Private car seller not providing title after receiving payment

[Adriftinether]

Jurisdiction

Other

Jurisdiction: Guam, US Territory

Aug 5, 2023, I purchased and took possession of a car from a private seller for $10,500.
The seller conveyed to me that he is the legal owner of the vehicle, but has not received the title from the dealership. We complete a notarized bill of sale for the said vehicle.
Dec, 2023. The seller has not provided me with the title, claiming he himself has not received it. I have reached out 5 times, and have recently stopped getting responses.
Recently, I discover that the vehicle title has a lien on it with GM Financial. It is unclear to me whether or not the vehicle has been paid off. GM Financial will not disclose any information to me.
Additionally, I have discovered the bill of sale, which was prepared by the seller, is missing a letter and a number from the Vehicle Identification Number (VIN). The seller has left Guam and is now residing somewhere in the United States.

The vehicle is in my possession. I am unable to register it because I do not have the title, and there is a lien on the vehicle. Only the seller is able to get lien released, which he has not done in 5 months.

I would like to file a small claims suit against the seller, but I'm not sure if this is the right course of action as I can only sue for a specific amount of money. What I want is the judge to force the seller to hand over the title, or undo the transaction.

What are my options?

Thank you for your advice.

 

[adjusterjack]

What are my options?

Eat the loss and learn an expensive life lesson from the school of hard knocks.

You've been scammed. The guy is a crook. He's gone to ground. Even if you get a judgment, it'll be by default because he won't show up and it's unlikely that you'll ever see the money or the title.

 

[zddoodah]

The seller conveyed to me that he is the legal owner of the vehicle, but has not received the title from the dealership.

Proceeding with the transaction at this point was a huge mistake.

I would like to file a small claims suit against the seller, but I'm not sure if this is the right course of action as I can only sue for a specific amount of money. What I want is the judge to force the seller to hand over the title, or undo the transaction.

What are my options?

You can sue the seller, but what good will that do you if he's no longer in Guam? You could hold onto it in the hope that he returns to Guam someday. You could sue him where he lives now, but that will cost more than it's worth.

You made reference to a dealership. Is this dealership located in Guam? If so, have you visited the dealership to discuss the issue? If so, what happened? If not, why not?

If you can't get any resolution through the dealer, then I'd suggest a visit to a local attorney to see if there's something you can do to get the title in your name. You might have to post a surety bond.

 

[Tax Counsel]

Jurisdiction: Guam, US Territory
What are my options?

My first thought is to check with the Guam agency that licenses and registers vehicles to see if you may be able to obtain a new, corrected, or substitute title document from that agency after providing whatever proof it may require that you are now the owner of the vehicle. I suspect doing that will save you both time and money over trying to track down where the seller now resides and filing a lawsuit over it.

 

[adjusterjack]

OP may still be stuck with paying off a loan.

 

[Tax Counsel]

OP may still be stuck with paying off a loan.

Yes, if the OP wants to keep it. From the information the OP provided I think that any loan payoff was not factored into the price of the vehicle. That could result in the OP having to pay a lot more than the vehicle is worth unless the lender is willing to flexible on ideas regarding how to work out the lien.

 

[Adriftinether]

Proceeding with the transaction at this point was a huge mistake.

You made reference to a dealership. Is this dealership located in Guam? If so, have you visited the dealership to discuss the issue? If so, what happened? If not, why not?

I agree. Hindsight is 20/20 - I urgently needed a car, and at the time there were no cars available for rent, and this was the cheapest option for purchase.

I spoke to the dealer, no prospect for a resolution.

Proceeding with the transaction at this point was a huge mistake.
You might have to post a surety bond.

Under any other circumstances I would never agree to purchase a car without a title in hand. But, this is Guam, and on Guam things take time, when the seller said he's been waiting for months for the title, I didn't find that surprising.

OP may still be stuck with paying off a loan.

Yes, if the OP wants to keep it. From the information the OP provided I think that any loan payoff was not factored into the price of the vehicle. That could result in the OP having to pay a lot more than the vehicle is worth unless the lender is willing to flexible on ideas regarding how to work out the lien.

Thank you for your responses.

I was able to speak to a GM Financial representative who confirmed that the vehicle was paid off by the seller and GM Financial has released the lien on the vehicle.

I have a copy of the Seller's driver's license and corresponding documents proving funds exchange, terms of sale agreement with vehicle photos, and notarized bill of sale (which has a digit and letter omitted from the VIN).

A representative at the DMV told me they would issue me a new title if I can present them a document indicating that the lien was released to the seller. GM Financial will only release documents to the person named on the account, the seller.

Any recommendations how to get GM Financial to indicate that they have released the lien to the seller?

Thank you

 

[adjusterjack]

Any recommendations how to get GM Financial to indicate that they have released the lien to the seller?

Can you get the seller to provide written authorization to the lender (if acceptable to the lender) allowing the release of information to you?

If not, you will probably need a court order that compels GM Financial to provide you the lien release. How you would do that in Guam is beyond me. Would likely involve litigation.

 

[welkin]

Can you get the seller to provide written authorization to the lender (if acceptable to the lender) allowing the release of information to you?

Or ask the seller to send you the letter he received from GM Financial.