The fact that the dealer said he "lost" the title is suspicious. It is more likely that there was something negative on the title on the other state and he got a new title from DMV to "wash" or hide that negative information on the California title. I would suggest that you purchase a history on the vehicle at www.vehiclehistory.gov (cheaper than carfax) and if there is something roubling on there, consult a consumer law attorney in California.
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Your questions are more practical than legal and probably are best answered by calling or visiting your local DMV office, frankly. If you need to talk to a local Consumer Law attorney in California near you, you can get a Free Online 50 State National List of Consumer Law Lawyers, click on this link (http://tinyurl.com/79ku5jx) and find one near you (lawyers don’t pay to get listed here and most of them are members of the only national association for Consumer Law lawyers, NACA.net). Scott Kaufman and Brett Shainfeld and Douglas Sohn frequently answer California questions. You can also look for one here on Avvo under the Find a Lawyer tab. Or you can call your local attorney's Bar Association and ask for a referral to a Consumer Law attorney near you. But act quickly because for every legal right you have, there is only a limited amount of time to actually file a lawsuit in court or your rights expire (it's called the statute of limitations), so don't waste your time getting to a Consumer Law attorney and finding out what your rights are. If this answer was helpful, please give a “Vote UP” review below. And please be sure to indicate the best answer to your question so we can all be sure we are being helpful. Thanks for asking and Good Luck. Ron Burdge, www.BurdgeLaw.com
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This answer is for general purposes only and does not establish an attorney-client relationship. The law in your state may differ and your best answer will always come from a local attorney that you meet with privately. If you need a Consumer Law attorney, click the link above to find a Consumer Law attorney near you.
We'll gladly look at all docs for you at no charge. I think DMV can straighten this out for you, but, I think dealer may be in the wrong here and may have some answering to do.