Parkton, MD asked in Contracts for Pennsylvania

Q: Can I transfer vehicle title to PA resident but retain interest in the vehicle with a promissory note when I live in MD?

I want to sell vehicle to our child. Child lives in PA, and we live in MD. If child signs a promissory note for the sale of the vehicle, can I be named on title (even if just as a lienholder) in order to protect my interest in the vehicle? Does PA recognize this as a collateralized loan, and can I repossess the vehicle if necessary?

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1 Lawyer Answer
Peter N. Munsing
Peter N. Munsing
Answered
  • Wyomissing, PA
  • Licensed in Pennsylvania

A: Technically, yes, but you are heading for a family relations mess if you have to enforce it--imagine playing repo-man (or repo mom).

Look at other options. If you have concerns about your youth's habits sit down and workshop what would be a good way for them to access transportation they need that doesn't lead to a situation where they don't do something (forget topay insurance) so it bounces back (one reason not to be on the registration).

Let's say you loaned them a car. If things are bad enough you're thinking you'd have to repo it, then those issues need to be addressed, and wrapping it all up as a commercial transaction is not a good way--the law doesn't do family relations other than in crisis situations, and then doesn't always do them optimally.

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