[yashg]

Not sure how it works in the US, but in India when sell a car, we have to get the registration transferred to the new owner. Till the new owner doesn't get the car transferred to their name, the old owner is legally responsible for anything that happens due to the car.

Also when we borrow money to buy the car, the hypothecation is recorded on car's registration certificate and ownership records. When the loan is repaid, we have to get it removed by submitting closure documents to authorities.

So like a property transaction, change of title also needs to be recorded in official records.