The buyer definitely has damages, although I suspect she will still be officially titled as the first owner. Without the MSO, I don't see how Texas would issue a title for the car. Also, a Texas dealer has 20 days to go down and pay the sales tax and consummate the transaction with the state, to get the license plates and a title issued. Most dealers take every second of that time, to keep the interest they might make on the TT&L.
There's no mention of how many miles were put on the car, but I suspect the Texas dealer will want to make this problem go away quickly. I'm thinking $ 5-10K would be a quick and dirty settlement, and then there's the matter of the innocent Texas buyer who bought the car and then had it taken back. He has damages, too. He paid thousands over MSRP for a car, then lost the car. He has damages, too, and he will probably do pretty well out of this. And the buyer will be happy to let it drag on until he gets an equivalent or better car + some cash.
Maybe our resident backwoods country lawyer could weigh in on this? Hey @
lspencer534! Get in here!