When a seller sells a car to you, he warrants that he has good title and will give good title to you.
State law requires that the dealer provide title within 30 days of date of sale.
If the purchase price is being financed, the title will note the bank or financing company as the lienholder.
If the seller does not provide title within the required time, the seller has breached the warranty of good title. A seller may be sued for the breach. There are two possible remedies for breach of warranty. It is possible to obtain a judgment directing title to be issued to you. That judgment may be taken to the Texas Department of Motor Vehicles and have title issued. The other option is to cancel the sale and get a judgment for your purchase price.
All car dealers are required to have a dealer’s bond in order to operate as a dealer. The one claim a consumer can make against a dealer’s bond s a claim associated with title. A judgment must be obtained first before making claim on the dealer’s bond.