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Can either person sell car without the other title holder's permission? Login/Join 
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A granddaughter got her grandmother, dba a cattle company, to sign off on her car loan. Apparenlty both the granddaughter and the cattle company are listed on the title as owners. The granddaughter sells the car without grandma signing off on the sale. Granddaughter signed the transfer of title for the cattle company, although she did not have any permission to do so.

Can either party sell the vehicle without the other's permission? Apparently the veh. loan at the bank was paid off before the granddaughter sold the vehicle.
 
Posts: 686 | Location: Beeville, Texas, U.S.A. | Registered: March 22, 2001Reply With QuoteReport This Post
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I am no expert on the Cert of Title Act, but, for what it's worth . . .

When the new buyer goes to title the vehicle, the Department should refuse to issue a new title. If that happens, Transp 501.073 negates the sale.
 
Posts: 104 | Location: Brazos County, Texas | Registered: February 10, 2010Reply With QuoteReport This Post
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Maybe the answer is found in this statutory language from the Transportation Code:

501.071(a) A motor vehicle may not be the subject of a subsequent sale unless the owner designated in the certificate of title transfers the certificate of title at the time of sale.

501.021(a) A motor vehicle title issued by the department must include: (1) the legal name . . . of each purchaser and seller at . . . a subsequent sale;

501.022(c) The owner of a motor vehicle that is required to be titled and registered in this state must obtain a title to the vehicle before selling or disposing of the vehicle.

501.073 A sale made in violation of this chapter is void and title may not pass until the requirements of this chapter are satisfied.

But see Buss, 143 S.W.3d 915 (Tex.App.—Corpus Christi 2004), describing the intricacies of COTA transfers.

Of course, grandmother may have been involved in the transaction solely as a guarantor of granddaughter's loan and thus was more like a lienholder than an owner. Still, I am guessing granddaughter could not legally sign the transfer of title other than as one of the two owners.
 
Posts: 2368 | Registered: February 07, 2001Reply With QuoteReport This Post
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Thank you both very much.

Terry Breen
 
Posts: 686 | Location: Beeville, Texas, U.S.A. | Registered: March 22, 2001Reply With QuoteReport This Post
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