After some careful research, Jake decided what kind of car to buy. He made an offer to Mr. Frank, a private party, to buy his car only after searching the registry for any liens. The registry reported that there were no liens registered against the vehicle. The seller accepted his offer of $8,000. After Jake had had the car for only three weeks, the car was seized by a conditional seller. Which of the following is true?
A) If Jake had failed to search the registry, he could not get the car back whether or not the loan transaction had been properly registered.
B) If they have not properly registered the security, the conditional seller has lost all rights and claims.
C) The conditional seller has the right to keep the car for the sole reason that it has title to it and could assert its claim whether it properly registered with the central registry or not.
D) The conditional seller could not keep the car if it had not registered its claim properly.
E) Jake cannot keep the car nor can he complain to the seller, because the seller never said the car was free and clear of liens or encumbrances.
Correct Answer:
Verified
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