When a car dealership accepts a vehicle with a lost title as a trade-in, is it legal for them to withhold payment on the trade-in vehicle until they receive a new title from the state?

The payoff receipt was provided for the trade-in vehicle to show that there was no lien. It has been 7 weeks since the deal was made and according to the dealership could be another 2 months until they receive the title from the state before they can pay on the trade.

Asked on December 5, 2011 under General Practice, Washington


Michael D. Siegel / Siegel & Siegel, P.C.

Answered 8 years ago | Contributor

Not only is it legal, it is required.

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