Auto Insurance Claims: auto accident in a car no longer owned by, but still registered to me, motor vehicle department, legal standpoint


Question
Hello --

I sold my car on 9-23 to a friend of a friend.  I signed over the title to him (via the title office) and allowed him to keep my plates so that he could transfer them into his name (I relocated to a different state the next day).  It was our understanding that he would fulfill his end of the paperwork soon after my departure (title signing/ tax paying & registration transfer).  I deposited the check from him for the car purchase.

On Friday, I got a call from the police dept in Cincinnati.  He apparently was in an accident and fled the scene.  The police called b/c the other driver got the plates and the registration is still in my name.  Apparently the new owner is now claiming (with his lawyer) that he is NOT the owner of the car.  

I think there was only property damage, but the police are now calling and threatening that if I don't send them proof of the sale they will have no choice but to charge me as the owner of the car.  Do I have any liability here from a legal standpoint, being that I already signed over the title to him (notarized at the title office), and was living in another state at the time of the accident?  His lawyer is telling me the police are just trying to scare me into giving them info that will allow them to charge him.  I want to be sure I'm doing the smartest thing for me in this situation.

Thank you!!!

Answer
**************************FOLLOW UP***********************
Your comment when rating my answer was a very childlike "put down" from someone who isn't intelligent enough to understand their own state laws regarding transfer of ownership of a vehicle.

Hi Christi,
Simply signing the title over to another party and trusting that they will process the ownership into their name does not release you from responsibility.
Practically every state requires that you complete a Transfer of Owners Interest form and file it with the Motor Vehicle Department (keeping a photocopy for your own records) within 10 days from the date of sale.
I am not familiar with the term 'I signed the title over to him via the title office'.  If this is some kind of a state or legal agency they may have recorded such action.  If so, securing such documentation might let you off the hook.
If you can't provide proof that you actually sold him the car, you are still the registered owner and liable for the damage caused by that car.  The car would be uninsured since you probably have already taken it off your policy.
In cases where the car is uninsured, the driver is responsible for 50% and the owner for 50%.  It's entirely possible that you may have to pay a portion of the damage.
Since your 'so called' friend is denying ownership, you will have every right to take possession of the car, apply for duplicate title papers and properly re-sell the car.
The lawyers ONLY responsibility is to protect his client, he will tell you as many lies as necessary in fulfilling his responsibility to protect his client.It is entirely possible that you may have to hire an attorney to assist you.
I trust this has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area 11-08-07 12:32 PM PST