What happens if I let the registration lapse on a car I haven't seen in months?

[Beckdawrek]

@theMycon

OK, more phone calls have been made.
The NC DMV has basically said “get the vehicle back if you don’t think you can convince him to get his own plates. Tell him clearly but take it no matter his response.” If there’s an equivalent of the “incomplete transfer of title” in this state, the person I spoke to has never heard of it (although she hadn’t heard of this document period, rather than just in NC). I need to surrender the plates to remove my registration- which would both leave him unable to get to work, and driving a vehicle that’s still legally mine but now obviously unregistered & likely uninsured; so that’d be a lot of work for a losing proposition. Also there’s the whole “he’s out of state” hassle to physically getting the plates.

The person I spoke to at the MVA (MD’s DMV) seemed mostly concerned with his getting a license, registration & plates ASAP, as he is a new resident in the state and that’s a mess of new laws entering this situation. They do have a handy bill of sale form I was able to download online for free, so at least one step here is easy. Their customer service representative & their website both make it seem like I need a notarized bill of sale turned in to the DMV before the sale is official. This seems significantly harder than expected.

I’m not sure if “just telling the DMV you’ve sold your car” actually does nothing, or if there’s some magic phrasing I’m missing. But it really seems that there’s nothing I can do without at least some interaction from the buyer to make the car no longer mine.

That said, a my partner was in a similar situation a few years back (“sold” their car to a friend and never transferred title because they never got the final payment, all in NC) had no troubles when their buyer totaled the car, aside from needing to go up and hand the scrap yard the title. The 'yard had already disappeared the plates by the time he got there, and there haven’t been consequences since.

Your partner was lucky. I am glad you are taking care of this. If the buyer won’t take it seriously and in an adult manner you need to go get the car. Bring your title and some liability insurance and drive the car home. PITA? Sure. But it probably needs to get done, soon.

[PoppaSan]

@Jeff_Lichtman

Maybe it was a single-car collision, in which case there would have been no third party to sue your partner. Or perhaps the friend had insurance that covered the damages. Or maybe the friend wasn’t at fault in the collision. In any case, the fact that it worked out for your partner doesn’t necessarily mean it would work out for you.

I am not understanding how a non-owner of a motor vehicle can have insurance on it without some formal agreement signed such as a lease. I was told by a former insurance agent that you can only insure things you own or those of your dependents or others that live in your residence. My adult children still at home are under my policy to acquire the multi-vehicle discount and umbrella protections. Their driving records apply whether they are under my policy or not.

[doreen]

@theMycon

I’m not sure if “just telling the DMV you’ve sold your car” actually does nothing, or if there’s some magic phrasing I’m missing. But it really seems that there’s nothing I can do without at least some interaction from the buyer to make the car no longer mine.

You aren’t missing some magic phrasing- you haven’t transferred ownership of the car until you’ve transferred ownership of the car. Which means that you’ve signed over the title to him. Now, there may be some way for you to transfer the title to him and have the transfer recorded without making certain that he registers and insures it. In NY, that would be a “Title only transaction” but that still requires him to sign your title and the application for a new title.

[Jeff_Lichtman]

@PoppaSan

I am not understanding how a non-owner of a motor vehicle can have insurance on it without some formal agreement signed such as a lease. I was told by a former insurance agent that you can only insure things you own or those of your dependents or others that live in your residence.

Remember, we’re talking about the car belonging to the OP’s partner, not the car the the OP sold. It’s possible that there was such an agreement. My dad once sold a car to a neighbor, and in the written contract there was a clause requiring the neighbor to carry collision insurance with loss payable to my dad.