Holding someone elses property, might they find out?

[tinfoilhat]

I think this is a potentially big problem.

Sold my car to a friend in another state, paperwork is done, she legally owns it. The papertrail is going to lead to her as being the legal owner, she paid me, I deposited the money, etc.

Problem is, she was supposed to drive up to a town a few hours away to visit relatives and get someone to drive her here and pick up the car and eventually drive it home.

Well the trip got delayed, I still have the car.

I could spend approx $1000 to rent a trailer and drive it to her (20 hour drive), or about the same amount to have an auto transport deliver it.

Or take it to my brothers house so I'm not the one holding it.

What should I do? Is there a chance someone might go to her or me to see where it is?

I really don't think they will because I have the paperwork from the sale, but I'm not supposed to be holding someone elses property.

[AngelinaCat]

Storing someone else's property really is not a problem, but this sale could be.

How soon do you think you will be filing? This could be looked at as an 'insider transfer'. If you wait at least six months to file, then it would fall outside of the normal look-back period. This is a good question to ask your new attorney.

Good luck!

[tinfoilhat]

He said the sale is not a problem.
I sold it for FMV, I have reciept of the sale from her state, she paid taxes.
I deposited the same dollar amount into the bank.
I have every reciept of where the money went.

My attorney said the sale is not a problem. He said I could sell it to my brother, as long as it was sold for FMV, and I can prove the dollar amount it was sold for, and I can prove how I spent the money.

And he said it doesn't matter how quickly I spent the money. I asked him this specifically, over the phone two months before I ever expressed interest in hiring him.

[joh]

No one is coming over to your house.

[AngelinaCat]

Then you will be fine. There is no problem at all with storing someone else's property. You may have to declare it in your schedules as being in your possession but belonging to someone else. As Joh said, no one is coming to your house.

[AngelinaCatHub]

There is no problem at all holding another persons property. There is a question on one of the forms (not going to research it) that will ask, are you storing any property belonging to another person. We have a tractor that we did not include as I gave it to my god-daughter who loved it. The caviet was that I could use it but she mows the grass. It was never considered. Now she is gone, I don't know where, so I have the tractor. We did this innocently but a tractor is not titled so I guess possession is 9/10th of the law. 'Hub

[tinfoilhat]

I was asked if I was holding anyone elses property already, he filled out that form.
I said no. I said no because I think a huge red flag is going to pop up if it just happens to be the property I just sold someone.
But hey if no ones coming to the house, no problem I suppose. I don't care if they do actually, just give me a warning of when they're coming.

Or worse yet if they call another state and get an official to verify that the vehicle is in possesion of the owner. I highly doubt they would, or even could do that.

I searched here on the site and came up with one result where the person was asked that question during the 341 (under oath) I was asked during the office visit.
I just don't want it to be repeated.

Other than that I can't think of any other snags I might run into.

[AngelinaCat]

Since that paperwork is already filled out and you said no, don't worry about it, as by now you had expected that property to be picked up. So you answered truthfully. If the question should come up, which is highly unlikely, then say that the original plans for pick-up fell through, and you are waiting for her to come and get it.

But you really need not worry about this.

[justbroke]

The only problem I see, is if the property is still titled in your name, in your State.

Unfortunately, a vehicle's ownership -- or any property for that matter -- doesn't change until a new title/deed is recorded. If she never received a new title, it could get interesting.

[tinfoilhat]

Thats why earlier I mentioned the paperwork.

Sold my car to a friend in another state, paperwork is done, she legally owns it. The papertrail is going to lead to her as being the legal owner, she paid me, I deposited the money, etc.

[tinfoilhat]

To put it another way, I could dump the car on the side of the interstate, if the state came to tow it away and find the legal owner to charge for vehicle abandonment, they would run the VIN and all fingers would point to her. No one would even come to me.

It's done two ways. I tear the perforated top part of the title off and send it to the state saying I sold it and I'm no longer responsible for the car if the new owner never transfered the title.
2. she did transfer the title (I have a copy of it so I could show any attorney proof of sale and price)

[justbroke]

Thats why earlier I mentioned the paperwork.

Paperwork, which I assume to be a contract and/or a bill of sale, does not a title make. I'm just worried, for you, that no title was ever obtained. If you took the current title and signed it over, you're probably okay.

Wasn't trying to get you concerned. Other than that, you are just fine in my book. I didn't know the specific details, and that is what stood out to me. Title issues always come back to haunt people. You appear to have done this properly, so no worries.

[AngelinaCat]

But the title is in her name, right?

[music12]

my confusion is: why on earth did your friend ever buy the car from you if she apparently doesn't even need it, and certainly doesn't use it?

[tinfoilhat]

YES! YES! YES!

Sold my car to a friend in another state, paperwork is done, she legally owns it. The papertrail is going to lead to her as being the legal owner, she paid me, I deposited the money, etc.

I have reciept of the sale from her state, she paid taxes.

she did transfer the title