Lost car title, seller won't sign, refund entitlement?

Question

I purchased a car in cash and have messages as proof of the transaction, but I lost the title before I could have it changed to my name. The seller now refuses to sign for a new title and is considering taking the car back. If this happens, am I entitled to a refund?

James L. Arrasmith · Answer

This situation is frustrating, especially since you paid in full and now face trouble over paperwork. In Texas, a car sale isn't considered fully complete unless the seller properly transfers the title to the buyer. If the seller refuses to help you apply for a lost title or complete the transfer, they’re not holding up their end of the deal—even if you lost the original document. 
 
Your messages showing proof of the purchase are important. They can be used as evidence that money was exchanged and that the car was delivered with the understanding that ownership would be transferred. If the seller tries to take the car back, that could be considered wrongful repossession, and yes, you would likely be entitled to a refund—if not the vehicle itself. You also have the option to file a complaint with the Texas Department of Motor Vehicles or take the matter to small claims court. 
 
Don’t give up your vehicle without a clear agreement or refund in writing. Keep all communication saved, and if possible, get written statements or witnesses who can support your version of events. The law is on your side when a seller fails to follow through on a title transfer. Stand your ground and take action to protect the purchase you made in good faith.

Q: Lost car title, seller won't sign, refund entitlement?