Quote:
Originally Posted by kunkstyle
someone can correct me if I'm wrong, but if the car is collateral for the original loan, and your gf "bought" the car with a lien on it, your gf will be held responsible for the loan if the sister ever defaults.
I realize that this situation is a bit different, but I've always done lien checks on used vehicles for that reason.
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It depends. If you buy a used vehicle privately, always have the seller hand write, and sign off "As the seller, I guarantee this vehicle to be free of all liens and encumbrances." If a lien shows up, you have a leg to stand on, but in reality, someone pulling that scam, likely won't have the means to be collected from. I would also go as far as to ask to see photo ID from the seller, to make sure they actually are the person on the registration, and not a broker, or a shifty friend. If they say no, that is a huge red flag.
Doing a carproof national lien search, and a Alberta registries search is always the smartest thing to do up front, before any cash changes hands.
edit: You do not need this disclosure on a bill of sale from an AMVIC licensed dealer, as it is assumed, unless stated otherwise, that all vehicles sold by licensed dealers in Alberta, are free of liens.
Also, if the car does have a lien, you are not responsible for the balance on the loan, however, the bank, has a right to recover the car as they would have registered a lien registered under the personal property security act. So essentially, you would be out whatever you paid for it, and would have to fight it out with the person that sold it to you in court.