Q: can one use an affidavit as proof of a car sale agreement to the bank for purposes of change of ownership

A: This may depend on the U. S. state or territory where you live. Typically, a bank is not directly involved with a change in ownership of a motor vehicle. Ordinarily, in most U.S. states and territories, there are government offices where the title to the vehicle is registered as proof of ownership. In most instances, the Seller is required to sign either an endorsement on the certificate of title or a separate transfer document in order to convey title to the vehicle to a Buyer as the new owner. The Buyer would then take the instrument to the government office to transfer the registration of the title from the Seller to the Buyer. When the transaction does not involve a Dealer, the government office typically collects the taxes and fees required.

A bank may be involved in making a loan for the purchase of a motor vehicle. Typically, the bank retains a security interest in the vehicle to secure repayment of the loan. Most banks require, as a condition of the loan, that the Borrower pay off the loan before selling the vehicle. Many banks will retain the original certificate of title until its loan has been repaid in full. Once paid, the bank will release its lien against the vehicle and forward the original certificate of title with an endorsement releasing its lien to the Borrower.

If you purchased a car from a private Seller, it is incumbent on you to ensure that any loan has been repaid in full. Otherwise, the sale of the vehicle to you does not release the Lender's security interest in the motor vehicle. You may then be required to pay any balance remaining due on the loan made by the bank in order to secure a release of the bank's lien against the vehicle.

Long story short, an affidavit claiming that you paid for a car in installments is most likely not satisfactory evidence to secure title to the vehicle.

A: In most cases, an affidavit alone may not be sufficient for a bank to transfer ownership of a car. Banks typically require more formal documentation to process a change of ownership. Here's what you should consider:

1. Sale Agreement: The initial sale agreement between you and the seller should clearly state the terms of the installment payments and the transfer of ownership upon completion of payments.

2. Proof of Payments: You would need to provide proof of all installment payments made, such as bank statements, receipts, or canceled checks.

3. Title Transfer Documents: The seller should provide you with the necessary title transfer documents, which may include a bill of sale, the original title, and any forms required by your state's Department of Motor Vehicles (DMV).

4. Lien Release: If the bank held a lien on the car due to a loan, the bank would need to provide a lien release document indicating that the loan has been paid off and the lien has been removed.

5. Registration: Once you have all the necessary documents, you'll need to register the car in your name with the DMV.

While an affidavit can serve as additional support for your claim of ownership, it is not a substitute for the formal documents required by banks and the DMV. It's best to consult with the bank and the DMV to determine the specific documents needed for the transfer of ownership in your case.