Handling conveyancing for an automobile on your own without professional help can be tricky. While it may seem like a good way to save money, going it alone often ends up costing more in the long run due to mistakes. Here are the top 5 most common mistakes people make when trying to do their own conveyancing for an automobile transfer.
Not Understanding the Legal Process
The legal process of conveyancing an automobile from one owner to another involves several steps that must be properly followed. If any of these steps are skipped or done incorrectly, it can invalidate the transfer or cause other legal issues down the road. Registering the transfer correctly with the Department of Motor Vehicles or equivalent government agency within the required timeframe. Ensuring all liens or loans on the vehicle are paid off and getting the appropriate lien release documentation from lenders. Failure to do this could leave the new owner on the hook for old debts.
Not Double Checking Important Details
In the conveyancing process, mistakes can be made by missing or misreporting important details like VIN numbers, vehicle descriptions, or ownership transfer dates – especially if conveyancing multiple vehicles at once. Without double-checking these details, errors can creep in.
DIY conveyancers may also fail to double-check that things like payoff amounts, lienholder information, odometer readings and more have been correctly inputted. One minor typo or transposed number could potentially invalidate the transfer.
Not Handling Contingencies Properly
Unexpected issues sometimes come up during vehicle transfers, like a discovered hidden problem with the automobile or problems clearing a lien. DIY conveyancers may find themselves unprepared to properly handle various contingencies without guidance.
For example, if a new issue is discovered during a pre-sale inspection that warrants renegotiating elements of the sale, the paperwork may need to be adjusted. Or if a lien can’t be immediately released, the process for temporary lienholder acknowledgment may need to be followed.
Failing to Use Standardized Templates and Forms
Each state has standardized forms and templates that must legally be used for conveyancing to ensure all necessary disclosures and agreements are included. Trying to draft your own conveyance documents from scratch risks omitting the required language.
Standardized state forms also help convey important legal notices to both parties. For example, many states require specific odometer and title disclosures to be made to the buyer using the approved legal templates.
Not Obtaining Proper Signatures and Notarization
Getting all necessary parties to properly sign the conveyancing forms and agreements is important, but the signature process also must comply with state law.
Many people fail to follow rules like having signatures witnessed or notarized, having forms signed in a certain order, or signing in wet ink rather than electronically. Diverging from regulations for signatures and notarization eliminates the legal standing of documents.
When Automobile Conveyancing Goes Wrong
Mistakes in the conveyancing process don’t always immediately cause problems, but they can come back to create significant issues down the line like in case of accidents. For that, you will need an automobile accident attorney to resolve your issues.
Conclusion
Automobile transfers seem straightforward but involve complex legal requirements that must be precisely satisfied for the new buyer’s and seller’s safety. While the temptation to self-handle conveyancing and save a few dollars is there, the long-term risks just aren’t worth it.
