Schertz, TX asked in Contracts, Business Law, Collections and Small Claims for Texas

Q: I bought a car and have proof they have received all the money owed. The person who sold me the car had a lien on the

Title. The car was repossessed after I fired their son and I guess they stopped making payments then. The Lien holder gave me the car with my name as the customer without any payment due and I have a paper with all information saying so. Would the car then be mine?

The first part of the release states:

(Creditor) hereby authorized the release of the vehicle with VIN# (number) (the “Vehicle”) by the above named Vendor (PAR) to Kayla Garrett (collectively, “Customer”), with reference to account number (Number).

The selling party got a judgement saying the vehicle is theirs but I didn’t know of the court date and just provided them all the documentation I have from the contract to the prior leasing agreement to the insurance I have had on it. I also included the release from said creditor.

All payments went to seller. Repossessed after paid off. Still haven’t gotten title but loan company released the car to me with his account number and me only.

1 Lawyer Answer
Leroy Scott
Leroy Scott
  • Consumer Law Lawyer
  • Houston, TX
  • Licensed in Texas

A: If you only paid the lienholder, but not the actual seller, then the vehicle would still belong to the seller. The lienholder can only release its lien; it cannot give you title to the vehicle (unless the lienholder had repoed the vehicle).

If you only paid the seller, but not the lienholder, then you could claim ownership of the vehicle subject to the lien.

1 user found this answer helpful

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