If you unknowingly sell a car to a private individual who has no license and they get stopped or get in an accident can you be prosecuted?

Answer 1

Dora I don't know how it works in your state but in Nevada yes you can be held liable IF they have failed to obtain a corrected title and place liability insurance by the time a traffic stop or accident occurs.

If their insurance company sold them insurance knowing the insured had no driver license, they are obligated to pay the victim's(s) damages or injuries provided all conditions of the policy were abided.

Remember these things when selling a second hand car to a private party:

1.) ALWAYS cancel your own insurance before parking it to be picked up by a buyer. If you don't, any claims or losses affect your own record even though the other person was driving.

2.) Sign the title over directly to them, and if possible take it to DMV so the title switchover process can begin as soon as possible.

3.) NEVER EVER leave your assigned license plates on a car you sell to another person. If nothing else, if the person is stopped and the police run the plates and Vin through DMV and/or NCIC (which they always do) the vehicle will be impounded for sure and you could be held at least partially responsible.

4.) When selling a car, have them show you a temporary operating permit, evidence of valid liability insurance on the vehicle to be sold, and a valid driver license making sure that all notations match the person(s) in front of you BEFORE YOU GIVE THEM THE KEYS!!!

5.) Provide the buyer with a receipt showing the full amount paid and conditions (if any) that are applicable to the sale.

It may seem a little too formal, but trust me in the long run you have to do what is necessary to protect yourself from the liability involved if there are any problem(s) resulting from their irresponsibility. Good Luck.

In New York, If you sell a car you are legally responsible for that car until the new owner titles/regs. the car in their name. Beware that someone can also reg. a car in their name and the title can be in your name. You should always get a note/letter, signed by the buyer, stating that you sold the car to "John Smith" on the date of the sale and make sure he/she signs it, that way IF anything should happen, you are in the clear. Always, as the above answer states, ask to see their DL. and, insurance card in N.Y.. If they get hairy about this, it should send a red flag to you that something is not right, and you should not deal with this person. Good Luck, Tony.

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Many states now have a stub on the bottom of the title that you as the seller, fill out and send in to the DMV to report that you've sold your car. This is to protect the seller against the deadbeat buyer who never transfers title. The bill of sale is an option also, just make sure you can document that you sold it, and WHEN you sold it.