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Isn't it illegal for a seller not to disclose to the buyer the cars being sold w/ a lien title.? If so, what law was broken?

Auburn, WA |

I bought a vechile in 2005. The seller lost the title, but would get the title or a Release of Interest to me ASAP. When I didn't here back from the seller for sometime I left several messages phone and notes on on her door requesting the title and informed her that having it on the property with expired tabs is violation of a rule/regulation in my lease. The property manger knoew the situation and was patient. This went on for over five years. I finally recieved a Release of Interest in January 2009. I immediatly went to tranfer ownership but was unable too because of lien on the title that I was never made aware of.

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Attorney answers 1


1. What law applies? Secured transactions such as these typically fall under the Uniform Commercial Code (UCC) chapter 9. The seller likely broke his agreement with his creditor, but that does not necessarly mean that the security interest has failed.
2. Can the security interest be held against you? It depends on the type of security interest and whether or not it has been perfected. In general, a security interest in collateral continues even after the collateral has been sold unless the secured party has authorized the sale [UCC 9306(2)]. There are exceptions, however, and they allow the buyers of collateral sold without the secured partys authorization to take that collateral free of the security interest, even in situations when the security interest has been perfected.

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