Automotive

Private Sale - question about an outstanding lien

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  • Aug 11th, 2019 12:34 pm
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[OP]
Member
Feb 6, 2015
226 posts
16 upvotes
Markham, ON

Private Sale - question about an outstanding lien

Hello RFD,

I’m currently making a deal with a private car seller and essentially his wrx sti is currently being financed and unfortunately he decided to move abroad for a year so he’s out of the country. Before he left he had signed the UVIP and ownership but however the uvip says there’s a lien on it. He ensured me that he would pay his bank and get a statement letter of release by his bank but the thing is would the uvip or ministry update the lien right away after he’s paid off such that we will need a brand new uvip? Because I’m afraid that because he’s out of the country, if I sign the old one with the lien on it, it’ll cause problems later?

My question is,

Do I use the uvip he signed that says there’s a lien on it and take a copy of his letter of release and show ministry? Or do we need to print a brand new uvip right away and figure out how he’s gonna sign it?

Any tips will be appreciated. I’m Hesitant because I’ve never purchased a financed car before or have been in this situation.
Last edited by infinityZ on Jul 21st, 2019 1:03 pm, edited 1 time in total.
Reason: Title edit
48 replies
Deal Expert
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Jul 30, 2007
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As long you get an official copy of lien statement (amount owed) and paid out from the lender, you should be ok . You don’t really need an updated uvip, imo. Lastly, you should tell current owner to advise the lender the lien discharge doc to send to you directly.

You will need him to get you the safety certificate though.
[OP]
Member
Feb 6, 2015
226 posts
16 upvotes
Markham, ON
I believe he wants to sell the car as is, would that affect it?

Also, would that mean I need his official document of the lien release?
Deal Expert
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Jul 30, 2007
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Official lien discharge doc would take as much as 60 days to be received. Hence, it would be better to have that redirected to you, if possible. Just ask his lender to see if this can be arranged

How comfortable are you buying the car “as is” ? You are responsible to get the safety done and fix whatever it needs to be. If so, I suggest you are to do this safety first and determine the car’s status before finalizing the purchase. You can take it to subie dealer or your own mechanics.

I would never buy an used car without doing due diligence
Deal Addict
Dec 12, 2009
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infinityZ wrote: Hello RFD,

I’m currently making a deal with a private car seller and essentially his wrx sti is currently being financed and unfortunately he decided to move abroad for a year so he’s out of the country. Before he left he had signed the UVIP and ownership but however the uvip says there’s a lien on it. He ensured me that he would pay his bank and get a statement letter of release by his bank but the thing is would the uvip or ministry update the lien right away after he’s paid off such that we will need a brand new uvip? Because I’m afraid that because he’s out of the country, if I sign the old one with the lien on it, it’ll cause problems later?

My question is,

Do I use the uvip he signed that says there’s a lien on it and take a copy of his letter of release and show ministry? Or do we need to print a brand new uvip right away and figure out how he’s gonna sign it?

Any tips will be appreciated. I’m Hesitant because I’ve never purchased a financed car before or have been in this situation.
The lien on the UVIP is for your information, It should not affect vehicle transfer at the ministry. I would contact his bank and try to see if they will verify that payments are up to date and get any input on steps required to ensure the loan is paid in full and the lien released. Correspondence from the seller would be helpful.

Are you dealing directly with the seller or a 3rd party? I'd personally be very cautious with this one. Might even look into using an escrow service if it is a high value.
booblehead wrote: You will need him to get you the safety certificate though.
Vehicle can be sold As Is, or if currently plated as fit the new owner can put Temp Plates on it and have 10 days (or so) to certify it themselves. Temp plates can be renewed once.
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Apr 6, 2008
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As soon as I read "seller is out of the country" I read fraud. Tread carefully. If someone really wanted to sell their car, they would have all documents already signed and have a family or friend facilitate the sale.
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Plenty of other fish in the sea.
"Never wrestle with a pig. You'll both get dirty, and the pig likes it"
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fusion2k2k wrote: As soon as I read "seller is out of the country" I read fraud. Tread carefully. If someone really wanted to sell their car, they would have all documents already signed and have a family or friend facilitate the sale.
Lots of scams start that way for sure, but if OP has actually seen the car and verified the VIN against the ownership, it's probably not a scam in this case. Usually the way the out of country scam works is that they post an ad for the vehicle at a too good to be true price, then when you inquire about it they tell you they're out of country, the car is with a company that will deliver it to your door, send the money here and the car will be delivered to you (it won't, there was never any car).

OP also mentioned that the owner left the UVIP and signed ownership:
infinityZ wrote: Before he left he had signed the UVIP and ownership but however the uvip says there’s a lien on it. He ensured me that he would pay his bank and get a statement letter of release by his bank but the thing is would the uvip or ministry update the lien right away after he’s paid off such that we will need a brand new uvip?
But for sure make sure you verify with the bank that the loan has been paid off before proceeding with the purchase (call them). It's pretty common scenario, shouldn't be a problem.
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Nov 12, 2004
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booblehead wrote:

You will need him to get you the safety certificate though.
Why would you need the owner for a safety certificate?
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Nov 16, 2011
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The MTO does not care if you buy a car with a lien against it.

The UVIP is just as it states, a Used Vehicle Information Package. It is an information package.

The fact that there is/may be a lien against it is your problem to deal with and resolve
[OP]
Member
Feb 6, 2015
226 posts
16 upvotes
Markham, ON
I talked to him over the phone and we stay in contact. I actually went over to his house to look at the car. He mentioned he’s moving to the country for a year to feel the place out and that he found a girlfriend over there. Regardless, he’s okay with me taking the car to the mechanic as his dad will drive the car over. I’m just wondering like in terms of his lien release, he said his bank (RBC) will give him the lien release immediately if he pays cash apparently. So I just want to see if this is true. Either way should I be the one getting the actual document?

The vin is verified and he even sent me a receipt from Markham Subaru for his engine replacement due to the ringland issue. He also sent me his ownership and uvip
[OP]
Member
Feb 6, 2015
226 posts
16 upvotes
Markham, ON
Do I call his bank rbc and ask on his behalf? Or what? How does that work
[OP]
Member
Feb 6, 2015
226 posts
16 upvotes
Markham, ON
Yeah he has his father to deal with the car and he left the uvip and everything signed. I’m just seeing what steps I must take next. He also agreed to let me take his car to a mechanical inspection at my mechanic of choice
[OP]
Member
Feb 6, 2015
226 posts
16 upvotes
Markham, ON
He said his bank is willing to release the lien document immediately if he pays cash apparently. Is this true?
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Jul 30, 2007
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you should then get the owner's driver license to match up to the title of the car and the loan as well. Go with the owner's father to the lender and see him to pay it off in person, if need to be.

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