I Bought A Stolen Car

[Hubert]

From what I've been told by a detective in Denver, a lady purchased a car with a bogus cashiers check, then sold the car(to me).  We don't know who the thief is.  Who has the right to keep the car.  What are the responsibilities of my insurance company, if any(I have comp and collision coverage)?  How about the original owner's insurance?

ANSWER: Hi Ryan, the original seller of the vehicle gets to keep the vehicle.  Unless you purchased the vehicle with a credit card which offers buyer's protection {I know it is a stretch here} your only claim could be to the Crime Victims Compensation Bureau if one exists in your State.  Your insurance will not cover this event nor would any other insurance come into play.  This is a case of "Caveat Emptor" meaning "Let the buyer beware".

---------- FOLLOW-UP ----------

Considering the fact that the car was originally purchased with a fake cashiers check, does that change who is out of luck here.  It seems that there is a possibility that the original seller should have to pursue the first "purchaser" who gave a fake check.  Also, I did get title to the car.  The original seller gave the first "purchaser" the title, which was then passed on to me.  Does that change anything?

ANSWER: Hi Ryan, I do not see how the method of payment changes anything.  The initial seller HAD to sign over the title or else there would not have been a sale.  The only way that the initial seller would have to go after the bogus buyer would be if the vehicle was never found again.  In that scenario he would be out of luck because he would be holding the bad check and no vehicle.  Since the vehicle has been found then he merely gets back the vehicle and is in essence out of the picture.  You on the other hand are stuck with no vehicle which you paid good money for.  Think in terms of the vehicle being stolen and then sold to you.  Since it is now recovered the initial victim gets the vehicle back and it is you who are the victim here.

---------- FOLLOW-UP ----------

The original seller did sign over the title...

[Mosheh]

Hi Ryan, somehow we are not connecting here.  I know that the title to the car was signed over to the bogus check person.  Otherwise there never would have been a sale in the first place!  The fact that the check was bogus means that in effect the vehicle was stolen.  Now it has been recovered.  The original seller gets back the vehicle and is made whole.  You on the other hand are out the money you paid to the bogus check person because you bought property that was not legally theirs to sell.  Put yourself in the original seller's situation and I am sure that you will see where it is that I am coming from.  You might attempt to appeal to the good nature of the original seller to split the value of the vehicle in some way but I do not believe that he has any legal reason to do so.  Follow up on the criminal investigation of the bogus check person and if he or she are apprehended then put a lien on their assets.  You never know!