Ownership and Legal Claims on a Car Gifting Arrangement

If your mother buys a car for you and you pay for everything aside from the purchase of the car itself, then who is the owner of said car, and can she take it back and sell it?

The Title Is the Proof of Ownership

The owner is whoever's name is on the title to the vehicle. This is proof of ownership. Not registration, not insurance—title is the key document that dictates who the car truly belongs to.

Legal Ownership and Lien

According to the law, the owner is the person whose name is on the registration, unless there is a lien registered against the vehicle! The details are all in the loan papers and title registration. Whose name is on the title registration? Is it yours, your mother's, or both? Whose name is the loan in? Yours, hers, or a joint co-signed loan?

The Title Registration Determines Ownership

The title registration is the document that determines ownership of the car. However, the loan company has first claim if you don't pay the loan payments. If you, the recipient of the car, have not signed a transfer of ownership, and the title is in your mother's name, the car is not yours regardless of any on-road and maintenance expenses you pay.

Registered Owner vs. Legal Owner

In order for the car to be yours, you would have to have signed your name on the transfer of ownership papers. If your mother gives you the keys but you didn't sign a transfer of ownership, the car is not yours, even if you have paid all other expenses.

What If the Car Is Registered in Your Mother's Name?

If the car is registered in your mother's name, it is her car. She can do whatever she likes with it, whether that means taking it back and selling it or retaining full ownership.

Conclusion

When legal ownership is concerned, the name on the title is crucial. When family is involved, this can create some rather sticky situations. It is always best to have clear documentation and agreements in writing to avoid any misunderstandings or disputes.