Auction buyer demanding Title to car... what are my obligations?

[Appleton Storage]

Good afternoon,

I recently auctioned a unit that was delinquent several months rent. The contents of the unit included a vehicle.

The auction was performed by a licensed auctioneer, per Wisconsin state law since the unit's contents were obviously more than $500.

The winner of the auction is demanding we provide a title to the vehicle and is threatening legal action if we don't produce it.

I don't think I am obligated to procure a title for him, as we didn't own the vehicle nor make any claims to the contents of the unit.

Feedback please?

Thank you!

[Lisa T]

In South Carolina, we have to do a DMV check before we sell a vehicle, to make sure there isn't a lien against it...if there is, we have to contact the lienholder and give them the option to deal with the past due amount and removing the vehicle.

If no lien, we take the DMV paperwork where they did the lien search, to the county sheriff, who will hold the auction. He then gives a paper to the buyer that they can take back to the DMV to get a clear title. If no one bids on it, the storage facility gets a clear title to the vehicle.

If you sold it for parts only, as some places do, I don't think you have to provide a title, but that would significantly reduce the amount of the bid. If you sold it as a vehicle, you should be able to provide a title as they won't be able to get one on their own.

You should check with either your attorney, your local DMV, or your local sheriff's office to find out. If you sold it with a lien against it, like Ford Motor Credit or Bank of America being owed money on it for example, then it's not a legal sale if they weren't contacted first.

[Guest]

First, the auctioneer should have your answer and made it clear what the statutes say about this. Check your state statutes and check with the state SSA. In my state, Oregon, it is buyer beware and you/I don't have to supply a title but can if I have a copy, as any facility should if they KNOW about any vehicle with a VIN. We have to do a title search for lien holders and make contact to all of them but if we don't come up with anything and can prove our search then we sell the vehicle or have towed off. That winner isn't going to sue. He/she bought the unit with the vehicle in it and knew what was in it and did not make a bid pending title availability. I personally would tell them to pound sand and stop being an ass with their threats. I would look him/her right in the eyes and ask why they didn't ask about the title before they bid on the unit. People that threaten law suits are as bad as some used car dealers.

[Appleton Storage]

First, the auctioneer should have your answer and made it clear what the statutes say about this. Check your state statutes and check with the state SSA. In my state, Oregon, it is buyer beware and you/I don't have to supply a title but can if I have a copy, as any facility should if they KNOW about any vehicle with a VIN. We have to do a title search for lien holders and make contact to all of them but if we don't come up with anything and can prove our search then we sell the vehicle or have towed off. That winner isn't going to sue. He/she bought the unit with the vehicle in it and knew what was in it and did not make a bid pending title availability. I personally would tell them to pound sand and stop being an ass with their threats. I would look him/her right in the eyes and ask why they didn't ask about the title before they bid on the unit. People that threaten law suits are as bad as some used car dealers.

LOL! I'm inclined to feel the same way, but your elegant way of phrasing it gave me a chuckle.

Thanks for the feedback

[Tercelet1]

Did you do your due diligence before auctioning the vehicle? In most places you must make sure there is no lien on the vehicle, if there is, the lien holder must be notified of the sale, You must have checked to make sure it was registered to the person who leased the unit, and the information matches. Here in Oklahoma you need to title 42 the vehicle, to sell it "the laws are specific to each state". If you did this you would have the title.
We have in the past called and had a wrecker service do the work for us. If you did not do your due diligence, I recommend speaking to your company attorney for next steps. Sorry if this sounds harsh.

[Guest]

LOL! I'm inclined to feel the same way, but your elegant way of phrasing it gave me a chuckle.

Thanks for the feedback

Yep, when people here at the forum think of me, the first thoughts that hit them include "elegant". I get that a lot.

But really, we all have said many times here that any facility manager should be very familiar with their state statutes when it comes to auctioning ANYTHING in a unit or at outside parking. All the DMV checks and if they are needed or not should be very familiar with you. If you did not do your due diligence, like Tercelet1 said, then you may reap what you sew.

Did you get that? It was another elegant phrase on my part. "I'm here all week folks. Make sure you tip your waitress on your way out".

[Lisa T]

In this state, storage facilities and wrecker yards can not sell vehicles, it must be done through the sheriff's office....so you do need to find out. If we are selling a vehicle without a title, we MUST clearly state it is without a title and being sold for parts only. So I wouldn't talk to the buyer until I knew what the legal requirements for what I should have done are...he may have a very valid case, or you may be refunding his money if you didn't follow the law in your state

[Dave Scott]

Check with your BMV for procedures to this. In my state you need to provide paper work to the buyer at time of sale then they go to the BMV to transfer title work.

[Steve_hajewski]

I'm in WI too, and just read through the self storage law at https://docs.legis.wisconsin.gov/sta...tatutes/704/90. It does not seem real clear on how to handle. The DMV web site indicates that you can not apply for a lost title to transfer ownership. Whatever you find out, please share!

[Guest]

Steve, is that in the self storage statutes or the vehicle parking/storage statutes. Oregon has 2 sections.

[Tercelet1]

According to your local DMV website, you would have needed to apply for a lien on said vehicle before the sale of it. You would file for what they call involuntary self service storage lien. The customer is angry because he has no way to get a title for the car and can not do anything with it now. If he sues you he is likely to win, as it is your responsibility to secure the title before the sale. In Oklahoma it is a similar process however it is named differently. Your best bet would be to give him a refund, and take possession of the car again. The biggest dilemma you face is that now both parties can sue you . The tenant can sue for illegal sale of the car. The buyer as well can sue, because you had no legal standing to sell the car. You will need all of your records for this customer, and will likely have to send him more official paperwork giving him additional time to pay the lien and reclaim the vehicle.Pray that he doesn't know the law. As well as any possible lien holder additional to you.

[lady5563]

Good afternoon,

I recently auctioned a unit that was delinquent several months rent. The contents of the unit included a vehicle.

The auction was performed by a licensed auctioneer, per Wisconsin state law since the unit's contents were obviously more than $500.

The winner of the auction is demanding we provide a title to the vehicle and is threatening legal action if we don't produce it.

I don't think I am obligated to procure a title for him, as we didn't own the vehicle nor make any claims to the contents of the unit.

Feedback please?

Thank you!

The one thing that sticks out the most to me is
You stated that you used an auctioneer.
I also have a couple of questions.

1. When you cut the lock to inventory default unit, did you not try and do some research BEFORE the auction sale date?
2. Did you discuss in length with your property owners regarding this particular unit?
3. Did you discuss in length this car located in the unit prior to the day of auction sale?

[lady5563]

I worked in Baltimore a few years back.
Once had a unit in default.
After cutting the lock, discovered an old car.
It was clearly not running as it had 4 flat tires and noticable missing engine parts.
After doing research, I was instructed to hire an auctioneer and he handled the rest!
yes, we paid a fee but it was $150. well spent!!!!

[BeardStorage]

I own a used car lot as well as a storage business. Here it's against the law to sell a car without a title. You can go thru an insurance company to get a bonded title.

[lady5563]

I am in NJ
A while back we contracted with a tow company.
We had signs made and they are now posted in all of our properties.

The sign states about illegal parking, car will be towed, lists the name, address and phone number of tow yard.

It is my understanding that now that we have these signs posted on our properties, the next time we have a car in auction, we can now just call the tow yard and they tow said vehicle and handle the rest.

I am going to speak to another one of our managers and get some more direction on this matter.