Q: Is it against the law the finance/sell a vehicle from a used dealership without having a properly signed title?
To finance/sell*
A: It depends on the nature of the defect in the title. If you do not have valid ownership or the vehicle (a listing on title or a properly signed bill of sale with proof of payment), you cannot legally sell the car (this is fraud). If the defect is a simple clerical error (i.e. a valid sale occurred, but someone forgot to sign the title) the best approach is to get the defect corrected by the prior owner (i.e. get the signature). If you cannot find the original seller and you have a valid sale contact the CO Motor Vehicle Department. You may want to contact a lawyer.
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