Convicted of Failure to Provide Insurance For a Car That I Do Not Own Nor Drive

[dharvell]

Jurisdiction

Michigan

As convoluted as this situation is, I hope I can provide an adequate description of what is happening. In June 2021, I sold a car to another party. I kept a copy of the title (including signatures showing transfer of title) as well as a bill of sale. Fast forward to January 2022: I received a letter from the Michigan Secretary of State informing me that I had been ticketed in December 2021 and convicted in county district court for failure to provide insurance. This came to me as a surprise as I have never been ticketed in my entire life. The vehicle in question is the vehicle I sold back in June - a car I no longer possess, nor drive (or have any other connection to, other than being a previous owner). To further confuse the situation, the license plate associated with this ticket is a plate I still have in my possession (I did not hand the plate over with the car) and has not been used for several years. I contacted the district court to try to sort this situation out, but the court clerk indicated that I needed to provide the ticket number and the court case number. As I was not the one that was actually ticketed - it was the current owner of the vehicle - the court said I would have to contact the Michigan SOS to get that information. Michigan SOS has not been able to provide this information and claims that they have no idea what department I would need to speak to for such information. As such, I still have a conviction with my name attached to it in the county court. The issue is that I receive a good portion of my income through rideshare driving (using my current car that is fully insured, including business-use insurance). Having this conviction associated to my name, if the company I drive for renews a background check on me, this wrongful conviction could result in me being suspended from the platform, preventing me from earning that income. At this point, do I have any legal options to 1) expedite the steps required to get my name cleared, 2) protect my name until this situation is successfully taken care of, and 3) hold the city's police department accountable for their lazy police work that resulted in me being named as the driver of the car, in the first place? Thank you for any advice you can provide. Of course, if you require additional information, I would be happy to provide it for you.

 

[mightymoose]

1. Expedite? Unlikely. When you sold the vehicle did you fail ti report rhe sale to the state? If so, as far as they are concerned you were still the owner.

2. Not really. Again, by reporting the sale you would have avoided all this. It is not clear that you made the report.

3. No. If neither you nor the new owner reported the sale/purchase of the vehicle then you were correctly identified as the legal owner.

 

[army judge]

As convoluted as this situation is, I hope I can provide an adequate description of what is happening. In June 2021, I sold a car to another party. I kept a copy of the title (including signatures showing transfer of title) as well as a bill of sale.

Upon the sale of a motor vehicle you own in Michigan, the title record for the vehicle will remain in the seller's name until the buyer submits the seller's assigned title and applies for title in their (the buyer's) name.


The best way to ensure this happens is for the seller to accompany the buyer to a Secretary of State branch office and process a title transfer application into the buyer's name.


Sellers run a SERIOUS legal risk if HE/SHE doesnot ensure the buyer applies for title.

The Michigan Department of State cannot change the name on a title record until a new title application from the purchaser is processed.

If you cannot accompany your purchaser to a branch office of your local SOS Office to ensure the title is transferred PROPERLY, make a copy of the front and back of the title after assigning it to your buyer. This will protect you against negligent use of the vehicle after delivering it to the buyer as provided in Section 257.240 of the Michigan Vehicle Code:

1) The owner of a motor vehicle who has made a bona fide sale by transfer of his or her title or interest and who has delivered possession of the vehicle and the certificate of title to that vehicle properly endorsed to the purchaser or transferee is not liable for any damages or a violation of law that subsequently results from the use or ownership of the vehicle by another, if the owner, other than a licensed dealer, satisfies the conditions prescribed under subsection (2).

(2) The owner of a motor vehicle, other than a licensed dealer, shall satisfy 1 of the following conditions:

(a) Accompany the purchaser of the vehicle to a secretary of state branch office to assure that the title of the vehicle being sold is transferred.

(b) Maintain a record of the sale for not less than 18 months. As used in this subdivision, "record of the sale" means either a photocopy of the reassigned title or a form or document that includes the name, address, driver license number, and signature of the person to whom the vehicle is sold and the purchase price and date of sale of the vehicle.



If I sell a vehicle to someone and I don't accompany the purchaser to a Secretary of State office or maintain a record of the sale, and the purchaser does not transfer the vehicle title into their name, am I liable for actions of the purchaser?


Yes.

A person who cannot prove they sold their vehicle as required by Section 257.240 is responsible for a civil infraction and subject to a civil fine of $15.00. The person is also presumed to be the last titled owner and is liable for towing fees and daily storage fees if the vehicle is abandoned.



I sold the vehicle; how do I get the title out of my name?
Upon sale of a vehicle, the title record for the vehicle will remain in the seller's name until the buyer submits the seller's assigned title and applies for title in their (the buyer's) name. The best way to ensure this happens is for the seller to accompany the buyer to a Secretary of State branch office and process a title transfer application into the buyer's name.


Sellers run a risk if they do not ensure the buyer applies for title. The Michigan Department of State cannot change the name on a title record until a new title application from the purchaser is processed. If you cannot accompany your purchaser to a branch office to ensure the title is transferred, make a copy of the front and back of the title after assigning it to your buyer. This will protect you against negligent use of the vehicle after delivering it to the buyer as provided in Section 257.240 of the Michigan Vehicle Code:

1) The owner of a motor vehicle who has made a bona fide sale by transfer of his or her title or interest and who has delivered possession of the vehicle and the certificate of title to that vehicle properly endorsed to the purchaser or transferee is not liable for any damages or a violation of law that subsequently results from the use or ownership of the vehicle by another, if the owner, other than a licensed dealer, satisfies the conditions prescribed under subsection (2).


(2) The owner of a motor vehicle, other than a licensed dealer, shall satisfy 1 of the following conditions:

(a) Accompany the purchaser of the vehicle to a secretary of state branch office to assure that the title of the vehicle being sold is transferred.

(b) Maintain a record of the sale for not less than 18 months. As used in this subdivision, "record of the sale" means either a photocopy of the reassigned title or a form or document that includes the name, address, driver license number, and signature of the person to whom the vehicle is sold and the purchase price and date of sale of the vehicle.


SOS - I sold the vehicle; how do I get the title out of my name?

 

[adjusterjack]

1) expedite the steps required to get my name cleared, 2) protect my name until this situation is successfully taken care of, and 3) hold the city's police department accountable for their lazy police work that resulted in me being named as the driver of the car, in the first place?

1 - You'll need to file a motion to set aside the conviction. Hire a lawyer. It's not a DIY project.

2 - You haven't said, but if you haven't done it already, I suggest that even now, you file the proper notification of the sale.

3 - Not the snowball's chance in hell. The police did nothing wrong.