Yes, in fact the dealer sold you a car he did not legally own, This is illegal in many states, the dealer is to have the title on site and merely sign it over when you pay in full, or send it to the lien holder and so on.
So this dealer is doing somehting illegal, it sounds like they bought this at auction and they were waiting for the title to come in, they are responsible for supplying a clear title, So if you signed the paper work and a full price decided, you don't owe any more money.
The dealer needs to pay this and provide you a title or give you all your money back.
If he does not supply a clear title very soon, yes you need an attorney.
You cannot legally title or register your vechile, get a tag and so on.
Without this paper work.
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