Legal Articles

Title Problems and Vehicle Registration after Sale

By Patrick Russell, Esq.

May 1, 2003 - 4:37:00 PM

There are instances, some by accident and some intentionally, when a purchaser of a vehicle forgets or fails to transfer title or registration.  In some cases, the vehicle may be placed in storage and the purchaser may think that their is no reason for him or her to secure registration if the vehicle will not be used.  In other instances, a person may be trying to fraudulently own and operate a vehicle when they may not be entitled to do so or as a means to hide their assets.  In either event, the consequences for failing to transfer the title and registration can be quite severe for the seller.

In Florida, both the driver and the owner of a vehicle will be responsible for any damages that the vehicle may cause.  Essentially, this policy requires that every owner maintain insurance on their vehicle and/or be willing and able to pay for all damages that the vehicle may cause.  As such, no owner of a vehicle in Florida can defend or insulate himself from liability by merely stating that he was not driving the vehicle at the time of an accident.

Why is all of this important in the context of a sale?  This is important because you as the seller will remain the legal owner of the vehicle if the purchaser fails to transfer title.  Accordingly, you will share liability with the driver of the vehicle for any accident that may occur even if you have sold the vehicle and it is no longer in your control or possession.  Depending on the severity of the accident, this can be devastating if you cancelled the insurance on the vehicle you sold.  The bottom line is that if you should somehow remain the legal owner of the vehicle because the purchaser fails to transfer title, you are now personally insuring that vehicle and the driving habits and abilities of your less than responsible purchaser.

What can you do?  As an initial precautionary step, you should not cancel your insurance on the motor vehicle until you have seen the title transfer.  In all other cases, if you should become suspicious that the registration or title was not tranferred, you should complete and file  Form 82050, Notice of Sale with the Florida Department of Highway Safety and Motor Vehicles.  Do this as soon as possible and retain a copy of the form for your records.  You can find more information and the form at the following link: http://www.hsmv.state.fl.us/  Completing the form will put the Department on notice that the vehicle has been sold and that the registration should be cancelled and not be renewed.  Next, you should notify your local police department that your tag has been lost or stolen.  As with Form 82050, be sure to get a copy of your police agency report to keep with your records. 

Bear in mind that the legal status of ownership will not officially change until such time that the original title is submitted for transfer.  Having the documentation listed herein will help you defend yourself in any subsequent lawsuit and to prove that you did sell and transfer all right and title in the motor vehicle.