How can a vehicle have a insurance total loss, but still have a clean title?
- Thread starter CarLuver
- Start date
GON
$100 Site Donor 2024
You have ethics. ethics are not always common in the used car business.
How many vehicles can you sell in a year in DC without having to obtain a dealer's license? How do you get away with not titling the vehicles in your name?
In Texas you are able to sell up to 5 vehicles a year as long as those vehicles are titled in your name and used primarily for personal, family, or household use. Otherwise, you are obligated by law to obtain a Texas Dealer's License. They take a very dim view of people selling (curbing) vehicles that are not titled in their name (open title) because it is sales tax evasion. They fine people that do this.
This is what I was thinking, too. Some people are saying "clean title" to mean there are no liens against it.
Exactly.
I was of the impression that is what the term "Salvage" defined as it appeared on the title. The vehicle is just that, salvaged from the boneyard. Because someone was able to "rescue it" by a low cost rebuilding process, in order to put it back on the road.
Hiding the fact it is / was a salvage is illegal. At least that's the way I believe it works here in Arizona. I had a coworker who purchased a early 2000's, (pre HEMI), Dodge / Ram pickup this way.
It was a POS, but he got it cheap. And he had no problem getting it licensed. He did have an issue with insurance. They didn't want to grant him collision coverage. Because they knew no reputable body shop would dare touch it if it was ever damaged again. Regardless of the damage.
So all he had was liability coverage.
Don't know, I've had a license over 30 years so it don't affect me. But it's odd that house flippers can sell as many houses as they want without any license requirement.
If the title recognises it as a "Salvage", it can be legally licensed to the purchaser, insured, and driven. (If it passes inspection).
In that regard, (and assuming it has no liens against it), it's a, "clean title". And is as good and legal as any properly titled, non salvaged vehicle that is accident free.
Nope, it's CLEAR title. There is a difference between clean and clear titles.
Yes, if you're going to play with words to that degree, then you're correct. CLEAR or CLEAN, it's LEGAL. That's all that matters, and all I was trying to convey.
GON
$100 Site Donor 2024
What dmv in any of the fifty united states use the term "clean" title on any of their laws, regulations, or statues? I speculate few to none. The term clean title is a made up status that anyone can apply in any manner they choose.
In Texas they have to be sold through a licensed agent.
Are you saying that you can't do a FSBO in Texas?
Yes, you can, but there is a limit to how often you can do this if you do not reside at the premises.
Correct. As far as the states are concerned the title either has a lien or it doesn't and it is either branded or it isn't. The terms "clean" and "clear" when referring to a title are not terms that the states use, these are industry terms, and the substitution of "clean" for "clear" is something that unscrupulous sellers will often use because much of the general public doesn't understand the difference (which is something we are seeing in this thread).
Title Washing - What Is It and Why Should I Care?
Title washing is the unethical practice of applying for a title in a state where a damaged vehicle's branded title is not recognized. Learn more about title washing.
www.autolist.com
Always wondered that myself….
Surprised nobody has challenged that as unconstitutional. The real estate association must have a strong lobby. How long would you have to "reside" there to be legit?
I don't know the exact details. I only know this because I asked a very active house flipper I am acquainted with why he was running all of his property sales transactions through an agent and not doing FSBO (he is not an agent).
It takes a lot of time and effort to sell REO yourself. In addition agents have access to MLS system so your property will get more exposure.
Better to have an agent doing that so you can concentrate on current projects as well as looking for others.
