[kverges]

Feel free to contact me; I have dealt with lost titles (gotten new title issued) and have researched the issue of sales of vehicles in TX as far as title is concerned. I was not sure about the CO stuff above; as far as I know that only applies to sales by manufacturers. Titles themselves are the negotiable instruments for car sales in TX.

The bottom line in TX is very simple. The title itself is the one and only evidence of ownership and unless you have it, properly negotiated to you by (1) the owner; and (2) any lienholder, YOU DO NOT OWN THE CAR. Possession is irrelevant and the car may be repossessed with your only recourse being an action against the "seller" to refund money you paid. Pretty poor recourse if the money is spent.

I would immediately insist on seeing at least a copy of the title to see what is going on. The "seller" might not even be the record owner, there might be a lien, or who knows what is going on. I can say that the "tax" issue sounds spurious to me. Someone (and not the state) has the "blue" title copy. They may want to be reimbursed for taxes or something like that, but someone has that title and they are at present first in line to possess that car. Until you have that figured out, it is impossible to tell how to resolve the problem. Don't wait on this, though, as the "seller" may not have spent all the money and you might be able to get enough back to cover the lien, taxes, or whatever is clouding the title.

I posted this publicly just so folks would know, at least in TX (and I think most states): Never, ever, part with money without a title. Unlike lots of property, possession and having paid in full are no defense when the record owner on the title comes looking for the car.