If my father passed away and had a used car lot, what is the best way for my mother to sell the remaining vehicles?

UPDATED: Jan 23, 2011

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If my father passed away and had a used car lot, what is the best way for my mother to sell the remaining vehicles?

I contacted the TX Department of Motor Vehicles and was told that no one can sell the vehicles, 7 in all, if they are under business name. They recommended for my mother to get an insurance bond and to submit a change of ownership of a used car lot in order to sell them. Is this correct or can the vehicles be titled under mine, my mother’s, and my sister’s name in order to sell (since the state of TX does not allow people to sell more than 3 vehicles in a year without having a dealer license).

Asked on January 23, 2011 under Business Law, Texas


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

I am so sorry for your loss.  I think that what you are thinking about doing is to probate the estate and divide the vehicles amongst the three of you as the beneficiaries of the estate in order to get around the rule you spoke of.  But it not not clear that you ill be able to do that.  I am sure that Texas requires that you hold a dealership license in order to sell used cars. And I am sure that your parents had other assets that were jointly held.  So all of this will need to be determined. I would speak with an estate attorney in your area to see if the way to go is the way that the Texas DMV said.  Is your Mother the personal representative of the estate?  The personal Representative will have the power to act on behalf of the estate.  Good luck to you.

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