Counterfeit check

dhammel · Jan 27, 2005

I sold a vehicle which was secured by a lien. The purchaser made payment DIRECTLY to the lien holder via what turned out to be a counterfeit cashier's check. Approximately a week later, I was sent a paid in full document and lien release from the lienholder which I forwarded to the purchaser. Approximately a week after that, I noticed that the payment on the loan had been reversed. The lien holder is now coming back after me for payment.

Scooter · Jan 31, 2005

The lienholder has the right to gripe, but probably not against you. You didn't send him the check. He needs to contact the buyer, or whoever sent him the check. A counterfeit check is equivalent to a forged makers signature.

I would have a different opinion if, as part of the sales transaction, the buyer got title free and clear, and it was your responsibility to clear title, and you had direct contact with the lienholder and told him that he would be receiving a check, so that your transaction could close. It that instance, it seems that you would be part of that transaction, and therefore liable for the returned item.

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Counterfeit check

dhammel Law Topic Starter New Member

Scooter New Member

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