What do I do if I sold a car to my brother but his wife wrecked it before we could transfer the title?

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What do I do if I sold a car to my brother but his wife wrecked it before we could transfer the title?

The car had no tag or insurance on it, so she should not have been driving it. Now they say I am liable to the insurance of the person she hit.

Asked on December 26, 2014 under Accident Law, North Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Yes, as the legal owner of the car at the time of the accident, you would be liable for the damage, assuming that sister-in-law was at fault in causing the accident (you and she would only be liable is she was at fault; there is no liability without fault). You in turn could sue your brother and his wife to recover anything that you have to pay out (or other costs you incur)--again, assuming she was at fault in the accident--because an at-fault driver can be held liable for all damage, injuries, costs, etc. she causes, whether it was her car or not.


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