If You Want to Buy a Car from a Private

question 12

Multiple Choice

If you want to buy a car from a private party (other than a dealer) , which of the following is false?

• A) If you request a search and the Personal Property Registry states that the car is free and clear of liens and encumbrances, then title is clear.
• B) If the seller tells you that the car is free and clear, and two months later a holder of a properly perfected and attached security interest claims a right to the car, you could lose the car.
• C) Even if both the seller and the Personal Property Registry indicate to you that the car's title is clear, you could still lose it to a third party.
• D) If the seller indicates to you that the title is clear, but after the sale the car is seized by someone with the legal right to do so, you could still sue the seller.
• E) If the seller makes no representations whatsoever about the car and the car is seized by a creditor, you can still sue the seller because he had an obligation to deliver good title.

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Definitions:

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