bought a truck from a family member

[Beatrice]

Jurisdiction

Texas

My mom sold me a truck for 5000. Sign an contract to make payment of 200 each month until paid in full. Made payment for a year but then she decided to give the truck has a gift for my birthday. We transferred the title and now its my name but now when she gets mad she states that I owe her money and to give the truck back or she will repo it..Does she have right s to take the truck back? Need you help

 

[Betty3]

If the title is in your name only - it's yours.

 

[txls]

If the title is in your name only then Mom has no rights. If Mom tries to take the vehicle it will be theft.

 

[Michael Wechsler]

It actually depends upon the nature of the agreement that was made. Typically title doesn't pass until the item is paid in full. I haven't seen the writing on the agreement you made with your mother. Let us assume that the title was transferred to you and then there was a promise to pay for the truck but without any security interest in the truck. In that instance it is more likely that your family member's remedy is to sue for money damages based upon the agreement that is claimed to have been breached.

Note that claiming the truck was a gift may not be as easy as you think. If your family member goes to small claims court and asserts that there was never a gift, the question the judge will probably ask you is where is your release from the agreement? I know that it may not feel natural at times to formally ask for a release for a spontaneous gift but, without the release, the signed paper may govern. In small claims court the rules are generally applied very liberally and credibility of the litigants and the witnesses can play a very critical role in the outcome.

At this point I'd say that you have leverage but I'm not sure it's as absolutely clear that you're free from any and all liability.

 

[txls]

Well she says title was transferred, so if that truly was done(at the DMV) then Mom has no right to repo the vehicle, which was the question. Now perhaps Mom could take her to small claims court with the contract, but I don't see that as very likely. Mom just gets mad, maybe needs some money and threatens to take the truck.

 

[Michael Wechsler]

I hear you. But when answering questions, even if the likelihood is really small, I try to explain my thoughts for both the technical answer and probable outcome. I think that while this is hair splitting, it's important to explain (or my colleagues will question my own competence, lol)

A party's rights depends upon what is in the agreement and the meaning of the term "repo" or "reposses." If the written agreement calls for the return of the truck, in theory a court could compel "specific performance" under the agreement in the event of a default. This would mean compelling the debtor to sign over title. It's certainly not the best way to make a loan (which you'd prefer be secured by the item as collateral without title transferred until fully paid.) You'd be right to say this almost certainly won't happen, especially if the truck isn't of very high value.

If this was a law school question, I could hear my old professor reminding me to "look to the four corners of the agreement" before coming to any definite conclusions. A question about title is one thing. A question as to rights is another. So I'm not saying you aren't correct about what practically will happen. I'm just clarifying what rights each party may have and assessing the likelihood they will be asserted.

Well she says title was transferred, so if that truly was done(at the DMV) then Mom has no right to repo the vehicle, which was the question. Now perhaps Mom could take her to small claims court with the contract, but I don't see that as very likely. Mom just gets mad, maybe needs some money and threatens to take the truck.

 

[txls]

Kudos to your thoroughness.