What are my rights if I was sold a demo (new car) with as it turns out that there are 2 liens on it?

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What are my rights if I was sold a demo (new car) with as it turns out that there are 2 liens on it?

I have already insured it and processed it at the state DMV but the state capital office won’t recognize it.

Asked on November 8, 2012 under General Practice, Missouri

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You should be able to rescind, or void, the sale, returning the car and recovering the money you spent on it. You likely can also recover other costs you have incurred in the meantime, such as insurance. There are three grounds under which you could proceed:

1) Impossibility (this is a contract claim): it is impossible for the seller to give you clean title if there is no clean title (i.e. there are liens);

2) Breach of contract: you paid for clean title; the seller breached the contract by not providing same; and

3) Fraud--if the seller knew, or reasonably should have known, of the liens but concealed those, he would likely be found to have committed fraud.


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