Re: Auto Sub2 Business - Posted by eric-fl
Posted by eric-fl on April 25, 2002 at 10:58:06:
A couple of things about this trouble me. For one, liability. If you wind up causing an accident and killing someone, you’ll want there to be no doubts about your liability coverage. In this situation, I would want my own policy, not to be listed as an additional insured. On a house, this liability is somewhat different. Yes, the house is in a trust, but even if someone gets hurt, sues and wins, about the worst that will happen is that you’ll lose that one house in that one trust. But in a car, there is a “personal responsibility” issue, i.e., you were the one driving it. Just something to think about.
The other is ownership. On cars, there’s a title, that the bank holds until you pay it off, and there’s a registration, which puts it in your name. Yet, I don’t think a registration is like a deed, per se. When buying subject-to, you are transferring the deed, but I’m not sure where the parallel is with a car, since the bank is holding the title either way. What if you sell the car, or pay it off? How will you get or transfer the title? Maybe your POA and a bill of sale will hold up, but then the bank will know you’ve been making payments the whole time. Maybe they charge you a “retroactive refinancing fee”? Remember, possession is 9/10 of the law, and they possess the title, so you’ll probably have some hoop to jump through eventually to get that from them. Just my thoughts.