Legal advice needed. A car buyer put a stop payment on the check.

[RedRocketMike]

A good friend of mine sold a older couple a car and he let them pay with a personal check. (mistake) The car went into the woman's name and the check (payment) was from her boyfriend. The next day they called saying that a stop payment was put on the check. The check had not be deposited yet. Their reasoning for the stop payment, they took it to a mechanic for inspection and he told them it may be over $500 in parts and labor to pass inspection. They don't want to pay it, they want my friend to take the car back. Obviously they don't get how the title transfer process works. He is trying to reason with them but they don't seem to understand how they're in the wrong here.

The seller has a bill of sale signed by the new owner stating that they were purchasing the car as is where is with no warranty expressed or implied. He also has a signed paper from the boyfriend who wrote the check stating that check was for the purchase of the car and that it would clear without issue.

The buyer and seller are both PA residents. I did some digging and it seems that this would be considered theft by deception and my friend is in no way obligated to cater to them in any way. Can anyone verify this? I suggested he tell them to undo the stop payment, that he won't take the car back and see what they do.

 

[01cobravortech]

PA doesn't have a buyer's remorse law. That couple should have had their mechanic look the car over first. Out of curiosity...did your friend know that the car needed to have some things repaired in order to pass inspection but hid this from the couple?

 

[RedRocketMike]

I don't think that's the case, he himself never tried to go through inspection. He bought the car and didn't drive it so he sold it, it was a fourth or fifth vehicle. He gave them a hell of a deal even if it needs work. Its a 13 year old car so I don't know what they were expecting.

 

[PSUCOBRA96]

Simply put, he would have to sue them in court for breach of contract. Contract would show that they agreed to the vehicles condition before they had it inspected. Tell him to call them up and tell them that their options are to pay him or go to court. He may even be able to get attorneys fees if he can show things such as malice on the behalf of the defendants(but do not count on it) , really depends on the facts and the particular statute of the state as I highly doubt he had any clause stating that in the event of litigation the losing party must pay costs and attorney fees. I place clauses such as that in every contract I write.

 

[svtcop]

Simply put, he would have to sue them in court for breach of contract. Contract would show that they agreed to the vehicles condition before they had it inspected. Tell him to call them up and tell them that their options are to pay him or go to court. He may even be able to get attorneys fees if he can show things such as malice on the behalf of the defendants(but do not count on it) , really depends on the facts and the particular statute of the state as I highly doubt he had any clause stating that in the event of litigation the losing party must pay costs and attorney fees. I place clauses such as that in every contract I write.

And the moral of the story is.....A contract is always a good idea! :beer:

 

[Stanley]

And the moral of the story is.....A contract is always a good idea! :beer:

That and if they can write a check they can go to the bank and get cash.

Good luck op.

 

[FordSVTFan]

And the moral of the story is.....A contract is always a good idea! :beer:

That and "Cash is King."

 

[OldSVTGuy]

Whenever I purchased a used car from a private party, I purchased a bank check, which is a check guaranteed by the bank to prove to them I was dealing in earnest. You can also call the bank and they will vouch for the check they issued. And, yes, a purchase contract is always a good deal.

Older folks may also be confused as to their legal obligations and feel that stopping payment was the "right" thing for them to do, regardless of their legal obligations.

Good luck.

 

[mc01svt]

never take a personal check!!!! :bash:


he's going to have to take them to court which could take months!

 

[s_x_i]

I'm a licensed Texas car dealer - I would have your friend call the states DMV immediately.

Upon sale of a car here, we have 20 working days to title and register the car to the new owner. What this allows for is time for any and all cheques to be cleared and all of the paperwork to be processes. There are always things you end up going back for. Even with a contract and bill of sale, the deal isn't legally binding here until the funds have cleared and the title has been signed. There are lots of ins and outs to it, and even a few gray / arbitration areas, but technically, the car still belongs to the seller until title is signed over and filed at the DMV.

I didn't understand from your first post where you wrote "and the title went in her name" Did you mean he signed the title over, or they actually went and registered the car? If they want to bring the car back (in Texas) the deal can be unwound without too much consequence and your friend can just get a clean copy of title from the DMV.

I'd start with a few phone calls on Monday to see exactly where he stands.

 

[wvmystichrome]

I don't know about PA laws but we had something like this happen at the bank I work at. Woman purchased something with a check. As soon as she got in the door of the house she called and put a stop payment order on the check. In Kentucky she found very quickly that you do not do that. The guy came to the bank tried to cash it. He could not. He called woman to remove stop pay. She would not. He went to the local Sheriff's dept. Filed paper work and within 3 - 4 hours she was in jail. Some law in KY states if you receive goods or services and pay by check then it final. Only restitution is to go to court. Not stop pay the check. Her husband tried every way in the world to take care of it but the judge left the woman in jail crying, overnight.

 

[thepizz]

^nice. Shoulda left her in for a week. I hate scammers

 

[SVT F15O]

Any updates>???

 

[SID297]

I don't know about PA laws but we had something like this happen at the bank I work at. Woman purchased something with a check. As soon as she got in the door of the house she called and put a stop payment order on the check. In Kentucky she found very quickly that you do not do that. The guy came to the bank tried to cash it. He could not. He called woman to remove stop pay. She would not. He went to the local Sheriff's dept. Filed paper work and within 3 - 4 hours she was in jail. Some law in KY states if you receive goods or services and pay by check then it final. Only restitution is to go to court. Not stop pay the check. Her husband tried every way in the world to take care of it but the judge left the woman in jail crying, overnight.

Sounds about right to me.

Now if only they would dispatch of the pill dealers so swiftly and with such certainty.

 

[skybob]

He shouldn't have handed them the title until the check cleared. If it's in thier name now and he doesn't have any money, they stole the car. I would call the police or the motor vehicle enforment division if there is one in your state.

 

[GNGREN]

He shouldn't have handed them the title until the check cleared. If it's in thier name now and he doesn't have any money, they stole the car. I would call the police or the motor vehicle enforment division if there is one in your state.

In PA a title has to be signed in front of a Notary. And all of the Notary's I have used asked if we needed a bill of sale. Both parties sign it and that is the contract. I am unsure if the fact that the amount the car sold for that has to be written at the same time it is signed on the title would be considered a contract or not by itself?...

 

[RedRocketMike]

Any updates>???

He met with them to discuss everything that happened while the car was checked out by another mechanic, who estimated $250 for passing inspection. He ended up leaving with cash for the car.