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Buying used car from Private seller question about title / lien?

I have found an used car I love and am planning to buy it. The owner had to move overseas before he got it sold and his having a work colleague handle the sale. The colleague has Power of attorney according to the owner. I have only spoke the to owner via email up to this point but everything is going very smoothly. The owner has had the car 2 years and a "loan or lien" was issued according to the carfax report. The work colleague has the title in hand as well. I want to make sure there no lien on the car. Does holding the title cover that? Also, should I verify the power of attorney status? So far I fell good about the transaction but it is a little weird not speaking with the owner in person or on the phone.

Public Comments

1. if there is a loan on the car, the loan company holds the original title until the loan is paid off. it's probably a title of memorandum, which allows the owner to get tags for the car. it could be a scam. if you really want this car call the bank which holds the loan.
2. As stated above, it may not be a 'real' title. You need to be very carefull about that. Check with your DMV or a friend to find out about your state. How can you verify the power of attorney? You don't have proof that you are buying it from the owner. So far, I feel funny about this deal. You could request that the colleague go to your DMV with you and complete this transaction. They will have the final say-so, anyway and they can spot a problem before you hand over your money.
3. In the USA, in most states, holding the title does not mean there still is not a lien on the car. Just because he has the title, does not mean there isn't a lien holder. The title will list any lien holder. If the title shows a lien holder, the seller will have to provide you with a lien release ( a separate document). You should also insist on getting a copy of the friends power of attorney. If I were the buyer, I would go to the DMV WITH the friend and see if all is in order before handing over 1 cent. I would do the transaction only after everything has been checked out.