spread the word.

Complain to the local Better Business Bureau
Complain to the Consumer Protection Section at the Attorney General's Office
Report your experience with the dealer at one or more of the online car dealer rating services, such as Dealer Rater, Car Dealer Check, My Dealer Report, and Auto Pulse Reviews.

And don't forget Yelp and other local search engine reviewing that you can do too.

The Squeaky Wheel still gets the grease. So don't give up, don't quit, and remember - if you don't protect yourself, no one else will. And when you get ripped off, fight back. If you can't get it done on your own, then contact a Consumer Lawyer to help fight for your rights.

Burdge Law Office

www.BurdgeLaw.com

Did you get ripped off? Get Burdge Law on your side.

Buying a motor vehicle can be risky for reasons you didn’t even know about.

Are you giving away your money if you don't get a title?

When a car dealer sells a new or used motor vehicle, most states require that the dealer transfer the title into the name of the buyer within a maximum number of days, often just 30 or 40 days. If the dealer fails to do that on time, then most states say that the buyer has the absolute right to cancel the sale (this is often called a Title Defect Law). But maybe not.

Many states have changed their title defect law to require that the buyer actually has to tell the seller that they are cancelling the sale. Sort of like you either say it out lout (or in writing) or it doesn't get said at all.

If the buyer patiently waits or the dealer talks them into waiting, and the dealer gets the title to them before they actually say the want to cancel the sale - then the dealer wins and the buyer is stuck - even if they got a lemon! Of course, the problem is that most people have no idea that they can cancel the sale for such a technical reason. And the car dealer sure isn't going to tell you.

Why is the law so strict about giving the buyer the vehicle title?

Having the title means you are the owner.
Nothing else counts. Period.

Because motor vehicles are “titled” property in most states, the only way a person can have a legal interest in a motor vehicle is if their name is on the vehicle title. Nothing else counts. That means you have to have the title in your name to be the owner. It also means that you can’t sell a car without having the title in your name either.

Most states also have a law that says that a car dealer is only allowed to sell a car without having the title already in their name if they have the legal ability to transfer the title into the dealer’s name right away and they, in fact, do that and then transfer title to the buyer’s name within a limited amount of time, usually about 40 days after the sale. But each state law can be a little different on this.

Of course, dealers often buy a car and then sell it very quickly. After all, they don't make a profit until they sell it. That can lead to a dealer selling it before they even receive the title to it. That can delay you getting your title too.

If you bought a vehicle from a dealer and did not get your title in time then you probably have the right to cancel the sale if you act quickly enough and you do it right.

If you have not gotten the title at all yet, then the first thing to do is contact the dealer and ask where it is and when you will get it or, if you are tired of waiting and the time limit has run out, then you can call the dealer and tell them you are cancelling the sale and you will return the vehicle to them just as soon as they tell you they will refund your down payment and return your trade in vehicle (if you paid them anything down or had a trade in).

Don't get stuck when the dealer closes

If the dealer is no longer in business, then you need to contact your state motor vehicle department right away and see a lawyer. Some states have a fund that will buy cars from victims of car dealers who never deliver titles to their buyers.

In fact, to find out what all of this means in your situation and in your state you really need to talk to a local Consumer Law attorney near you.

Of course, the safest thing to do is make sure you get the title. If you are paying cash, the dealer should be able to sign the title over to you right then and there. If not, you could be giving your money away.

And that is also the exact reason it is so risky to buy a car from a stranger, not a car dealer, who promises to get the title to you in a day or so. It might never come.

Be careful out there. Don't take a chance. But if something goes wrong, call us for help. Helping consumers is what we do.

Burdge Law Office

www.OhioLemonLaw.com

Helping consumers every day

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